Corporate Fraud: Auditors’ and Managerial Liability

Abstract

In an incident thought to be the first of its kind in India, partners of the auditing firm PricewaterhouseCoopers were arrested for their alleged role in Satyam Computers’ scandal. A corporate fraud named as “India’s Enron” was committed by promoters of the company which shocked India’s corporate world. Promoters got involved in the manipulations of accounts and inflated revenues. The incidence stunned India’s corporate world; the resulting consequence was that rattled investors and the government were left to pick up the debris in order to salvage what was left of Satyam Computer Services Ltd. after its founder and chairman admitted to committing the country’s biggest financial fraud.