In Texas, where business thrives but financial transparency sometimes falls short, even well-established companies face serious consequences for accounting failures. An independent auditor's recent issuance of an adverse opinion on Steak 'n Shake's financial statements reveals a deeper problem: deficiencies in internal controls and inconsistent reporting practices can erode investor confidence and jeopardize a company's viability, even at well-known corporations.
This reality is not unique to the United States. In Brazil, it is estimated that around 20% of tax revenue is lost annually due to fraud and accounting errors, often caused by misclassification, lack of internal controls, and unintentional human error. International reports, such as the Association of Certified Fraud Examiners'
The risk remains latent even with the advance of artificial intelligence and automation systems. Systems detect patterns, but they don't understand context. With their critical eye and technical knowledge, only accountants can interpret when a number doesn't match reality, anticipating failures before they become scandals. As we emphasize in advanced auditing practices, technology should support professional judgment, not replace it.
This is precisely where accountants make a difference. More than ensuring legal compliance, accountants must interpret financial behavior, build bridges between operations and reports, and design controls that evolve with the company. When well integrated, accounting professionals act as guardians and strategists, identifying operational warning signs before they become auditable failures.
Texas has a unique business culture — dynamic, expanding and entrepreneurial — but faces a documented shortage of experienced accountants. The profession needs to respond with better hiring strategies and by valuing accountants as advisory and preventive agents. The case of Steak 'n Shake is a clear example: numbers alone do not build trust — people do.
