Strong professional judgement is often the difference between identifying risk early and recognising failure only in hindsight. This episode explores what major market collapses can teach auditors, accountants and finance professionals about maintaining trust, independence and scepticism when risks are evolving rapidly. With Paul Munter, formerly of the US Security and Exchange Commission (SEC), in the studio – along with CPA Australia's audit and assurance lead Tiffany Tan – this episode offers deep insight into this important issue. Drawing on lessons from Enron, WorldCom, the global financial crisis and FTX, the discussion examines how reporting narratives can gradually drift from economic reality and why strong professional judgement remains critical. Key takeaways: What past market failures reveal about weaknesses in reporting, auditing and oversight Why audit quality, independence and professional scepticism remain essential How emerging risks such as crypto and private capital challenge traditional approaches The importance of asking better questions and challenging explanations that do not make sense Why the profession needs to do a better job explaining the value and career opportunities within audit How auditors contribute to market confidence, capital formation and investor trust Host: Elinor Kasapidis, chief of policy standards and external affairs, CPA Australia. Guests: Paul Munter served as the US Securities and Exchange Commission (SEC) chief accountant (2021-25) and its deputy chief accountant (2019-21). He had previously retired from KPMG where he was the lead technical partner for its international accounting and International Financial Reporting Standards (IFRS) activities. He is a CPA in Colorado, New York, and Florida. Tiffany Tan, audit and assurance lead, CPA Australia. You can learn more about Paul Munter here. CPA Australia also has some useful audit and assurance tools and resources. Loving this episode? Listen to more With Interest episodes and other CPA Australia podcasts on YouTube. https://www.youtube.com/@CPAaustralia/podcasts And don't forget to click subscribe to the channel for a wide range of content that will help your career. CPA Australia publishes four podcasts, providing commentary and thought leadership across business, finance and accounting: With Interest https://www.cpaaustralia.com.au/tools-and-resources/podcasts/with-interest INTHEBLACK https://www.cpaaustralia.com.au/tools-and-resources/podcasts/intheblack INTHEBLACK Out Loud https://www.cpaaustralia.com.au/tools-and-resources/podcasts/intheblack-outloud Excel Tips https://www.cpaaustralia.com.au/tools-and-resources/podcasts/excel-tips Search for them in your podcast platform. Email the podcast team at podcasts@cpaaustralia.com.au Chapters: 00:00 Audit Independence Failure: Firm vs Practice Responsibility 00:26 CPA Australia "With Interest" Podcast Introduction – Elinor Kasapidis 00:40 Evolving Risk Landscape: Enron, WorldCom, GFC, and FTX 01:13 Guest Introduction: Paul Munter, SEC Chief Accountant Background 01:48 Enron & WorldCom: Early Warning Signs and Reporting Drift 02:56 Breakdowns in Standards, Application, and Audit Quality 04:25 Arthur Andersen Collapse: Independence and Firm Culture Lessons 06:06 Incentives and Oversight Failures: Non-Audit Services Risk 08:11 ISQM 1 and Audit Quality: Tone from the Top and Trust 08:40 Global Financial Crisis: Lehman Brothers and Window Dressing Repo Transactions 10:10 Counterparty Risk, Transparency, and Financial Disclosure Challenges 11:27 Mortgage-Backed Securities and Securitization Risk Amplification 13:56 Dodd-Frank and Strengthening Regulatory Frameworks 14:41 Crypto and FTX Collapse: Regulation, Visibility, and Compliance Gaps 16:52 Audit Competence and Engagement Acceptance: Lessons from FTX 19:55 Private Markets: Private Equity, Investor Eligibility, and Disclosure Debate 22:58 Audit Talent Pipeline Challenges and Value Proposition 24:55 Professional Skepticism: Curiosity and Asking Better Questions 26:08 Audit Career Paths: Opportunities, Travel, and Industry Exposure 29:53 Closing Remarks and CPA Australia Resources