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The U.S. Supreme Court has agreed to hear a case, which could decide the fate of the 2002 Sarbanes-Oxley act. The court says it will preside over the case in which a U.S. advocacy group is claiming that the act and its Public Company Accounting Oversight Board are unconstitutional.
The case centers around an accounting firm from Nevada, which objected to the board. The case is also being backed by advocacy group Free Enterprise Fund.
If the court agrees with the plaintiffs, the ruling could imperil the Sarbanes-Oxley legislation, which was passed in 2002 in the wake of the Enron scandal. The aim of the law was to force companies to adopt a more trustworthy and transparent approach in their accounting practices.
Source: CIO Today
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