Thus, given the vital role of auditors in our economic system, it seems to me that the fund auditors who failed to verify that the Madoff assets and income claimed by the funds actually existed, should be liable to the investors in the funds, and should be liable as well to others who invested in Madoff. For had the auditors done their jobs, instead of negligently shirking their duty (in order to collect fees), the Madoff scam would inevitably have ended no later than the early to mid 1990s, and tens or scores of thousands of people who were hurt -- and whom it was foreseeable would be badly hurt by the auditors' failure to do their jobs properly and thereby uncover and end a scam -- would have escaped either unscathed or with much less harm.*
* This posting represents the personal views of Lawrence R. Velvel. If you wish to comment on the post, on the general topic of the post, you can, if you wish, email me at Velvel@VelvelOnNationalAffairs.com.
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