PracticeAccounting FirmsDeloitte had early warning over Parmalat

Deloitte had early warning over Parmalat

Deloitte could face legal action from Hermes after the fund management group revealed it requested an investigation into Parmalat's accounts a year before the Italian company collapsed.

Link: Parmalat special report

The Maily on Sunday reported that Hermes wrote to Parmalat’s auditor, Deloitte, and its Board of Statutory Auditors in December 2002, over concerns which included the treatment of a number of Cayman Islands investments in the accounts.

Parmalat’s troubles emerged late last year after the discovery of a £2.8bn hole in a Cayman Islands-based subsidiary.

Hermes is now understood to be preparing a legal action against various parties involved in the scandal, which experts believe could be strengthened by its having alerted Deloitte to its concerns.

Deloitte said: ‘We are aware of the press reports about this letter. In Italy, there is a defined process for shareholders to make complaints to the Board of Statutory Auditors. In this case, we understand the Board subsequently investigated the matter and reported on it in the 2002 annual accounts.’

Related Articles

Johnston Carmichael CEO appointed as ICAS president

Accounting Firms Johnston Carmichael CEO appointed as ICAS president

3w Emma Smith, Managing Editor
British Accountancy Awards 2018 – entries open!

Accounting Firms British Accountancy Awards 2018 – entries open!

1m Emma Smith, Managing Editor
Is the accountancy sector facing an international talent crisis?

Accounting Firms Is the accountancy sector facing an international talent crisis?

1m Lewis Silkin
RSM appoints new Chief Operating Officer

Accounting Firms RSM appoints new Chief Operating Officer

1m Alia Shoaib, Reporter
RSM announces 11 partner promotions

Accounting Firms RSM announces 11 partner promotions

2m Emma Smith, Managing Editor
BDO hires former AstraZeneca creative director as head of digital and innovation

Accounting Firms BDO hires former AstraZeneca creative director as head of digital and innovation

2m Emma Smith, Managing Editor
What does the future hold for listed accountancy firms?

Accounting Firms What does the future hold for listed accountancy firms?

2m Fergus Payne, Lewis Silkin
EY, Deloitte lead Big Four in gender pay gap reporting

Accounting Firms EY, Deloitte lead Big Four in gender pay gap reporting

3m Emma Smith, Managing Editor