Satyam picks KPMG for clean-up job

kpmg logo

KPMG has won a contract
to clean up the accounts of scandal-hit
Satyam, the Indian IT
outsourcing giant that has been hit with an alleged $1bn (£700m) fraud.

A spokesman confirmed that the Big Four firm has won a contract from Satyam’s
Indian government-appointed board to restate the company’s accounts.

Last month, the Satyam chairman, Ramalinga Raju resigned after admitting to
inflating profits at the company.

The Securities and Exchange Board of India has already given
Satyam a waiver from
announcing its quarterly results within one month of the end of a quarter.

Satyam’s new board has yet to decide how it will deal with the company’s
auditor, PricewaterhouseCoopers.

The two PwC partners who signed off the accounts have been arrested.

Experts expect that the Satyam scandal will cause pressure to raise audit
standards in India.

Some also believe that the scandal could increase the cost of accounting,
with bills rising because auditors will be expected to exercise a higher level
of due diligence while certifying the correctness of balance sheets.

Related reading