The main lessons from SVB’s collapse surround the board’s poor risk management and banking supervisors’ failures. But there may well be lessons on audit quality too. The US Securities Exchange Commission and the Public Company Accounting Oversight Board should be asking if auditors have sufficient understanding of banking business models to provide a useful supporting narrative to the numbers. They should ask whether there may have been independence failings here and, either way, put audit-firm rotation back on the agenda – never mind the industry pushback.
Source: Why Was KPMG Still Auditing Silicon Valley Bank? – Bloomberg
