Trusted Foreign Auditing Act of 2025

House Votes

This bill aims to protect U.S. investors by tightening audit oversight for companies and audit firms tied to certain foreign countries. It creates a new category called a “compromised auditor,” meaning a branch or office of an audit firm that is under the control or influence of a “covered country,” or has ties to that government or a political party that could harm the auditor’s independence. A “covered country” includes any country named as a national security threat in the most recent Annual Threat Assessment, or any “covered nation” under federal law. If a public company based in a country of concern uses a compromised auditor to prepare its audit, a trading ban described in existing law would apply to that company’s securities. Overall, it amends the Sarbanes-Oxley Act to increase transparency when foreign governments block audit inspections.

The bill also updates when audit oversight hearings can be public. These hearings would stay closed unless a compromised auditor used by a covered issuer is a party to the hearing, or the oversight board orders it for good cause with the parties’ consent.

Key points

• Who is affected: Public companies with ties to countries identified as security threats, and audit firms with branches in those countries.
• What changes: New definitions for “compromised auditor” and “covered country,” a potential trading ban if such an auditor is used, and tighter rules on when oversight hearings are public .
• Timing: The provided text does not state effective dates.