Introduction Of Dairy Industry And Murray Goulburn

Introduction Of Dairy Industry And Murray Goulburn
The Introduction to Dairy Industry and Murray Goulburn (Devondale): The Australian Dairy
Industry in general, remains to be one of the most important rural industries in Australia. In fact, the
Australian Dairy Industry is a well–established industry in the nation (Dairy Australia n.d.). Murray
Goulbur–Devondale holds a strong position within the Australian Dairy Industry due to the
company's ability to commit to promoting sustainable practices towards their environment, society
and resources. Murray Goulburn–Devondale is committed to providing high quality dairy products
to customers and to become the leader in dairy foods through "excellence and innovation"
(Devondale Murray Goulburn 2014). The company's branding position in the market has been
improving and expanding to grow towards creating a strong global presence. To justify, Devondale
Murray Goulburn (2014) acclaimed that the company has been ensuring to take necessary actions to
improve environmental performance in order to reduce environmental impact and wastes to the area
at which it operates. Furthermore, Murray Goulburn–Devondale has been working closely with their
customers through research and development for the purpose of ensuring that the company is
meeting the needs of the public. All these operations and research emphasize that Devondale makes
to itself a stable and an effective position in the Australian dairy industry (Devondale Murray
Goulburn 2014). History of Murray Goulburn( Devondale)
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Financial Bubble Essay
National Chengchi University
Department of Finance
ETP Graduate Investments
Fall 2010
Case Discussion Questions
Instructor: Professor Edward H. Chow 周行一
Case study: financial bubble
Case: Trouble with a bubble (9–808–067)
1. Why did Irving Fisher believe that stock prices had reached a permanently high plateau?
2. Why did the stock market crash in 1929?
3. Why did influential individuals like Fisher, Keynes and Rockefeller believe that the downturn
would only be temporary?
Case study: investment banking business and global financial crisis
Case: Investment banking in 2008 (A): Rise and fall of the Bear (KEL378)
1. What role did Bear's culture play in its positioning vis–à–vis its competitors, and what role might
that ... Show more content on Helpwriting.net ...
Try to work out this question by assuming that Beta's position had been 99% of equity funds
invested in the index fund, and 1% in a riskless money market account. Imagine that you can switch
from the money market account to CREIT, BG, or the index fund. Think about the condition for
Sarah to be indifferent between switching to CREIT (or BG) and switching to the index.
Case study: Asset allocation
Case: Investment Policy at the Hewlett Foundation (2005) (5–206–114)
1. What are the financial issues facing the Hewlett Foundation (HF)? In particular, is HF's newly
proposed asset allocation policy adequate to meet the foundation's long–term spending goal of
sustaining a long–term real (or inflation–adjusted) payout ratio of 5%, while preserving capital in
real terms? Is it adequate to meet its short–term objective of maintaining consistent spending
without sharp fluctuations?
2. How does HF manage their assets?

3. Is HF's donor stock sale program a good idea?
4. Are a member of HP's Investment Committee, would you agree with the proposals to: a. Double
to 20% the allocation to absolute return strategies? b. Implement the bondization and equitization
overlay program? c. Make the 5% commitment to Sirius V?
5. With respect to b), what would be the effect of the bondization and equitization overlay program
on the expected return of the absolute return portfolio? Which contracts would be the most

Senior Leadership Responsibility
Business Ethics and Social Responsibility, Senior Leadership Responsibility is to Ensure that
Ethical Decisions are Made to Develop Good Organizational Climate
Introduction
Ethics in business is defined as the principles to distinguish right from wrong and to choose ethical
actions. It is the standard governance to all concerned to practice mutual respect and to establish
morality in order for the entire organization to benefit. This leads to the development of code
conduct that must be followed by the organization. It is highly important that the top senior
management and leaders must set the standard attitudes and behavior in the entire organization to
press ethical concerns. Because of the consequences of ethics in different organizations, senior
leadership's responsibility is to provide ethics because of their authority and responsibility; this has
evolved significantly as a primary influence to change (Ciulla, 2004).
Ethics exemplifies the practical distinction of the company before this can lead to ethical dilemmas
that can put the company at risks. Although it is often debated at the heart of leadership to take into
account several factors including the personality, experience, trustworthiness, belief and other
factors especially the character and values of the leader. ... Show more content on Helpwriting.net ...
This report will provide examination to several studies and research findings from different sources
including books, journals and other media to prove that senior leaders are not necessarily taking
their roles and responsibilities to enhance the ethics and social responsibility of the entire
organization but their actions are closely made not just to develop good organizational climate but
also to establish value based advantage, higher revenue and

Auditing Self Regulation and Government Regulation
Over the years the accounting profession has been subject to various forms of oversight with
varying degrees of success. Nevertheless, it used to be self–regulating. But a series of financial
scandals involving once prominent companies such as Enron, WorldCom and Parmalat lead the
authorities to consider whether the accounting profession's self–regulatory oversight system was
appropriate to meet the necessary objectives. These corporate failures had shown that the self–
regulatory system did not produce credible results and "had the potential to undermine investor
confidence in the integrity of the securities markets" (The Treasury, 2006). As a consequence a
number of countries have reviewed their arrangements for independent oversight of ... Show more
content on Helpwriting.net ...
The only caveat is that this regulation needs to be efficient and effective. Whatever regulatory
framework is used, be it administered by the profession or government, it must give the regulator
appropriate incentives to act in the public interest. Regulators must have a clear, overarching
purpose and the ability to resist any moves towards regulation that are self–interested or motivated
by special interest groups. Serving the public interest means having regulations that achieve their
aim of being effective and efficient without imposing unnecessary costs. The benefits of the
regulation – that is, its effectiveness in protecting the public interest – must exceed its costs. The
International Organization of Securities Commissions (IOSCO) has undertaken work in this area
and has developed a series of principles for regulators. These principles hold that: The
responsibilities of the regulator should be clear and objectively stated; The regulator should be
operationally independent and accountable in the exercise of its functions and powers; The regulator
should have adequate powers, proper resources and the capacity to perform its functions and
exercise its powers; The regulator should adopt clear and consistent regulatory processes; and The
staff of the regulator should observe the highest professional standards, including appropriate

Parmalat Sp A Multinational Italian Dairy And Food...
Nov 3 2016
Overview
Parmalat SpA is a multinational Italian dairy and food corporation that specializes in UHT (Ultra
High Temperature) production of long–life milk, dairy products (yogurt, cream based sauces,
desserts and cheese) and fruit beverages.(Parmalat in brief) It was founded by Calisto Tanzi in 1961
and the headquarters is based in Collecchio, Italy. By the early 2000s, the small Italian company had
become a global food empire spanning 30 countries and employing over 35,000 people.(BBC) In
1996, Parmalat jumped into the global financing market in a big way, financing multiple
acquisitions with debt. (World Socialist) In 2003, the company collapsed with a €14 billion hole in
its accounts, and it is still considered Europe's biggest bankruptcy. (Bloomberg)
From the year of 2014, the company's revenue amounted to around €5.6 billion. The group is
present in 33 countries with 73 factories around the world employing more than 36,000 employees.
(Parmalat in brief)
Key Players in the scandal
Calisto Tanzi – 10–year sentence for market rigging, accounting fraud (2009)
Fausto Tonna, CFO – 2–year sentence for forgery, creating many offshore companies
Grant Thornton firm – lawsuits filed dismissed in 2009
Deloitte and Touche firm
Citicorp – Parmalat was ordered to pay $364.2 million
(World Socialist)
When did it happen?
It was believed that Parmalat started the scandal as early as 1989. The largest amount of forgeries
were created during the period of 1996–2002 when

