The Satyam fiasco has replaced the Global Recession in much of the prominent space in the newspapers. From the porposal of acquisition of Maytas, the fudging of funds & the head-count of employees and the concerns about its future, Satyam has been in the news for all the bad reasons. Slowly different stakeholders of the scam are being revealed and interrogated. After the man who ran the show, the CEO and the CFO had to follow the suit. Then came the arrest of the partners at Pricewaterhouse which was a step to include the liability of an outside firm if not actually transferred. Who is going to follow next????
This has invoked ICAI, the institution regulating the working of the auditors, to take steps to save its image from being tarnished. One of the steps being suggested is to suggest SEBI to have a declaration from all listed companies that none of the partners of its auditing firm has been involved in any unlawful activity. If this is accepted, the implications are mind-boggling. The recruitment at the auditing firm will not only be further streamlined, the costs shall further enhance as risk-premium and the entire process may also have to be re-visited. The fresh finance studs already suffering from global crises, are likely to suffer more because of this.......
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Hello Manjinder.. nice to see your commenton my blog. Congratulations on yours. Loved your posts on Satyam and superb explanation :) Keep posting and rocking. Tussi chaa jao paaji
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