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Q.

Are the pricewaterhouse auditors equally responsible and accountable in the Satyam fraud as much as RamalingaRaju?

Asked by r, 07 Jan '09 10:48 pm
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Answers (8)

1.

No they are not
Answered by Janis, 08 Jan '09 12:12 am

 
  
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2.

Pricewaterhouse auditors are responsible,equally in Satyam Fraud case , this is because as external auditors of Satyam it was their responsibility to maintain oversight on accounting practices followed by Satyam. If the internal auditors failed to perform their duties as in this case it was up to external auditors to highlight the same. PwC should have traced and tracked it. Basic rule such frauds are never individual efforts these are collective efforts. Internal auditors failed, so did external ones, Management (Board) did not do its job properly (hand in glove with promoters) & of course Regulators failed to detect this for several years (SEBI)
Answered by Nikhil Parulkar, 08 Jan '09 05:33 am

 
  
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3.

Ofcourse they are responsible. They have failed to perform their duty. Not only that they have helped them to do such frauds. Few years back Late R.S.Lodha did such fraud and become the chairperson of M.P.Birla Group. The ICAI should take some steps to avoid CAs doing such things. But at the end of the day Shareholders are bearing the crisis and the Giants escape with mere consequenses. So something must be done to avoid such things.
Answered by vijsha, 08 Jan '09 10:27 am

 
  
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4.

No, if you say like that, legal advisor (Lawyer) also responsible.
Answered by alagar srinivasan, 07 Jan '09 10:53 pm

 
  
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5.

Where r those foolish people of Corporate India, who had honoured Raju with Golden Peacock Award for Execellent Corporate Governance, taking back the same is not a solution.
What role auditors were playing, either they are incompetent or they r part of this fraud. In both case the deserve cancalation of their licence.
Answered by Satyam Investor, 08 Jan '09 02:36 pm

 
  
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6.

Yes in my opinion PwC auditors are completely responsible as it is clearly evidenced from the resignation letter of Mr Ramalinga Raju that inflated figures were such that can be easily traced if proper auditing skills and procedures were followed. so it can be said that it was a delibrate misconduct on part of Pwc and its auditors.
Answered by samy, 08 Jan '09 11:15 am

 
  
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7.

Not equally but they are also have to share a part of responsility particularly where cash and bank balance are inflated.
Answered by Himanish Das, 08 Jan '09 10:08 am

 
  
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8.

Yes, there is no question of any doubt on this issue. In the case of Satyam, they have played the same role as Arthur Anderson did in the case of Enron... the act of supression of facts. Auditors are not there to rubber stamp a balance sheet prepared by the management of the company. They are there to check every aspect of accounting, as laid down under the relevant laws... in this case the Company Law, ensure adherence to statutory stipulations and procedurs as laid down by ICAI, nation's financial laws, banking laws and every conceivable law of the nation and any other Corporate Governance mandatory stipulations. No Management can deny them access to any document under the Law. Infact, Section 227 of Companies Act so specifically lays it down "The Auditor has full right of access at all times to the books and accounts and vouchers of the Company, whereever it may be and they can seek clarification on any aspect relating to their work". If that is so, how have they certif ...more
Answered by Omega, 11 Jan '09 03:17 pm

 
  
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