PWC is an international audit firm. It follows international best practices to do the audit. It appoints only brilliant staff for conducting the audit. Also it obtains all the statements, documents and papers from the audittee and finally gives the audit report as per ICAI's format including the phrase that "these financial statements are the responsibility of the company's management". So PWC is not wrong. The people with jealous mind are blaming the audit firm. Please stop this attrocity.

 why not PWC is saying something

I have a doubt :

1. Generally a company avails Fund Based and Non Fund based limits from the banker with which they hold accounts.

2. For the purpose of the limits Quarterly as well as annual results (audited) are submited to the banks. along with other performance related information.

3. Wouldnt the banker notice any discrepency in the the Bank Balance they are holding with them and that of the financials? 

4. Does this prove that the bankers blindly sanction limits based on Audited Financials and dont verify their own Bank Statements?

Please answer this... To what extent banks should be held responsible?

If there are any bankers in the Forum. Kindly throw some light on this issue.

"these financial statements are the responsibility of the company's management".

Does this in anyway make sense in a audit report,or does it absolve the auditor for certifying fictitious cash...i think CAs have to now go back to basics to understand auditing...?

First of all this is the first time in the corporate history across globe that Cash(so holy and so carefully audited)has been subject to a corporate fraud.

If it is a case of fudging debtor to cash cycle it could be a fraud of dressing...but apparently it seems to be as alleged,a fudging of bank statements on the basis of falsification of the same?quite serious and auditors are privy to such certification.

Are we listening in this angle or just absolving the erring accountants on a flimsy plea.God save the accounting profession.

Volumes of Accounting standards and its new avtar IFRS could not prevent a simplistic path of fraud?Do we need all this a big question mark?

Satyam is the first company in India to implement IFRS....!

 how the auditor PWC is responsible if they required fake details by the company.

i,e. fake bank details.....

 it is awesome how they managed to fill up the balance sheet gaps for so many years,shareholders n employees r d biggest losers.

this scam shouldn't be set aside by naming it just a limitation on scope of audit,icai must take serious steps

Dear student Mr.Sunny

You have yet to learn what is auditing and i do not want to discourage you....Auditing is comprehensive mechanism of certification of facts whether available or to be probed....Responsibility rests on auditor to give a true and fair view and as far as bank statement falsification is concerned it subject to auditors independant confirmation with the bankers.Which i feel has been left out and a gross neglect?

BAHAS KUCHH JYADA LAMBI HO GAI HAI AUR KAI JAGAH VISHAY SE BHATAK BHEE RAHI HAI

The re are various questions that might crop up as one go thro Mr. Raju's letter thoroughly. first he says that he is the only person who knows about all these manipulations. Mr. Raju is only the Chairman of the Company. The Balance Sheet  has to b signed by atleast two Directors one of whom should b a Managing Director if there is one, in such a case does he mean to say that the other Directors would have signed the Balance Sheet  blindly  and when the accounts were presented at the Board Meeting didnt any of the Directors raise a question. He says that its been happening for several years How could the other Board of Directors who are entrusted with the day to day affairs of the Company didnt come to know about it. Further when there is CFO in the company all the Financial transactions wouldn have gone thro without his approval. Coming to the role of Auditors as v all know the basic  Auditing Procedure we adopt for verifying the bank balance as on a date is to get a Balance Confirmation letter  from the Bank  didn the Auditor do that basic procedure, if they had done it then have the Bankers given a False Certificate. Then after Mr. Raju's confessions there is no news about him or his wherabouts. As far as i am concerned it coudn have been a one man show. But whatever it is as future Chartered Accountants irrespective of whether Auditors are involved in this fraud or not let us take a pledge that for the sake of convincing the client and money let us not bring a disgrace to this Wonderful Profession. JAI ICAI .

 BAHAS KUCHH JYADA LAMBI HO GAI HAI AUR KAI JAGAH VISHAY SE BHATAK BHEE RAHI HAI

KOI BAT NAHI BAHUT DENO KE BAD EK RELEVANT TOPIC ---------CLUB ME ---OPERATION ----KE ----LEYE AYA---HEY------SABKO------APNE-----ANDER----KE-DABI---HUI----------BHADAS-----NIKAL-LENE DEJIYA------------AFTER  10 JANUARY-I HOPE----------------------SAB SAMNE AA----JAYGA---------------

As I see it, and I keep discussing this with my friends and colleagues,  there are some fundamentals which have been going wrong for a long time and I daresay that all of us are responsible as a society.  The huge premium and reward that we attach to material success is completely misplaced. Business is not just about making money ; by laying too much emphasis on the bottom line performance and how a balance sheet looks, we implicitly drive people to give disproportionate importance to the business of money making. In most of the companies, accountants (who should actually act as watch dogs) manipulate and play with numbers are eulogised and promoted. We overlook the fact they are in fact compromising on business ethics.  No amount of regulations or tight rules will be of any help if the man is not taught or encouraged to listen to and act by his conscience. I am sorry to say this, but few accountants are normally thought of as trust-worthy professionals in true sense. We need to change our perspective about money, about our prioriorities in life and how we want to influence the future generations. 

If this is how a minority-held promoter-led company fares, it is scary to think about other such companies and what they have in their cupboards!

Beautiful said Vidya !!! Surprisingly satyam got Golden pecock award for best corporate governance in the year 2008 and Its been second time it is getting the same.

The Golden Peacock Award is the latest of several corporate governance honors for Satyam.

Is not this award been given in hurry ??

sad to see that the ultimate fault falls on big4(pwc)