[LINK] PwC partners refused bail over Satyam audit

Marghanita da Cruz marghanita at ramin.com.au
Thu Feb 12 09:57:28 AEDT 2009


Michael Skeggs mike at bystander.net wrote:
> Interesting that I believe PWC are a partnership, and that all partners are
> jointly and severally liable.
> So if these guys get sued for damages (by, say Satyam shareholders), then
> partners in PWC here and elsewhere could have to fund the restitution. This
> is what fundamentally broke Anderson's after Worldcom collapsed.
<snip>
>> PwC partners refused bail over Satyam audit
>> Michael Herman
>> February 04, 2009
>> Australian IT
>> http://www.australianit.news.com.au/story/0,24897,25007049-15306,00.html
>>
<snip>

The other problem Anderson's had was the conflict of interests between auditing 
and consulting. It would appear that PWC dealt with that in the sell off to IBM.
> 30 Jul 2002 ... "The PwC Consulting acquisition underscores IBM's commitment to this ... HP (HPQ: Research, Estimates), which earlier this year bought out ...
<http://money.cnn.com/2002/07/30/technology/ibm_pwc/index.htm>

For a compelling analysis of Worldcom,enron,one.tell,ansett,hih failures see:

Corporate Collapse: Accounting, Regulatory and Ethical Failure?
> 16-17) Talking ethics became a 1990s growth industry. This was not surprising,
> for at that time the accounting profession sought also to allege a decline in 
<http://books.google.com/books?id=EGwWmEjL6hoC&pg=PA313&dq=ethics+failure+dean>


and more from the fallout of Satyam Fraud....
11 February 2009
 > Pune: Witnessing the deteriorating scene of India's corporate governance, the 
trade body Nasscom has framed a corporate governance and ethics council. The 
council will be under the helm of Infosys' Chief Mentor and non-executive 
Chairman N R Narayana Murthy.
<http://www.siliconindia.com/shownews/Murthy_to_head_Nasscoms_corporate_governance_council_-nid-52341.html>

Marghanita
-- 
Marghanita da Cruz
http://www.ramin.com.au/itgovernance
Phone: (+61)0414 869202




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