FTX’s Downfall Couldn’t Have Happened Without SBF’s Fraud – Or Prager Metis’ Audit Failure

At a minimal, auditing requirements require that auditors perceive the entity and its setting, that it has the competence and independence to carry out the audit, and that it can not successfully workers the audit. These requirements apply whether or not the audit consumer is a brand new buyer, a small native thrift retailer, or a multi-billion greenback cryptocurrency alternate with an affiliated buying and selling agency.

New York-based Prager Metis stormed into the latter area with abandon. The corporate was the primary to announce a metaverse headquarters in Decentraland. The corporate took on FTX as a buyer. Apparently it needed to be seen because the accounting agency of the long run. And but, because the SEC has argued, the fundamental understanding and competence to police the trade was missing.