Once Satyam, twice shy: Why auditors quitting big clients is complicated

The auditing community feels the burden of increased regulatory oversight, user expectations, and media activism

On January 7, 2009, when B Ramalinga Raju resigned as the chief executive officer  of Satyam Computer Services after admitting to fraud, he set in motion a series of acts by regulators to clean up corporate governance in India, including the role of top executives and independent directors. Most of all, the incident changed the profession of auditing, which till then was usually described as “dull” and “anodyne”.

 The ripples of Satyam continue to be felt and are perceived to be the reason for many auditor-client separations. More than the number, auditors are exiting big names, which used to be