PracticeAuditPCAOB survives US Supreme Court decision

PCAOB survives US Supreme Court decision

US audit watchdog remains intact after constitutional challenge

The US audit watchdog has survived a court challenge which threatened to
overturn the regulator landmark US legislation born out of the Enron scandal.

Under the ruling, handed down by the US Supreme Court yesterday, the audit
industry regulator, the Public Company Accounting Oversight Board (PCAOB), will
continue to operate, however its board members will be removable by the US
securities regulator “at will” rather than for “good cause”.

Critically, the 5-4 ruling keeps the board’s primary functions in tact and
allows it to continue operating. It was feared the board’s demise have opened
the door to new legislation which could include far ranging reform for auditors
and the financial services industry.

In a statement, PCAOB Acting Chairman Daniel Goelzer welcomed the decision.

“We are pleased that the decision allows the PCAOB to continue without
interruption to carry out its important mission of overseeing public company
audits in order to protect investors and promote the public interest,” he said.

Further reading:

Decision
in Free Enterprise Fund v. PCAOB

Accounting
watchdog wins court reprieve

Related Articles

KPMG South Africa to review past audit work amid fresh scandal

Audit KPMG South Africa to review past audit work amid fresh scandal

5d Alia Shoaib, Reporter
FRC introduces £10m sanctions for Big Four firms

Audit FRC introduces £10m sanctions for Big Four firms

2w Alia Shoaib, Reporter
Ukraine’s PrivatBank files $3bn claim against PwC

Audit Ukraine’s PrivatBank files $3bn claim against PwC

3w Alia Shoaib, Reporter
Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

Audit Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

3w Alia Shoaib, Reporter
Big Four dominate FTSE 250 audit market in Q1 rankings

Audit Big Four dominate FTSE 250 audit market in Q1 rankings

2m Alia Shoaib, Reporter
Deloitte to pay $149.5m over Taylor, Bean & Whitaker audit failure

Audit Deloitte to pay $149.5m over Taylor, Bean & Whitaker audit failure

2m Alia Shoaib, Reporter
Carillion inquiry: missed red flags, aggressive accounting and the pension deficit

Audit Carillion inquiry: missed red flags, aggressive accounting and the pension deficit

2m Alia Shoaib, Reporter
Deloitte’s audits of Hezbollah-linked bank to be examined by Dubai court

Audit Deloitte’s audits of Hezbollah-linked bank to be examined by Dubai court

2m Alia Shoaib, Reporter