MSat’s suit outrages PWC

HYDERABAD: Reacting sharply to Mahindra Satyam movin the local court on Monday for damages, PW India, the former statutory auditor for Satyam Computers, said it was outraged and that it was on

HYDERABAD: Reacting sharply to Mahindra Satyam movin the local court on Monday for damages, PW India, the former statutory auditor for Satyam Computers, said it was outraged and that it was only a victim of the multicrore accounting scandal which came to light in December, 2008.

The multinational auditing and consulting firm said it too moved the court against Satyam and certain members of its former senior management, claiming compensation and damages.

"Satyam is attempting to shift responsibility to the auditors for the consequences of a carefully and deliberately concealed fraud that was undertaken at the direction of its own senior management. The fraud perpetrated by Satyam was specifically designed to _ and did _ circumvent Satyam's own internal controls and PW India's audit process, and consequently PW India, was a victim of Satyam's fraud, and will defend itself vigorously against Satyam's baseless contentions," PW India said in a latenight statement on Monday.

It said it had already filed a civil suit against Satyam and certain members of its former senior management claiming compensation and damages.

Interestingly, just last month, the Institute of Chartered Accountants of India (ICAI) barred two chartered accountants _ Pulavarthi Siva Prasad and Chintapatla Ravindernath of Lovelock Lewes, part of PW India, besides slapping a penalty of Rs 5 lakh each. It also found Talluri Srinivas, former partner of PWC, guilty of professional misconduct and for not conducting due diligence as the statutory auditor. A final hearing on Srinivas is expected this month.

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