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ENRON led to FALL of Arthur Anderson - What about PWC now?

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If you recall the ENRON fraud.. Arthur Anderson went out of business... Could the same happen to PWC?

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13 Replies

Prakash Popat (3134 Points)
Replied 08 January 2009

May be promoted,This is not AMERICA.

Rahul (CA Practice ) (1818 Points)
Replied 08 January 2009

Hi Shravan have u seen any powerful prosecuted in India. Enron case was in american jurisdiction. this case in in Indian Jurisdiction. Therefore there will be no damage to PWC. Instead other big companies will welcome PWC to assist them in such frauds.

In the nut shell result will be:

1) More Clien base for PWC

2) More revenues.

ramji google (practice) (55 Points)
Replied 08 January 2009

We are not personally against PWC, our main concern is the respect to the Auditors & ICAI by common public.

Still there is a common belief that auditors will tell the truth and will not agree for fradulant accounts.

But in Satyam case, it looks like even bank statements were not reviewed, Bank recons were not reviewed, debtors confirmations were not audited (all based on Raju's letter).

Atleast PWC would have told this during this last 15 days drama. During this 15 days also PWC have kept silence. That is more worrying.

At the end i atleast appreciate Raju , for coming forward and accept his actions.

Once again it is proved that corporate governance, audit standards, accounting standars, IFRS, GAAP etc are meant only for ca, icwa, acs exams, seminars, job interviews, cpe hours... and not to be followed in practice.

In Satyam case Satyam has followed/adopted so many Accounting standards.

CA Ram (student) (369 Points)
Replied 08 January 2009

Ban PwC now!!!!!!!!!!!! its due to there neglegence shareholders have suffered thousands crore Rupess of loss.... its the whole firm responsible and not just one who signed the balance sheet.....they should make good the loss suffered by shareholders..........bl**dy sue them right now/.

CA SUDHIR HALAKHANDI (PRACTICING CHARTERED ACCOUNTANT) (13196 Points)
Replied 08 January 2009

DON'T BE SO OPTIMISTIC- WE ARE INDIANS

Prakash Popat (3134 Points)
Replied 08 January 2009

As an INDIAN DON'T BE PESSIMISTIC,HAVE A PROUD TO BE INDIAN AND EQUIP YOURSELF TO FIGHT SUCH MENANCE WITH MORE RIGOUR.

S.Rammalingham (PCS training) (48 Points)
Replied 08 January 2009

Sanctity of Aduit, Auditors reputation is in stake, we are much worried about tradition and reputation of Chartered Accountat role which was questioned in the satyam episode . ICAI should take strong action and should initiate frantical proactive measure to avoid the recurrence of kind in future. hope for good

CA M Z Abraham ( ) (24 Points)
Replied 08 January 2009

I have some baic questions

1. Why auditors not rotated? (PWC was auditor for Satyam for last 6 years)

2. Which are the member firms who does satyam audit?

3. It seems some of the Central Council members are also PWC partners, who are they?

4. Yesterday on TV our President seems to be sayiing action can be taken against ICAI Member only and not PWC, Is it correct? If so how come PWC PVt Ltd is doing attest functions in India?

venkatesh (CA) (137 Points)
Replied 08 January 2009

Originally posted by :Shravan Swarup
"	If you recall the ENRON fraud.. Arthur Anderson went out of business... Could the same happen to PWC?	"

Ya it may happen and infact they should ban. This will be a lesson to corporate else the same will be continued in future. If they are not banned then what is the difference between politics and professional institute like ICAI ... I feel ICAI should take promt action to respect the ethics and standard which they have maintained till date.

Ashish M (Chartered Accountant) (2731 Points)
Replied 09 January 2009

PWC has brought shame to our profession......the respect C.A.s have in the public.....and with its clients........seems to hve gathered a shock now.........

even the commonest audting practices like that of bank confirmattioons and debtors confirmations was not able to be done and the signatures on the finalisation was done like anything.........PWC has remained the auditor for last 9 yrs........they r bound to hve knowledge about the facts.......there must be brought a provision in law that after certain minimum years......auditors must be changed by the company.

CA Rashmi (final cleared) (680 Points)
Replied 09 January 2009

m totally against banning pwc,its a big firm n i think all must not b punished for the deeds of some,it has given employment to a lot of peoples,come on..

but yes the scam has raised a question of reliance on attested balance sheets,strict actions should be taken against people behind this and ban them from conducting attest functions,i cant imagine how they were doing this for so many years,are the bankers also involved??

let the investigation report come

Ashish M (Chartered Accountant) (2731 Points)
Replied 10 January 2009

i too m not in favour of banning PWC......rather the high profile status they boasts to hold in the market,,,,,,,,,they must atleast worked upto that level and reliance.......

they held high respect in the market........they likewise hve to pay the price too.......