Parmalat to defraud its investors of billions. The auditing procedures used by Grant Thornton and Deloitte were inadequate. Many of Parmalat’s assets were overstated and its liabilities understated. The auditors did not adequately test the Special Purpose Entities or the off-balance sheet transactions. One of the most basic auditing procedures is testing for existence. By testing these accounts for existence and looking further into them‚ the auditors could have uncovered that they were formed by Parmalat
Premium Audit Asset Balance sheet
information which must specify in the founding documents of a legal entity in accordance with the provisions of Article 52 of the Civil Code (name of legal entity‚ its location‚ order management of a legal entity)‚ and information about the object and purpose of the enterprise‚ and Also on the amount of capital of an enterprise‚ procedure and sources of its formation. The property of the state unitary enterprise is state-owned property‚ and such enterprise on the right of economic jurisdiction or operative
Premium Federation United States Nationalization
requires an extensive application of financial planning‚ scrutiny by multiple entities and reporting that displays the realistic methods that were used in meeting public needs. The philosophy of public finance is based on raising funds for public purposes (Gaffney‚ 2008). Gaffney (2008) said there are three aspects on the basis of which public finance functions. These are as follows: * On the basis of different activities in which public sectors are involved and the way of their organization
Premium Finance Government Economics
their earnings the moment the contract is signed) Its managements goal was to maintain the appearance of value by always having rising stock prices rather than focus on creating real value for the company. Secondly its reliance on Special Purpose Entities to constantly raise capital without increasing its indebtedness. It allowed losses to be kept off the books while assets to be stated. Enron had its own executives manage these partnerships and would make the deals work by guaranteeing
Premium Enron scandal Finance Stock
traded company offers challenges to auditing when it comes to shared-based payment reporting and special-purpose entities (SPE) reporting individually. The most basic principle of GAAP at risk is the qualitative characteristic of reliability. Shared-based payment and SPE reporting individually has been broken down to better equip the audit for our client. It is important to notice that Special Purpose Entities should be carefully reviewed by each member of the auditing team. Even more after it was proven
Premium Generally Accepted Accounting Principles Balance sheet Asset
Post-war Afghan Economy How National is the National Development Framework By SIBA SANKAR MOHANTY Afghanistan occupies a central significance in South Asia owing to its geo-strategic location and natural resources-but is considered as one among the poorest countries in the world. Being a small‚ land locked and poor country with around 85 percent of its population depending on agriculture‚ and its socio-economic structure being influenced in every respect by external forces for more than twenty
Free Government Economics Governance
2002 AN ACT GRANTING TAX EXEMPTIONS AND FEE PRIVILEDGES TO SPECIAL PURPOSE VEHICLES WHICH ACQUIRE OR INVEST IN NON-PERFORMING ASSETS‚ SETTING THE REGULATORY FRAMEWORK THEREFOR‚ AND FOR OTHER PURPOSES Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: ARTICLE 1 GENERAL PROVISIONS SECTION 1. Title. – This Act shall be known as "The Special Purpose Vehicle (SPV) Act of 2002". Section 2. Declaration of Policy. – It
Premium Debt Loan Asset
Bruce Stone‚ O.P. Dwivedi‚ and Joseph G. Jabbra list 8 types of accountability‚ namely: moral‚ administrative‚ political‚ managerial‚ market‚ legal/judicial‚ constituency relation‚ and professional.[13] Leadership accountability cross cuts many of these distinctions. [edit] Political accountability Political accountability is the accountability of the government‚ civil servants and politicians to the public and to legislative bodies such as congress or parliament. In a few cases‚ recall elections
Premium Legislature Government Democracy
PUBLIC ADMINISTRATION Assignment SEMESTER 2 2012/2013 PSCI 2523 INSTRUCTOR “ACCOUNTABILITY” | NAME | MATRIC NO. | SECTION | 1 | | 1 | | | | | INTRODUCTION. When the word Public Administration come accross one’s mind‚ people would think of government civil workers and bureaucracy in government office. However‚ Public Administration is wider than that. It comprises of many part among them are technical issues‚financal issues
Premium Governance Government Evaluation
Cash Basis Accounting Vs. Accruals Basis Accounting The cash basis accounting which is currently use by the government has many weaknesses which need to be addressed. The present system does not give a real reflection and real time position of the government’s financial matters. Expenditures were recorded as they were spent and paid for‚ not as they were incurred whereas revenue was recorded as it was received and not when it was earned. Assets are seldom accounted for and tracked after purchasing
Premium Generally Accepted Accounting Principles Economics Cost