Acct 574 Case Study 1
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 on Helpwriting.net ...
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 €500
million to family firms, but investigators say that up to €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 "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 "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
$1.5

Essay On Italian Industry
In 2016, Italy's top ten major imports were vehicles, mineral fuels (including oil), machinery,
electronic equipment, pharmaceuticals, plastics, iron and steel, organic chemicals, and medical and
technical equipment. Italy imports products such as oil because the country has few oil deposits. The
country also lacks in minerals and metals and it is required to import these products in order to
manufacture goods. Italy has an advantage of a highly skilled workforce, but without natural
resources, importing such products places a heavy role. Spain, Netherlands, France, China, and
Germany are all countries that Italy imports from. Italy ranks at ninth place for biggest exporters in
Europe. With its unique brands such as Versace, Italy has a ... Show more content on
Helpwriting.net ...
In the fashion industry, Italy has Gucci, Prada, Giorgio Armani, and Versace to name a few. For food
and beverage industries, Italy has very popular brand names, including Parmalat, which
manufactures dairy products, Barilla, which manufactures pasta and sauces, Martini and Rossi,
which produces alcoholic beverages, and Illy, which specializes in coffee and coffee products. As
for Italy's physical and financial infrastructure, the country is modern and efficient in the regard,
however it lacks in performance compared to other Western European counters that are similar in
size. The Italian peninsula is connected by substantial railway systems, expressways, national roads,
airports, and seaports. A large portion of Italy's infrastructure has to be rebuilt after the damages
ensued by World War II and is constantly being improved and kept up with. Italy has numerous
international airports, with Alitalia being its national carrier. Alitalia has a fleet of 166 planes that
are able to transport 25 million passengers per year, as connect Italy to 60 other countries. In total,
there are 136 airports, with the main ones located in Rome, Milan, Trieste, Turin, and Venice. As for
seaports in Italy, they used to be a main element for transportation, including handling cargo, but
usage has declined due to competition of other means of transportation. The Italian merchant fleet
has over 2,000 ships and 1,500 miles of waterways for

Financial Statement Fraud And Corporate Financial Fraud
Financial Statement Fraud
Background
Financial statement fraud is one of the biggest types of fraud in today's business world. The
complexity and mechanism of financial statement fraud brought the attention of auditors and
regulators. Financial scandals of Enron, WorldCom, Xerox, Tyco, Parmalat, Qwest, and Satam
Computers increased the auditors' responsibility in detecting and preventing fraudulent transactions.
Corporate financial fraud had negative consequences for the market capitalization due to gigantic
losses of investors. In addition, accounting scandals of early 2000th ruined auditors' reputation and
the public trust.
The regulators, SEC, U.S. GAAP, SOX of 2002, together with AICPA, PCAOB, and COSO
concentrate on fraudulent reporting mechanisms and ways to lessen its occurrence. Inventors,
public, and officials expect auditors detecting fraud to protect third parties interests. The auditors'
core responsibility is to confirm that financial statements are prepared fairly in accordance with U.S.
GAAP. Therefore, auditors should comprehend real–world techniques to identify financial statement
manipulation.
Purpose of Research and Research Question
The purpose of this research is to analyze the cause–effect relationships between the auditor's role
and fraudulent reporting.
The primary research questions are:
1. What are the common schemes of financial statement fraud?
2. How the auditor can detect financial statement fraud?
The research is built on other studies that

Parmalat's Ethical Bankruptcy
Parmalat's 'ethical bankruptcy'.
Ethics is about choice and the values that guide us and the standards we use.
Questioning what principles maybe at stake and how we choose or priorities between them. An
ethical approach to a problem will enquire about end–results and the route or means we use to
achieve these objectives together with the relationship between the two ('end versus means').
Corporate Governance can be defined as a proper structure of rules and practices, a reference point
to return to where decision making is influenced which invariably helps a company run smoothly
reducing confusion, ambiguity and ultimately risk.
Shareholders own a company's assets; management, overseen by a board of directors, acts as a
steward over those ... Show more content on Helpwriting.net ...
Idealistically such a multiple of interdependent gatekeepers acting on business transactions
simultaneously, form interlocking shields against wrongdoing.
Corporate Governance and Auditor's independence.
Auditors are reputational intermediaries that receive a far smaller benefit than do their clients from
the operations they certify. Since they share none of the gains and are exposed to a large fraction of
the risk in the form of reputational erosion and also legal liability. Corporations however face
significant costs when they sack an auditorgatekeeper because the market interprets the decision as a
signal of hidden problems within the company. So they can credibly offer a safeguarding key service
to investors and creditors even though they are paid by companies.
Growing auditor involvement in non–audit services offered their corporate clients an
'ace at the table.' Their clients could now covertly discipline their auditors through the threat of the
reduction of the non–audit service income. Corporations could leverage influence because of agency
problems concerning their auditors' incentives. In such situations corporate governance within the
audit firm becomes crucial. When internal control is not effective, the problem can be catastrophic
as it was for Arthur Anderson in the Enron debacle. The usual corporate

Case Analysis : Parmalat Spa, A Multinational Italian...
Overview
Parmalat SpA is a multinational Italian dairy and food corporation that specializes in UHT (Ultra
High Temperature) production of long life milk. It was founded by Calisto Tanzi in 1961 and the
headquarter is based in Collecchio, Italy. In 2003 the company collapsed with a €14 billion hole in
its accounts and it is still considered the Europe's biggest bankruptcy.
Scandal
Key Players in the scandal
Calisto Tanzi – 10 year sentence for market rigging, accounting fraud(2009)
Fausto Tonna, CFO – 2 year sentence for forgery, creating many offshore companies
Grant Thornton firm – lawsuits filed dismissed in 2009
Deloitte and Touche firm
BOA – helped Parmalat acquire $170 million; lawsuit filed dismissed in 2009
Citicorp – Parmalat was ordered to pay $364.2 million
Swiss bank UBS – 357.5 million in settlements
Parmalat started in 1961 and by the early 2000s, the small italian company had become a global
food empire spanning 30 countries and employing over 35,000 people. For over a year before the
scandal exposed, analysts had been expressing doubts about the inordinately high levels of debt the
company raised from the market, despite showing high reserves of cash in its financial statements.
The company often chooses little known overseas funds to invest in surplus resources. Rumors
began spreading around in the financial world about Parmalat's opaque financial systems and its
high levels of debt. Regulatory authority in Italy named Consob also started an inquiry into

Ten Publicized Audit Failures
AFM 201 – Part 1 Auditing
Fall 2007
Group Assignment 2
Publicized Cases of Alleged
Audit Failures
Involving Large Public Companies
1) Ten Publicized Audit Failures
i. Parmalat (2003) – Deloitte & Touche Tohmatsu /Grant Thornton
Misleading investors with "Brazen Fraud" was what the United States (US) Securities and Exchange
Commission (SEC) had sued Parmalat for in 2003. It all began when Parmalat defaulted on a bond
payment worth $185 million. This raised a flag for auditors and banks, which then began to closely
examine company accounts. According to Parmalat, 38% of their assets were apparently held in a
Bank of America account, part of a subsidiary of Parmalat in the Cayman Islands, worth $4.9 billion
dollars. This was later ... Show more content on Helpwriting.net ...
Income was overstated by $1 billion by the time investigations got moving. The SEC fined Arthur
Andersen part of the $229 million for shareholder settlement and $7 million for issuing artificial and
misleading reports.
vi. WorldCom (2002) – Arthur Andersen
Audited by Arthur Andersen, WorldCom went under investigation by the SEC for accounting fraud.
Not only was cash flows overstated by booking $3.8 billion in operating expenses as capital
expenses, $400 million was given to Bernard Ebbers, the CEO, in off–the–book loans. WorldCom
stunned Wall Street with additional improperly booked funds total to $3.4 billion bringing a total
restatement of $7.2 billion. WorldCom was prosecuted by DOJ, SEC, US Attorney's Office for the
Southern District of New York and various congressional committees.
vii. Enron (2001) – Arthur Andersen
Enron headed by Ken Lay, also audited by Arthur Andersen was charged by the DOJ, SEC and
various congressional committees. In this case, both the auditor and the company were charged.

