By Ana Mano
By Ana Mano
SAO PAULO, March 16 (Reuters) – When Japanese conglomerate Marubeni 8002.T booked a lack of 3.9 billion yen ($35 million) at its U.S. grain dealer Gavilon in November, it blamed changes for “inappropriate transactions” with Italy and Spain.
Whereas Marubeni did not give additional particulars, the problems that led to the loss stretched again years and had been neglected by Gavilon’s U.S. managers regardless of repeated warnings from accountants and a few firm executives in Brazil, in response to audits, emails and 4 folks accustomed to the matter.
Brazilian threat controllers at Gavilon do Brasil raised crimson flags as early as June 2016 about lax accounting that finally let the corporate e-book inaccurate estimates for freight prices, boosting its earnings and masking losses, in response to three sources and paperwork about Gavilon’s threat mitigation efforts.
That very same month, an Ernst & Younger audit flagged to Gavilon do Brasil managers that its processes left room for fraud. In 2017, EY mentioned in one other audit seen by Reuters that there was a “important…