US court upholds Public Accounting Oversight Board
WASHINGTON, Aug 22 (Reuters) - A federal appeals court has upheld the validity of the national board overseeing the audit industry, rejecting a challenge by a conservative activist group.
The U.S. Court of Appeals for the District of Columbia Circuit ruled on Friday that the law creating the Public Company Accounting Oversight Board "does not encroach upon" the Constitution nor does it violate the separation of powers clause.
In 2006 the Free Enterprise Fund and a small audit firm filed a lawsuit seeking to shut down the PCAOB on constitutional grounds.
The fund contended that the PCAOB violates separation of powers principles as a semi-government agency lacking proper checks and balances. (Reporting by Kim Dixon, editing by Gerald E. McCormick) ((kim.dixon@thomsonreuters.com; +1 202 354 5864))
