FTX—The Plausbility of an Unmodified Audit Opinion on an Organization That Lacks Internal Control; A Deep Dive into the Standards

FTX Group was plagued with material related party transactions as well an “unprecedented” lack of internal control. Yet, despite these issues, two the four “Silos” were given unmodified audit opinions. The purpose this paper is not to rehash what went wrong, how and where. Rather, calls into question ability for a public accounting firm issue opinion on financial statements FTX. I will explore relevant auditing standards guidance provided auditors determine appropriateness issuing opinion. Ultimately, that Disclaimer Opinion Financial Statements only appropriate report when entity has pervasive lacks