ICAI to seek explanation from Satyam's auditor PwC

Agencies
Posted: Wednesday, Jan 07, 2009 at 1352 hrs IST
Updated: Wednesday, Jan 07, 2009 at 1352 hrs IST

Font Size

Feedback

Discuss

Spice to move CLB on Satyam sale End-game nears for Satyam, buyers wary Custody of Raju, four others extended

New Delhi: The apex chartered accountants' body ICAI will seek an immediate explanation from Satyam Computer's auditors, PriceWaterHouse Cooper (PwC), on the financial fraud unearthed by the software company's Chairman B Ramalinga Raju, before taking any action.

"ICAI will write a letter to PwC tomorrow and will seek an immediate reply on the issue and inform them about the process of investigation, which is on," ICAI President Ved Jain said.

He said that strict action will be taken if the auditors, of country's fourth largest IT firm Satyam, are found guilty.

"We will ensure that to any person who has not worked according to our standards and our expectations, severe punishment be given," he said.

PwC's comments are still awaited.

Following a letter from the Satyam Chairman, who accepted that he had misrepresented facts in the company's balance sheet, role of auditors and accountants for the company has also come under scanner.

In fact, the Ministry of Corporate Affairs announced that role of directors and auditors at Satyam would be scanned by ICAI and the apex body of company secretaries ICSI.

However, Jain also pointed out that before the body takes any action against the members involved in the "fraud", it needs to collect facts and information. "So we are looking into that and we will start our proceedings," he added.

"All one needs to prove is he (auditor) was a party to the fraud. He can be booked under the Companies Act and the Chartered Accountants Act... in case of negligence by the chartered accountant, we have a severe punishment," Jain said.

Discuss this story on expressindia forums

Post Comments

Comments: (Limit 3,000 characters)

Name		Message
Email ID
Subject

TERMS OF USE:
The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s).

I agree to the terms of use.

Comments

» satyam scam

Posted by shruti on 2009-02-01 23:30:36.242347+05:30
i want to know full story of Satyam fraud and what action will be taken by the ministry of corporate affairs against sayam and by the ICAI against PWC Auditors and also the names of the board of directors and auditors.Thanks

Reply Forward

» Stayam Fruad

Posted by RAHUL SHARMA on 2009-01-23 13:33:20.981912+05:30
I Want to know full story of Satyam fraud and what action will be taken by the Ministry of Corporatet Affairs against Satyam and By the ICAI against PWC Auditors.Thanks

Reply Forward

» fraud investigation

Posted by AJ on 2009-01-12 06:22:31.507706+05:30
Does anyone know who is investigating the fraud on behalf of the ICAI?

Reply Forward

» action against PWC

Posted by Fatima on 2009-01-08 23:03:34.557756+05:30
May I know What actions can be taken against the auditors of SATYAM ?

Reply Forward

» Styam's Auditors

Posted by om arora on 2009-01-08 15:23:35.959188+05:30
this is true that detecting all frauds is not the responsibility of auditor. but in Satyam Case the amount of Fraud is so large and material that it can be easily detected if Auditor apply due deligence.

Reply Forward

» AUDITOR DUTIES

Posted by ABHILASH on 2009-01-08 16:09:16.349401+05:30
U SAID EXACTLY CORRECT DETECTION OF FRAUDS AND ERRORS IS NOT THE WORK OF THE AUDITORS BUT WHEN THE CASH BALANCE IS HIGH THE AUDITOR HAS THE POWER TO SHOW CASH

Reply Forward

» PWC

Posted by Amit on 2009-01-08 12:08:02.473976+05:30
The auditors (PWC) are responsible for this situation. Just because they don't do there job properly, future of thousands of Satyam employees are on road. PWC should be blacklisted and auditors should thrown behind bars.

Reply Forward

» satyam's audotirs

Posted by Manisha on 2009-01-07 23:59:29.875789+05:30
It is evident from the face of it that the auditors are incompetent and so their licence of practice should be suspended. Also the method adopted by all the others audit firms should also be reviewed to prevent this kind of fraud.

Reply Forward

» No liability

Posted by rajkumar on 2009-01-07 20:06:03.94493+05:30
I am very much surprised to see action against PWC.Detection of Frauds and Errors are truly not the responsibility of the Auditor Ref ( N K Jain

Reply Forward

» No liability

Posted by Hardik on 2009-01-08 14:42:56.396774+05:30
What happened to Arthur

Reply Forward

» satyam's auditor

Posted by p.s.nathan on 2009-01-07 17:18:44.596498+05:30
It is clear on the face of it that Auditors of Satyam have not discharged their duties with utmost care and responsibility. If they claim that they have been unware of such a large fraud then they must be thoroughly incompetent. Their licence to practice should be suspended to start with. A detailed investigation should be ordered and necessary followup action should be take swiftly. This is the least that the investing community can expect.

Reply Forward

Latest News

Print Edition

Events

ICAI to seek explanation from Satyam's auditor PwC

Post Comments