SOURCE: Marks Paneth LLP

Marks Paneth LLP

January 29, 2014 10:00 ET

Spot Audits, Mandated by Dodd-Frank, May Help Avoid the Next Madoff, According to Marks Paneth Video

NEW YORK, NY--(Marketwired - Jan 29, 2014) - There is a component of the Dodd-Frank Act that's hard to argue with: spot -- or custody -- audits of investment companies.

A Marks Paneth video featuring Steven Henning, Ph.D., CPA, Partner-in-Charge of the Litigation and Corporate Financial Advisory Services Group at Marks Paneth LLP, says this component of Dodd-Frank protects investors, institutions and the economy. He also explains that spot audits help us avoid another Madoff situation where investments were missing, not because of market fluctuations, but because they didn't exist in the first place.

During a mandated spot audit, a third-party firm -- not the company's usual auditor -- confirms that an investment company is in possession of the securities it claims to have. The third-party auditor also scrutinizes investor statements to make sure they reflect reality.

The bottom line: Spot audits won't protect investors from losing money from market fluctuations. But they will protect investors from losing money because the securities they thought they had weren't there in the first place.

The video, "The Part of Dodd-Frank Investors Can't Live Without" is available at:

For more information or to speak with Steve Henning, please contact Katarina Wenk-Bodenmiller of Sommerfield Communications at (212) 255-8386 or

About Marks Paneth LLP

Marks Paneth LLP is an accounting firm with over 500 people, of whom nearly 65 are partners and principals. The firm provides public and private businesses with a full range of auditing, accounting, tax, consulting, bankruptcy and restructuring services as well as litigation and corporate financial advisory services to domestic and international clients. The firm also specializes in providing tax advisory and consulting for high-net-worth individuals and their families, as well as a wide range of services for international, real estate, media, entertainment, nonprofit, professional and financial services, and energy clients. The firm has a strong track record supporting emerging growth companies, entrepreneurs, business owners and investors as they navigate the business life cycle.

The firm's subsidiary, Tailored Technologies, LLC, provides information technology consulting services. In addition, its membership in Morison International, a leading international association for independent business advisers, financial consulting and accounting firms, facilitates service delivery to clients throughout the United States and around the world. Marks Paneth LLP, whose origins date back to 1907, is the 32nd largest accounting firm in the nation and the 16th largest in the New York area. In addition, readers of the New York Law Journal rank Marks Paneth as one of the area's top forensic accounting firms for the fourth year in a row.

Its headquarters are in Manhattan. Additional offices are in Westchester, Long Island and the Cayman Islands. For more information, please visit

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