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

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