Bernard Madoff and His CFO Were Convicted of Fraud

question 215

Essay

Bernard Madoff and his CFO were convicted of fraud.Could internal audits have prevented the downfall of Bernard L.Madoff Investment Securities LLC? Why or why not?

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Definitions:

Conditional

Dependent on certain conditions or requirements being met before full effect or enforcement.

Partial Performance

An exception to the statute of frauds in which the performance of portions of an unwritten agreement by one or both parties can constitute proof that an oral contract exists between the parties.

Significant Performance

A legal concept in contract law indicating that a party has fulfilled enough of its contractual obligations to warrant payment.

Express Conditions

Clearly stated stipulations in a contract that must be met for contractual obligations to be performed or for certain outcomes to take place.