Accounting Fraud in Plain Sight: Parmalat

An article in the FT argues that some instances of accounting fraud should be easier to identify. One example was particularly entertaining:

“Parmalat’s €3.9bn cash pile … was supposed to have come from selling milk powder to Cuba. But an analysis of the volumes claimed suggested that if the company’s numbers were accurate, each of the island’s inhabitants would have needed to be consuming 60 gallons a year.”

Source: Jonathan Ford and Tabby Kinder | "After Wirecard: is it time to audit the auditors?" | The Financial Times | 07/03/2020 | Visit