Important
Any rules which are not enforced are not existing
It’s about making sure that rules are followed
division between “perceived quality” and “actual quality”
- auditing only increases perceived quality
- actual quality can only be improved over time
Assurance
Enforcing
- todo how is auditing (financial especially) enforced
When Auditing is Missing
2008
- Financial Crisis 2008
- banks did not have transparency over liability within each other
- stopped them from starting business with one another
- 1 factor of why 2008 happened