CA NeWs Beta*: PriceWaterhouse guilty in Satyam scam: ICAI

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Tuesday, February 8, 2011

PriceWaterhouse guilty in Satyam scam: ICAI

The Institute of Chartered Accountants of India (ICAI) has finalised the charges against the auditors PriceWaterhouse and found them guilty of gross negligence. The chargesheet will shortly be sent to the firm, reports CNBC-TV18's Malvika Jain.
Amarjit Chopra, President, ICAI says, “The court has allowed us to go to a particular stage only and to read out charges to them. Reading out charges to someone doesn't serve the purpose. Ultimately, we have to hold enquiry be allowed to do so. I think the main charge is that the auditors have been grossly negligent on many ways. I cannot defend an audit where out of Rs 8000 crore, Rs 6000 crore is missing.”

The disciplinary committee of ICAI will conduct a final hearing in the matter shortly and a notice will then be issued to K Gopalakrishnan and S Talluri. However, Gopalakrishnan has retired while Talluri is suspended.
ICAI furthers says that membership of auditors may be cancelled, subject to high court ratification.
Earlier, the Central Bureau of Investigation (CBI) in its chargesheet had alleged that the external auditors were paid hefty sums to cook up company accounts, thus becoming part of the crime.
The accounting and consultancy firm have been under public eye after the Rs 14,000-crore accounting fraud at Satyam Computer Services came to light in January 2009. 

Source: CNBC TV 18

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