Enron boosted profits and covered over $1 billion in debts by inappropriately using off–the–books
partnerships, while manipulating power markets and bribing foreign governments for contracts
abroad. In essence, Enron took advantage of lenient regulations to defraud consumers and investors.
While Enron was being charged with fraud, money laundering, securities

The First Decade Of The 21st Century Has Witnessed An...
CHAPTER 1 INTRODUCTION The first decade of the 21st century has witnessed an astonishing
number of large–scale corporate failures in two spates. The first wave came with the Dot.Com
bubble (2000–2002), which led to many high profile corporate collapses including Enron and
Worldcom, Global Crossing in the United States, HIH and One.Tel in Australia, Parmalat in Italy,
Vivendi in France and Royal Ahold in the Holland, which brought the global economy close to
recession (Barney 2009, Hill 2006, Soltani 2013). The Dot–com crash was felt in the US economy
first and then repercussions quickly spread globally (Lowenstein 2004). While Internet companies
were hit severely during the 'Tech Wreck ' years, corporate failures spread to the energy,
telecommunication, information technology, media and financial industries (Anderson, Brooks and
Katsaris 2010). WorldCom, Enron and Conseco were the largest corporate bankruptcies during this
period with reported assets of $103.9 billion, $63.4 billion and $ 52.3 billion respectively at time of
bankruptcy filing (Altman 2002, Altman and Hotchkiss 2006, Jones and Johnstone 2012). Another
wave of corporate bankruptcies hit the global economy during the period of Global Financial Crisis
(GFC) and its ramifications are still reverberating through global markets initially causing a severe
banking and credit crisis (Barney 2009). The GFC impacted the financial sector more severely than
any other industries, but many other sectors were also

Enron and Parmalat
Managua, Nicaragua
Sept 28th, 2013
ENRON
Background
In 1985 Kenneth Lay merged his company, Houston Natural Gas, with Nebraska's InterNorth to
create the Enron; a company to be the biggest natural gass corporation to exist in the U.S. During
the 1980's, under the presidency of Ronald Raegan, there was a considerable lack of regulations
regarding the energy markets, thus allowing the company to buy and sell contracts for a delivery at
some time in the future.
By 1990 Jeffery Skilling joined as a former consultant, eventually to become Enron's COO (Chief
Operating Officer). His participation encouraged the incentive of making the company more focused
for contracts for delivery of energy as well as change accounting procedures to ... Show more
Parmalat's strategy at this point relied on building a network of off–shore mail–box companies so
that the company could conceal the losses, being the largest bond players Bank of America, J.P.
Morgan and Citicorp. Basically these banks had the notion that these bonds were ''sound financial
paper'' where in fact they were absolutely nothing. (Claudio Celani, 2004)
Claudio Celani suggests in his article that '' what strikes one is not only the dimension of the
scheme, but the arrogance of its authors. For instance, one of the offshore mail–box firms used to
channel the liquidity coming from the bond sales was called Bucanero, which means 'black hole'!
Appropriately, the first class–action suit in the United States on the Parmalat case, filed by the South
Alaskan miners' Pension Fund, is against Parmalat, its auditors, Bank of America, and Citicorp–and
focuses on Bucanero'' It was later found out in 2003 that the company concealed a sum of $14 bn
''black hole'', as Celani suggests, in its finances. (Claudio Celani, 2004)
For the next years to come there was a marathon of court cases on both continents (American and
European), and so it was discovered that nearly €4bn of funds in a Bank of America account did not
exist. Though the firm admitted to have a certain amount of debts it was later seen in 2004 that it
had in fact about €14.3bn (actually being 4 times the amount suggested). In turn , by 2008 Fausto
Tonna is

The Importance of Corporate Governance Essay
The need for clarification on the board requirements for a majority of independent directors as it
relates to corporate governance is of great importance and would be discussed in this write up.
According to Shleifer and Vishny (1997), corporate governance is the system, by which corporations
are directed and controlled. On the other hand, an independent director is a person that has at no
time, worked for the company nor owned shares in the company. This director also would not be
related to any of the key employees nor would have worked for any major supplier, customer or
service providers, such as consultants, accountants, lawyers, etc. In principle, as retrieved from
Wikipedia, "an Independent director, is a director of a board of ... Show more content on
Helpwriting.net ...
The appointment of independent directors became very necessary, as shareholders looked for a way
by which management became more responsible and accountable, and as such; the need for
independent directors, who would not only checkmate the excesses of the board of directors, but
also have the interest of the company and the shareholders at heart. Joshua Kennon (2007), stated
that "The board of directors is the highest governing authority within the management structure at
any publicly traded company and is usually made up of the directors who are elected for a specific
number of years by the shareholders". According to Wikipedia," A board of directors is a body of
elected or appointed members who jointly oversee the activities of a company or organization". It is
the board's responsibility to consider and authorize a suitable remuneration package for the
company's chief executive officer (CEO), make recommendations with respect to the attractiveness
of dividends and dividends pay out, approve stock splits, form the audit committees, approve the
company's financial statements, oversee management's involvement in the shareholders and other
stakeholders long–term interests and recommend or discourage major decisions such as acquisitions
and mergers. According

Advantages Of The Ola Model
2a) One of FC's ownership advantages is its ownership of the entire supply chain. Dairy farmers
from Belgium, the Netherlands, and Germany form the cooperative Zuivelcoöperatie
FrieslandCampina U.A. This cooperative, in turn, owns the company Royal FrieslandCampina N.V.
which processes the milk provided by the farmers into dairy products such as yoghurt. Closing the
cycle, the company pays the farmers for the supplied milk (FrieslandCampina n.d.). This structure
gives FC control over the entire dairy chain – from the farm to the processed end products. As a
result, the organisation does not have to deal with suppliers that do not comply with codes of
conduct, and avoids redundancy costs associated with running multiple programmes in different
companies or business units. Instead, it can implement programmes throughout the entire
organisation, for example, foqus – ... Show more content on Helpwriting.net ...
However, while the OLI paradigm centers around a single expansion decision, the Uppsala model
views internationalisation as a gradual process with an incremental increase of knowledge of the
target region and subsequent commitments in that region. Hence, internationalisation occurs faster
in the OLI paradigm. Another difference between the two models is their respective focuses. The
OLI paradigm focuses more inward, on the attributes of the expanding company, comprising
ownership, location, and internalisation advantages and argues that companies need to combine
these to minimise risk and succeed with FDI. On the other hand, the Uppsala model concentrates on
the actual process of internationalisation, stating that companies should begin with low risk
commitments – such as exports – to acquire knowledge of the target country and then increase their
commitment based on the gathered knowledge. With higher commitment, more knowledge can be
gained to be used for further commitment (Peng & Meyer

