Post-Satyamgate, PWC-India to set up advisory boardMarch 5th, 2009 - 8:19 pm ICT by IANS
Chennai, March 5 (IANS) Foreign audit firm PricewaterhouseCoopers (PwC) is cleaning up its Indian stables in the wake of the ‘Satyamgate’ scam.
According to a statement issued by the audit firm, an advisory board is being set up to provide guidance to the PwC leadership on its strategy and actions. “This board will comprise five members, four of whom will be from outside the PwC network and will be leading individuals of repute and standing in India,” PwC has said.
This comes after two of its partners were in the dock for the corporate fraud at Satyam Computer Services Ltd, the board of the software company gave it the sack notice and it was indicted by the Institute of Chartered Accountants of India (ICAI) for the scam.
The Indian arm of the audit firm has asked that the PwC global network identify a senior partner from another PwC member firm to serve as the fifth member of the board. PwC-India will be thoroughly reviewing its work and processes and to oversee this activity, a new head of quality assurance and risk management will be appointed.
Its Hyderabad office will be placed under a new management after suspending two of its partners who were involved in auditing the fraud hit Satyam Computer Services.
Trying to absolve PwC from the fraud at the software company, Ramesh Rajan, chairman, PwC India, said in a statement: “Price Waterhouse appreciates the profound impact that the fraud perpetrated by the previous management of Satyam Computer Services Ltd has had on business confidence in India.”
“The firm remains keen to understand the nature and extent of the fraud that took place at Satyam which was clearly designed to, and did, circumvent the audit process.”
“It should be noted that PwC resigned as the statutory auditor by Satyam Computer Services after the latter’s board recommend the audit firm’s removal to the government,” it said.