After the Enron scandal, Congress passed measures aimed at bringing more transparency to corporate financial structures though an array of auditing and disclosure requirements. That law, known as Sarbanes-Oxley, has since become the bane of the existence of many auditors and corporate attorneys who say the rules are onerous and costly.
Now, that law is being challenge in a petition to the Supreme Court urging the justices to decide whether the agency created to enforce Sarbanes-Oxley regulations, the Public Company Accounting Oversight Board, has the constitutional authority to do so.
In a certiorari petition, which can be found here, care of the folks at SCOTUSBlog, former White House special prosecutor Ken Starr and other counsel argue on the petitioner’s behalf that the setup of the federal agency violates the Appointments Clause of the constitution. The setup, Starr alleges in the petition, vests the PCAOB with executive powers, yet the President is powerless to appoint or remove its members.
More here from SCOTUSBlog.