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US Audit Board’s Hands Tied in Responding to FTX Collapse

Nov. 29, 2022, 11:07 PM

The leader of the US audit board warned investors Tuesday to be wary when companies such as collapsed crypto exchange FTX tout that they’ve hired an accounting firm registered with the board because it doesn’t guarantee a quality audit.

FTX was not a public company, and the board had no authority to review its audits even as the regulator has prioritized inspections of audits involving cryptocurrencies, said Erica Williams, chair of the Public Company Accounting Oversight Board, an Enron-era regulator set up to restore trust in corporate accounting.

“It’s important to understand that PCAOB registered firms only to have ...