The Institute of Chartered Accountants (ICAI) would issue notices to Satyam Computer and its auditor Price Waterhouse on Saturday for the biggest corporate fraud in the country.
The Institute of Chartered Accountants (ICAI) would issue notices to Satyam Computer and its auditor Price Waterhouse on Saturday for the biggest corporate fraud in the country, which may lead to the blacklisting of the audit firm and life ban on the auditors concerned.
Both the companies have 20 days to respond to the notices seeking details of all member auditors working for Satyam or have had links with audits of the beleaguered software firm.
“If found guilty, Price Waterhouse can be blacklisted and its auditors will face action including life ban,” ICAI president Ved Jain told DNA on Friday.
Jain said that the notices would be delivered to both the firms on Saturday, separately.
Over a dozen auditors working in several positions in Satyam Computer and Price Waterhouse are under ICAI’s scanner.
The institute is also seeking details of communications and other documents pertaining to Satyam’s accounts and audits for at least three years. “To reach to this level of inflated figures, the bungling must be going on for at least three years. Which means balance sheets of all these financial years, the role of their auditors and their reports have to be checked to find out to fix responsibility,” Jain said.
When asked how ICAI will go ahead in its probe against Price Waterhouse, he said, “The firm will have to explain how come its auditors were so negligent while going through the accounts of Satyam. They (Price Waterhouse) claim that they followed best auditing principles and practices in auditing the account, but the ICAI will probe how come even after that the balance-sheet had inflated figures,” Jain said.
ICAI is also digging out records to find out about its members who were working in Satyam Computer.
“At present, there are reports that the company secretary, CFO and some other officials might be members of ICAI. But yes, all of them will come under scrutiny of the probe,” Jain said.
Both the companies will have to file their replies in 20 days.
But what will happen if the firms delay in replying. “ICAI has power to go ahead in probing the allegation on its own. In case they fail to file response that doesn’t mean that probe will stop,” Jain said.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}