Need the answers to case 8-2

Ethical Obligations and Decision Making in Accounting, Third Edition

1. In the case, Judge Kaplan dismissed Parmalats lawsuit against Deloitte stating that Parmalat did not show that poor auditing of Parmalat USA was equivalent to fraud. Comment on the judges decision from the perspective of the auditors obligation to identify fraud in the financial statements.

2. Based on the information in the case, classify the improper transactions engaged in by Parmalat into one of the seven financial shenanigans identified by Howard Schilit and discussed in Chapter 7. Explain why each transaction vio- lated professional standards.

3. Who is to blame for the fraud at Parmalat: the company?; top management?; the auditors?; the Bank of America? How did each party violate its ethical obligations?