PracticeAuditPwC left waiting by Satyam

PwC left waiting by Satyam

Shareholder vote in May will decide if PwC will remain as auditor of troubled Indian outsourcing giant

Satyam chairman B Ramalinga Raju

Satyam chairman B Ramalinga Raju

The auditors of troubled Indian outsourcing giant
Satyam are unlikely to
learn if they are to keep the audit until late spring.

Two weeks ago Satyam chairman B Ramalinga Raju admitted an accounting fraud
estimated at $1bn (£722m) had taken place at the company.

PricewaterhouseCoopers in
Hyderabad last week wrote to the Satyam board saying its audits covering June
2000 to September last year could not be relied upon.

Speculation surfaced that PwC would be fired from the audit, but Satyam
sources have said the auditor can only be removed by a shareholder vote at an
AGM and that is unlikely to take place before May.

Satyam would not comment this week but the new government-appointed board is
due to meet again on Saturday and could reveal when restated third quarter
results will be published, which would give some indication of a timetable for
the AGM.

KPMG and Deloitte are working on restatements and Satyam has made it clear
they are not replacing PwC as auditor. PwC declined to comment but UK staff are
understood to be among a ‘handful’ of experts reviewing the audit in Hyderabad.

The firm has been reassuring other Indian audit clients but it is understood
none have decided to jump ship for another audit firm following the Satyam
scandal.
Satyam has appointed new internal audit advisers and is looking for a CFO after
Srinivas Vadlamani

stepped down along with Raju. The board has also created a new audit
committee, to be chaired by TN Manoharan, chairman of the Satyam board and a
former president of the Institute of Chartered Accountants of India.

Related Articles

Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

Audit Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

1w Emma Smith, Managing Editor
Ukraine’s PrivatBank files $3bn claim against PwC

Audit Ukraine’s PrivatBank files $3bn claim against PwC

2m Alia Shoaib, Reporter
Big Four dominate FTSE 250 audit market in Q1 rankings

Audit Big Four dominate FTSE 250 audit market in Q1 rankings

3m Alia Shoaib, Reporter
PwC pay gap review finds “no evidence of gender bias” at BBC

Audit PwC pay gap review finds “no evidence of gender bias” at BBC

4m Alia Shoaib, Reporter
Carillion collapse: FRC to investigate KPMG over audit work

Audit Carillion collapse: FRC to investigate KPMG over audit work

4m Alia Shoaib, Reporter
PwC’s slapped with 2 year audit ban in India

Audit PwC’s slapped with 2 year audit ban in India

4m Alia Shoaib, Reporter
PwC found negligent by US judge over Colonial Bank's $2bn fraud

Audit PwC found negligent by US judge over Colonial Bank's $2bn fraud

5m Alia Shoaib, Reporter
KPMG replaces PwC as Croda auditor

Accounting Firms KPMG replaces PwC as Croda auditor

7m Emma Smith, Managing Editor