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.
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Two new audit partners have been appointed at the firm BDO in its audit practice following continued growth and investment
Investment in people, tech and businesses impacts on EY's profit per partner figure
If businesses do not take cyber security seriously in their business planning regulators may do it for them, the ICAEW has warned