Madoff Securities Essay

1409 WordsJan 21, 20146 Pages
Assignment 1: Madoff Securities Abstract In the case of Bernie Madoff this is perfect example of how unethical behavior can turn into corruption. Madoff, a former investment and stock broker, was formally introduced to the world as the 'sole' operator in the largest Ponzi scheme on record. Madoff turned his financial management company into a colossal Ponzi scheme that swindled billions, from thousands of his investors. In this paper we determine the regulatory oversight that was in place while the Ponzi scheme was operating, and speculate on the main reasons why they did not discover the scheme, we’ll look at investing in Madoff Securities and how to expose the potential fraud.…show more content…
Second, I would want visibility of the trading online so that I could see what was bought and sold. Bernard Madoff Investment Securities would wait until the end of the quarter and the manufacture the gains he wanted by claiming that he bought and sold certain shares. If Bernard Madoff Investment Securities couldn't show anyone during the quarter because BMIS hadn't figure out what he was going to retroactively claim to have bought and sold. Third, I would want to know that the auditor was registered with the AICPA (BMIS was not) and that he was an expert in securities. Four, ask for references from others who are already with the firm is also wise, but keep in mind they most likely will not give you an unhappy representative as a reference. The best way to judge is to research the growth and lost rate of producers over the past several years. If more advisors are joining and few are leaving, then it may be one to consider. Determine the fundamental audit procedures that you should have applied investment. The fundamental audit procedures that applied to this investment takes place in between the date that the financial statements state, and the date of the auditor's report. Lapse of time is considered the time period for a
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