With the very disturbing news of fraud at Satyam Computers comes the bigger question that has nagged the economy for all of 2008, why wasn't this detected earlier? Were telltale symptoms deliberately ignored?
PricewaterhouseCoopers, the statutory auditors for Satyam released a statement saying "its audits were 'supported by appropriate evidence'".
Where does it leave the efficiency of audits? Aren't these practices supposed to identify shortfalls and deficiencies in processes followed? How much of this fraud should be shouldered by PwC? Can the world economy afford to have such carelessness by the very people who are responsible to ensure that things don't fall apart?
And what about all of Satyam's clients and their auditors in turn? Don't they deserve to share the blame-pie for not paying attention to whom they did business with?
Whose responsibility is it finally, to audit the auditors?
PricewaterhouseCoopers, the statutory auditors for Satyam released a statement saying "its audits were 'supported by appropriate evidence'".
Where does it leave the efficiency of audits? Aren't these practices supposed to identify shortfalls and deficiencies in processes followed? How much of this fraud should be shouldered by PwC? Can the world economy afford to have such carelessness by the very people who are responsible to ensure that things don't fall apart?
And what about all of Satyam's clients and their auditors in turn? Don't they deserve to share the blame-pie for not paying attention to whom they did business with?
Whose responsibility is it finally, to audit the auditors?
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