Justices Uphold Sarbanes-Oxley Act

[groovedaddy]

The first group established by Congress to regulate the accounting industry survived a constitutional challenge on Monday, emerging only with its members having a little less job security.

But the Public Company Accounting Oversight Board still faces a major problem of dealing with a number of foreign countries that refuse to cooperate with it. And it is soon likely to get a majority of new members, perhaps including — for the first time — an auditor who has experience being regulated by the board.

In its ruling, the Supreme Court unanimously rejected a challenge to the constitutionality of the Sarbanes-Oxley Act of 2002, which established the board and sought to reform corporate America after the Enron and WorldCom accounting scandals.

A small accounting firm and a group called the Free Enterprise Fund had asked the court to rule the Public Company Accounting Oversight Board was illegal because it was appointed by the Securities and Exchange Commission, rather than the president.

http://www.nytimes.com/2010/06/29/business/29accounting.html?th&emc=th

[harun]

1. Good.