ICAI to showcause two PwC auditors guilty in Satyam scam
February, 09th 2011
The Institute of Chartered Accountants of India (ICAI) is likely to take disciplinary action against two Pricewaterhouse Coopers (PwC) auditors who were involved in auditing the account books of erstwhile Satyam Computers.
The disciplinary committee of ICAI, which concluded its hearing in the two cases, is likely to serve notices to the auditors by the middle of this month, said officials.
When contacted ICAI president Amarjit Chopra confirmed that the committee hearing was over but refused to reveal the names of the auditors and when notices would be issued to them.
The two auditors who are currently under the ICAI scanner were not those who were arrested after the Satyam accounting scandal broke in 2009.
Both Srinivas Talluri and S Gopalakrishnan, the PwC partners who cleared the Satyam accounts during the scandal had obtained stay orders from courts against ICAI's disciplinary action.
It was learnt that ICAI had been trying to find out if similar practices had been followed by other PwC auditors during the previous accounting years at Satyam.
Chopra said under current law, ICAI cannot proceed against a firm but only against individuals.
The accounting body has requested the government to allow it to proceed against firms as well in case there were several cases of irregularities and collusion between auditors and the auditees. PwC declined to comment.