Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: VAT RATES :: due date for vat payment :: cpt :: form 3cd :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit
News Headlines »
 How to file income tax returns online without having Form 16 in 10 simple steps
 Deadline For Filing Income Tax Return (ITR) Is Just 11 Days Away: 10 Latest Details To Know
  10 incomes you need not pay any tax on
 How To File Income Tax Returns In Three Steps By March 31, 2018
 10 things about income tax every taxpayer should know
 What to do if your TDS is not deposited with the government
 What if you forget to verify your Income Tax return?
 TDS on rent and other tax tasks to complete before March 31
 5 income tax changes which will come into effect from April 1, 2018
 Why you shouldn't be a last-minute tax filer
 How to calculate income tax for this assessment year on Moneycontrol

Satyam auditors not part of PwC
January, 20th 2009

The two auditors of Satyam Computer Services, appointed by PricewaterhouseCoopers to audit the accounts of the company, were not partners of the audit firm at that time, people close to the investigation told ET.

Srinivas Talluri and S Gopalakrishnan, the two partners who have been signing the Satyam balance sheets for the past several years, were actually members of Lovelock & Lewes, a member firm of PwC.

The Institute of Chartered Accountants of India (ICAI) rules make it clear that the balance sheet of a company should only be signed by the partners of the statutory audit firm. There is no provision for the function to be passed onto the partners of an affiliate even if the said firm belongs to the same family.

Uttam Agarwal, vice-president of ICAI and head of the special panel, asked to probe the auditors role in the alleged falsification of accounts at Satyam, said that the institute was still trying to determine whether the partners were members of Price Waterhouse. A partner of one firm cannot, according to the law, sign as partner of another firm, he added.

The disclosure has the potential to cause further complications for PwC whose role in the Satyam episode is being probed by ICAI.

According to a senior chartered accountant, the audited accounts may become null and void if partners who are not members of the audit firm sign on the balance sheet of a company.

A PwC spokesperson said in a statement that both are partners of PwC Bangalore, which is the statutory auditor of Satyam. However, according to ICAI, both the partners are members of Lovelock & Lewes. As of April 1, 2008, which is when the accounts of Satyam were finalised, the names of the two gentlemen appear as partners of Lovelock & Lewes.

Investigating agencies are examining the role of the statutory auditors for Satyam. We are not looking at the past. Our mandate is to find ways of rescuing the company and our top priority is to tie up funds to pay salaries to employees and meet other operational expenses, said a board member of Satyam who wished not to be named.

PwC was Satyams statutory auditor appointed by shareholders at the last AGM. As per the Companies Act, the shareholders of a company can appoint the statutory auditor of a company and also change auditors only at an AGM. The Act says that every company shall, at each AGM, appoint an auditor or auditors to hold office from the conclusion of that meeting until the conclusion of the next AGM and shall, within seven days of the appointment, give intimation thereof to every auditor so appointed.

Earlier, while speaking to ET, Mr Agarwal said that the institute was also trying to determine whether Vadlamani Srinivas - the former CFO of Satyam Computer who is currently in police custody - is registered as a chartered accountant. If he is not a member of the institute, then we cant press disciplinary charges against him, said Mr Agarwal. This implies that there can be no charges against Mr Srinivas and that he can be liable only for any other civil charges, if any.

Interestingly, Price Waterhouse has audited the balance sheets of other companies such as GMR Infra and Lanco Infra, which have a relatively large exposure in the states infrastructure projects.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Vision

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions