“Today the U.S. House took a giant step forward in efforts to protect both workers and investors,” Larsen said.   “Our economy cannot afford to take another hit like Enron.”  

Larsen added, “When it comes to Enron, I do not want to see history repeat itself.”

Currently, independent auditors do not prepare financial statements for a company.  The Corporate and Auditing, Responsibility and Transparency Act (H.R. 3763) would create a Public Regulatory Organization to oversee the activities of accountants who audit publicly traded companies.  

The bill would also require the U.S. Securities and Exchange Commission to review the financial statements of each publicly traded company at least once every three years, and it would call for corporations to promptly disclose anything that affects their financial health or operations.

The bipartisan measure passed overwhelmingly, 334 to 90.  Before the bill becomes law, the Senate must first approve it.