The Institute of Chartered
Accountants of India (ICAI) has begun taking action against PwC
India audit managers nearly three years after Satyam, India’s
largest corporate fraud, broke.

Two audit managers from PwC’s Indian affiliate
Lovelock & Lewes, C Ravindranath and P Sivaprasad have received
a lifetime ban from auditing in India as well as fines of
INR500,000 ($9,706).

Ravindranath and Sivaprasad performed
statutory audit of Satyam Computers between April 2001 to September
2008. Sivaprasad was Satyam’s external auditor from 1 April 2001 to
31 March 2005. Ravindranath took over on 1 April 2005 and was
auditor until 30 September 2008.

It is the first time an Indian auditor has
received a financial penalty and been removed from the ICAI’s
auditor register. The fines are the maximum penalty against
auditors permissible by law.

It is understood that the ICAI would like to
conclude all Satyam disciplinary hearings in the coming few months.
However, to date legal action has dramatically slowed down the

The ICAI, India’s audit regulator, would like
stronger powers so it can penalise errant audit firms. At present
the ICAI can only act against individuals.