PwC hands documents to Indian Police
PwC denies reports of Indian police raid and says it remains unclear whether the firm will be replaced as auditor of Satyam
Documents understood to relate to the audit of Satyam, the troubled Indian
outsourcing giant, have been handed to police by auditors
PricewaterhouseCoopers
after a visit to the firm’s offices in Hyderabad.
The Satyam scandal emerged last week when its chairman, B. Ramalinga Raju,
admitted that a massive accounting fraud thought to be valued at more than $1bn
had taken place at the company.
PwC denied reports that the police visit constituted a raid. A spokesman said
yesterday the police requested entry yesterday and were invited in.
The documents were handed over also on the request of police.
It also emerged that PwC in India is unclear whether it will retain the audit
of Satyam. The firm has stood by its work but statements from the new
government-appointed board at the computer company suggested ‘independent
accountants’ were being sought.
PwC declined to comment yesterday but it is understood the firm remains
unclear whether this new appointment, expected to take place in the next couple
of days, will be for the audit or to take a forensic role looking at the
accounts. Sources suggested the appointment of a new auditor would have to take
place at an annual general meeting, not just at a board meeting.
PwC International is closely monitoring the development of the Satyam debacle
and some reports claim chief executive Sam DiPiazza is in India to personally
oversee any action that might be required by the firm’s network umbrella body.
The engagement partner on the most recent Satyam audit was Srinivas Talluri.
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