Regulators must provide more oversight to improve overall quality of audit

Investor wealth has evaporated in recent cases

An audit firm dealing with a listed company wrote to it recently for clarification on certain items. They followed up numerous times over the course of the next few weeks. But the replies they received either didn’t answer the questions or raised new ones. The discomfort grew.

They met with senior management and said they would resign. After some more back and forth, they finally did.

The above is a story that played out in one firm but may have been repeated in others in recent weeks. Such actions are said to serve as a warning on dodgy accounting practices. However, there