In view of the difficulties of the controversial real estate company Adler Group, the auditing profession also paints a weak picture.
This does not only apply to the auditing companies KPMG and Ebner Stolz, which are directly involved and have so far taken care of the annual audits.
KPMG recently did not dare to judge the Adler balance sheets for 2021 and refused to continue for 2022.
Ebner Stolz has checked the balance sheet of the subsidiary Adler Real Estate and is now stuck with a procedure by the auditor supervision APAS.
The fact that Adler has been looking in vain for a replacement for KPMG as group auditor since the end of June makes the entire auditing profession look hesitant.
Because so far no one has dared to take responsibility for the difficult and risky Adler mandate.
Reliable and sustainable testing is not possible at cheap prices
This creates the impression that year-end exams are fair-weather events that can be canceled as soon as gloomy clouds appear.
However, an independent and competent audit is more necessary than ever when companies are in trouble or doubts about the balance sheet have been raised.
The shareholders and creditors finally want to know where they stand with Adler.
However, owners and lenders must be aware that a reliable and sustainable check is not possible at cheap prices.
Rather than driving auditor fees down, they should pay auditors even more if the audit engagement is particularly large or complicated.
For auditors, such particularly demanding mandates mean the chance to show the public and investors how rigorously and thoroughly they can audit.
That would be good for the audit industry's reputation, which has been tarnished by accounting scandals.