Sarbox court challenge steps up

Most people in Washington, from both parties, are in favor of some sort of Sarbox reform. A less-heard argument is that the basic structure of Sarbox is unsound, the PCAOB is unconstitutional, and the whole law should be scrapped. It might seem far-fetched position, but last month a judge in U.S. District Court for the District of Columbia started hearing arguments in a Sarbox case filed by a fund that supports conservative causes and an accounting firm. The suit basically says the Public Company Accounting Oversight Board lacks accountability and that the Sarbanes-Oxley unconstitutionally created it. It argues that the constitution requires key executive branch officials to be appointed by the president. The larger goal of the plaintiffs seems to be to scrap the law in its entirety. I am not sure if this would do companies any favors. Most people have made their peace with the law, though they support modifications.

For more:
- here's a article from law.com