Canadian Agriculture And Agri Food Industry Essay
Dairy farming is one of the most important sectors of Canadian agriculture. It is ranked in third
place after grains and beef. The country´s 12.234 farms recorded total farm revenue of $5.92 billion
in 2013. The 474 dairy plants located all over the country had estimated sales of $15.7 billion in
2013, accounting for the 16% of the value of manufactured shipments of food and beverages (Statics
of the Canadian Dairy Industry 2014 Edition, 2014). These numbers represent 15–16% of the
Canadian agricultural/agri–food industry GDP. The agriculture and agri–food industry contributes
more than $100 billion annually to Canada's GDP which is around the 8% of the total GDP.
According to Dairy farmers of Canada (2012), the Canadian Dairy Industry directly and indirectly
generated around 215.000 jobs in 2011. 1.3 Supply management Canada 's dairy sector operates
under a supply management system based on planned domestic production, supervised pricing and
strict controls on dairy product imports. The system was adopted for industrial milk in the early
1970s to address the unstable prices, uncertain supplies and fluctuating producers and processor
revenues which were common in the 1950s and 1960s. By enforcing this system, farmers attempt to
strike the most accurate balance between supply and demand of dairy products (Canadian Dairy
Commission, 2010). 2. DESCRIBING THE INDUSTRY 2.1 Dairy farming In 2013, based on the
Statics of the Canadian Industry (2014), the country had a total

Corporate Management : Corporate Governance Essay
Chapter–1 Introduction to Corporate Governance 1.1 Introduction Corporate Governance is a buzz
word in the business world. It is envisioned to enhance the accountability of a concern and to evade
huge disasters before they occur. The concept of corporate governance dived to global attention after
the sudden crashes of Enron, World Com, Xerox, Lehman Brothers, Parmalat, Satyam etc. The
failure of these colossal business houses horrified the corporate world with their unethical and
unlawful operations which affected the employment, finances of national and local government
worldwide and international economy. The history of these scandals have forced all the corporates to
have substantial and clear record of wealth creation and transparency over a period of time.
Integration and globalization of financial markets and a gush of corporate scams have led to the fast
developments within the field. With the continuous growth in the foreign investments in India, the
international investors would assert that the corporations in which they have interest should follow a
"Code of Corporate Governance". In such a scenario, Indian corporates cannot afford to disregard
the best corporate governance practices since India is a developing country. Corporate Governance
has, of course been a highly debated field of enquiry with in the finance discipline for decades.
Several studies emanating from academic and non–academic circles over the years demonstrate that
better corporate

Xerox Accounting Scandal
Fannie Mae Accounting Scandal
Xerox Accounting Scandal
The Merck Accounting Scandal
Parmalat Accounting Scandal
HealthSouth Corporation Scandal
Computer Associates Accounting Scandal
Enron Accounting Scandal
We will discuss Xerox Accounting Scandal.
Xerox Corporation is the world's largest supplier of toner–based photocopier machines and
associated supplies. In April, 2002, the Securities and Exchange Commission (SEC) filed a
complaint against Xerox for accounting irregularities between 1997 and 2000. Xerox recorded
revenues from copy machine leases by recognizing a "sale" in the period a lease contract was signed
instead of recognizing revenue over the entire length of the contract.
Prior to 1997, Xerox had recognized revenue from equipment rentals, or leases, as ... Show more
The accounting irregularities increased fiscal year 1997 pre–tax earnings by $405 million, 1998 pre–
tax earnings by $655 million, and 1999 pre–tax earnings by $511 million. Xerox's senior
management was aware of the accounting actions that were taken to meet revenue and profit goals.
Xerox's auditors –KPMG complied with management's request related to accounting practices in
order to maintain relationship with Xerox and to protect the audit and non–audit fees to be received
between 1997 and 2000.
In response to the SEC's complaint, Xerox Corporation agreed to pay a $10 million penalty and to
restate its financial results for the years 1997 through 2000. In June 2003, six Xerox senior
executives accused of securities fraud who agreed to pay $22 million in penalties.
In January, 2003, the SEC filed a complaint against Xerox's auditors, KPMG alleging four partners
who permitted Xerox misrepresent $3 billion in revenues and $1.4 billion in pre–tax earnings. In
April 2005 KPMG settled with the SEC by paying a $22.48 million

Corporate Fraud Has Taken The World By Storm For Over The...
Corporate Fraud
Introduction
Overview Corporate fraud has taken the world by storm for over the past decade. The biggest fraud
cases to ever occur happened in 2001 and 2002 and since then fraud seems to be more and more
common around the world. According to Forbes.com (n.d) the biggest fraud cases to ever occur was
Enron, Bernard Madoff, Lehman Brothers, and Cendant, with Enron being the largest accounting
scandal to ever take place. Prior to Enron's fraud scandal coming to light in 2001, they were the
seventh largest company in the United States by revenue, this was the same year Enron filed
bankruptcy (da Silveira, 2013, p. 315). In addition to being one of the largest companies, Enron
received numerous awards for their positive business role. Enron received the award for being the
most innovative company from Fortunes magazine, ranking Enron as one of the most admired
companies. Enron received this award six year in a row by the year 2000 (da Silveira, p. 316).
Furthermore, in 2001, Enron was noted on the United States list of being the largest company of the
top 50 fastest growing companies (da Silveira, p. 316). Not only did Enron receive awards as a
company, but their Chief Finance Officer (CFO), Andrew Fastow also received the award as the
most creative CFO from CFO Magazine in 1999 (da Silveira, p. 316). According to da Silveira,
Enron was considered a high–profile company and viewed as a role–model company by other stock
analysis, investment analysts,

wall board
9
Auditing Cash and Revenues
C A S ES INC LU DE D IN T HIS SE CTION
9.1 Wally's Billboard & Sign Supply
. . . . . . . . . . . . . . . .
259
. . . . . . . . . . . . . . . . . . . . . . . . . .
279
The Audit of Cash
9.2 Henrico Retail, Inc.
Understanding the IT Accounting System and
Identifying Audit Evidence for Retail Sales
9.3 Longeta Corporation
. . . . . . . . . . . . . . . . . . . . . . . .
285
Auditing Revenue Contracts
9.4 Bud 's Big Blue Manufacturing
. . . . . . . . . . . . . . . . .
291

Accounts Receivable Confirmations
O T HE R C AS ES THAT DI S CUSS T OPICS RELATED TO THI S S ECTION
8.2 Northwest Bank . . . . . . . . . . . . . . .
Developing Expectations for Analytical ... Show more content on Helpwriting.net ...
Glover, Ph.D. and
Douglas F. Prawitt, Ph.D. of Brigham Young University, as a basis for class discussion. Wally's is a
fictitious company. All characters and names represented are fictitious; any similarity to existing
companies or persons is purely coincidental.
Copyright © 2009 by Pearson Education, Inc., Upper Saddle River, NJ 07458
259
Section 9: Auditing Cash and Revenues often simply focus on confirming the accuracy of
numbers and often do not catch bigger–picture issues relating to evidence quality. These issues are
included to help students realize the need for professional skepticism when obtaining and evaluating
evidence and help them pay attention to more than just the numbers. To help the instructor make a
vivid and lasting impression about evidence quality, a copy of the fraudulent faxed confirmation
form used by Parmalat is included in these notes so the instructor can make an overhead to use in
class. The actual forged Parmalat fax can be used to create a vivid learning experience for students.
USE OF CASE
This case gives students real–world experience doing a task they will probably perform soon after
graduation and simulates a situation similar to the Parmalat fraud by including a questionable faxed
confirmation form. Students should become familiar with the documents used to audit cash accounts
and learn how to properly document work using tick marks. The case is intended to go

