Improve audit practice: Letter to BS on 'Lessons from Satyam scam'

Audit firms need to be strengthened, not destroyed, to improve the standards of audit in the country

This is with reference to the article by Amit Tandon titled “Lessons from Satyam” (January 12). While the stock market regulator Securities and Exchange Board of India (Sebi) may be justified in levying a fine on Pricewaterhouse Coopers (PwC) for its role in the Satyam scam, it is questionable whether a ban of two years is warranted. PwC has, in the nine years since the scam erupted, strengthened its audit practice through better processes, training and improved quality control. PwC has been condemned in the court of public opinion and their reputation severely tarnished. Before contemplating a ban, Sebi should