Big Four Auditors and Consultants Need Liability—And a Divorce

It’s hard to ignore the fingerprints of a Big Four accounting firm—as well as the office nameplates in the C-suite—in the high-profile collapses of Silicon Valley Bank and Signature Bank, as well as the near miss at First Republic Bank. In a veritable coup de grâce to independence, KPMG drafted audit opinions signing off on the banks’ financial statements.

While it may be difficult to point out what should have been done to avoid the financial upheaval of the last few weeks, it’s not difficult to point out who should have done something.

There’s a legal concept that arises in ...