Parmalat Case
Something Went Sour at Parmalat Parmalat is a multinational Italian dairy food corporation that
today represents one of the biggest fraud scandals that has marked history in Europe. What
happened and why weren't the scandalous activities detected beforehand? Parmalat's investigation
was triggered when it "defaulted on a $187 million bond payment in mid–November 2002." This led
to further revelation of the nonexistence of $4 billion worth of claimed bank deposits held by a
subsidiary in the Cayman Islands in a Bank of America account. The company was basically
falsifying accounts in order to increase assets and hide losses. The increase in assets would influence
the public to believe that they were in a good position which in turn allowed ... Show more content
on Helpwriting.net ...
As auditors, they have the responsibility of not only requesting a confirmation, but they should also
follow up on necessary procedures to make sure that this process is accurately completed. Their duty
is to be able to have control over this process from beginning to end in order to be able to rely on the
evidence requested.
Additional steps should have been taken by the auditors when they received the smudged fax copy
printed on the Bank of America letterhead. As mentioned before, the evaluation of the evidence
obtained is as important as requesting it. The firm did not confirm the forged documents with the
bank; for this reason, the evidence remained unreliable and the forgery wasn't revealed until later.
Auditors should have been concerned with knowing where and whom the confirmation letters came
from. Was the initial confirmation request mailed directly by Grant Thorton SpA or by Parmalat or
was it obtained directly from the bank? Auditors should be aware that confirmations that are sent
through fax are much less reliable than confirmations sent by mail. Their duty was to find out if the
correct process was altered in any way.
Additional concerns have been made in regards to the red flags missed by auditors. First of all,
auditors should have been alarmed by the size of the cash account held in the Cayman Islands.
Auditors should have remained skeptical about the existence of this account. They should've
addressed this red flag with

Case Study Of Parmalat Scandal
Corporate accounting fraud is the major factor that has led to the collapse of many companies, one
of which is Parmalat company scandal. The Parmalat group, a world leader in the dairy food
business, collapsed and entered bankruptcy protection in December 2003 after acknowledging that
billions of euros were missing from its accounts. Its collapse had been labeled as "European Enron"
and has led to a deep questioning of the reliability of accounting and financial reporting standards as
well as that of the Italian corporate governance system. Therefore, this paper has discussed, firstly,
what factors have allowed fraud to occur in Parmalat. Secondly, how the fraud could have been
avoided from happening in this company. Thirdly, has discussed some red flags that indicate fraud
was occurring in the company. Lastly, the paper has discussed some of the lessons that can be learnt
from the Parmalat company scandal.
Keywords: Parmalat, Fraud, Bonds, Banks, Missing funds, collapsed. ... Show more content on
Helpwriting.net ...
Without understanding the company financial condition he acquired many companies in the food
industry which resulted in financial losses. Also he manipulated financial reports in order to hide
losses. Tanzi further, diverted 500 million euros from company reserve to Parmatour (which
belonged to his daughter) without taking approval from shareholders and stakeholders.
Second person involved in the scandal was the CFO of the company– Fausto Tonna; he was
completely dependent on the internal auditor, without even checking the company books that were
handled by the auditor. He also announced a bond issue of 500 million euros, without informing the
shareholders, stakeholders and other

Case Study Of Parmalat
Introduction
Parmalat is an Italian based company, founded in 1961 by Calisto Tanzi. Their business model
covered the new UHT (ultra–high temperature) production method of milk and dairy products. UHT
milk was an upcoming technology from the Swedish firm Tetra Pak, making Parmalat an
international player (Buchanan & Yang, 2005). Foreign acquisitions in the field of dairy products
made Parmalat a multinational general food company (Ferrarini & Giudici, 2005). In the late 1980's,
Parmalat was Italy's eighth largest food company and listed on the Italian Stock Exchange in Milan.
During the nineties, the Parmalat Group followed a strategy to expand its reach through diverging
into new markets like football and the tourism. Family started playing a more important role as
Tanzi was placing relatives in important positions and boards of the holding. The Parma football
club was acquired and Tanzi's son Stefano became the club's president while his daughter, Stefania,
became the CEO of the tourism firm, Parmatour (Buchanan & Yang, 2005). By the end of 2002, the
group was a world leader in the markets of milk, diary products and beverages and incorporated
several well–known brands as Archway, Frica, Grisbi, Mother's, Pomi and Welsh Farms. Parmalat's
figures covered a consolidated turnover reached €7.6 billion in 2002, 36.000 employees and 146 ...
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When Parmalat filed for bankruptcy in 2004, it was clear that it would become one of the biggest
corporate scandals in Europe (Buchanan & Yang, 2005). According to Melis (2005), gatekeepers
failed to assure a true and fair view of Parmalat's financial situation and performance. Neither rating
agencies nor financial analysts could examine the developments at Parmalat in order to protect
minority shareholders and prevent the

ACCC V Liquorland
TUTORIAL 1
1) Identify aspects of 'competition' within the meaning of competition law.
The Harper Review defined competition as 'the process by which rival businesses strive to maximise
their profits by developing and offering desirable goods and services to consumers on the most
favourable terms'. The purpose of competition policy is therefore to protect, enhance and extend
competitive conduct. Competition Law aims to combat certain anti–competitive practices that
interfere with the efficiency of markets to the detriment of both consumers and other suppliers.
Competition law is not intended to protect competitors per se (Harper Review); rather, as per Joseph
Schumpeter, competition facilitates creative destruction as old and inefficient economic ... Show
more content on Helpwriting.net ...
The Parmalat Australia website suggests that its brand Pauls is the most consumed branded milk in
Australia. Parmalat is a significant producer of UHT milk; however, the majority of this is exported
to the Asia Pacific. UHT milk accounts for less than 10% of total milk sales in Australia. Fonterra
and the Murray Goulburn group have a similar market share to Parmalat, thereby constraining its
market power. Lion Pty Ltd is the industry leader with a 32% market share, however this covers
several brands and also includes private label contracts with Woolworths. The fact that the major
suppliers operate nation–wide and would be present in each market (as discussed above),
significantly limits Parmalat's ability to exploit its market power. It is difficult to envisage Parmalat
partaking in exclusive dealings or predatory pricing to the detriment of its competitors, given that
they have similar resources and would be capable of rebuffing these tactics. Nevertheless, if
Parmalat colludes with another supplier, then the combined market share of the firms would be
substantial, thus creating scope for cartel behaviour that is disadvantageous to farmers (primary

