The second underlying problem is unexpected company collapses, which are popularly assumed to indicate audit failures.

Until an alleged audit failure is investigated, the Institute does not know whether there has been negligence.

They incorrectly assume that a business failure must mean there was an audit failure as well.

He did not discuss whether the previous audit failures had shown the need for changes.

The Enron scandal was defined as being one of the biggest audit failures.

Still, the question of who can sue an accountant in the case of audit failure remains open.

But they claim that instances of audit failure are an aberration.

"People have wondered whether that growing scope related to some of the major audit failures we have seen."

Common sense suggests that the real risk of audit failure has nothing to do with independence.

Second, there are numerous examples in recent years of audit failures which have resulted in public comment, action and professional disciplining.