Case Study:
Free Enterprise Fund v. Public Company Accounting Oversight Board
Question 1. Read "Case 15.3 Free Enterprise Fund v. Public Company Accounting Oversight Board" in Ch. 15 of the text. You may also review scholarly resources and news article discussing the case.
Write a paper of 1000-1200 words in which you answer the following:
1. What is the constitutional issue in this case?
2. If auditing of financial statements is required for the protection of public company investors, shouldn't all PCAOB members come from the investment community that uses audited financial statements? Why or why not?
3. How does the decision in this case impact the validity of the PCAOB and other provisions of the Sarbanes-Oxley Act?
4. How can businesses use this case to challenge administrative agency actions in the future?