Parmalat Case Study
What is the role that Parmalat's management and its accounting department played in this case?
Parmalat was founded in 1961 in Northern Italy. The company eventually grew into one of the
largest diary and food company in Italy and eventually became a multinational conglomerate with
214 subsidiaries in 48 different countries. In 1990, the company's financial performance began to
slip. Instead of resolve the problems, Parmalat executives and managements used a wide range of
unethical techniques to disguise them. For instance, they used receivables from fake sales as
collateral to borrow money from bank, created fake assets by inflating reported assets, and took
legitimate debt from investors (Glater, 2004). Additionally, executives worked with investment
bankers to move debt off balance sheet and disguised it as equity. Lastly, they conspired with third–
party auditors and bankers to further finance the fraud (Rimkus, 2016). As a result, Parmalat
collapsed with debts of €14 billion in 2013. It is considered to be Europe's biggest corporate failure
and often known as "Europe's Enron" (Segreti, 2010).
Compare and contrast the U.S. GAAP and the IFRS; which is a better system, and why? Should the
United States move to IFRS? There are many similarities and differences between the US Generally
Accepted Accounting Principles (US GAAP) and the International Financial Reporting Standards)
IFRS. According to Investopedia.com (2017), the US GAPP is the accounting standard used

U.s. Sarbanes Oxley Act
The world has witnessed a series of corporate bankruptcies in the recent decades like Enron,
Lehman Brothers Inc, Global Crossings, and Tyco in the USA; HIH in Australia, Parmalat in Italy,
APP in Asia, and Islamic bank Ltd. of South Africa. These collapses have weakened and shaken the
confidence of shareholders, debtors, governmental institutions, and other similar relevant
stakeholders in corporate governance (CG) and the stock markets, and led to regulating many
reforms and codes of best governance practices all over the world, to strengthen transparency and
restore confidence in financial markets (Barros et al., 2013). For instance, after the financial failure
of Enron and dissolution of Arthur Anderson; one of the five largest audit and accountancy
partnerships in the world, U.S enacted the Sarbanes–Oxley act of 2002; France regulated the
financial security law of 2003, as many other countries developed a set of regulations in the
aftermath of huge corporate scandals. In Addition, the integration and globalization of financial
markets also has given significance and highlighted the importance of CG as claimed by Srinivasan
& Srinivasan (2011). Consequently, many studies on the CG have justified their argument on the
existence of information asymmetry between managers and stockholders of the company based on
the agency theory, which is defined as a contract under which one party (the principal) delegates
another party (agent) to perform some services on their behalf

Parmalat Scandal
Corporate Ownership & Control / Volume 2, Issue 2, Winter 2005 РАЗДЕЛ 3 УГОЛОК
ПРАКТИКА SECTION 3 PRACTITIONER'S CORNER INVESTORS TRUST AFTER
PARMALAT SCANDAL: THE ROLE OF CORPORATE GOVERNANCE Giovanni D'Orio
Giovanni D'Orio, Department of Economics and Statistics, University of Calabria – Rende (CS)
Italy. Contact: gio.dorio@unical.it 1.1. Introduction The collapse of the Parmalat food empire
reveals a troubling aspect about Italian capitalism – the lack of effective financial control over its
family–owned companies. But was Parmalat scandal a pure problem of corporate governance or was
it simply a "fraud"? Bearle and Means (1932 pg. 6) famously explained: "The separation of
ownership from control produces a ... Show more content on Helpwriting.net ...
Under Italian Law two main types of company may be incorporated: S.p.A. (Società per Azioni) and
S.r.l. (Società a responsabilità limitata). S.p.A. is the normal form for larger companies (joint stock
companies). An S.p.A. may be listed on the Stock Exchange although the absolute majority are not.
It is however necessary for a company to be an S.p.A. in order to be listed thereon. S.r.l. in practice
corresponds to a closely held limited company. It is the kind of structure which is more suited to
small–tomedium sized enterprises where limited liability is required. This is by far the most
common type of company used by Italian entrepreneurs and that most frequently chosen by foreign
parent companies when setting up their subsidiaries in Italy. The governance structure of
corporations is twotired: the managing board (consiglio di amministrazione) has the function of
ratifying decisions that have been previously taken by the controlling group, and is supplemented by
a board of auditors (collegio sindacale) who are responsible for internal monitoring. Directors can
either be executive or nonexecutive and there is only a limited number of external directors. They
tend to meet only a few times a year and the meetings are frequently of poor quality. In addition,
information is generally scarce and incomplete. Even though board members and managers are
supposed to use the "agent's diligence" in the management of the company,

Audit and Grant Thornton
Executive summary
In the dawn of 21st century, Italian company Parmalat suddenly collapsed with €14 billion in debt,
which made it the biggest corporate failure in Europe history. This case provides us a good
opportunity to investigate corporate governance issue in Continental Europe. In this paper will be
initiated with introduction of Parmalat's history and events review on its bankruptcy, followed by
analyzing the shortcomings of its corporate governance in both internal and external aspects and
finally the conclusions about why the corporate governance of Parmalat failed to prevent the scandal
from happening will be drawn. Changes made by government in regulations after the scandal will be
also revealed and at the end, we will put ... Show more content on Helpwriting.net ...
3. Financial Fraud
The most distinctive feature of Parmalat's financial reports was the coincidental high level of cash
and debt. Similar to Enron's, its disclosure policy was characterized by its management's vague and
arrogant approach towards analysts and investors. Traditionally, European companies hold more in
assets than American companies do; so when the document was provided to explain the company's
assets in relation to its debt, nothing was seen as extraordinary. Figure 1 Parmalat(PAF) time line &
International stock price
In October 2002 the group launched a bond issue of 150 million, and in November a new bond issue
by Parmalat Soparfi followed, with a value of €200 million and Morgan Stanley acting as the only
bookrunner. These issues alerted the market. On 6 March 2003, the Italian asset management
association wrote a letter to Parmalat and CONSOB, accusing the group's lacking of transparency.
As a reaction, Parmalat organized a meeting in Milan on 10 April 2003. During this meeting, Mr.
Tanzi announced that the Group's CFO, Mr. Tonna, had resigned and a new CFO, Mr. Ferraris, was
in charge. The market reacted positively and the price rebounded after the February's downturn.
Mr. Ferraris, Parmalat's new CFO, had promised that it would have used only cash to repay the
Group's debt. Nevertheless, in June, it was discovered that Parmalat had privately placed a new
bond. The real amount of all pending bonds was still a secret. When

The Degree Of Auditor Responsibility For The Detection Of...
The degree of auditor responsibility for the detection of fraud has been re–defined repeatedly over
the history of audit and is still generating considerable discussion in recent years, at the hand of
financial crisis and a number of huge scandals, such as Enron – WolrdCom – Parmalat – Satyam
Computer Services, which caused auditing to become headline news, and therefore widened the
expectations gap between the audit firms and the public, and raised further questions about the audit
value to society.
"In the 19th century, detection of fraud was an audit objective and it the auditor had a duty to report
to shareholders all dishonest acts, which had occurred, and which affected the propriety of the
contents of the financial statements" ... Show more content on Helpwriting.net ...
Numerous surveys in the 1980s have served to underline the significance and extent of fraudulent
activities in the corporate sector (Humphrey and Turley, 1993, pp. 39–62). "The auditor has a duty
to search for fraud and is expected to detect fraud by the exercise of professional skill and care"
(Rittenberg and Schwieger, 2005).
As a result of all the recent fraud scandals in large corporations and fraud cases, investors concerns
about fraudulent financial reporting has increased and therefore external auditors are getting the
blame for not detecting fraud, while audit regulators are put into pressure to meet the public 's
wants. In response, audit regulators (i.e. (AICPA, IAASB) have published a number of professional
fraud standards (SAS No. 1: "Responsibilities and functions of the independent auditors"; SAS No.
99: "Consideration of fraud in a financial statement audit"; and ISA No. 240: "The auditor's
responsibilities relating to fraud in an audit of financial statements"). Nonetheless, the expectation
gap remains wide today – the overall picture has not changed much and the problem of fraud in
audit remains unsolved. "Estimated typical organisation loses accounts for 5% of revenues each year
to fraud. If applied to the 2013

