Regulation

The unpalatable way to combat fraud: pay auditors and whistleblowers

If insiders with knowledge of dodgy dealings are offered financial rewards to report fraud, many more will come forward

Unpalatable: The collapse of bakery Patisserie Valerie might have been prevented if whistleblowers had come forward
Unpalatable: The collapse of bakery Patisserie Valerie might have been prevented if whistleblowers had come forward Photo: Andrew Brackenbury/Rex

The failure of Grant Thornton to spot the fraud that torpedoed Patisserie Valerie is another blow to the whole audit industry. Or is it?

In public, senior figures at the top audit firms say it is bad news for the entire profession. In private, some admit that, at least for the Big Four, there might be some upside.

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