Forensic experts to help unravel

 Forensic experts to help unravel Raju's Satyam scam

 

 

TimePublished on Fri, Jan 16, 2009 at 00:14, Updated on Fri, Jan 16, 2009 at 01:10 in Business section

 

 

 

SCAMSTER: Sources says Ramalinga Raju may have played around with accounts format.



 
 

New Delhi: As the new board looks to nurse Satyam Computer Services Ltd back government agencies are having trouble deciphering the complex accounting web created by Ramalinga Raju.

 

They are now seeking help from private forensic accountants to uncover the Rs 7000 crore corporate fraud.

 

Ramalinga Raju managed to cook the Satyam books for years and no one detected it till he admitted to the fraud one week back.

 

Now the investigators are saying that what they can't figure out how he has done it.

 

Network18 has learnt from sources that Raju may have played around with the format of accounts.

 

The investigating agencies have now called in the forensic accounting experts from KPMG to crack Raju's accounting scam. They say its too complex for a normal audit review team to decipher it.

 

A specialised Forensic accounting investigation of KPMG is on the job ti unravel the fraud. KPMG along with Delloite are now tasked with restating the accounts of Satyam.

 

Forensic reports not only help a lot in criminal cases but also give clues about criminal's behaviour and the government will try getting to the roots of Satyam case through forensic probe.

 

The investigation will also help government develop a new accounting format which will not leave any scope for such forgeries in future

 

But how did Raju become such an expert in accounting frauds?

 

Sources says that Satyam makes software for many accounting firms across the world and Raju and gang could have developed a skill in tweaking accounting software and change the format.

 

Now the Serious Fraud Investigation Office (SFIO) which is investigating Satyam also has forensic experts.

 

But they want to take the help of auditing experts with forensic skills. In the past, forensic probes helped cracking cases like Enron and Worldcom.

 

America's annual financial format GAAP (general accounting and auditing practices) was prepared with inputs from the forensic expertise.

 

So once Raju's fraud code is cracked, the government will also have a framework for better accounting and auditing standards in India.

 

 

 

Replies (2)

Forensic Experts May unravel it,but Could not stopped Revised  SATYAM episode.Faith of Investors is Bigger questions than anything else,How to restore it's more important than anything else.

HUMMM 

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