Satyam fraud: AP CID arrests two top PwC officials

Stat Audit 1478 views 11 replies

The state CID arrested PwC's Chief Relationship Partner S Gopalakrishnan and Engagement Leader Srinivas Taluri.

 

Satyam fraud: AP CID arrests two top PwC officials

HYDERABAD: The Andhra Pradesh police on Saturday arrested two top officials of auditing firm Price Waterhouse who worked on the Satyam account, in
connection with the financial fraud disclosed by the IT firm's founder Ramalinga Raju.

The state CID arrested PwC's Chief Relationship Partner S Gopalakrishnan and Engagement Leader Srinivas Taluri.

The police had earlier questioned Gopalakrishnan. Raju, his brother Rama Raju and Satyam's former CFO Vadlamani Srinivas are already in judicial custody awaiting charges to be filed in connection with the Rs 7,800 crore accounting fraud in the IT company.

PwC had said that its auditing of Satyam accounts may not be reliable given Raju's disclosure of falsifying profits .

var zz=0;var sldsh=0; var bellyaddiv = '

'; var stindex=100; var stp=150; var taglen=0; var tmp; var tagcheck = new Array("div","span","br","font","a"); var storycontent = document.getElementById("storydiv").innerHTML; var firstpara = storycontent.substring(0,storycontent.toLowerCase().indexOf("

")).toLowerCase(); function findptt(cnt){ zz++; if(zz == 10)return; var xxx=-1,yyy=-1; var ccnt = cnt; for(ii=0; ii < tagcheck.length; ii++){ xxx = ccnt.indexOf("<"+tagcheck[ii]); if(xxx != -1 && xxx < 150){ stp = stp; var tmp1 = ccnt.substring(ccnt.indexOf("<"+tagcheck[ii]),ccnt.length); yyy = tmp1.indexOf(">"); if(yyy != -1){ taglen += yyy; stp = stp + yyy; yyy+=1; } break; taglen = taglen + tagcheck[ii].length + 3; } } if(xxx == -1 || xxx >= 150){ return; }else{ var tmp2 = ccnt.substring(0,xxx); tmp2 += ccnt.substring((yyy+xxx),ccnt.length); findptt(tmp2); } }findptt(firstpara); if(firstpara.length <= taglen + 150){ stp = firstpara.length; } var tmpminus=0;var tmpcon = storycontent.substring(0,stp);if(tmpcon.lastIndexOf("<") < tmpcon.lastIndexOf(">")){}else{ tmpminus = tmpcon.length - tmpcon.lastIndexOf("<");}stp = stp - tmpminus;tmpcon = storycontent.substring(0,stp);stp = tmpcon.lastIndexOf(' ');tmpcon = storycontent.substring(0,stp) + bellyaddiv + storycontent.substring(stp,storycontent.length); if(sldsh == 0 && doweshowbellyad != 1){}else{ document.getElementById("storydiv").innerHTML = tmpcon; } var RN = new String (Math.random()); var RNS = RN.substring (2,11); b2 = ' '; if (doweshowbellyad==1) bellyad.innerHTML = b2;
 

Replies (11)

 already posted

 

Price Waterhouse auditors arrested
BS Reporter / Hyderabad/new Delhi/mumbai January 25, 2009, 0:12 IST
 

 

Charged with cheating and conspiracy in the Satyam saga.

 

The Andhra Pradesh police today arrested two Price Waterhouse auditors, S Gopalakrishnan and Srinivas Talluri, under Sections 120B (conspiracy) and 420 (cheating) in connection with the Satyam Computer Services financial fraud case. The two, who were Satyam’s external auditors, were picked up last night for questioning but have not yet been produced in court.

Gopalakrishnan is Price Waterhouse’s chief relationship partner and Talluri its engagement leader. Gopalakrishnan was one of the auditors who signed the tainted Global Trust Bank balance sheet. The case remains under investigation by the disciplinary committee of Institute of Chartered Accountants of India, or ICAI, which regulates the profession in the country.

ICAI said it had not yet received any information about the arrests from the Andhra Pradesh police. Ved Jain, its president, said the body would decide the course of action after discussing the issue with its 40 council members.

One of those 40 is Gopalakrishnan, who has been an ICAI council member for 11 years. This is the first time in the history of ICAI that a council member has been arrested. Jain added that ICAI would talk to the Andhra police to seek information on how its two members were involved in the Satyam fraud.

Price Waterhouse said it shared the regulators’ concern in understanding the full extent of the fraud and how it was accomplished. “We greatly regret that two Price Waterhouse partners have been detained today for further questioning.  We do not know the basis for them being detained,” it said in a statement.

The firm has been facing the heat since Satyam founder Ramalinga Raju’s admission that the company’s accounts were inflated and fictitious.

Talluri, who signed the last Satyam audit report on behalf of Price Waterhouse, said the consolidated financial statements gave a “true and fair view in conformity with the accounting principles generally accepted in India”. After Raju’s confession, though, the audit firm said its opinions on the financial statements “may be rendered inaccurate and unreliable”.

ICAI does not have the power to prosecute “guilty” members, since Article 20 of the Constitution, also called double jeopardy, prevents it from punishing a person for the same crime under two laws. “We will wait till the end of the trial. If the members get an imprisonment of more than six months, their memberships to ICAI automatically stand cancelled,” said Jain.

Reacting to the arrests, Shailesh Haribhakti, managing partner of chartered accountancy firm Haribhakti & Co, said: “I am very shocked. I have never seen such a development in my entire career of 32 years. The Satyam development is a completely new experience.”

On January 13, the police visited the Price Waterhouse office in Hyderabad, looking for information connected to the Satyam case.

On January 22, the police arrested Gopalakrishna Raju, general manger of SRSR Holdings, which is owned by Ramalinga Raju’s brother, Suryanarayana Raju . The police are also said to have picked up five others: Narasimha Raju, Ramakrishna, Bhaskara Raju and his son I V Krishnam Raju, and Anand.

 
 

I




 

SHAME

 ya JAISI KARNI VAISI BHARNI

Friends do u think after all this PWc should be banned???

 not only banned but also be punished and bared  from ca-practice-because as you sow as you reap

 don'tworry they will be shifted another firms-if it happened

only the partners of the firm will be affected by this incident i hope.... however it will be better if they shift to other firms as soon as possible so that they dont suffer the drawbacks if any.....

But the partners certificate of practice has to be cancelled so that it acts like a check on the other auditors and audit firms from commiting such frauds....

i feel their certificate of practice has to be cancelled ,so that it will deter other auditors who are involved in same kind of activities

ban


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register