As events are unfolding, it is turning out to be a bigger scam than one thougt it would be at the initial stage. This is by far the most shocking incidents for the markets in say the last six months. A company as good as Satyam (or should I not call it so now) which is an Index co. and was easily among the better ranking in terms of Market Cap a few months ago has made mockery of the laws all around. The market sentiment is very clear, the stock was down 71% trading at 52 week low at Rs. 48.90, the Sens*x crashing 596 points, as I write this message. The fact that this is not a circuit stock makes the investors all the more woeful. I would certainly like to know how events unfold further in this shocking development. Also I would like to know the role of the Statutory Auditors of the company and that how far they can be held liable for this (or can they be held liable at all remains to be seen).
113 Replies
Aisha
(Finance Professional)
(8099 Points)
Replied 07 January 2009
Satyam R.Raju Resignation letter copy Let us discuss its reasons / implication / what we have learnt from this episode / CAs role here!!!
Attached File : 37_satyam_computer_services_ltd_070109.pdf
Rahul
(CA Practice )
(1818 Points)
Replied 07 January 2009
PWC is the auditor of Satyam and they are also equally responsible. For what they call them selve big 4.
CA Sudhir Halakhandi
(PRACTICING CHARTERED ACCOUNTANT)
(13401 Points)
Replied 07 January 2009
ABHI BAHUT KUCHH BAKI HAI
Aisha
(Finance Professional)
(8099 Points)
Replied 07 January 2009
The Satyam scam has evinced wide-ranging responses from auditors — but mainly one of shock. Shailesh Haribhakti of Haribhakti Group said he was, “absolutely shocked after hearing about the Satyam scam.” Action, he said, will now be taken by regulators at every level.
Dolphy D’Souza, Partner, Ernst & Young, said the size of the fraud was huge and that they will have to look into details. “Auditors will be questioned; the matter cannot be wished away,” he said. D’Souza added there would be huge implications from overseas regulators.
ICAI said one must refrain from making any hasty judgements based on prima facie details. “PricewaterHouse Coopers is likely to be asked to re-state accounts of Satyam,” he said.
Richard Rekhy of KPMG said such a fraud requires a number of people, not just one person and that it is difficult to point fingers at only one agency. He remarked it has been happening for a number of years, and when management is involved to such an extent it is difficult for auditors who are relying on companies’ confirmation and certification.
Jeet Biswas
(ACMA (in Service))
(5073 Points)
Replied 07 January 2009
sens.ex is down by more thn 700pts...lets see how much more damage it does...
Dhruba
(CA Final Student)
(240 Points)
Replied 07 January 2009
I think Statutory Auditors as liable for the matter, How can they certify the financial statements as TRUE AND FAIR if it contains these kind of BIG manipulation...
Arjun Hariharan
(Asst. Manager)
(181 Points)
Replied 07 January 2009
can anyone give information as to who / which firm is the statutory auditor of Satyam Computer Services Ltd???
It will be interesting to wait & watch what action the ICAI & the various regulators are going to initiate against the CAs, who, for sure have had a role to play in this ntire scam.
Such CAs are a disgrace to the profession & are definitely bad precedents for upcoming CAs.
Mayank Mehta
(Student)
(383 Points)
Replied 07 January 2009
An independent Satyam director had earlier told ET that the board relied on E&Y’s advice, something that has been denied by the audit firm. Satyam had to reverse its decision within 12 hours following protests by its investors across the world. Despite the cancellation of the Maytas transaction, the shares of Satyam crashed 82%
Aisha
(Finance Professional)
(8099 Points)
Replied 07 January 2009
I guess as always auditor will escape the punishment ..by hidin under the pretext that they dependent on the management confirmation and certification!!!!
Rarely u see auditor being holded liable in such cases i dont understand than what is the whole point of havin them if ther is no scope for punishin them when ther mistake causes loss to milions of share holders..
The provision that auditors are not bloodhounds is always misused!!!
If such things r happenin in such Huge organization just imagine how much these stuff must be happenin in small SME'sss .. wer ther is no media coverage!!! we all kno what i m talkin bout!!!
Arjun Hariharan
(Asst. Manager)
(181 Points)
Replied 07 January 2009
like CA SUDHIR HALAKHANDI has said, this seems only to be the tip of the iceberg.
picture abhi baaki hai, mere dost!!!!!
CA CS CIMA Prakash Somani
(Landmark Group)
(23502 Points)
Replied 07 January 2009
Hello Mrs Aisha
Please delete that PDF file, it may be violation of code !!
ASHWIN HARIHARAN
(Hariharan & Hariharan)
(121 Points)
Replied 07 January 2009
THIS IS A WAKE UP CALL FOR THE ICAI. IT SHOULD NOW TAKE STEPS TO INCLUDE FORENSIC ACCOUNTNG IN THE SYLLABUS FOR CAs SO THAT WE ARE BETTER EQU IPPED TO FACE SUCH CASES. AS MORE SUCH CRIMES ARE BOUGHT INTO LIGHT, ICAI WILL BE UNDER MORE PRESSURE TO STEP UP ITS ANTE AND THE MEMBERS NEED TO BE MORE CAREFUL WHILE DISCHARGING THEIR DUTIES
Jeet Biswas
(ACMA (in Service))
(5073 Points)
Replied 07 January 2009
Forensic Accounting is what we need immediately now. Auditing needs to be improved.
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