Ho Ho Ho! Madoff in December-2008 and just after we get past Christmas and New Year, we have Satyam Computers, the Indian #4 software company overstating profits and I repeat my humble question – where was audit?
In a company of that size there should be a decent presence of Internal Audit. Even if they were a non-existent entity, they still had their external auditors PricewaterhouseCoopers (PWC). What is their explanation for the mess at Satyam? Rs.5000+ Crores is in audit terms “material” enough to catch the eye of any decent auditor. I can’t wait to hear a decent explanation from PWC of how and why they missed such a big padding of numbers.
What does Satyam’s CFO have to say to this? Does he think he is responsible?
The regulators and shareholders should take an in-depth look into this and bring the management and the external auditors of the firm to justice.
PS: For those wondering what is audit and why I am talking about it, read about the different types of auditors and their roles here.