PCAOB to ‘examine’ Parmalat scandal

Link: Grant Thornton may sever ties with Italian arm

Although the board cannot hold its own independent investigation into the affair, as Parmalat is not listed on US exchanges, it is expected to follow the current investigations closely and draw lessons from the alleged massive fraud at the Italian dairy.

The findings could then be incorporated into practice standards for auditors, such as guidance on the detection of fraud.

‘The board will look at all audit failures for lessons that might be drawn for either standard setting or inspection,’ a PCAOB spokeswoman told the Financial Times.

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