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That still doesn’t prove that accounting audits should prevent a bank run. The more likely culprit here is what the FDIC called out in its report, namely a fail
by swalling 3y ago
That still doesn’t prove that accounting audits should prevent a bank run. The more likely culprit here is what the FDIC called out in its report, namely a failure of oversight and a loosened regulatory regime.
- belter 3y agoNot entirely. Also from the article: "...The Fed’s report last week revealed the extent of weaknesses in SVB’s risk management and internal audit functions, both of which need to be assessed by a company’s external auditors. Jeffrey Johanns, a former PwC partner who teaches auditing at the University of Texas at Austin, said that could raise a question of whether KPMG should have highlighted these failings to investors as material weaknesses that could affect the financial results..."