Price Waterhouse objects to Satyam observations

Requests the board to inform the specific findings ‘As victims of the fraud, we remain keen to get to the bottom of what transpired.’ Price Waterhouse has expressed anguish over the conclusion by the Government-appointed board of directors of Satyam Computer Services that the auditing was not “up to the mark” and termed the view as “premature”. While tendering the firm’s resignation as statutory auditors on Saturday, N. Ramesh Rajan, partner of Price Waterhouse, Bangalore, said in a letter addressed to a director of Satyam board S. B. Mainak that “if the confirmations of balances from banks were indeed forgeries as stated by you, we are as much victims of the fraud.” He said it was too early to conclude that the letters from the banks were on the face of it fraudulent, or of a nature that would have raised an alarm. Mr. Rajan acknowledged the recommendation of the board for replacement of Price Waterhouse and that the firm was resigning as statutory auditors, respecting the board’s decision. He sought to know how finite conclusions could be arrived at a premature stage when the investigations were in progress. Price Waterhouse was indeed anguished that the board of directors had concluded that the quality of “our audit being unsatisfactory without giving us an opportunity of being heard, or even advising us of what has actually transpired.” “As victims of the fraud, we remain keen to get to the bottom of what transpired, and would request you to inform us of your specific findings so that we can consider issues relating to transition to any new auditor you may appoint pursuant to our resignation,” Mr. Rajan said in the letter. Related stories:

"Loved reading this piece by M. PIRAVI PERUMAL?
Join LAWyersClubIndia's network for daily News Updates, Judgment Summaries, Articles, Forum Threads, Online Law Courses, and MUCH MORE!!"

Join our Telegram group

Join our Whatsapp group