Price Waterhouse seeks consent order from Sebi in Satyam scam
October, 24th 2009
Auditing firm Price Waterhouse has decided to seek consent order from market regulator SEBI in the cases related to the Rs 10,000-crore accounting fraud at Satyam Computer Services.
A consent order refers to settling administrative or civil proceedings between the regulator and a party who may prima facie be found to have violated laws, as per SEBI.
"Price Waterhouse...has decided to pursue consent proceedings in relation to the Securities and Exchange Board of India's (SEBI) proceedings relating to the audit of Satyam Computer Services Limited," the auditing firm said in a statement today.
The firm, whose partners were involved in auditing the accounts of Satyam, also said the decision to go in for consent proceedings "is not in any way an acknowledgement by PW that there was any wrongdoing by PW (Price Waterhouse) in relation to the audit of Satyam.
"Rather than engage in potentially long drawn out legal proceedings with SEBI, PW feels that it would be better for all parties to explore, without prejudice, the settlement of proceedings initiated by SEBI," the statement added.
The disciplinary committee of the ICAI, which probed the scam, had found four auditors from Price Waterhouse -- S Gopalakrishnan, Srinivas Talluri, P Shiva Prasad and C H Ravindranath -- prima facie guilty of professional misconduct.
Besides several agencies, including SFIO, ICAI and CBI, the scam was also probed by Sebi which had issued a showcause notice to PW.