PCAOB fate decided by supreme court

A supreme court decision which could decide the constitutionality of the US
audit regulator and trigger wide-ranging audit reform, is due to be handed down

A challenge to the constitutional underpinnings of the Public Company
Accounting Oversight Board (PCAOB) will be decided today by America’s highest
court, which, if successful, could lead to the landmark Sarbanes Oxley Act being

The technical case questions whether the PCAOB should exist under the US
separation of powers principle because its board members are not appointed by
the president.

If court rules against the board, some fear it will offer the US congress a
chance to revisit Sarbanes Oxley. It’s understood the PCAOB has contingency
plans in place which may see auditors regulated within a branch of the US
regulator, the Securities and Exchanges Commission, if the case goes against the

Further reading:

Court to Hear Case on PCAOB Constitutionality

Appeals PCAOB Case to Supreme Court

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