PwC can't distance itself from Satyam fiasco: ICAI
Chartered accountants regulator ICAI questioned the role of Satyam's statutory auditor Price Waterhouse, saying the bookkeeper cannot dissociate itself from the IT company's accounting fiasco.business Updated: Jan 16, 2009 09:30 IST
Chartered accountants regulator ICAI on Thursday questioned the role of Satyam's statutory auditor Price Waterhouse, saying the bookkeeper cannot dissociate itself from the IT company's accounting fiasco.
Price Waterhouse, auditors of Satyam for over eight years, had yesterday said that its audit of the company's financials could be "inaccurate and unreliable" in view of the financial irregularities disclosed by Ramalinga Raju.
"This does not absolve them of the defaults already committed, if any," ICAI President Ved Jain told reporters here.
ICAI had earlier issued a showcause notice to PwC on the issue.
Price Waterhouse had said that all those financial statements were prepared by the management and that it relied "on management controls over financial reporting, and the information and explanations provided by the management, as also the verbal and written representations made to us during the course of our audits."
Satyam as well as PwC are the subject of regulatory and government investigation into the country's biggest corporate fraud - involving Rs 7,800 crore - disclosed by Satyam founder Ramalinga Raju. Raju, his brother Rama Raju and Satyam CFO Vadlamani Srinivas are in judicial custody now.