One normally relies on auditors. But if the auditor issues a false audit report and then tries to cover it up, what happens?
“Brazil Arm to Pay $8 Million Penalty,” The Wall Street Journal, December 6, 2016 B8. Foreign affiliate of Deloitte Touche paid a fine to the Public Company Accounting Oversight Board for such conduct, after also failing to cooperate with the investigation. Deloitte reportedly replaced management at the affiliate.
Did Deloitte fail to adequately supervise its affiliate? Who at the parent will get disciplined? Who’s your auditor?