US judge throws out case challenging PCAOB

A Washington federal judge has dismissed a case brought by a business lobby
group challenging the constitutionality of the US accounting oversight body.

The group, the Free Enterprise Fund, filed the suit in February last year,
arguing that the Public Company Accounting
Oversight Board
violates the Constitution’s mandated separation of powers
among the three federal branches. This is because its five members are not
appointed by the president, cannot be removed by him and because Congress does
not control the organisation’s budget.

However, Judge James Robertson has written a judgement in favour of the
board, stating that ‘the plaintiffs have brought a facial challenge to the
PCAOB, presenting nothing but a hypothetical scenario of an over-zealous or
rogue PCAOB investigator.’

Kenneth Starr, co-counsel for the group, said in a news release that they
would continue to press through with their cause in the Court of Appeals and the
Supreme Court, the Daily Report online reported.

The PCAOB said it was pleased with the decision and looked forward to
‘continuing to fulfil the mandate given by Congress to protect the interests of

Further reading:

dismisses lawsuit challenging constitutionality of accounting oversight board

PCAOB slams Big Four audits

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