Jan 11, 2018

Satyam Case: SEBI embargos Price Waterhouse entities from issuing Audit certificates for 2 Years!

The Securities and Exchange Board of India (SEBI) has imposed embargo on Price Waterhouse entities / Companies practicing as Chartered Accountants under its brand from issuing Audit certificates for 2 Years.
The order served in a 108 pages disgorgement of over Rs. 13 Crores wrongful gains from the Audit major and its 2 erstwhile partners who worked on the IT major accounts. This multi-crore Satyam scam has become one of the most stringent orders passed by any regulator against major Big Four Auditor.
Price Waterhouse Bangalore and its 2 erstwhile partners – S. Gopalkrishnan and Srinivas Talluri have been directed to jointly and severally disgorge the wrongful gain of Rs. 13 Crores along with interest @ 12% per annum from 7th January 2009 till date within 45 days. Also S. Gopalkrishnan and Talluri have been barred from issuing audit certificate of listed Companies for 3 Years.
US regulators have also looked at Satyam's matter as the shares were also listed there also.
According to SEBI, during period 2000 to 2008 Price Waterhouse firms have benefited from the relationship from Satyam Computer Services by having collected received a fee of over Rs. 23 Crores.
A show-cause notices were issued to 13 entities and it was alleged during period 2000 to 2008 these entities had violated the duties of Auditors by certifying the financial statements of Satyam Computer Services.

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