View all text of Subchapter IV [§ 7261 - § 7266]
§ 7265. Disclosure of audit committee financial expert
(a) Rules defining “financial expert”
(b) ConsiderationsIn defining the term “financial expert” for purposes of subsection (a), the Commission shall consider whether a person has, through education and experience as a public accountant or auditor or a principal financial officer, comptroller, or principal accounting officer of an issuer, or from a position involving the performance of similar functions—
(1) an understanding of generally accepted accounting principles and financial statements;
(2) experience in—
(A) the preparation or auditing of financial statements of generally comparable issuers; and
(B) the application of such principles in connection with the accounting for estimates, accruals, and reserves;
(3) experience with internal accounting controls; and
(4) an understanding of audit committee functions.
(c) Deadline for rulemakingThe Commission shall—
(1) propose rules to implement this section, not later than 90 days after July 30, 2002; and
(2) issue final rules to implement this section, not later than 180 days after July 30, 2002.
(Pub. L. 107–204, title IV, § 407, July 30, 2002, 116 Stat. 790.)