ICAI to dig deeper into Satyam

The Institute of Chartered Accountants of India (ICAI), the regulatory body for chartered accountants in the country, is now making a second and final report on the role of the auditors in the massive accounting fraud at Satyam Computer Services, now called Mahindra Satyam.

This is the second investigation by ICAI. It had submitted the first report along with its recommendations to the ministry of corporate affairs last month. The second report is expected to go deeper into the matter and look at all new facts that may have come up.

Speaking to the media here on Saturday, ICAI President Uttam Prakash Agarwal said that a high-powered disciplinary committee will shortly visit Hyderabad to study issues related to failure of adherence to accounting practices, corporate governance, role of independent directors and other stakeholders in the Satyam case.

He declined a give a deadline within which the investigation will be completed but indicated it could be February next year when his term as the president will end. The report from the committee will once again be submitted to the ministry for further action against the auditors.

The ICAI president declined to say what kind of action it will recommend to the chartered accountants who audited the Satyam accounts if proven guilty. The Satyam auditors were S Gopalakrishnan and Talluri Srinivas of Price Waterhouse.

Agarwal said that Gopalakrishnan was stripped of all non-standing committee posts two weeks ago. However, he will continue to serve as a member as it was not in the jurisdiction of the ICAI president to remove members from their posts, he added.

ICAI, in the wake of the Satyam fraud, had asked all its members to look for external evidence before certifying the accounting statements to ensure that similar incidents do not recur.