Friday, January 9, 2009

Satyam audit conducted on relevant principles: PwC

Pricewaterhouse––the auditors of Satyam has just issued a statement clarifying their end of the story. CNBC-TV18's Abhijit Neogy reports on the statement from Pricewaterhouse.

They are, essentially, saying in their statement that they have conducted the audit as per relevant accounting standards. They have conducted the audit with ample evidence which one needs in an auditing assignment. Also, they are saying that they will not make a formal comment on the alleged irregularities that have surfaced in the media and other places over the last two-days.

However, what they have said is that they will corporate with the regulators and other law enforcement agencies as and when it is required. But having said that, we have also been speaking throughout the day to officials in the Ministry Corporate Affairs, and I can tell you that there seem to be finalizing a host of serious charges against the auditors because of a fraud of this kind cannot be conducted without the negligence of the auditors. What we do understand is that the Minister of Corporate Affairs, Premchand Gupta, has asked for the financial reports review board to actually come forward with an internal auditing papers of Pricewaterhouse as they conducted the audit in Satyam and should report back to the Ministry in three days after which, perhaps, the ICAI accounting regulator will take over, identify the loopholes, identify where the negligence has been, and possibly, frame formal charges on the auditors.

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