Lessons learned from warning signs before the October 7, 2023, failure: Strengthening board and auditor oversight

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Abstract

This paper argues that incomplete information analysis and over-reliance on technology can obscure financial risks, drawing parallels between audit failures and intelligence lapses such as the October 7, 2023, attack. It asserts that professional auditors and proactive boards are essential for corporate survival. Emphasizing a risk-based audit approach, the study highlights the need for holistic use of technology, critical thinking, and effective communication. The research offers actionable guidance for boards to enhance collaboration with auditors, integrate safeguards into decision-making, and strengthen corporate governance. By focusing on robust internal controls and proactive risk management, this study provides a framework to prevent future financial disasters.

Keywords: Internal Control, Audit Failures, Technology in Auditing, Risk-Based Auditing, Independent Directors, Corporate Governance Quality

Authors’ individual contributions: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: M41, M42, G30, M48

Received: 27.07.2024
Accepted: 18.10.2024
Published online: 23.10.2024

How to cite this paper: Bar-Hava, K. (2024). Lessons learned from warning signs before the October 7, 2023, failure: Strengthening board and auditor oversight. Corporate Board: Role, Duties and Composition, 20(3), 54–61. https://doi.org/10.22495/cbv20i3art5