parmalat
DESCRIPTION
Auditing ScamTRANSCRIPT
The Story BehindParmalat's Bankruptcy
Company History
• The 1960s: From Cold Cuts to Riches
• The 1970s and 1980s: Expanding in Italy and Abroad
• The 1990s and Beyond: Capturing the American Market and Others
Principal Divisions
• Bakery
• Fresh Foods
• Milk
• Vegetables.
Business of Parmalat
Other Social investments undertaken where [ Losses Incurred]
• German Formula 1
• Football Club
Parmalat across the world
List of countries across the Globe
• Italy
• Portugal
• Romania
• Russia
• Australia
• Botswana
• Canada
• Colombia
• Cuba
• Ecuador
• Brazil
• Chile
• China
• Dominican Republic
• Hungary
• Mexico
• Spain
• United States of America
• Uruguay
The Founder of Parmalat
Calisto Tanzi
People involved in the Scam
• Former chief financial officers
Luciano Del Soldato &
Fausto Tonna
Arrest of Calisto Tanzi
The case of Parmalat
• Key Facts
• Why were Parmalat considered as responsible corporate citizens?
• How similar is the scandal to Enron ?
• Curiosity which prevailed at that time?
• What have been the impacts of Parmalat’s collapse?
People who are under investigation
• Parmalat board members
• Internal auditors
• Parmalat executives
• Deloitte & Touche
• Grant Thornton
• Bank of America
• Lawyer
Prosecutors are also seeking indictments against
• Bank of America's Italian unit
• Deloitte & Touche
• Grant Thornton
From Countdown to meltdown
• 1961→• 1963→• 1980→• 1990→• 1999→
2003:• 11 Nov• 15 Nov• 8 Dec• 15 Dec• 16 Dec• 17 Dec• 24 Dec• 27 Dec• 29 Dec• 30 Dec• 31 Dec
The Scandal• Here's the skinny on Europe's enormous
financial scandal
• What triggered the financial crisis?
• Why is the Parmalat scandal important?
• How did the company misplace $4.9 billion?
• Who is under investigation?
Parmalat scam’s impact on EU Decision w.r.t companies:
• To Revise Company Law Directive on the Statutory Audit function.
• It will strengthen controls over the audit profession in the EU.
• Full group auditor responsibility for consolidated accounts of a group of companies.
• Obligatory independent audit committees for listed companies.
• Stricter auditor rotation requirements • Strengthened sanctions
• What role did derivatives and other financial instruments play?
• Where did the missing billions go, and how did the fraud stay undetected for so long?
• Are European investors likely to be slammed by more Parmalat-style frauds?
• What happens now to Parmalat?
Presented By:
Raghotham 06B123
Jeffrey Silvin 06B153
Naveen 06A023