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Satyam auditors to face Sebi probe
August, 16th 2010

Accounting firm PricewaterhouseCoopers (PwC) will have to face an inquiry by the Securities and Exchange Board of India (Sebi). The Bombay High Court on Friday dismissed PwCs petition challenging Sebis show-cause notice dated June 30, 2009 seeking to prohibit PWC from auditing accounts of listed companies.

The notice followed the Rs 7,136-crore Satyam Computers scam. PwC were the auditors for the company that had allegedly fudged its accounts.

The accounting firms petition contended that Sebi had no jurisdiction to issue the  notice since it had nothing to do with the securities market.

It further argued that only the Institute of Chartered Accountants of India could prohibit it from practising as CAs and only shareholders of a company can remove an auditor. The HC, however, dismissed PwCs petition.

 
 
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