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Your analogy fails. Its not about every dead person drinking water. A better analogy would be: If everybody drinks the same brand of bottled water, poisoning the source would affect a lot of people.

"...KPMG alumni have also gone on to play significant roles in the banking sector, including at former clients. The chief executives of Signature and First Republic were both former KPMG partners..."

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That still doesn’t prove that accounting audits should prevent a bank run. The more likely culprit here is what the FDIC called out in its report, namely a failure of oversight and a loosened regulatory regime.

Not entirely. Also from the article:

"...The Fed’s report last week revealed the extent of weaknesses in SVB’s risk management and internal audit functions, both of which need to be assessed by a company’s external auditors.

Jeffrey Johanns, a former PwC partner who teaches auditing at the University of Texas at Austin, said that could raise a question of whether KPMG should have highlighted these failings to investors as material weaknesses that could affect the financial results..."

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