A topic that has received scant attention lately has been the constitutional challenge to the PCAOB, the board designated to oversee auditors of public companies.
Back in the era when nothing in Sarbanes Oxley seemed acceptable, a constitutional challenge to the PCAOB was lodged, with Kenneth Starr (of Whitewater fame) and The Free Enterprise Fund leading the charge. Suffice it to say that not all has gone well for the plaintiffs. In granting summary judgment for the PCAOB, Judge Robertson in the District of Columbia had this to say:
- "The plaintiffs have brought a facial challenge to the PCAOB, presenting nothing but an hypothetical scenario of an over-zealous or rogue PCAOB investigator. They have not responded to defendants' argument that, if such a scenario became real, the SEC could change the rules to prevent improper investigations or remove PCAOB members for "good cause." They have failed, in other words, to demonstrate that "no set of circumstances exists under which the Act would be valid," and judgment must accordingly be entered for the defendants." (citation omitted).
The posts will be in the button to the left of this page. We have included two posts by one of the students on this blog, Vaughn Marshall. Special thanks to Robert Anderson who helped in the editing process for these posts. We will add more posts in this area later, with Kevin O'Brien, from the Daniels School of Business taking the lead on the issue.