The case was discussed earlier with the class. Please comme…
The case was discussed earlier with the class. Please comment on all of the three questions below. Your response should be around 7-8 sentences. On December 9, 2003, Parmalat defaulted on a $184 million payment to bondholders. On December 17, 2003, the Bank of America announced that a U.S.$5 billion account that Parmalat claimed to have had with it in the Cayman Islands did not exist. Why did the audit procedure performed by Deloitte not uncover the Parmalat non-existent bank account? What is the possible reason that Deloitte overlooked this procedure? What should the board of directors have done differently to notice that the $5 billion dollar bank account did not exist?