PracticeAuditPCAOB fate decided by supreme court

PCAOB fate decided by supreme court

Verdict handed down following challenge to constitutionality of audit regulator

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
today.

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
overturned.

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
PCAOB.

Further reading:

Supreme
Court to Hear Case on PCAOB Constitutionality

Group
Appeals PCAOB Case to Supreme Court

Related Articles

Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

Audit Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

4d Emma Smith, Managing Editor
PCAOB sanctions former Deloitte Turkey CEOs over altered documents

Audit PCAOB sanctions former Deloitte Turkey CEOs over altered documents

1w Alia Shoaib, Reporter
KPMG South Africa to review past audit work amid fresh scandal

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

1m Alia Shoaib, Reporter
FRC introduces £10m sanctions for Big Four firms

Audit FRC introduces £10m sanctions for Big Four firms

1m Alia Shoaib, Reporter
Ukraine’s PrivatBank files $3bn claim against PwC

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

2m 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

2m Alia Shoaib, Reporter
Big Four dominate FTSE 250 audit market in Q1 rankings

Audit Big Four dominate FTSE 250 audit market in Q1 rankings

3m 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

3m Alia Shoaib, Reporter