PracticeAuditDeloitte issues Parmalat defence

Deloitte issues Parmalat defence

Deloitte in Italy will use Italian accounting regulations as the basis of its defence against any accusations of malpractice in the ongoing Parmalat debacle.

Links: GT fights for reputation

Deloitte said today that as auditor to the holding group of companies, it only had to audit 51% of Parmalat’s assets under Italian law. Bonlat, the subsidiary where the scandal began in December, fell in the remaining 49% handled by seperate auditors.

The subsidiary’s audit was in fact carried out by Grant Thornton SpA which has so far seen two of its most senior officers arrested in connection with the scandal.

‘If you look at 2002, that audit opinion was drawn up under Italian GAAP and it made specific reference to the percentage of group assets and liabilities audited by other auditors, and the fact that therefore we didn’t assume responsibility for the audit work carried out on those subsidiaries,’ a Deloitte Touche Tohmatsu spokeswoman told Accountancy Age.

‘The standards in Italy are different and our feeling is that we acted properly throughout and in accordance with the relevant standards,’ she said.

Grant Thornton SpA is to be officially dumped from acting for Parmalat. There have been no statements yet on Deloitte’s position.

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