RegulationAccounting StandardsPCAOB takes steps to protect status

PCAOB takes steps to protect status

Legality of Conservative lobbying group questioned

The Public Company Accounting Oversight Board (PCAOB), under attack over its
legitimacy from an anti-Sarbanes-Oxley lobbying group, has filed a motion to
dismiss the constitutional challenge to its legality.

The Free Enterprise Fund, a coalition of Conservative pro-businesses, has
called the formation of the PCAOB unconstitutional and is seeking to have it
terminated.

But in a filing in a US District Court in Washington, the PCAOB said that the
Free Enterprise Fund lacked legal standing because it didn’t allege sufficient
injury.

The PCAOB motion also alleges that the group failed to follow provisions of
the Sarbanes-Oxley Act requiring board decisions to be appealed to the courts
only after the Securities and Exchange Commission rejected the appeal.

The Free Enterprise Fund claims Sarbanes-Oxley, brought in after the debacle
of Enron, to improve corporate governance and enforced by the PCAOB, is unduly
harsh on business and is hurting America’s competitiveness.

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