12/18/2008

Questions surround firm that handled Madoff audit

The office for Bernard Madoff's sole auditor exudes anything but wealth and intrigue: It is next door to a pediatrician in a drab suburban building. The tiny storefront is discreetly labeled "Friehling & Horowitz" on its single glass door.

The people milling around outside are not high-end investors; they are mothers with children, waiting for the doctor's office to open.

But the auditor, a 49-year-old accountant named David Friehling, is now enmeshed in one of Wall Street's biggest scandals and is under criminal investigation in a case that has left people in financial ruin around the world.

The fact that a such a small accounting business was the main auditor for Madoff's multibillion-dollar operation has emerged as one of the most mysterious elements of the case. Experts say it would be preposterous for a tiny firm to audit properly an operation the size of Madoff's.

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