Satyam-audit-failure-case-auditing-speech(薩蒂揚(yáng)公司審計(jì)失敗的案例分析)

SATYAMGroupmember：xx xx Lecturer:

xxContentsWhatactuallyhappenedatSatyamThereasonsofauditfailureatSatyamTheriskassessmentofthiscaseSuggestionstoAuditorsThelessonswelearnfromthiscase

WhatactuallyhappenedatSatyam1>

SatyamComputerServicesLtd.wasaseeminglysuccessfulglobalconsultingandinformationtechnologyservicescompany.OnJanuary7,2009,CEORajuannouncedhisresignation.Hedetailedhowhemanipulatedtheaccountsfor"several"yearstoshowhugelyinflatedprofitsandfictitiousassets.Heexaggeratedthescaleofthecompany'sprofitsandunderreportedthecompany’sdebtoverseveralyears.Thereasonhegavewasitsliabilities:Initiallythegapbetweenthecompany'sactualoperatingprofitandthebookisnotlarge.Butasthesizeofthecompany'sexpansionandrisingcostsgrew,thegapgrew.Hefearedthatifthecompanywasfoundtoopoorinperformance,itmayleadtoothercompanieslaunchingtakeoverbids,whichwouldleadtodiscovery,soheattemptedtohidethefacts.Announced$1.1billionActualearnings$66millionActualsalesof$434million

Announced$555million

Actualprofit

$12.5million

Announcedrofitsof$136million

Fakecashof$1billion

ExaggeratedquarterEarringsof28%

Exaggeratetheaccruedinterest,profitsand

receivable

WhatactuallyhappenedatSatyam2>Satyam’sfinancialfraudhasthusbecomeIndia'slargestcorporatescandalsincethe1990s.TheReasonsofAuditFailureAtSatyamRoleofinternalauditorRoleofexternalauditorTheauditordidnotdobeginningtoendtransactionsverificationCashandbankbalanceswerenotverifiedFakeinvoiceswereIGNOREDThematterwasnotreportedtotheauditcommitteeTheauditplanswerepreparedonthebasisoftheapprovalOfthepromoters.Seriousfindingsoftheauditingteamwereignoredbytheteamleader

theauditordidnotconfirmthebank

balancesindependentlyThereweretwosetsofconfirmationNosamplecheckingofinvoiceswasdone.LiabilityagainsttaxwasnotreportedExtraordinarypaymentofauditfeesViolationsofvariousprotocols’Auditorsdidnotverifytheaccrued

interestonfakeFD’sAuditorsdidnotverifytheTDSonaccrued

interestEndtoendauditwasnotdoneSystemswerefoundtobelaxbutthesame

werenottakenupforrectificationTheRiskAssessmentofthiscaseTheholdingsofRajuandhisfamilydecreasedfrom15.67%in2005-06to8.61%inSeptember2008andfinally,early2009toameagre2.3%withoutanybodynoticing.AnenormousamountofRs.4462crorewaslyingunusedinitscurrentaccountbutneitherindependentboardmembers,northeauditorsseemedtoquestionthis.RajuadmittedthatSatyam’stenImaginaryfixeddepositswhichsupposedlygrewfromRs.3.35crorein1998-99toamassiveRs.3320.19crorein2007-08wereallfake點(diǎn)擊添加文本Satyamwasaccusedoftaxfraudandinsidertradingbackin2003.However,thecompanypolice-includingtheauditorsseemedtoignoretheaccusations..

Evaluatethepotentialforfraudinagivenauditengagement.BeobligedtoutiliseteststhatprovidereasonableassuranceofdetectionoffraudEvaluatethestrengthoftheoverallcontrolenvironmentFacilitatetheidentificationofareasofhighauditriskbyreviewingtheprocedureanalyticallyCommunicatetheirroleandresponsibilitiestoallthosewhorelyontheirwork(ienatureandlimitationofaudit)

Reportdirectlytothepublicanymaterialirregularitiesandillegalactsdiscoveredduringanaudit.SUGGESTIONSTOWARDSAUDITORSThelessonswelearnfromthiscase(B)Strengtheningthecapacityofauditpracticeisthekey.

(C)improvingthe