The Ethics Of A Ponzi Scheme Essay

784 Words 4 Pages
Again, if an investment firm was planned and created to perpetuate a Ponzi scheme, one can only take the blue print from BMIS and make improvements to it.
However, since this question is asking for a more comprehensive answer, we need not just look at the firms’ organizational controls but we should look at other agencies and or auditing firms as well.
First, the most important organizational control to implement in a case such as this one is a whistleblower program. However, one might argue; if the top is corrupt and did not formed an independent audit committee to oversee the organizational structure and controls there is not much one can do from the inside. Since the article inferred that collusion was rampant throughout the firm. The program should also include extending this information to other parties such as SEC, Federal Bureau of Investigations, as well as one could also inform reputable news agencies of this type of corruption. The article did state that Harry Markopolos did appropriate such actions against BMIS but the SEC was lagging when it came time to investigate. Now we have left the scope of the firm and now are entering into third party responsibility which should be also drawn into consideration when creating and implementing policies and procedures for compliance. Moreover, the article sites that BMIS had engaged an auditor whom was unqualified and did not the knowledge or the resources to pursue an engagement of this type. “David Friehling pled guilty to…

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