Why Financial Scandals Keep Happening—Even in Well-Regulated Markets
Mike J. Masoud
February 21, 2025
It is a disgrace when corporate board members, politicians, ministers, and legislators remain ignorant of the fundamental role of a Certified Public Accountant (CPA). Alarmingly, many fail to grasp that a CPA’s contractual duty, when engaged to audit historical financial statements, is solely to express an opinion on those statements and enhance their credibility. The CPA evaluates whether the financial statements prepared by management comply with an established financial framework. However, the CPA is not responsible for detecting fraud or corruption unless such misconduct is material to the financial statements.
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