PwC India fined for audit debacle
PwC's Indian subsidiaries have been heavily fined for missing accounting manipulation on the part of IT service provider Satyam
PWC’S INDIAN PARTNERS have been slapped with heavy fines, after audits failed to pick up gross manipulation of accounts by Satyam Computer Services.
The IT service provider exploited flaws in the way auditors screened bank balance confirmations to inflate its cash holdings by around $1bn (£613m), according to the US accounting overseer.
Five PwC International members – who are registered with the US regulator – were found to have violated quality control standards and, two were issued with a $1.5m fine.
This is in addition to a $6m levy meted out by the Securities and Exchange Commission, and the total penalty is the largest ever served against a foreign accounting firm.