Parmalat

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Auditing Scam

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Parmalat

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

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