Auditors have long maintained that their work (as governed by professional audit standards) may not detect fraud. Nor are auditors especially working to detect fraud.
However, the outcome of this case may now see the tide turning to place greater onus on auditors to detect fraud. This may also reposition deep pocketed auditors more closely in the "firing line" of potential claims by insolvency practitioners.
PwC is being sued for a record $5.5bn for failing to detect fraud that led to a bank collapse during the global financial crisis, in a case that could bring more auditing firms into the line of fire.