Wirecard $2bn fraud

[LLCoolL]

@glowacks

And it’s impossible to state enough the problem wherein corporations choose (who) audits them and thus firms have incentive to cut corners and get the “right” answer. There simply is too large of a conflict of interest between accounting firms and their audit clients that can be easily remedied in the current way of doing things. If a company knows it’s lying, it’s not going to choose an auditor that uncovers the truth.

There’s an analogous conflict of interest for the ratings agencies (e.g., Moody’s, Fitch) with respect to evaluating bond risk, credit risk, etc., for any financial institution they work for. I don’t know if there is any way to resolve this.