Although researchers commonly acknowledge that public-company audits should add value by improving the precision of financial information via reduced estimation errors, prior literature correctly notes that there is little direct archival evidence to support this assertion. Moreover, regulatory...

The paper discusses the policy implications of the Wirecard scandal. The study finds that all lines of defense against corporate fraud, including internal control systems, external audits, the oversight bodies for financial reporting and auditing and the market supervisor, contributed to the...