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ICAI to take 6 months to complete Satyam auditor probe
February, 12th 2009

The ICAI will take six more months to determine the extent of auditor involvement in the Satyam fraud. Its moves over the next six months could include getting court approval to question the Raju brothers.

The month-long deadline has expired and the high powered ICAI committee is yet to submit its findings in the Satyam scam. The accounting watchdog says it may take it another six months to get a clear picture of the extent to which auditors were involved in the Satyam fraud.

Uttam Agarwal, President, ICAI, said, Within six months the disciplinary committee will come with the finding on whether the members are professionally guilty or not.

ICAI says interrogating Satyam's erstwhile Chairman Ramalinga Raju and former Managing Director Rama Raju will also be necessary for a comprehensive report. Questioning the two Price Waterhouse auditors who are currently in police custody would also be required. But to do this, it will need the courts permission.

Agarwal said, We want to through the court for permission to interrogate Raju as well as the auditors.

However, the ICAI has empowered its disciplinary committee to pass a verdict in the case.

Agarwal said, Whatever the outcome of the disciplinary committee, it should be pronounced on the spot.

This is being seen as a forceful move. That's because this is the first time in ICAI's history that the committee has been given the power to pass judgment a power that so far, rested only with the ICAI Council.

 
 
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