March 15, 2023
Going Concern recently published an article featuring Mark Williams, Master Lecturer of Finance, on the collapse of Silicon Valley Bank and Signature Bank, and the criticism KPMG auditors are receiving.
Auditors primary function is not to guarantee assurance, rather to provide reasonable facts and knowledge on a circumstance like this. KPMG argues that the aftermath of the issued audits was unpredictable, ultimately leading to this collapse. However, many argue that both the banks CEO and CFO should have taken measures to protect their lending and depositing customers.
Mark emphasizes this point, adding that, “The board-appointed risk management committee, which works closely with the CFO, should have done adequate scenario analysis to examine the deposit withdrawal risk. That, in fact, was the bank’s downfall.”
This recent news has left the public questioning the value of audits, and who is to blame for these events.