Satyam to appoint new auditor

Satyam, the troubled Indian outsourcing business, has said it will name a new auditor within the next two days, according to reports.

The Wall Street Journal reports that the Satyam board has said it is looking for an alternative auditor to the incumbents PwC.

The change comes after the company’s chairman, B. Ramalinga Raju, last week resigned and admitted a massive accounting fraud thought to be worth more than $1bn had taken place at the business.

The affair has been described as India’s own Enron.

The WSJ this morning quotes company director Deepak Parekh saying that new accountants are expected to restate the accounts and confirm their ‘veracity’.

PwC has defended its audit of Satyam saying it was conducted according to ‘applicable auditing standards’ supported by ‘appropriate audit evidence’.