Today, a three-judge panel of the D.C. Circuit Court of Appeals handed down a much-anticipated 2-1 decision in Free Enterprise Fund v. PCAOB. The panel, in my view, reached the wrong conclusion, holding in essence that the PCAOB can rule over the world of U.S. accounting and auditing while immune from constitutional checks and balances. The crowning irony is that the PCAOB, supposedly designed to promote accountability, is itself so unaccountable for its actions.
Likely, the case will be reheard en banc and/or decided by the Supreme Court. Meanwhile, the best, most coherent reading is found in Judge Kavanaugh’s eloquent 57-page dissent: Continue reading