It would require every bank in the country to implement e-verification for Auditors. How long have the banks provided this service? Was a law ever passed to force every bank in the country to provide this facility. If so when? If not then im sure lots of banks dont even allow it yet.
How many FCM's have you seen that use some community thrift or credit union to hold customer segregated funds? The banks that hold these funds are the biggest in the country...
The fact is the heart of the audit process is that the CPA contacts financial and other institutions directly and receives written verification of funds/assets under their custody. While verifying liabilities can be tricky -- sometimes they just do not appear on the books of a company -- not verifying the accuracy of financial assets on deposit with a bank is simply absurd. Assuming a firm audited PFG's statements -- and that may not be the case -- if you lost money here think class action against the accountants. Confirming bank balances is audit 101. It is truly impossible to screw up. That's why Madoff used a tiny firm that he kept stored in his pocket. They were part of the fraud.
Who are PFG's accountant/auditors? wouldnt surprise me if they are another small shady outfit in the back pocket of the CEO.
I agree. I have to wonder what the NFA has been spending its budget on while e-verification sat on the back burner.
This. The entire "industry" - from brokerage to regulator, is neck-deep in fraud. Somebody tell me the CFTC couldn't directly check account balances at a FCM's bank. It's bullshit.
http://www.zerohedge.com/news/pgf-f...the+survival+rate+for+everyone+drops+to+zero) That's all she wrote.
http://www.barnhardt.biz/ Sr IS on the NFA advisory committee :eek: http://www.nfa.futures.org/NFA-about-nfa/committees/advisory-committee.HTML