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  "documentTitle": "Olam International (OLAM)",
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  "authorName": "Muddy Waters",
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  "notes": "The slide uses a quote from Kenneth Lay (Enron) to frame the argument against Olam's reliance on E&Y.",
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      "text": "Olam is using Ernst & Young as a crutch, rather than attempting to provide substantive answers to issues we and other analysts have raised.",
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      "text": "Olam calls “totally irrelevant” our showing that Olam massively overpaid for CFM’s PP&E. Olam says the acquired assets “get the job done”. This completely incorrect (and almost improper) rationale would hold that an operable 1992 Mercedes should be worth just as much as – if not more than – a 2012 Honda.",
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      "text": "More to the point, we are unsure that E&Y member firms in some of the least developed countries in the world practice at standards comparable to those of E&Y Singapore. E&Y Lagos audits Olam’s Nigerian subsidiaries.",
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      "text": "This elite group of accounting firms used to be the “Big Five”. The group lost a member after Enron Corp. collapsed. Enron was audited by Arthur Andersen LLP, which issued unqualified audit opinions on Enron’s financials that are similar to the ones E&Y issues on Olam’s statements.",
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      "text": "FY2011. Given Olam's numerous acquisitions of poorly performing assets, investors should be gravely concerned about the returns on their capital.",
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      "text": "Our analysis of the CFM acquisition is based on extensive field research in Lagos, Nigeria, and through obtaining and analyzing CFM’s Nigerian Corporate Affairs Commission audited financial statements.",
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      "text": "Olam is using Ernst & Young as a crutch, rather than attempting to provide substantive answers to issues we and other analysts have raised. Auditors repeatedly fail to ensure that financial statements are free of misleading figures or fraud.",
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      "text": "The landscape – even in very recent years – is littered with corporate collapses and frauds that were audited by “Big Four” accounting firms. Of recent note, both KPMG and Deloitte are defendants in lawsuits alleging negligence in their work regarding Autonomy Corp.",
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      "text": "[The accounts] had been reviewed and scrubbed quarterly since they were put in place by Arthur Andersen. We thought all that had become history, and it was now news. - Former Enron Corp. Chairman Kenneth Lay during his 2006 criminal trial",
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      "text": "\"[The accounts] had been reviewed and scrubbed quarterly since they were put in place by Arthur Andersen. We thought all that had become history, and it was now news.\" — Former Enron Corp. Chairman Kenneth Lay during his 2006 criminal trial",
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      "text": "7 Olam Response, p. 26.",
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