"the SEC doesn't conduct audits" Poor terminology on my part I believe. The term used in the report is "examination." SEC staff, including Sollazzo, Lamore,

"the SEC doesn't conduct audits" Poor terminology on my part I believe. The term used in the report is "examination." SEC staff, including Sollazzo, Lamore, Ostrow, Nee (mentioned in the report you cite) conducted on-site examinations of Madoff's operations. Similar events occurred with Madoff at least four times with over a period of about 20 years. I'm having trouble locating the actual transcripts now[1]; they appear to have disappeared into the memory hole. At one time the mass of raw PDF files were available from the SEC website. I recall very specific testimony from these examiners including details such as the type and locations of the offices provided for examiners by Madoff, recollections of in person meetings in Madoff's office and details about the physical files involved. The results of these 'examinations' were cited by Madoff to establish credibility with investors. [1] Here they are: https://www.sec.gov/news/studies/2009/oig-509/oig-509_exhibits.htm https://www.sec.gov/news/studies/2009/oig-509/oig-509_exhibi... Here is an SEC staff accountant discussing documents received from Madoff: https://www.sec.gov/news/studies/2009/oig-509/exhibit-0262.pdf https://www.sec.gov/news/studies/2009/oig-509/exhibit-0262.p...