PricewaterhouseCoopers is facing increased scrutiny over its supervision of
audits carried out by subsidiaries in India after a creative accounting scandal
at its IT services client Satyam.
Satyam’s audit was carried out by a subsidiary to its main operation called
Lovelock and Lewes, the Guardian reported. Satyam’s founder admitted to
falsifying the accounts, creating cash and other assets of more than £1bn.
The subsidiary was attached to the old Coopers & Lybrand network, with
whom PwC merged in 1998. PwC passed on the Satyam job because it is not allowed
to carry out audits using its international brand name under Indian law.
PwC argues that its Indian practice is a separate legal entity from the
international firm, and therefore would not be included in any litigation
brought against the Indian firm. But this does not preclude liability to class
actions that might be brought against the firm by aggrieved investors.
Simon Wright of CareersinAudit.com discusses how an effective cyber defence force is critical to businesses worldwide and how internal auditors can make the transition to a new career in cyber security
The FRC has said that the investigation will 'consider, but not be restricted to, issues regarding misstated accounting balances'
Mark McMullen joins the private client services team from Smith & Williamson
Merger between Clear & Lane Chartered Accountants and Magma Chartered Accountants was finalised on 3 February