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  • Reward for failure: The paradox of audit partners’ record payouts amidst poor audit quality

Reward for failure: The paradox of audit partners’ record payouts amidst poor audit quality

The Audit Reform Lab analyses the audit reports of the largest 250 publicly traded companies that collapsed between 2010 and 2022, finding that, among other things, three in four audit reports failed to provide a warning in the year prior to the collapse, with many of these companies even declaring dividends despite strong indicators of insolvency risk.