• What roles did Ernst & Young and KPMG play in the Wirecard financial reporting scandal?
• Is a conflict of interest created when Big Four firms provide both audit and consulting services? Evaluate the pros and cons that arise with respect to the audit quality when public accounting firms provide services other than auditing.
• Consider the importance of reputation for auditors. Could reputation costs substitute for or supplement regulatory sanctions? Does reputation appear to be an effective mechanism for incentivizing high-quality audits? please Explain.