Ponzi Scheme

The Bernie Madoff scam truly made history. Bernie Madoff probably would not ask been able to prolong this scam without the continued help of the account statement Firm of Friehling & Horowitz CPAs PC, who at last reported purported to visit monetary statements and disclosures of Madoff rigid for the last 17 years. Ponzi schemed to help Madoff by trying to go undetected because of Friehling deceiving investors and regulators by declaring that Madoff enterprise had loose inspect records. Ponzis scheme enabled Madoff by falsely stating in annual audit reports that F & H audited Madoff financial statements pursuant to generally accepted accounting principles, including the requirements to maintain auditor independence and perform audit procedures regarding custody of securities. F & H purported that the financial statements conformed to GAAP and the Friehling reviewed internal controls at Madoff firm.

According to randomness complaint, Friehling knew that the firm regularly distributed the annual audit reports to Madoff customers, and that reports were filed with the SEC and other regulators. The complaint alleges these statements were materially false.



The SEC alleges that Friehling merely pretended to conduct minimal audit procedures of certain accounts to make it appear that he was conducting an audit, and and so failed to document his purported findings and conclusions as required under the GAAP. If properly stated those financial statements, along with related disclosures regarding reserve requirements by Madoff firm would have shown that the firm owed tens of billions of dollars in additional liabilities to his customers and was therefore insolvent, the SEC said. According to the SEC complaint, Friehling also failed to conduct audit procedures with wish to internal controls at Madoff firm and had no grounds to portray that the firm had no inadequacies.

Friehling lied to the AICPA for years and denied that he conducted any(prenominal) audit work because he was afraid that his work for the...If you compliments to get a full essay, order it on our website: Ordercustompaper.com



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