An Institute of Chartered Accountants of India
(ICAI) committee has called for action to be taken against Price
Waterhouse and its auditors in a report into the Satyam scandal,
according to Indian media sources.

The ICAI committee, formed to investigate the
Satyam fraud, found Price Waterhouse breached a mandatory
confidentiality clause when it allowed its affiliate firm Lovelock
& Lewes to carry out the Satyam Computer Services audit even
though Price Waterhouse was the Satyam’s statutory auditor.

The clause in the Chartered Accountants Act
1949 states it is professional misconduct if “company information
acquired during accounting practice is passed on to an unauthorised
firm without the consent of the company”. The committee claimed
that as the audits were conducted by Lovelock & Lewes instead
of Price Waterhouse, the firm breached the confidentiality
clause.

The report states PricewaterhouseCoopers,
KPMG, Ernst & Young and Deloitte and their affiliate firms have
been circumventing Indian laws to provide audit services in
India.

The committee has recommended the ICAI general
council consider action against Lovelock & Lewes, but details
of any potential punishments have not yet been disclosed to the
public.

The ICAI general council will meet next month
to make a final decision on the findings of the committee.