CPE Credit Hours: 2
Field of Study: Regulatory Ethics
Publication date: March 2020
Bernard Madoff Investment Securities LLC was the source of the largest financial fraud in U.S. history. Madoff perpetrated a simple Ponzi scheme whereby older investors were paid with newer investor funds, thus providing the impression of actual investment returns. The extent of the losses related to Madoff’s Ponzi scheme has been estimated at $50 – $65 billion.
Many are astounded to hear that Bernard Madoff Investment Securities LLC was audited by a CPA. Unfortunately, Madoff’s CPA apparently did not subscribe to the AICPA Code of Conduct, as most of the rules contained in the code were ignored.
What follows is a case study examining the conduct of Friehling & Horowitz CPA’s P.C., the CPA firm that audited Bernard Madoff Investment Securities LLC, within the context of the AICPA Code of Professional Conduct. The Sarbanes-Oxley Act and its impact on business ethics and the CPA’s responsibilities are summarized.
This is a self-study CPE course.
Program level: Basic
Prerequisites: None
Advanced Preparation: None Required
Minimum Final Examination Passing Grade: 70%
Maximum Time Allowed To Complete Program: One Year From Date Of Purchase
