Acct 574 Case Study 1 - 1093 Words

THE PARMALAT SCANDAL The Parmalat situation started out as a fairly standard – although sizeable –accounting fraud. Not even the best auditors could prepare for what was to come from this company. The Parmalat group, a world leader in the dairy food business, collapsed and entered bankruptcy protection in December 2003 after acknowledging massive holes in its financial statements. This happened when billions of euros seem to have gone missing from the company’s accounts. This dramatic collapse has led to the questioning of the soundness of accounting and financial reporting standards as well as of the Italian corporate governance system. Parmalat, which is headquartered in the central Italian city of Parma, was, like most Italian†¦show more content†¦Most of the money that moved in, around and out of the company has since been traced, although the final destination of some of it is still unknown. Tanzi has admitted transferring some â‚ ¬500 million to family firms, but investigators say that up to â‚ ¬1.3 billion may have gone this route. Tanzi was sentenced to 10 years in prison for fraud relating to the collapse of the dairy group. The other seven defendants, including executives and bankers, were acquitted. Another eight defendants settled out of court in September 2008. In September 2009, three lawsuits by Parmalat Capital Finance Ltd. and Enrico Bondi, CEO of Parmalat, against Bank of America and auditors Grant Thornton, were dismissed. In an attempt to downplay the extent to which corruption and fraud have penetrated to the heart of global capitalism, commentators have seized on the fact that many of Parmalat’s former top executives are related to claim that the scandal is simply a case of a â€Å"family firm† failing to adhere to good corporate governance practices. Not surprisingly, Parmalat’s top executives are going along with this story, insisting they were only acting â€Å"under orders† from the padrone. The scandal, however, has engulfed other major firms. There are the accounting firms—Grant Thornton and Deloitte and Touche, and the banks—Citicorp and Bank of America. Citicorp is directly linked to the $1.5Show MoreRelatedSamsung and Financial Crisis Case Study11108 Words   |  45 Pagesdownloaded without charge from the Social Science Research Network electronic http://ssrn.com/abstract=1605782 1 Electronic copy available at: http://ssrn.com/abstract=1605782 1 Brand Attachment and Brand Attitude Strength: Conceptual and Empirical Differentiation of Two Critical Brand Equity Drivers May 12, 2010 C. Whan Park Joseph A. DeBell Professor of Marketing ACCT 306C Marshall School of Business University of Southern California Los Angeles, CA 90089-0403 Phone: 213-740-7107;Read MoreProject Mgmt296381 Words   |  1186 PagesCross Reference of Project Management Body of Knowledge (PMBOK) Concepts to Text Topics Chapter 1 Modern Project Management Chapter 8 Scheduling resources and cost 1.2 Project defined 1.3 Project management defined 1.4 Projects and programs (.2) 2.1 The project life cycle (.2.3) App. G.1 The project manager App. G.7 Political and social environments F.1 Integration of project management processes [3.1] 6.5.2 Setting a schedule baseline [8.1.4] 6.5.3.1 Setting a resource schedule 6.5.2.4 ResourceRead MoreCma Solutions63195 Words   |  253 Pagesselection of problems and cases as well as their solutions, most of which focus on a few related topics. Some, however, are teaching cases that integrate several Syllabus topics. You are cautioned that the set of illustrative questions in this material does not cover the entire range of Syllabus requirements. It would be a mistake to conclude that in the next CMA Entrance Examination the omitted topics are less important or less likely to occur than any other. CMA Canada 1 Entrance ExaminationRead MoreQuality Improvement328284 Words   |  1314 PagesSons, Inc., 111 River Street, Hoboken, NJ 07030, (201)748-6011, fax (201)748-6008, E-mail: PERMREQ@WILEY.COM. To order books or for customer service, call 1-800-CALL-WILEY(225-5945). Montgomery, Douglas, C. Introduction to Statistical Quality Control, Sixth Edition 978-0-470-16992-6 Printed in the United States of America. 10 9 8 7 6 5 4 3 2 1 About the Author Douglas C. Montgomery is Regents’ Professor of Industrial Engineering and Statistics and the Arizona State University Foundation ProfessorRead MoreCost Accounting134556 Words   |  539 PagesSolutions Manual for COST ACCOUNTING Creating Value for Management Fifth Edition MICHAEL MAHER University of California, Davis Table of Contents Chapter 1 Cost Accounting: How Managers User Cost Accounting Information Chapter 15 Using Differential Analysis for Production Decisions Chapter 2 Cost Concepts and Behaviour Chapter 16 Managing Quality and Time Chapter 3 Cost System Design: An Overview Chapter 17 Planning and Budgeting Chapter 4 Job Costing Chapter