PCAOB to defend itself from legal challenge
Attack from lobby group may reach Supreme Court
The Public Company Accounting Oversight Board (PCAOB), the independent
watchdog of the US accounting profession, says it will defend itself vigorously
against any legal challenge mounted against its authority granted under the
Sarbanes-Oxley Act.
This claim comes as attorney Kenneth Starr, the famed prosecutor in the
Monica Lewinsky investigation, said his actions on behalf of Conservative
pro-business group, the Free Enterprise Fund, to challenge the legality of the
PCAOB could go all the way to the Supreme Court.
AP reported that Starr would launch a constitutional challenge to the
corporate governance rules which came about following Enron and WorldCom.
The Free Enterprise Fund is challenging the PCAOB’s power under
Sarbanes-Oxley to oversee the accounting industry, arguing that it violates the
US Constitution.