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To: Madharry who wrote (41871)	3/19/2011 3:26:32 PM
From: Spekulatius	Read Replies (1) \| Respond to of 79050

Incidentally the difference between the Parmalat and the Enron fraud was that management falsified records (faxes) to dupe the auditor into believe that cash accounts existed at banks when there was none. In the Parmalat scandal, the auditor was duped or maybe did not do due diligence (or a combination of both) while with Enron, the auditor helped to facilitate fraud. As mentioned before and audit is not necessarily designed to uncover fraud. >i agree with what you say. however, among the simplest task for any auditor is to reconcile and verify cash. this is done by sending verfication requests to the banks that hold the cash.<<