And it makes you wonder why companies would go to these known-worse-auditors, especially if they can afford the best auditing like FTX should have been able to, if they don’t have something to hide.
Complying with an audit is expensive, and not just in money.
A thorough audit in progress is going to disrupt the workflow of all or most of your company in order to look at their daily operations more closely. This reduces productivity and slows down the ability to change anything, even if nothing improper is happening. It is expensive and disruptive.
A thorough audit is also going to recommend changes. Not just changes required to be technically in compliance, but ones which will make it easier to audit for compliance in the future and ones which remove something that could potentially be mistaken for bad behavior in a dim light. Making those changes is expensive and disruptive.
If you don’t need extremely high levels of trust from your customers and partners, choosing to receive a thorough audit means you’re paying a bunch of unnecessary costs. Much better to get a more lax audit, which is less disruptive to have ongoing and less disruptive to handle once the results are in. Better still if it also costs less money.
The correct audit is the one that provides your customers and clients—and/or your own management—with exactly as much trust and reassurance as you need them to get and no more. Anything less and you lose business that doesn’t trust you; anything more and you’re paying a cost for a benefit you don’t actually benefit from.
Corporations have their own legal personhood; it’s difficult to see how the corporation’s interest could be served by such a shoddy audit that failed to detect apparently unsophisticated, and certainly massive, raids on the corporate fisc by insiders.
Also, the only known raids on the corporate assets happened post-crash and therefore long post-audit. Under the espoused worldview of the management, everything before that was plausibly ‘good for the company’. In that it benefitted the company in raw EV across all possible worlds with no discount rate for higher gains or for massive losses.
Complying with an audit is expensive, and not just in money.
A thorough audit in progress is going to disrupt the workflow of all or most of your company in order to look at their daily operations more closely. This reduces productivity and slows down the ability to change anything, even if nothing improper is happening. It is expensive and disruptive.
A thorough audit is also going to recommend changes. Not just changes required to be technically in compliance, but ones which will make it easier to audit for compliance in the future and ones which remove something that could potentially be mistaken for bad behavior in a dim light. Making those changes is expensive and disruptive.
If you don’t need extremely high levels of trust from your customers and partners, choosing to receive a thorough audit means you’re paying a bunch of unnecessary costs. Much better to get a more lax audit, which is less disruptive to have ongoing and less disruptive to handle once the results are in. Better still if it also costs less money.
The correct audit is the one that provides your customers and clients—and/or your own management—with exactly as much trust and reassurance as you need them to get and no more. Anything less and you lose business that doesn’t trust you; anything more and you’re paying a cost for a benefit you don’t actually benefit from.
Corporations have their own legal personhood; it’s difficult to see how the corporation’s interest could be served by such a shoddy audit that failed to detect apparently unsophisticated, and certainly massive, raids on the corporate fisc by insiders.
Also, the only known raids on the corporate assets happened post-crash and therefore long post-audit. Under the espoused worldview of the management, everything before that was plausibly ‘good for the company’. In that it benefitted the company in raw EV across all possible worlds with no discount rate for higher gains or for massive losses.
That wasn’t the question. The question was why any company would go to less-than-maximally-trustworthy auditors.