Self-Study Course Details
Course Description

Bernard Madoff Investment Securities LLC was the source of the largest financial fraud in US 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 have 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.

Topics covered:

  • Madoff – Ponzi Scheme
  • SEC Complaint
  • AICPA Code of Conduct
  • Joint Ethics Enforcement Program
Learning Objectives
  • Recognize professional conduct expected of a certified public accountant and consequences of misconduct under AICPA guidelines.
  • Recognize key components of the AICPA Code of Professional Conduct with regard to independence.
  • Recognize the AICPA Code of Professional Conduct rules on confidential information and acts discreditable.
  • Identify ethical safeguards as outlined by the AICPA.
  • Recognize the AICPA Joint Ethics Enforcement Program and its disciplinary actions.
Advanced Preparation

None

Author Details
  • Joseph Helstrom
    Joseph Helstrom

    Joe is a partner at CFO Resources, LLC, a company focused on training and courseware for CPAs and is also the owner of Mill Creek Publishing LLC, a provider of self-study courses for CPAs. Joe has over 30 years of experience as a CPA in both public accounting and industry with extensive experience in financial reporting and analysis, treasury, tax, information technology, legal and regulatory matters and strategic planning. After graduation from Butler University with a degree in Accounting, Joe got his start at Ernst & Young and, subsequent to that, has served as Chief Financial Officer, Director of Treasury and Tax, Controller and Manager of Financial Planning, Reporting and Analysis for several different companies. Joe, along with his wife Patricia McCarthy, have published articles in Missouri and Texas CPA Society publications titled “Incorporating Excel Arrays into Your Audit Plan”.

NASBA Sponsor
  • National Registry of CPE Sponsors for the QAS self-study delivery method
    Encoursa is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: NASBAregistry.org.

$27.00

CPE
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