ICAI to ban guilty Satyam auditors?

June 24, 2009

Institute of Chartered Accountants of India (ICAI) came under immense public scrutiny after the auditor's role being questioned in the whole of Satyam fiasco.

Now, almost after six months after the Satyam story came to light, ICAI is ready with its investigations on the auditor’s role and is all set to give its verdict soon.

The needle of suspicion in the entire Satyam scam lay on the two auditors of Price Waterhouse, S Gopalakrishnan and S Talluri, who are now set to be banned for life from practicing.

ICAI, whose panel has found them guilty, will be taking the harsh decision.

The disciplinary committee, whose report will be submitted soon, is set to declare that both the individuals are guilty of gross lapses in the auditing of Satyam's day-to-day transactions and it wants them banned from practice for life.

Meanwhile, Price Waterhouse refused to comment on the decision. Initially, the firm had backed the auditors, but then later on suspended them. ICAI also declined to comment on the findings, but it is now clear that the lapses in auditing were serious.

What still remains unclear is—why is it only the individual and not the firm, which is held guilty?