In the aftermath of the 2008 financial crisis it became clear that regulators had allowed many financial services firms to become “too big to fail”. Yet this system-critical firm problem is not confined to financial services. In their paper “Can electricity companies be too big to fail?” Ann van Ackere, Erik R. Larsen and Sebastian Osorio explain how a similar challenge faces the electricity sector, and offer some suggestions to help regulators prevent the lights from going out.
Some experts suggest that mandatory joint audits might help to improve the reliability of accounting numbers. But what are the additional costs involved and is the case for joint audits supported by the evidence?
4 min read Continue reading Do joint audits add up?