US market regulator focuses on role of auditors in Satyam fraud


NEW DELHI: American capital market regulator the Securities and Exchange Commission has completed its probe in India into the multi-crore rupee Satyam fraud case, especially the role of auditors.

A team of the Commission came to India following filing of over a dozen class action lawsuits in the US against the promoters and managers of the IT firm on behalf of investors, who purchased American Depository Shares of the company between January 6, 2004 (the listing date in the US) and January 6, 2009 (the day before Raju’s letter).

Mahindra Satyam Ltd

Mahindra Satyam Ltd

TURNING INTO

                                                                                                                                                              Asatyam Story

Asatyam Story

In these lawsuits, Satyam Computer, its promoters and management were charged with duping thousands of American investors of billions of dollars by artificially inflating share prices.

The SEC team has conducted detailed discussions with the CBI specifically on the role of auditors in the multi-crore rupee scam.

During the discussions, the team of Commission looked into particular details about the way accounts were allegedly fudged in the tainted computer firm and also at the role accounting firms involved in the same.

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2 Responses to “US market regulator focuses on role of auditors in Satyam fraud”

  1. Dilip Naidu Says:

    Hey Sohan,

    Yes the fraud prevention mechanisms must be instituted as barriers against scams. But as Alan Greenspan admitted that frauds will continue to happen as they are ‘human behavior’ related. Greed has been a common trigger in all.

    So back to basics – each company to have sustainability must have a effective corporate governance and build their culture based on values and ethics.

    Cheers,

    Dilip

    Like

    • sohandhande Says:

      Dear Sir,
      Thanks for your precious comment. As we all know, ‘Every action has equal & opposite reaction!’, this particular trait of ‘human behavior’ also demands for the opposite reactions in terms of Fraud Risk Management, Governance, Compliance, & the list goes on……
      Even though one can not bring Frauds to zero, but its always possible to minimize them by setting up systematic & leak proof business processes.
      These days a number of business houses including Banks, IT Cos, research firms,Consultants are spending crores of rupees on risk management, audits, compliance, etc that keeps us working in better environment.

      As far as values are concerned, a number of monster forces like greed, poverty, spending habits, urge to grow are keeping fraudsters away from ethics which is always been predicted upwardly moving with increasing population & scarcity of resources.

      Thanks & regards,
      Sohan Dhande

      Like


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