"Deloitte's Oversight Failure: Uncovering a Billion-Dollar Nigerian Fraud"
Deloitte, the auditing firm, certified that Nigerian company Tingo Group had $462 million in the bank, but the SEC found it was only $50, leading to charges of "massive fraud." This case highlights the recurring issue of auditors failing to detect fraud, with only 4% of frauds being uncovered by auditors. The setup where auditors are paid by the companies they examine can lead to playing it safe and avoiding hard-hitting questions. The discrepancy in Tingo's case raises questions about Deloitte's oversight, especially as the auditing was done by Deloitte's Israeli branch, not in Nigeria where Tingo operated. This failure could have repercussions for Deloitte's other client companies in the stock market.
