option 2 the bernie madoff fraud

Please read the “Bernard L. Madoff: The Fraud of the Century” case study (C37 in the Case Study section near the end of textbook).

Required:

After reading the case, please respond to the following questions:

  1. Under the fundamental principles governing an audit covered in Chapter 2, we learned that auditors are required to exercise due care and maintain professional skepticism throughout the audit. Based on the case information, do you believe that the auditors from Friehling & Horowitz exercised due care and maintained professional skepticism throughout the audit? Why or why not?
  2. After the Madoff case, the SEC instituted a number of reforms to its operations. Please visit the SEC’s website (www.sec.gov) and search for Post-Madoff reforms. Next, please identify the two reforms that you believe will have the best chance of detecting illegal activity such as the activities of Madoff. Make sure to provide justification for your choices.
  3. Consider section 24 of the Securities Act of 1933 and section 32 of the Securities Exchange Act of 1934 (see Module C in Part III of textbook). Based on the case information, do you believe that Madoff’s auditor, Friehling, should be facing criminal charges? Why or why not?

Your written response paper should be 3-4 pages in length. Please type your paper in a Word document and follow APA format, according to CSU-Global Guide to Writing and APA. Include a title page and reference page. Use two (2) outside academic sources other than the textbook, course materials, or other information provided as part of the course materials.

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