In the year 2023, a devastating economic decline occurred that had a significant impact on the banking sector. This resulted in the failure of some banks, which lost a considerable amount of money due to poor decisions. The auditors, who are responsible for assessing the financial health of banks, should have accurately reported on the risks and problems within the banking industry. This failure to provide accurate and timely information led to a lack of transparency, which ultimately contributed to the banks' collapse.

Banks have a fiduciary duty to their customers and are expected to act with honesty and integrity. Unfortunately, the financial crisis of 2023 highlighted the need for stricter oversight and more responsible financial management practices in the banking industry. In the future, banks need to operate with more transparency, accountability, and caution to prevent such economic crises from occurring.

Directions: For your response posts, address the following, based on the details provided in your peer's post above:

• Do you agree with your peer on whether a similar event could happen in the future? Why or why not?
• Consider additional preventative steps that could be put in place that your peer did not mention. How might these steps prevent a future bank failure?