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Author: |
Joseph P Helstrom, CPA |
Course Length: |
Pages: 25 ||| Word Count: 17,822 ||| Review Questions: 6 ||| Final Exam Questions: 10 |
CPE Credits: |
2.0 |
IRS Credits: |
0 |
Price: |
$19.95 |
Passing Score: |
70% |
Course Type: |
Text |
Technical Designation: |
Technical |
Field Of Study: |
Regulatory Ethics |
Approved Audience: |
NASBA QAS - NASBA Registry |
Key Takeaways: |
This text course examines the ethical failures of the CPA firm that audited Bernard Madoff Investment Securities LLC through the lens of the AICPA Code of Professional Conduct.
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Frequently Asked Questions: |
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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. |
Usage Rank: |
16364 |
Release: |
2015 |
Version: |
1.0 |
Prerequisites: |
None. |
Experience Level: |
Overview |
Additional Contents: |
Complete, no additional material needed. |
Additional Links: |
Internal: AICPA‑Based CPA Ethics Course
Internal: Regulatory Ethics CPE Courses for CPAs
External: David G. Friehling Wikipedia Page
External: Ponzi Scheme: Definition, Examples, and Origins
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Advance Preparation: |
None. |
Delivery Method: |
QAS Self Study |
Intended Participants: |
Anyone needing Continuing Professional Education (CPE). |
Revision Date: |
01-Dec-2025 |
NASBA Course Declaration: |
Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam. |
Keywords: |
Bernard Madoff Investment Securities Auditor - A Case Study in the AICPA Code of Conduct - v15 - CPE course for CPAs |
Learning Objectives: |
Course Learning Objectives 1. Recognize professional conduct expected of a certified public accountant and consequences of misconduct under AICPA guidelines.2. Recognize key components of the AICPA Code of Professional Conduct with regard to independence. 3. Recognize the AICPA Code of Professional Conduct rules on confidential information and acts discreditable. 4. Identify ethical safeguards as outlined by the AICPA. 5. Recognize the AICPA Joint Ethics Enforcement Program and its disciplinary actions. Topics covered:
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Course Contents: |
Chapter 1 - Bernard Madoff Investment Securities’ Auditor - A Case Study in the AICPA Code of Conduct Course Learning objectives Case Study Overview About Friehling & Horowitz CPA’s P.C. Friehling & Horowitz Compensation from Bernard Madoff Investment Securities LLC The Ponzi Scheme Bernard Madoff Investment Securities LLC Investors Madoff Arrest and Sentencing Friehling & Horowitz Audit Procedures and the SEC Complaint Friehling’s Sentence Friehling’s Ethics Complaint Friehling’s Loss of CPA License The AICPA Code of Professional Conduct Preface Part 1 – Members in Public Practice Rule 1.100 Integrity and Objectivity 1.130 Preparing and Reporting Information 1.200 - Independence Review Questions Rule 1.300—General Standards Rule 1.310 Compliance with Standards Rule 1.320 Accounting Principles Rule 1.400.001 Acts Discreditable Rule 1.510.001 — Contingent Fees Rule 1.520.001—Commissions and referral fees Rule 1.600.001 —Advertising and other forms of solicitation 1.700.001— Confidential client information rule 1.800.001—Form of organization and name rule Part 2 – Members in Business 2.100.001 – Integrity and Objectivity Rule 2.130.030 Obligation of a Member to His or Her Employer’s External Accountant 2.170.010 – Pressure to Breach the Rules 2.300.001 — General standards rule 2.310.001—Compliance with standards rule 2.320.001—Accounting principles rule 2.400.001 Acts Discreditable Rule 2.400.070 Confidential Information from employment or volunteer activities Part 3 – Other Members 3.400.001 - Acts discreditable rule 3.400.070 Confidential Information from employment or volunteer activities Joint Ethics Enforcement Program Overview Complaint Receipt Complaint Evaluation Investigation Procedures Automatic Discipline Review Questions Glossary |
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