In general, standard corporate audits aren’t intended to be intelligible by consumers but instead by investors and regulators. It’s shocking that FTX’s regulator in the Bahamas apparently did not require a clean audit opinion addressing internal controls, and maybe no US regulator required it for FTX US either.
At present, my #2 on who to blame (after FTX insiders in the know) is the regulators. It’s plausible the auditors did what they were hired to do and issued opinion letters making it clear what their scope of work was in ways that were legible to their intended audience. I can’t find any plausible excuse for the regulators.
That makes sense. It is really shocking. I agree on blaming regulators [although I don’t give others a pass].
[I think a section on regulations def belongs from the POV of improving world models too. Before I added my long thinking-out-loud footnote, I didn’t realize just how much it all points at regulators as the original permissiveness break.]
In general, standard corporate audits aren’t intended to be intelligible by consumers but instead by investors and regulators. It’s shocking that FTX’s regulator in the Bahamas apparently did not require a clean audit opinion addressing internal controls, and maybe no US regulator required it for FTX US either.
At present, my #2 on who to blame (after FTX insiders in the know) is the regulators. It’s plausible the auditors did what they were hired to do and issued opinion letters making it clear what their scope of work was in ways that were legible to their intended audience. I can’t find any plausible excuse for the regulators.
That makes sense. It is really shocking. I agree on blaming regulators [although I don’t give others a pass].
[I think a section on regulations def belongs from the POV of improving world models too. Before I added my long thinking-out-loud footnote, I didn’t realize just how much it all points at regulators as the original permissiveness break.]