The Satyam fraud is not the sole brush with infamy for Pricewaterhouse, one of the world's top auditing firms. Pricewaterhouse is already in deep trouble in relation to its suspect auditing of the collapsed Global Trust Bank, for which it is being probed by the disciplinary committee of the Institute of Chartered Accountants of India (ICAI).
In the GTB case, Pricewaterhouse was hauled up for alleged negligence in auditing of books of the bank and failing to detect huge levels of NPAs. The NPAs had accumulated due to massive exposure made by the erstwhile bank into the stock market, which Pricewaterhouse is alleged to have overlooked.
In another instance, Lovelock & Lewes — another auditing entity of PricewaterhouseCoopers (PwC) — was the auditor of DSQ Software, which was found guilty of manipulating share prices and falsification of accounts by Serious Fraud Investigation Office (SFIO) of the ministry of corporate affairs.
Now again PWC is the statutory auditor of Satyam Computers who has done a biggest ever financial scam in
As a chartered accountant I personally fill it is a black day for CA's. As a Chartered accountant I never accept this situation. Mr Ved Jain, the president of ICAI has told to PTI - " ICAI will write a letter to PwC on 8 January and will seek an immediate reply on the issue and inform them about the process of investigation, which is on. We will ensure that to any person who has not worked according to our standards and our expectations, severe punishment be given. ” I am expecting that ICAI will take a very strong decision because I proud to be a Chartered Accountant and I proud for ICAI. ICAI need to take appropriate action against PWC to give a proper massage to every CA that ICAI will not allow any CA not having professional ethics.
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