SCOTUS: Sarbanes-Oxley Auditing Board is Unconstitutional

(Reuters) – The Supreme Court struck down on Monday part of the 2002 law that created a national board to police auditors of public companies, ruling that it violated the constitutional requirement on the separation of powers among the branches of government.

The high court’s ruling on the Public Company Accounting Oversight Board (PCAOB) could put pressure on Congress to revisit the Sarbanes-Oxley corporate reform law, opening it up for potential changes in the reporting duties of companies.

 

(Reporting by Rachelle Younglai and James Vicini; editing by Gerald E. McCormick.)