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AAA Sultanah

The Satyam computer services scandal, dubbed 'India's Enron', illustrates the challenges auditors face due to non-cooperative management, including restricted access to records and document fabrication. Key lessons for auditors include exercising professional skepticism, direct third-party confirmations, and the need for regulatory reforms. The case emphasizes the importance of auditor independence and corporate governance to prevent future financial frauds.

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Shahnaaz Syedi
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15 views7 pages

AAA Sultanah

The Satyam computer services scandal, dubbed 'India's Enron', illustrates the challenges auditors face due to non-cooperative management, including restricted access to records and document fabrication. Key lessons for auditors include exercising professional skepticism, direct third-party confirmations, and the need for regulatory reforms. The case emphasizes the importance of auditor independence and corporate governance to prevent future financial frauds.

Uploaded by

Shahnaaz Syedi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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NON-COOPERATIVE

MANAGEMENT.
Sultanah A (22ACP664)
Satyam computer
services scandal -
Challenges in
auditing due to Non-
cooperative
management.
Introduction

Satyam computer services ltd was once one of


india’s leading IT services, often referred to as
“India’s Enron” due to magnitude of its
financial fraud.

A significant aspect of this case was the non-


cooperation of Satyam’s management during
audits, which hinder the ability of auditors to
uncover the fraud earlier.
● Inflation of revenue.
Background ● FAbrication of bank
of the fraud. balances.

● Overstatement of profit.

● Understatement of
liabilities.
Challenges faced by Auditors due to
Non- cooperative management

1. Restricted access to financial records.

2. Intimidation and lack of transparency.

3. Fabrication of documents and data manipulation.

4. Delay tactics and obstruction.


Key lessons for Auditors.
● Exercise Professional skepticism.
● Direct third party confirmations.
● Identifying red flags.
● Need for whistleblower protection.
● Strengthening Auditor independence.
● Regulatory Reforms and global impact.
Conclusion
By Satyam computer services scandal highlights the devastating impact
of non-cooperative management on the audit process. It underscores
the importance of strong regulatory oversight, auditor independence,
and corporate governance reforms.

By implementing stricter auditing practices and fostering transparency,


the corporate world can prevent similar scandals in the future, ensuring
integrity and investor confidence in financial reporting.

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