File this one under “Was there ever any doubt?”
Remember the lawsuit a while back that claimed the Public Company Accounting Oversight Board is unconstitutional? It seemed a bit far-fetched at the time, and it seems even moreso now that a federal appeals court has ruled that the PCAOB is, indeed, constitutional.
The decision by the U.S. Court of Appeals for the District of Columbia Circuit can still be appealed. The SEC and the PCAOB, though, are celebrating the news as a victory.
In a written statement, the PCAOB said it was “gratified” by the decision. SEC Chair Christopher Cox, meanwhile, called it “welcome news for the Commission, investors and U.S. capital markets.”
“The Commission believes that the PCAOB is a highly effective organization whose continued existence is vital to protecting investors and furthering the public interest in the preparation of accurate and informative audit reports,” Cox said.
Do you agree with the decision? Are reforms on the horizon for the PCAOB and the Sarbanes-Oxley Act anyway?