Financial Cryptography: Ernst & Young called to account — should Audit firms be investigated for their role in the crisis?

Financial Cryptography: Ernst & Young called to account — should Audit firms be investigated for their role in the crisis?.

How is it possible that not a single audit firm rang the alarm on any of the financial services clients they were auditing leading up to the financial meltdown of 2008?

Andrew Cuomo, Attorney General for the State of New York, has sued Ernst & Young for its role as Lehman Bros’ auditor.

For me, the big question remains: if we can’t expect an audit firm to pick up any signs of trouble, what can we expect of them? Perhaps we could save our money and do our due diligence another way?