Grant Thornton Severs Ties With Italian Unit

According to a Reuters report, on Thursday, Grant Thornton told reporters it has severed all ties with its Italian unit Grant Thornton SpA., in light of the Parmalat scandal, now being dubbed the “European Enron.”

"We have lost confidence in Grant Thornton SpA and are therefore acting clearly and decisively to protect our clients and the reputation of all of the other independent firms in the international network," Grant Thornton's global Chief Executive David McDonnell said.

In a statement from Grant Thornton International a spokesman said that Grant Thornton SpA, could not provide enough assurances or access to the appropriate information and people in an acceptable time frame.

News Release From Grant Thornton, LLP

Grant Thornton LLP, the U.S. member firm of Grant Thornton International, stated today that it fully supports the action of Grant Thornton International in acting quickly and decisively to expel Grant Thornton SpA as a member firm based on concerns that the former Italian member firm can no longer effectively serve clients.

“Providing our clients with the highest quality service is our first priority and as we have said previously, Grant Thornton LLP adheres to clear and precisely articulated standards, practices and values,” said Ed Nusbaum, chief executive officer of Grant Thornton LLP.

“Our guiding principles are the basis for our decisions and actions in serving our clients. For nearly 80 years we have adhered to the highest standards of professionalism and are concerned whenever there is a real, or even perceived, violation of our guiding principles. We do not tolerate behavior that deviates from our ethical standards.”

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