Auditor Suits Threaten to Hobble Regulator’s Enforcement Powers

Three lawsuits working their way through federal courts threaten to disarm the US audit board of its powers to police auditors responsible for vetting the financial accounts of US companies worth trillions in market value.

Two anonymous accountants and an unnamed accounting firm have challenged the Public Company Accounting Oversight Board’s enforcement authority. They contend the board’s confidential disciplinary proceedings violate plaintiffs’ constitutional rights to a jury trial and due process.

The challengers argue in part that the Supreme Court’s logic in its Jarkesy v. SEC ruling should apply to the PCAOB. The high court’s June ruling requires the ...