No evidence of wrongdoing by partners: PwC

Sunday, January 25, 2009 at 3:01 am

Regretting the detention of two of its partners by Andhra Pradesh police on Saturday (Jan 24), auditor Price Waterhouse said it has not seen “any evidence of any wrongdoing” by them and promised to work actively to secure their release.

The Andhra Pradesh police today arrested two top officials of the auditing firm, which worked on the Satyam account, in connection with the financial fraud disclosed by the IT company’s founder Ramalinga Raju. The state CID arrested PwC’s Chief Relationship Partner S Gopalakrishnan and Engagement Leader Srinivas Taluri.

“We regret that two of our partners have been detained. We have not seen any evidence of any wrongdoing by them,” a PwC spokesperson told. “We will actively work to secure the release of the two partners,” the spokesperson added.

“Over the last fortnight, the firm and its related team have fully cooperated with the investigating agencies to provide all the documents called for. Under the circumstances, detention is unfortunate,” PwC said. “We continue to share the regulators’ concern in undestanding the full extent of the fraud and how it was accomplished, as quuickly as possible.

“As everyone else, we were shocked by the massive fraud at Satyam and by the elaborate efforts undertaken to conceal the fraud from the board of directors, shareholders and the auditors,” the spokesperson further added.

The Andhra Pradesh police on Saturday (January 24) arrested two top officials of auditing firm Price Waterhouse who worked on the Satyam account, in connection with the financial fraud disclosed by the information technology firm’s founder Ramalinga Raju.

The state Criminal Investigation Department (CID) arrested PwC’s Chief Relationship Partner S Gopalakrishnan and Engagement Leader Srinivas Taluri. The police had earlier questioned Gopalakrishnan.

Raju, his brother Rama Raju and Satyam’s former CFO Vadlamani Srinivas are already in judicial custody awaiting charges to be filed in connection with the Rs 7,800 crore accounting fraud in the information technology company. PwC had said that its auditing of Satyam accounts may not be reliable given Raju’s disclosure of falsifying profits.

(With inputs from agencies)

( This post is from an independent writer. The opinions and views expressed herein are those of the author and are not endorsed by APakistanNews.Com.)

No evidence of wrongdoing by partners: PwC

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