Running Head: " Bernard L. Madoff Investment and Securities: A Focus on Auditor ’s Legal Liability and Due Care" "Bernard L. Madoff Investment and Securities: A Focus on Auditor ’s Legal Liability and Due Care" XNAMEXXX New England College Abstract Friehling & Horowitz were the auditing firm that "audited" Bernard Bernard L. Madoff Investment and Securities (BLMIS) for over 15 years‚ while Bernie Madoff ran a Ponzi scheme under their noses. This paper addresses the legal liability
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Ponzi schemes was engineer by the 70-year-old Bernie Madoff. While Enron was also one of the world’s greatest substantial catastrophe‚ do partially because of its magnitude‚ as well as of its complication‚ moderately because the needs to guard the truthfulness of investment markets botched‚ and especially because of the enormous gluttony and involvement of key contributors. I strongly believe that the state of affairs surrounding both the Bernie Madoff matter and Enron matter can very well command
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Bernie Madoff was able to swindle hundreds of people into investing money into a ponzi scheme‚money that they would never see again. Madoff went years without going detected‚ until he was arrested in 2008 with a 150 year sentence for owing the many of the wealthy class over $40 million. Although both Macbeth and Bernie Madoff seem like polar opposites they have a lot more in common than many would think. First
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Bernard Madoff utilized funds from new investors to finance the earnings of existing customers in his financial scheme; a practice regarded as a Ponzi scheme (Ferrell‚ 2009). Charles Ponzi‚ the naming convention originator‚ used this same type effort with postage stamps and con savvy investors to increase the capital needed to trade. The core of a Ponzi scheme is the ability to acquire new investors; greater volume equates to greater earnings. The downfall is the majority falter quickly. Bernard
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crime cannot occur in their lives. They rarely hear of white collar crime and believe it is only committed between millionaires. Just like violent crimes‚ people only become truly aware of white collar crimes when they become victims. For example‚ Bernie Madoff preyed not only on rich members of country clubs‚ but also on middle class people looking for a way to get rich
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A fraudulent investment operation in which the perpetrator promises the investor a high return on their investment‚ not from any actual profit earned from the organization but instead from recycled money already paid by other investors‚ is called a Ponzi scheme. In many Ponzi schemes‚ the swindlers focus on attracting new money to make promised payments to earlier-stage investors and to use for personal expenses‚ instead of engaging in any legitimate investment activity. There are countless examples
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America: Week 6 March 17‚ 2012 COROPORATE SCANDAL 2 The unethical business practices of Enron‚ Leman Brothers and Bernie Madoff caused severe financial losses for the American people. These catastrophes could have been prevented if more stringent ethical safeguards were in place and enforced within the walls of the financial institutions. Millions of business transactions
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matters worse‚ it seems as if Friehling did not have a clear understanding of relevant controls. For example‚ the first component of relevant controls is auditability. At this phase it is the auditors duty‚ in this case it was Friehlings duty to practice due diligence to assess the integrity of management and whether or not there is sufficient evidence to support the financial records. Had he done this he would have discovered management’s true intentions and could have put in place internal controls
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Wall Street is evil and corrupt… or at least that’s all I hear from news headlines and organizations like Occupy Wall Street. After consistently hearing about corrupt brokers and managers like Bernie Madoff and Jordan Belfort‚ I began to buy into this facade. I enjoyed following the stock market‚ but I didn’t want to pursue it as a career out of fear of social repercussions. Last summer‚ this all changed. A few of my friends and I were awarded a free trip to Washington D.C. for placing fifth in a
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Offenses‚ Retrieved from: http://publicsafety.utah.gov/bci/docs/PartOne_GroupA.pdf Uniform Crime Reporting Handbook‚ By F.B.I (2004) Retrieved from: http://www2.fbi.gov/ucr/handbook/ucrhandbook04.pdf The Largest Fraud That the World Has Ever Seen‚ The Madoff Scandal‚ (2009) Retrieved from: http://www.madoffscandal.com/
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