Satyam scam: ICAI wants CBI, Sebi to share info on PW auditor

Accounting regulator ICAI has requested investigation agencies CBI and SFIO and market regulator Sebi to share evidences against PriceWaterhouse auditor Srinivas Talluri in the Satyam case, at the forthcoming disciplinary committee proceedings.
    
"We require help of the CBI and SFIO. We have written to them. We have written to Sebi also. We have requested them to be our witness. They have the records so we have asked them to be witnesses for us," Institute of Chartered Accountants of India (ICAI) president Amarjit Chopra told PTI.
    
The ICAI had initiated the disciplinary proceedings against two PW auditors Talluri and S Gopalakrishnan for their involvement in the Satyam accounting fraud estimated to be of the order of Rs 10,000 crore.
     
While Talluri has been granted bail, Gopalakrishan is still behind the bars, making it difficult for ICAI to hear the latter before pronouncing him guilty for professional misconduct.
      
ICAI has already sent notice to Talluri to appear before the disciplinary committee which began its final enquiry on the auditor's role last month, but Talluri failed to appear before for reasons unknown. The next date of hearing is posted for early next month.
      
Following the disclosure of the fraud in January 2009, ICAI had initiated disciplinary proceedings against the auditor. The institute also interrogated the two auditors in the jail.
      
Talluri and Gopalakrishnan during the interrogation told ICAI that they relied on the documents provided by the management and followed the accounting procedures prescribed by the Institute. However, the two are learnt to have been found "prima facie guilty" of professional misconduct.
     
According to the ICAI Act, members found guilty of professional misconduct could be barred from practice for up to five years or fined up to Rs 5 lakh.