The hottest Auditing Substack posts right now

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CFPB Allocates $46 Million To Synapse/Evolve Victims In First-Ever Fintech Bailout

Fintech Business Weekly • 29 implied HN points • 21 Dec 25
💰 Finance Auditing
  1. The CFPB has allocated about $46.25 million from its Civil Penalty Fund to compensate Synapse/Evolve customers, marking a notable fintech bailout. It’s unclear if that amount covers the larger reported shortfall and victims may still wait a long time to get paid.
  2. Evolve Bank & Trust received unqualified audit opinions for 2021–2024 from Crowe and KPMG despite known reconciliation problems and missing end-user funds. That gap between audits and operational failures raises questions about audit scope and whether material issues were disclosed.
  3. Regulators are actively policing and reshaping crypto and fintech: the FTC treated a $186 million crypto security breach as an unfair practice while other agencies pursue deregulatory and pro-crypto moves like charter applications and rulemaking. These developments show rising enforcement alongside efforts to accommodate crypto innovation.

The Red Flags Multiply For Tether

QTR’s Fringe Finance • 34 implied HN points • 15 Dec 25
🔮 Crypto Auditing
  1. The company is planning a huge stock sale that could imply a $500 billion valuation, making it one of the most valuable private firms.
  2. Management intervened to stop insiders selling shares at a steep discount that would have implied about a $280 billion valuation, which suggests liquidity issues and that market prices may differ from headline valuations.
  3. Refusing a full independent audit while actively managing share sales and public narrative is a major transparency red flag and increases skepticism about the company’s true financial health.

More Problems at B. Riley (RILY)

The Bear Cave • 653 implied HN points • 15 Feb 24
💰 Finance Auditing
  1. The Bear Cave has raised concerns about B. Riley's ties and financial exposure to an accused fraudster, Brian Kahn, as well as regulatory and disclosure issues at the company.
  2. Short seller Marc Cohodes referred to B. Riley as the "biggest pound-for-pound financial fraud" he has seen.
  3. New evidence presented by The Bear Cave includes a potential departure of B. Riley's audit engagement partner, contradicting statements about a loan to Brian Kahn, and engagement of outside counsel by B. Riley's auditor in response to concerns.

Structure Matters

Confronting the Future • 58 implied HN points • 05 May 23
💰 Finance Auditing
  1. Proposed framework for crypto regulation in New York is normal and reasonable in line with traditional finance standards.
  2. Exchanges in the crypto space are structured in a highly centralized manner, which is concerning to regulators.
  3. NY state's bill includes provisions for mandatory auditing, know-your-customer rules, and investor protections, aligning with typical financial practices.

We don’t want auditors to be good at their job

Klement on Investing • 2 implied HN points • 11 Dec 25
💰 Finance Auditing
  1. Corporate accounting scandals recur and auditors are routinely made the public scapegoat, prompting regulatory fixes that don’t stop the next failure.
  2. If auditors actually caught all fraud, investors who lose money would still look for someone else to blame, because many people outsource their own due diligence.
  3. The blame cycle usually expands to regulators and then quiets after reforms, allowing auditors and the system to be gradually exonerated and the pattern to repeat.
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Issue #95 | 3 Cases of Document Fraud | How to be a Good Auditor | How Bakers Yeast is Made |

The Rotten Apple • 31 implied HN points • 03 Jul 23
🍲 Food & Drink Auditing
  1. Food document fraud comes in different categories and can have serious consequences for food safety.
  2. Key attributes of a good food safety auditor include appropriate training, experience, and a detail-oriented mindset.
  3. Commercial bakeries, wineries, and breweries rely on specialized yeast suppliers to provide pure yeast products for their production processes.

Destroying DNA Sequencers

ASeq Newsletter • 7 implied HN points • 10 Mar 24
🕹 Technology Auditing
  1. DNA sequencers can have security vulnerabilities that can be exploited, potentially causing physical damage to the instrument.
  2. Access to the fluidics system in a DNA sequencer could allow for sabotage by manipulating reagents to cause damage.
  3. Careful manipulation of lasers, filter wheels, and motion control components in a DNA sequencer could lead to costly damage, impacting the instrument's functionality.

Why You Should Join Loop

Why You Should Join • 5 implied HN points • 04 Dec 23
💼 Business Auditing
  1. Logistics and freight payments can be complex and challenging due to the intricate flow of goods and the variety of payment-related documents involved.
  2. Loop has developed a platform to centralize and structure freight payment data, enabling automation of invoice audits, dispute resolution, scenario planning, and more, resulting in significant cost savings and increased productivity for customers.
  3. Loop's unique data layer, automation capabilities, and focus on customer value creation give them a competitive edge in the market, setting them apart from traditional freight audit firms and software solutions.

Security by Happenstance

realkinetic • 0 implied HN points • 26 Mar 19
🕹 Technology Auditing
  1. Regular password changes may not necessarily improve security and can lead to weaker password choices.
  2. Relying on username/password credentials for system access is a security risk, and using keys in their place is more secure.
  3. Implementing tightly scoped service accounts, limited-privilege credentials, and continuous auditing can enhance security and mitigate risks in IT systems.