Fraud: Examples of Accounting Fraud
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 | 7/3/2020 | Visit
After previously reporting $2.1 billion of debt, NMC Health PLC has since had to revise this number for an unexpected and unknown sum of an additional $2.7 billion of debt. The share price declined 60% before trading was suspended.
Source: Anna Isaac | “NMC Health Discloses $2.7 Billion More in Debt” | The Wall Street Journal | 3/10/2020 | Visit