As per our president honourable mr. ved jain P W C may careless in their audit.as a president his view is at par genuine.in my sence after investigation strict action should be taken.

Well Said , it is the only way to save the reputation of CA fraternity, PWC should be debarred from practicing with immediate effect till the enquiry proceedings are not concluded. It is absolutely there responsibility to see how the balance sheet of such a big company is window dressed without there knowledge

Although Ramalinga Raju has gone out of his way to make out that none of the other board members and senior executives of Satyam were

aware of the fraud, the law of the land is expected to take its course and Raju and any other director/executive found to be involved in the scam are liable to be prosecuted on charges punishable with imprisonment up to 10 years.

Some of the more serious penalties that Raju and others are likely to face under various laws are:

* Section 23 of the securities contract regulation Act 1956, that imposes a penalty of imprisonment up to 10 years and fine up to Rs 25 crore. The adjudicating officer of Sebi is empowered to award such punishment to directors and management executives for violating the listing agreement by making false and inaccurate disclosures in the company's quarterly and annual results. The penalty is severe because of the enormous damage that the investors are liable to suffer on account of false disclosures.

* Section 24 of the Sebi Act 1992 that imposes a penalty of imprisonment up to one year for infringement of any provisions of the law or rules and regulations, including fraudulent and unfair trade practices (FUTP).

* Section 477-A of the Indian Penal Code, that imposes a penalty of imprisonment up to seven years. The police may on their own or on the recommendation of the serious fraud investigation office (SFIO) invoke this IPC provision meant to punish those found to have falsified accounts "willfully and with intent to defraud."* Section 211 of the Companies Act that imposes a penalty of imprisonment up to six months. The company law board is empowered to punish those who are found to have "willfully" failed to comply with the requirements of law relating to the annual financial statement.

Significantly, the job of the prosecuting agencies has been made easier by the damaging admissions made by Raju in his resignation letter to the board. Having taken responsibility for cooking the Satyam books to the tune of Rs 7,136 crore, it is just as well that Raju said, "I am now prepared to subject myself to the laws of the land and face the consequences thereof."

For all his exertions in his resignation letter to save the skin of other directors, they have reason to worry because the Companies Act does not only hold the board to account for any such failure of due diligence, it also makes no distinction in the liability of executive and non-executive or independent directors. The onus is on them to prove the action they had taken to discharge their fiduciary responsibility.

Satyam Computer will hold a news conference at 5:00 PM (1130 GMT) on Thursday, a spokeswoman said, a day after the firm's chairman

quit after disclosing that profits had been falsely inflated for years.

Senior management, likely to include interim CEO Ram Mynampati, will address the media, the spokeswoman said.

WHAT WE NEED TO PUT FORWARD IS THAT WE THE ASPIRING CAs WILL FACE THE WRATH AS WE WILL BE CRITICIZED FOR NO MISTAKE OF OURS. IF WE ARE PLANNING TO PRACTICE, THE JOB GETS MORE TOUGHER. ICAI MUST GIVE EXEMPLARY PUNISHMENT TO ALL THE MEMBERS CONCERNED (MIGHT BE CANCELING THEIR MEMBERSHIP)TO AVOID REPETETION OF SUCH INCIDENTS. YESTERDAY MUST BE THE BLACKEST DAY IN THE HISTORY OF ICAI. THE PROFESSION STANDS DISGRACED. PUBLIC MUST HAVE LOST FAITH IN AUDITED STATEMENTS. WE NEED TO SET THIS RIGHT SOONER THAN LATER

as per given situation i may feel that there is auditors careless ness

so icai should consider the issue same

and give the judgement to recognise our profession in industry

thankful to VED JAIN for taking decision

even as a Securities and Exchange Board of India (SEBI) team reaches Hyderabad to investigate Satyam Computers’ Rs 7000 crore fraud, its disgraced chief, B Ramalinga Raju remains untraceable.
Raju could also have left for Dubai, however, there is no confirmation.
Satyam’s former chairman is not reachable on his mobile phone.

Well there was nothing being Careless about the PWC, They were extra care full that this FRAUD does not come out.... They are certainly a part & parcel of this fraud, Such a big crime without auditors involvement is certainly not possible.....

yes PWC is responsible for this scam. because it's his duty to find such kind of frauds done by the management.

Any audit firms quality of audit can't be judge from one or two instances so it might be the mistake of one or two partner and not the whole PWC.

Priyanka i was just thinking that your last article is coming true here.....

Good keep it up.

Any idea about ..what action can be taken againts PWC...?

I think action is necessary because if the Professional are so careless then there is no requirement of Audit.

MR. Ved Jain should take a harsh action against PWC

it has affected the whole profession............Trust the main base itself is shattered

This proves gross negligence on the part of PWC . We were bosting about credibility of our system in the wake of ENRON scandal and published the comparison when "Sarbans-Oxley Act -2002" was passed  in support of our contention . The magnitude of problem may persist  with other established corporates as the pepole have become  very much shaky about the credentilas of  profession.

Necessray action is to be taken right away to restore the confidence of all  for the good of Corporates  and pepole in general