01-12-2009, 12:03 AM
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>Pricewater honchos in the dock</b>
pioneer.com
Navin Upadhyay | New Delhi
Two senior partners and several auditors of the PriceWaterhouse Coopers (PwC) are in the dock for certifying the âtaintedâ financial statements of Satyam Computers in the last seven years.
The Institute of Chartered Accounts of India (ICAI) on Saturday served notices on the PwC to provide the details of the audit conducted by<b> senior partners S Gopalakrishnan and Srinivas Talluri and their teams from 2001 onward. Gopalakrishnan had audited Satyamâs account between 2001 and 2006. Talluri signed the financial statement of the Satyam for 2007-08.</b>
The ICAI has asked the PWC to provide information on how the bank reconciliation statement was prepared.
<b>The PWC has been given two weeks time to respond. If found guilty, Price Waterhouse can be blacklisted and its auditors will face stringent action, including life ban.</b>
<b>Gopalakrishnan and Talluri are also liable in their individual capacity for any damage suit. Satyamâs shareholders can file cases against them for recovering losses. </b>
The ICAI has asked the PwC to explain how its auditors were so negligent in scrutinising Satyamâs account and failing to detect such a major fraud.
The global head of the PwC is reaching here to take stock of the situation. The audit firm is facing a major credibility crisis and many of its clients have approached firms for future services. Maruti, Suzlon, HCL, Lanco are major clients of PwC.
The ICAI had ordered a probe against Gopalakrish-nan in 2005 for his suspected role in overlooking the Global Trust Bank fraud as an auditor. As the inquiry hit a deadend, Gopalakrishnan became a member of the central council of the ICAI.
<b>Experts are of the view that Gopalakrishnan should be asked to quit the membership of ICAIâs central council so that the probe against him could proceed smoothly</b>.<!--QuoteEnd--><!--QuoteEEnd-->
pioneer.com
Navin Upadhyay | New Delhi
Two senior partners and several auditors of the PriceWaterhouse Coopers (PwC) are in the dock for certifying the âtaintedâ financial statements of Satyam Computers in the last seven years.
The Institute of Chartered Accounts of India (ICAI) on Saturday served notices on the PwC to provide the details of the audit conducted by<b> senior partners S Gopalakrishnan and Srinivas Talluri and their teams from 2001 onward. Gopalakrishnan had audited Satyamâs account between 2001 and 2006. Talluri signed the financial statement of the Satyam for 2007-08.</b>
The ICAI has asked the PWC to provide information on how the bank reconciliation statement was prepared.
<b>The PWC has been given two weeks time to respond. If found guilty, Price Waterhouse can be blacklisted and its auditors will face stringent action, including life ban.</b>
<b>Gopalakrishnan and Talluri are also liable in their individual capacity for any damage suit. Satyamâs shareholders can file cases against them for recovering losses. </b>
The ICAI has asked the PwC to explain how its auditors were so negligent in scrutinising Satyamâs account and failing to detect such a major fraud.
The global head of the PwC is reaching here to take stock of the situation. The audit firm is facing a major credibility crisis and many of its clients have approached firms for future services. Maruti, Suzlon, HCL, Lanco are major clients of PwC.
The ICAI had ordered a probe against Gopalakrish-nan in 2005 for his suspected role in overlooking the Global Trust Bank fraud as an auditor. As the inquiry hit a deadend, Gopalakrishnan became a member of the central council of the ICAI.
<b>Experts are of the view that Gopalakrishnan should be asked to quit the membership of ICAIâs central council so that the probe against him could proceed smoothly</b>.<!--QuoteEnd--><!--QuoteEEnd-->