In a decision that could lower costs for small businesses, the Supreme Court ruled against part of the Sarbanes-Oxley law, saying that an audit panel created in the aftermath of WorldCom and Enron violates the Constitution.
The U.S. Supreme Court ruled that Congress violated the Constitution when it set up an auditing board after the Enron Corp. and WorldCom Inc. collapses, saying the panel was too insulated from presidential control.
(Reuters) - When Peregrine Financial collapsed earlier this month, a nagging question resurfaced. As in the implosion of Lehman Brothers, the fall of Bernard Madoff and other cases in recent years, many asked: Where were the accountants? That this question still arises could be seen as an indictment of the 2002 Sarbanes-Oxley law, enacted 10 years ago on Monday. The law was a response to accountants' failures to sound the alarm about financial misconduct at Enron Corp, WorldCom and a host of other companies. But, lawyers and analysts say that for the most part Sarbanes-Oxley is working. ...
WASHINGTON (Reuters) - The Supreme Court on Monday struck down part of a law to prevent fraud committed by companies like Enron and WorldCom, saying a board to police public companies' auditors violated the Constitution.
WASHINGTON (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.
A small Nevada accounting firm and an anti-tax group brought the challenge to the 2002 Sarbanes-Oxley law, arguing that the board created by the law violates the Constitution's separation of powers mandate because the president cannot appoint or remove its members.» E-Mail This » Add to Del.icio.us
Outside accountants and lawyers who reveal fraud and wrongdoing at companies are protected just as employees, the Supreme Court rules.WASHINGTON — Outside accountants and lawyers who reveal fraud and wrongdoing at publicly traded companies are protected as whistle-blowers just as employees are, the Supreme Court ruled, expanding the reach of an anti-fraud law passed in the wake of the collapse of companies such as Enron Corp.