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

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

4d Alia Shoaib, Reporter
PwC pay gap review finds “no evidence of gender bias” at BBC

Audit PwC pay gap review finds “no evidence of gender bias” at BBC

2w Alia Shoaib, Reporter
Shareholders bring lawsuit against Steinhoff and Deloitte

Audit Shareholders bring lawsuit against Steinhoff and Deloitte

2w Alia Shoaib, Reporter
Carillion collapse: FRC to investigate KPMG over audit work

Audit Carillion collapse: FRC to investigate KPMG over audit work

3w Alia Shoaib, Reporter
Former KPMG partners charged over PCAOB data leaks

Audit Former KPMG partners charged over PCAOB data leaks

4w Alia Shoaib, Reporter
PwC’s slapped with 2 year audit ban in India

Audit PwC’s slapped with 2 year audit ban in India

4w Alia Shoaib, Reporter
PwC found negligent by US judge over Colonial Bank's $2bn fraud

Audit PwC found negligent by US judge over Colonial Bank's $2bn fraud

2m Alia Shoaib, Reporter
Deloitte South Africa investigated over Steinhoff audits

Audit Deloitte South Africa investigated over Steinhoff audits

2m Alia Shoaib, Reporter