RSS feedsA Washington federal judge has dismissed a case brought by a business lobby group challenging the constitutionality of the US accounting oversight body.
The group, the Free Enterprise Fund, filed the suit in February last year, arguing that the Public Company Accounting Oversight Board violates the Constitution's mandated separation of powers among the three federal branches. This is because its five members are not appointed by the president, cannot be removed by him and because Congress does not control the organisation's budget.
However, Judge James Robertson has written a judgement in favour of the board, stating that 'the plaintiffs have brought a facial challenge to the PCAOB, presenting nothing but a hypothetical scenario of an over-zealous or rogue PCAOB investigator.'
Kenneth Starr, co-counsel for the group, said in a news release that they would continue to press through with their cause in the Court of Appeals and the Supreme Court, the Daily Report online reported.
The PCAOB said it was pleased with the decision and looked forward to 'continuing to fulfil the mandate given by Congress to protect the interests of investors.
Further reading:
Judge dismisses lawsuit challenging constitutionality of accounting oversight board
