What happened in Satyam and lessons for auditors

More documents

Recommendations

Info

The dozen lessons of Satyam• Thou shalt not:• Overlook computer system weaknesses and complex systems• Overlook ‘super user id’s’ and loose password controls or fail to study logs for super userid’s• Accept confirmations provided by Company‐ go the direct route• Overlook differences in confirmations• Overlook the ‘roach theory’ –if there are small differences /errors/frauds bigger onescould be hiding• Forget that anyone of any stature could act with monumental recklessness, selfishnessand self destructiveness as Ramalinga Raju has proved –that all the awards mean nothing• Fail to rotate the key staff and partners in audits –familiarity breeds complacence• Forget that anything can be faked in this modern technology oriented world orunderestimate the fraudster• Forget that there is nothing like good old fashioned audit where one looks at files, papers,check book entries with source documents etc.• Forget to bring to the attention of audit committee all material internal controlweaknesses esp. computer system weaknesses• Take fees which are very high compared to peer group company audits• Audit work papers must be taken and preserved carefully as Company can destroy all itsrecords‐ it is our only saviour
The most important lesson• Learn to say ‘no’ when you should• Ex CFO of Health south who now realises (too late)that he should have said no.• He now mows lawns for a living and gives lectures onhis story to students!
Page 1 and 2: ByRamki
Page 3 and 4: White collar crime increasing!• W
Page 5 and 6: What did Raju do? -bird’s eye vie
Page 7 and 8: Modus operandi for billing• Compa
Page 9 and 10: How bogus billing was done?• Vari
Page 11 and 12: Who did it ?• 33 year old assista
Page 13 and 14: Fake deposit receipts• Investment
Page 15 and 16: Share sale proceeds missing• Rs 7
Page 17 and 18: Fraud/forgery is not new at Satyam
Page 19 and 20: Other angles of investigation• Th
Page 21 and 22: Moneys lent• Ramalinga Raju's bro
Page 23 and 24: Charges against PW• 135 “contro
Page 25 and 26: SEBI on PW• Sebi has found “gra
Page 27 and 28: Regulators• Banking and market re
Page 29 and 30: ICAI• The Financial Reporting Rev
Page 33: Living in opulence then and NOW!•
Page 37: Source• Various news papers• Va

What happened in Satyam and lessons for auditors

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?