The Institute of Chartered Accountants in
India (ICAI) has found Subramani Gopalakrishnan, a
former Price Waterhouse (PW) India audit partner working on
Satyam Computer Services, guilty for his alleged role in the Satyam
scandal.
The punishment for Gopalakrishnan has yet to
be confirmed. But it is likely to be similar to former PW
India audit partner Srinivas Talluri who recently received a
lifetime ban from auditing in India as well as fines of INR500,000
($10,041) for his role in the Satyam scandal, a verdict which is
being challenged in the Delhi High Court.
In a statment sent to the International Accounting
Bulletin PW India said the “Disciplinary Committee (DC)
proceedings are in context of individuals concerned and therefore
as a firm PW India will not like to comment”.
“However, we are given to understand that in the case of S
Gopalakrishnan, his hearing has been suddenly concluded by the DC
last month without due compliance with the principles of natural
justice and ICAI Rules thus denying him a fair trial and
opportunity of defence,” the Big Four firm concluded.
In December 2011, two audit managers from
PwC’s Indian affiliate Lovelock & Lewes, C Ravindranath
and P Sivaprasad, also received a lifetime ban from auditing in
India as well as a fine of the same amount for their roles in the
audits of Satyam accounts.
Gopalakrishnan was arrested in 2009, the same
year he retired from working at PW India, with Talluri and
released on bail in October last year. However, Tallur was denied
bail for a second time.
The Satyam fraud unfolded in January 2008,
when financial irregularities totalling about $1.44bn – the largest
corporate fraud in India’s history – were discovered. PW India was
Satyam’s statutory auditor at the time the irregularities took
place.
Related articles
Satyam CFO, auditor ‘guilty’ of professional misconduct
PwC’s Indian firm sued Satyam for $1bn
Satyam auditors receive $9k fine and life ban
Satyam fraud suspects released on bail
