AICPA: Madoff’s auditor claimed it didn’t do audits. Ethics probe launched.
Friehling & Horowitz, the small New York auditing firm that certified the financial statements of Bernard Madoff Investment Securities, has been telling the AICPA for 15 years that it doesn’t perform audits.
By denying it did audits, the firm avoided reviews by the AICPA. New York is one of only six states that doesn’t require accountants to be peer-reviewed. “The plain fact is that this group hasn’t submitted for peer review and appears to have done an audit,” said AICPA spokesman Bill Roberts, noting the Institute has now launched an investigation into the firm.
Because of the Madoff scandal, New York State is moving to join the ranks of peer-review states.
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