What happened in Satyam and lessons for auditors
What happened in Satyam and lessons for auditors
What happened in Satyam and lessons for auditors
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Load<strong>in</strong>g factor• <strong>Satyam</strong> published a falsified load<strong>in</strong>g factor (utilisation of staff)• Between the second quarter of 2006‐07 <strong>and</strong> that of 2008‐09, theaverage offshore category (those work<strong>in</strong>g <strong>in</strong> India) load<strong>in</strong>g factor wasshown as 74.88 per cent, whereas the actual head count load<strong>in</strong>g factorwas only 62.02 per cent.• Similarly, the company was declar<strong>in</strong>g a load factor of 96.71 per cent <strong>for</strong>the onsite category (those work<strong>in</strong>g <strong>in</strong> customer premises abroad),while it was actually 94.86 per cent.• <strong>Satyam</strong>’s payroll was h<strong>and</strong>led by its Accounts dept. The HR dept feddata on new jo<strong>in</strong>ees <strong>and</strong> people who resigned etc.• The accounts dept <strong>in</strong>flated sales by generat<strong>in</strong>g fake <strong>in</strong>voices <strong>in</strong> the<strong>in</strong>voice management system <strong>for</strong> people who were on bench• SAP SHINE was used by HR but not by accounts‐ so there was a gap• If details of employees who quit were deleted from payroll or used togenerate cash not clear
Change language