The Parmalt Scandal

Contents Executive Summary1 PART 1. Parmalat Scandal Review2 1.1 Cooks2 1.2 Recipes3 1.3 Incentives4 1.4 monitor4 1.5 End Results4 PART 2. Diagnosis of the underlying problems5 2.1. Internal presidential term mischance5 2.1.1. Ownership and crack structure5 2.1.2 Oversight drop dead7 2.2. External gatekeeper failure9 2.2.1. External auditor failure9 2.2.2. Failure of the banking industry11 PART 3. Environmental thrust12 3.1. Italian traits12 3.1.1 Transitional capital market12 3.1.2. Immature corporate presidential term base of operations13 3.2. Structural factors in auditing14 PART 4. Implications15 4.1 Internal control15 4.2 External supervision15 PART 5. Conclusion17 Executive Summary Parmalat of Italy, at once a global leading diary giant, declared unsuccessful person in late 2003 when its massive fraud came to the spotlight, reminiscent of preceding disgraceful corporate perpetrators like Enron, WorldCom and Tyco (Chen, Zheng and Zhuo, 2004). Starting with a precise account of the case-specific facts, this report then attempts to shed light on the host of issues, both at micro and macro level, which together with contributed to Parmalats demise.

The report will suppress with a countersink of constructive recommendations, pressing for enhanced efforts in promoting more gamy corporate internal control, sounder regulatory and supervisory infrastructure and more disciplined external gatekeeping intermediaries. PART 1. Parmalat Scandal Review The crisis became familiar in November 2003 when questions were raised by Deloitte & Touche about legal proceeding and burst out in the December. Detailed timeline is shown in the flurry 1. In this section, Parmalat scandal is analysed based on CRIME model, namely through five interactive fraud factors: cooks, recipes, incentives, monitoring and end results (Rezaee, 2002). 1.1 Cooks Source: Buchanan and Yang (2005); Jay and Tran (2004) 1.2 Recipes Source: Chen,... If you want to get a complete essay, order it on our website: Orderessay

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