10 years after Satyam, auditors still can't flag a management fraud

However, one important change in boardrooms, in the post-Satyam era, say many in the audit fraternity, is the auditor relationship with the audit committee

Ten years after the financial scam at Satyam Computer Services, audit fraternity says it is still tough to detect fraud perpetrated by the management in collusion with employees of the company in the normal course of the audit. 

Over the years, the regulators have brought in several checks and balances in the audit process to detect and deal with frauds. These include provisions relating to internal controls testing, risk assessment and analytical reviews, besides the presence of an effective audit committee and clear corporate governance policies and practices. “I can unequivocally say that laws and accounting rules play a less significant