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Satyam audits were inaccurate: Pricewaterhouse

Jan 14, 2009 11:41 PM IST Business Business
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New Delhi: A day after PricewaterhouseCoopers office in Hyderabad was searched by the Crime Department of the Andhra Pradesh Police for any information at all on transactions with Satyam, the troubled auditor firm came with a statement that surprised many.

It said: "Our opinions on the financial statement (Of Satyam) may be rendered inaccurate and unreliable."

According to Pricewaterhouse, it relied on the information provided by Satyam for its audit. But will a statement like this help cover Pricewaterhouse?

Audit regulator Institute of Chartered Accountants of India (ICAI) says PricewaterhouseCoopers could lose its license.

ICAI President Ved Jain said, "This proves that the auditors were grossly negligent. They can be removed from their membership and their license can be cancelled."

*Questions are being raised on Pricewaterhouse's role as an auditor.
*However, it must be remembered that companies prepare their own accounts before presenting to auditors.
*Auditors then examine these numbers.
*Certain accounting standards and disclosure set by ICAI are to be followed while examining the numbers.
*Only registered Chartered Accountants can be auditors.

As PricewaterhouseCoopers continues to be under the scanner, Corporate Affairs Minister P C Gupta had ordered that a new auditor be appointed for Satyam. Satyam's shareholders will meet soon to appoint new auditors. Till then KPMG, Deloitte have been chosen to assist the company in its auditing.