Tuesday, February 07, 2006

Is the PCAOB Unconstitutional?

An unnamed small CPA firm, in conjunction with a libertarian think-tank, is considering a lawsuit asking that the Public Companies Accounting Oversight Board be declared unconstitutional. The rationale provided by the Competitiveness Enterprise Institute (CEI) , include the manner of selecting board members and structure does not meet constitutional muster. Surprisingly at this point, there is no present challenge to the fees paid to the PCAOB as an unconstitutional form of tax.

Personal guess: Given the Kelo ruling last summer and the ruling on the McCain-Feingold campaign contribution legislation, CEI has almost no chance. Should the case reach the Supreme Court, it could be an interesting test of the philosophies of new Justices Alito and Roberts.

Update: An article in Business Week (http://www.businessweek.com) states that the Free Enterprise Fund has become involved, the CPA firm is in Henderson (suburban Las Vegas), Nevada; that another complaint is lack of accountability and that Ken Starr of Monica Lewinsky fame is one of the potential attorneys for the plantiffs.


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