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Lovelock & Lewes audited Satyam not PwC

By SiliconIndia | Tuesday, 30 June 2009, 04:43 Hrs | 5 Comments

Hyderabad: Ramesh Rajan, Chairman and CEO, Price waterhouse Coopers, India (PwC) revealed to the Central Bureau of Investigation (CBI) that balance sheet of Satyam was audited by Lovelock & Lewes, not Price Waterhouse (PW). The auditing fee which was deposited in the name of Pricewater House, Bangalore, was later transferred into the account of Lovelock & Lewes.

Sources involved in the investigation said that the partners S Gopalakrishnan and Srinivas Talluri withdrew the money from the account of Lovelock & Lewes.

Other senior partners of PW from Delhi and Kolkota have clearly denied of any connection with PW, Bangalore. They said, "Gopalakrishnan and Talluri were not entitled to sign any balance sheet on behalf of PW."

Investigation confirms that auditors who partners with PW, Bangalore, wrongly signed under the name of PW, and also outsourced the work to Lovelock & Lewes.

Rajan, who is also a partner with PW, Bangalore said to CBI that as part of an internal arrangement, PW, Bangalore gives their work to Lovelock and Lewes. "But this is not acceptable, considering that the two firms are completely different entities," said sources. Later this week, the CBI is in process of recording Rajan's statement and also plans to summon other partners of PW, Bangalore for questioning.

An India-based auditing firm Lovelock & Lewes is a network firm of the international consulting body PwC and has no authority to audit under PwC's name.

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Reader's comments(5)

1: First suspend PwC from India to keep the dignity of ICAI.
This type of drama will make pepole to lose confidence on ICAI

Posted by:Saroj - 02 Jul, 2009

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2: Comments Reserved.

Wait & Watch as the drama unfolds.
Maybe, it is just the tip of the iceberg.
And expect to see much of this sort in other corporations as well.

You know, Innovation refers to a certain degree of instability where everything becomes transitional in nature.

As established practices are questioned, creativity and innovation shall be pushed to the lesser white areas and with the effect of Cultural Lag, the lesser white will tend to be more grey until things are redefined to make them white, right?

Posted by:Edcare - 01 Jul, 2009

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3: PWC is making a drama which is a flop

Posted by:smani - 30 Jun, 2009

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4: This is PWC trying to wriggle out of the responsibility. They operate world-wide through network firms - Is this an arrangement so that they can cut themselves off from a audit fraud when it happens? There should be clear rules stating the accountability of the firm under whose umbrella the network firms operate!

Posted by:Raj - 30 Jun, 2009

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5: At one point of time people used to rely on PwC for perfect reult not there is talk going on to ban this.

Posted by:bani - 30 Jun, 2009

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