Raju letter made audit 'unreliable': Price Waterhouse

Price Waterhouse wrote to the new board of directors of Satyam explaining their position in the ongoing accounting fraud. The auditing firm also asked the new board not to rely on their audits for the entire period that they were looking into the accounts.

Price Waterhouse has been the auditor from the quarter ended June 2000 until quarter ended Deptember 30, 2008.

As per the Price Waterhouse letter, that Satyam released to Bombay Stock Exchange, the auditor blamed the management of Satyam. It said that they had placed reliance on Satyam board of directors and their control over financial reporting. "We went by the information and explanations provided by the management, and also the verbal and written representations made," said the auditing firm in the letter.

Price Waterhouse specified the guidelines of the Institute of Chartered Accountants of India (ICAI) and asked the board not to rely on their auditing in the past. They also asked Satyam's board to inform this to the shareholders, lenders, creditors, regulators and US Securities and Exchange Commission.

Price Waterhouse also asked the new directors for an independent investigation to know the extent of the illegal acts.