Corporate Governance
CORPORATE GOVERNANCE – ROLE OF BOARD OF DIRECTORS
People often question whether corporate boards matter because their day–today impact is difficult to
observe. But, when things go wrong, they can become the center of attention. Certainly this was true
of the Enron, Worldcom, and Parmalat scandals. The directors of Enron and Worldcom, in particular,
were held liable for the fraud that occurred: Enron directors had to pay $168 million to investor
plaintiffs, of which $13 million was out of pocket (not covered by insurance); and Worldcom
directors had to pay $36 million, of which $18 million was out of pocket. As a consequence of these
scandals and ongoing concerns about corporate governance, boards have been at the center of the
policy ... Show more content on Helpwriting.net ...
Ensure that a highly qualified executive team is managing the company by The Hiring, Firing and
Assessment of Management. Apart from what has been stated above one very significant and active
role played by the board is in terms of "the hiring, firing, and assessment of management". This is
one role that is typically ascribed to directors is control of the process by which top executives are
hired, promoted, assessed, and, if necessary, dismissed. Assessment can be seen as having two
components, one is monitoring of what top management does and the other is determining the
intrinsic ability of top management. The monitoring of managerial actions can, in part, be seen as
part of a board's obligation to be vigilant against managerial malfeasance.
It is essential that the role, duties and responsibilities of directors are clearly defined. The Combined
Code (2006) states that "the board's role is to provide entrepreneurial leadership of the company
within a framework of prudent and effective controls which enables risk to be assessed and
managed".
According to UK Law, the directors should act in good faith in the interest of the company, and
exercise care and skill in carrying out their duties. The Company Law Reform Bill (2005) defines, in
section 154–161, the directors' duties as follows:
a duty to act within powers, that is, to act in accordance with the company's constitution

Parmalat : An Italian Based Company
Introduction and Overview of the Corporation
Parmalat is an Italian–based company most well known for its production of various forms of dairy
product, as well as pastries and fruit drinks. The company, started in 1961 by a 22 year old Calisto
Tanzi, was initially a small family run business that sold primarily meat products. Parmalat became
a success once it had developed the concept of a milk that could remain unspoiled in tetra–paks for
extended periods of time. This milk was called UHT (Ultra–High Temperature milk) and quickly
allowed the company to hit the stock market due to its success. Currently, Parmalat is functioning in
33 countries with more than 70 factories, and parents a variety of other dairy brands worldwide.
Some of the ... Show more content on Helpwriting.net ...
External stakeholders became both puzzled and concerned by the company's decision to default –– if
they had nearly $5 billion* stashed away, why would they be unable to afford a payment only a
fraction of that value? This is what triggered the initial investigation into Parmalat's finances.
In 2003, the threads holding Parmalat's fraud together quickly began to unravel. To back up the
existence of the Cayman Islands account's funds, Parmalat had been using a letter allegedly written
to them from the Bank of America to confirm that a transfer of the funds had been made. However,
after brief scrutiny it was revealed that the letter had been forged, and so the funds did not exist. As
the scandal was put under further scrutiny, it was revealed that Parmalat had not only been lying
about the money in the subsidiary, but about various other assets as well. The accountants working
for Parmalat had essentially invented assets out of thin air to offset their expenses and liabilities, and
were lying about revenues as well. After thorough investigation it was determined that Parmalat was
$17.6 billion* in debt. Trade of their stocks was immediately suspended.
* in USD
Stakeholders
The Parmalat scandal affected not only the decision makers but also internal and external
stakeholders. The internal stakeholders include roughly 36,000 employees whose salaries depend on
the success of Parmalat and the brands it parents. The aforementioned brands

Dairy: Milk and Clover
Clover S.A. (Proprietary) Limited ("Clover") is the biggest dairy processor in South Africa with a
turnover of R 4.3 billion and staff in excess of 6 000. Clover collects approximately 30% of South
Africa's milk supply and processes it into well known branded dairy and related products which is
then distributed nationally and even exported into certain African countries In this document,
Clover's external opportunities and threats, and its internal strengths and weaknesses will be
evaluated in order to complete the relevant matrices, whereafter the Grand Strategy Matrix will be
used to devise appropriate strategies to deal with the key opportunities, threats, strengths and
weaknesses Mission and Vision Statements: Clover's mission ... Show more content on
Helpwriting.net ...
Its flagship upliftment programme, Mama Afrika, currently supports in excess of 10 000 people.
Appropriately, Clover views this project along the following lines: "Clover's flagship CSI
philosophy is underpinned by the principle of sustainability; instead of giving people handouts, it is
investing in projects that empower communities and enhance their ability to become self–sufficient
in the long term. "We teach the Mamas how to fish rather than give them the fish."" According to
Clover, it believes that: "The company is inextricably part of the community and will therefore, in
terms of support and development, accept its social responsibility; Profitability and growth are pre–
requisites to fulfill its social responsibility within financial means; The community, primarily has to
accept responsibility for its own well–being and will only within means, be supported in this; It
creates wealth through company taxes, employee taxes and levies which enable government to
establish and maintain essential infrastructure like roads, education and health services;
Opportunities for work and prosperity are not only created within the business, but that it, indirectly,
contributes to job creation and combating poverty." It furthermore enforces strict environmental
disposal techniques in order to protect the environment. It is therefore that

Role Of Microfinance Institutions ( Mfis )
Microfinance institutions are playing an important role in the delivery of financial services to the
poor. Increasingly, these MFIs are for–profit, limited liability companies, the ownership of which is
in the hands of multiple shareholders. In most cases, shares are privately held (i.e., not publicly
traded). Most such MFIs are licensed financial institutions finance companies and banks. Many are
deposit takers. The microfinance industry has directed to change all that by building a financial
market to meet diverse financial needs of under–served people (Armendáriz de Aghion and
Morduch, 2004; Hermes and Lensink, 2011), and emerged merely with the objective of alleviating
poverty, especially in developing countries (Brau, Hiatt, & Woodworth, 2009; Daley–Harris, 2006).
Given the fury of activities that have affected the efforts of microfinance institutions (MFIs) to
comply with the various consolidation policies and the antecedents of some operators in the system,
there are concerns on the need to strengthen corporate governance in microfinance institutions
(MFIs). This will boost public confidence and ensure efficient and effective functioning of the
microfinance institutions (MFIs) system (Soludo, 2004). According to Heidi and Marleen (2003),
microfinance institutions (MFIs) supervision cannot function well if sound corporate governance is
not in place. Consequently, microfinance institutions (MFIs) supervisors have strong interest in
ensuring that there is effective

The Anatomy Of Corporate Fraud Essay
Article Critique #1 The first article researched was The Anatomy of Corporate Fraud: A comparative
Analysis of High Profile American and European Corporate Scandals. The abstract discusses the
analysis conducted on the three major American accounting scandals; Enron, WorldCom, and
HealthSouth, and compares to the three major European accounting scandals; Parmalat, Royal
Ahold, and Vivendi Universal. Bahram Soltani (2014), also discusses within the abstract the
different areas reviewed regarding why the accounting scandals occurred; ethical climate, tone at the
top, bubble economy and market control, fraudulent financial reporting, accountability, control,
auditing, governance, and management compensation (p. 251). Between 2001 and 2003 there were
several corporate accounting scandals that occurred that took the world by surprise. A lot of
investors lost a lot of money and several employees lost their jobs. These accounting scandals
occurred due to management misconduct, fraud, and scams that occurred within these companies.
Within the United States, the big cases typically viewed are the Enron, WorldCom, and HealthSouth
cases, however, it is forgotten that Europe experienced a similar situation with Parmalat, Royal
Ahold, and Vivendi Universal. Soltani (2014), discusses the importance of understanding the
motivation and causes of financial corporate scandals. Soltani (2014) notes three research questions
associated with this article: 1. "What are the common

