auditors are unfairly criticised
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The dramatic collapse of the cryptocurrency exchange FTX comes just
a few months after auditors from the Trump Organization resigned
asking us to stop placing reliance on 10 years of previously audited
accounts.
In the bankruptcy filings for FTX the new CEO suggests FTX is full
of "inexperienced" executives and demonstrates a "complete failure of
corporate controls," including allegations of financial impropriety.
The Year 2022 has indeed been characterized by significant audit
failures and auditors have been blamed for such spectacular collapse
of corporate governance. Some critics suggest that audit practices are
inherently rigid, and the methods too obscure to have mitigated these
failures. Others argue that auditors are unfairly criticised. Where do
you stand? Justify your answer with sound reasoning.
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