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
Latest Expert Exchange
General »
  E commerce companies set to collect tax from sellers
 Income tax return (ITR) filing: EPF gives you tax benefit under section 80C, but there is catch
 Finance ministry notifies annual tax return forms for businesses registered under GST
 ITR filing: Use this last day checklist and avoid penalty
 Income tax return filing 2018: Claiming foreign tax credit – how to deal with practical challenges
 Are you liable to pay tax on money received as gift?
 What are the Income Tax benefits to donors of Kerala flood victims?
 Here’s how you can reduce your taxes on pension income
 How to reset password on income tax e-filing website
 Income tax returns (ITR) filing: Taxpayers must include assets while filing tax if earnings overshoot mark
 No penalty on late filing of ITR if your income doesn't cross this limit

US sanctions five Indian affiliates of PricewaterhouseCoopers
April, 07th 2011

The US Securities and Exchange Commission (SEC) on Tuesday sanctioned five India-based affiliates of PricewaterhouseCoopers (PwC) that formerly served as independent auditors of Satyam Computer Services Limited.

These Indian PwC affiliates have been accused of repeatedly conducting deficient audits of Satyam's financial statements and enabling a massive accounting fraud to go undetected for several years.

As a result, PwC has agreed to pay a USD 6 million penalty, the largest ever by a foreign-based accounting firm in an SEC enforcement action.

In a statement, SEC said investigations revealed that the audit failures by the PW India affiliates - Lovelock & Lewes, Price Waterhouse Bangalore, Price Waterhouse & Co. Bangalore, Price Waterhouse Calcutta and Price Waterhouse & Co. Calcutta - were not limited to Satyam, but rather indicative of a much larger quality control failure throughout PW India.

In addition, the PW India affiliates agreed to refrain from accepting any new US-based clients for a period of six months, establish training programmes for their officers and employees on securities laws and accounting principles; institute new pre-opinion review controls; revise audit policies and procedures; and appoint an independent monitor to ensure these measures are implemented.

In a related settlement today, Satyam agreed to settle fraud charges, pay a USD 10 million penalty and undertake a series of internal reforms.

Since the fraud came to light, the India government seized control of the company by dissolving its board of directors and appointing new government-nominated directors, among other things.

Additionally, India authorities filed criminal charges against several former officials as well as two lead engagement partners from PW India.

"PW India violated its most fundamental duty as a public watchdog by failing to comply with some of the most elementary auditing standards and procedures in conducting the Satyam audits.

The result of this failure was very harmful to Satyam shareholders, employees and vendors," said Robert Khuzami, the Director of the SEC's Division of Enforcement.

"PW India failed to conduct even the most fundamental audit procedures," said Cheryl Scarboro, the Chief of the SEC's Foreign Corrupt Practices Act Unit.

"Audit firms worldwide must take seriously their critical gate-keeping duties whenever they perform audit engagements for SEC-registered issuers and their affiliates and conduct proper audits that exercise professional skepticism and care," he said in a statement.

Source: http://economictimes.indiatimes.com/news/news-by-industry/services/consultancy-/-audit/us-sanctions-five-indian-affiliates-of-pricewaterhousecoopers/articleshow/7884279.cms

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Internet Marketing Website Marketing Internet Promotion Internet Marketing India Website Marketing India Internet Promotion India Internet Marketing Consultancy Website Marketing Consulta

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