Agency Theory and Corporate Governance
Agency Theory And Corporate Governance
Introduction
The global market has shown exemplary contribution to the growth of the world's development until
recently where financial crisis have been bombarding most economies. As a result, the cost of
livelihood had been unaffordable to many who live below the dollar. The monetary crisis has led to
the lowering of many currencies against the dollar, hence advancing the economy crisis to most
worldwide nations. This turn of events has been attributed to the lack of exercise of business and
management ethics in many multinational companies, firms and investments. Financial scandals
have been the order of the past twenty years leading to the sweep over of the flourishing global
market. The scandals, especially in larger companies and multinational, are spurred by inter and
intra–conflicts in their organizational structures.
Managers and shareholders are the utmost contributors of these conflicts, hence affecting the entire
structural organization of a company, its managerial system and eventually to the company's societal
responsibility. A corporation is well organized with stipulated division of responsibilities among the
arms of the organizational structure, shareholders, directors, managers and corporate officers.
However, conflicts between managers in most firms and shareholders have brought about agency
problems. Shares and their trade have seen many companies rise to big investments. Shareholders
keep the companies running

Food Fraud Is A Serious Issue
1. Introduction Food fraud is a serious issue which has come under increased scrutiny as a potential
food safety and public health concern in recent years (Spink and Moyer 2011). Regulators, food
producers, retailers, and consumers all have an interest in safeguarding foods and ensuring they are
safe, genuine, and of the highest quality. Nevertheless, food fraud has been conducted since ancient
times, with evidence of laws dating back to Roman times regarding the adulteration of wine,
through the addition of sweeteners and coloring agents, or dilution with water. At that time the scale
of fraud was much more limited to a smaller geographical region (Armstrong 2009; Spink and
Moyer 2011). Because of the growth and increasing complexity of the modern global food supply
systems, this has substantially heightened the risk of food fraud to include an entire global
population, therefore having a major impact on the ability to protect consumer health (Moore and
others 2012). Food fraud is a broader term than adulteration (Figure 1). An adulterated food is one
which may be spoiled or intentionally adulterated with an adulterant– a substance which has been
added illegally) (Spink and Moyer 2011). Virtually all foods have the potential to be adulterated, but
those that are more expensive or are produced under changeable weather and harvesting conditions
are especially vulnerable (Sharma and Paradakar 2010). Economically motivated adulteration is a
subcategory of food fraud and is a

Analysis Of Accounting Ethics
The accounting world has changed dramatically during the last two decades, yet at the same time its
core responsibilities remain the same as it has in previous eras. Ethically speaking, company
accountants and outside accounting firms have been at the crux of many of the disasters that have
befallen major corporations both in America, and globally. The word 'Enron' is a prime example of a
company becoming a hiss and a byword, and the lack of ethics evidenced in that case is quite
blatant. One report states that "after some significant financial scandals around the world, such as
those involving Enron, WorldCom, and Arthur Andersen, various United States bodies have
appealed to the public for a greater emphasis on accounting ethics" (Ho, Lin, 2008, p. 883). With
that demand for higher personal and company–wide ethical standards and behavior has come a shift
of the public's perception concerning the role of accountants and/or accounting firms. As the Ho and
Lin report found "it is a challenge for accounting professionals to understand the differences in
perceptions of accounting ethics" (p. 884). Accounting firms may not have previously recognized
their responsibilities and roles (especially regarding ethics) but are certainly more aware currently of
those items and tasks. Accordingly, one of the measures that now takes place by accounting firms
has to deal with the measuring of intangibles. Intangibles such as behaviors, standards and ethics are
now front and center in the

Internal And External Factors Essay
The research and understanding of the key internal and external factors that are affecting the
performance of a company towards innovation are essential to identify the weaknesses or algid
points that the organisation must consider and potentiate to be more competitive and innovative. The
current report aims to propose a plan to support entrepreneurship in the organisation considering the
management, operations, and marketing areas.
The current study presents an approach to the external forces that are affecting the organisation,
highlighting the impact of economic factors and scarcity of resources, such as water that challenge
the company to become more competitive. Also, the analysis considers the market factor regarding
changes in ... Show more content on Helpwriting.net ...
Established in 1930, Parmalat is a multinational corporation that provides dairy and food products
and has its operations in 18 countries across the globe. Their products include a varied range of
flavoured or fresh milk, iced coffee, yogurt, and fruit juices. With presence in 24 countries around
the world, it is a leading company in the Milk and Cream Processing Industry, being one of its major
actors. (IBIS Report, 2016).
The fast–changing environment oblige many dairy companies, including Parmalat to become more
innovative to maintain the leadership on the market finding a competitive advantage which has
motivated the need of structuring a Corporate Venture Plan which allow the company to assess the
internal and external factors of the firm to get a clear idea of where it stands and in what areas it
needs improvement.
The purpose of this report is to propose an organised and strong corporate venture plan that consider
the analysis of external and internal factors that affect the company to present strong strategies for
management, marketing and operations areas that help the company to support corporate
entrepreneurship within the company.
In today's business world, organisations consider the generation and development of new ideas that
potentiate entrepreneurship inside the company to gain higher efficiency and progress in the growth
of its industry. Morris (2012) suggests

Something Went Sour at Parmalat
Something went sour at Parmalat
The Italian dairy food corporation Parmalat SpA was founded by Calisto Tanzi in 1961 and grew to
a global company. It had about 140 production centers, 36,000 employees and 5,000 contracted
dairy farms (https://en.wikipedia.org/wiki/Parmalat). The dairy food giant defaulted on debt in
November 2002 and filed bankruptcy in December 2003. It sounds ridiculous because Parmalat's
subsidiary in Cayman Islands had a $4.9 billion cash balance in Bank of America account. However,
this account was falsified. Meanwhile, Parmalat also hid losses of $10 billion and increasing assets
as high as $19 billion. The auditors did not show enough professional skeptism and due care during
the audit.
1. What steps does ... Show more content on Helpwriting.net ...
Actually, in NY 10001, Bank of America does not have any office address beginning with "100".
Since the case took place 12 years ago, Bank of America may move its offices, but auditors can still
check it when receiving the letter.
When receiving the smudged fax copy, the auditor should prove the confirmation letter. In this case,
the auditors can search online or other independent source (i.e. non–client source) to get phone
number and email address of Bank of America and contact with the bank immediately. The auditors
should also request the original confirmation be mailed directly to the firm. The original
confirmation is more convincing to a faxed one.
3. What red flags did the auditors miss?
There are several red flags: (1) The large size of the bank account. The account represents 38% of
Parmalat's assets. It is not normal for such a big company having so much money in a single
account. (2) The location of the account. Parmalat deposited money in a foreign bank made it hard
to confirm the balance and direct communication between the bank and the auditors. (3) It is not
understandable Parmalat raised more than $5 billion debt when it had $4.9

Introduction Of Dairy Industry And Murray Goulburn

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