Were PricewaterhouseCoopers, auditors of satyam aware about the scam ?
In a curious twist to the Satyam Computer Services fraud, its erstwhile auditors PricewaterhouseCoopers have said their opinion on the financials of the beleaguered company may be rendered "inaccurate and unreliable".
In a letter to the new board of Satyam, the audit firm said the statement by the former chairman of the company B. Ramalinga Raju, admitting to a Rs.70 billion ($1.43 billion) fraud, may have material effect on the veracity of the firm's financial statements.
In view of Raju's admission, the audit firm also advised the board to promptly commence an independent investigation as required under the US Securities and Exchange Act of 1934 to determine whether such illegal acts, indeed, occurred.
After Raju's admission to the major fraud, the inability of PricewaterhouseCoopers in detecting it came under scrutiny with state investigation agencies conducting a raid on its premises at the upscale Jubilee Hills in Hyderabad Tuesday.
In a letter to the new board of Satyam, the audit firm said the statement by the former chairman of the company B. Ramalinga Raju, admitting to a Rs.70 billion ($1.43 billion) fraud, may have material effect on the veracity of the firm's financial statements.
In view of Raju's admission, the audit firm also advised the board to promptly commence an independent investigation as required under the US Securities and Exchange Act of 1934 to determine whether such illegal acts, indeed, occurred.
After Raju's admission to the major fraud, the inability of PricewaterhouseCoopers in detecting it came under scrutiny with state investigation agencies conducting a raid on its premises at the upscale Jubilee Hills in Hyderabad Tuesday.
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