Fraudulent Reporting Practices by Satyam

• Autorzy: Bhasin Madan Lal
• Języki publikacji: EN

Abstrakty

Fraudulent financial reporting practices can have significant consequences for organizations and all stakeholders, as well as, for public confidence in the capital and security markets. In fact, comprehensive, accurate and reliable financial reporting is the bedrock upon which our markets are based. Keen to project a rosy picture of the Satyam to investors, employees and analysts, Mr. Raju (CEO and Chairman) fudged the account books so that it appeared to be a far bigger enterprise, with high profits and fast growth rate, than it actually was. The Satyam fraud has shattered the dreams of different categories of investors, shocked the government and regulators alike, and led to questioning of the accounting practices of statutory auditors and corporate governance norms in India. This is an exploratory study based on secondary sources of information. An attempt has been made to provide an explanation for various intriguing questions about Satyam scam. After thorough investigations by the CBI and SEBI, they have unveiled the methodology by which Satyam fraud was engineered. Finally, we recommend “Fraudulent reporting practices should be considered as a serious crime, and accounting bodies, courts and other regulatory authorities in India need to adopt very strict punitive measures to stop such unethical practices”.

Słowa kluczowe

EN

Fraudulent financial reporting practices; Satyam computer; modus-operandi; financial statements; corporate governance; auditors; forensic accounting; corporate culture and ethics; SEBI; SFIO; CID; India

• Wydawca: Altezoro s.r.o. (Slovak Republic) and Publishing Center "Dialog" (Ukraine)
• Czasopismo: Path of Science
• Rocznik: 2016
• Tom: 2
• Numer: 10(15)
• Strony: 1.7-1.21

Daty

wydano

2016-10-17

Twórcy

autor

Bhasin Madan Lal

• University Utara Malaysia

Bibliografia

• Agrawal, S. & Sharma, R. (2009, January 10). Beat this: Satyam won awards for corporate governance. VCCircle Network. Retrieved from http://www.vccircle.com/news/technology/2009/01/09/beat-satyam-won-awards-corp-governance-internal-audit
• ACFE. (2016). Report to the Nations on Occupational Fraud and Abuse: 2012 Global Fraud Study. Retrieved from http://www.acfe.com/uploadedFiles/ACFE_Website/Content/rttn/2012-report-to-nations.pdf
• Bhasin, M. L. (2007). Forensic Accounting: A New Paradigm for Niche Consulting. The Chartered Accountant, Jan., 1000–1010. Retrieved from http://resource.cdn.icai.org/97231000-1010.pdf
• Bhasin, M. L. (2008). Corporate Governance and Role of the Forensic Accountant. The Chartered Secretary, 38(10), 1361–1368.
• Bhasin, M. L. (2010). Corporate Governance Disclosure Practices: The Portrait of a Developing Country. International Journal of Business and Management, 5(4), 150–167. doi 10.5539/ijbm.v5n4p150
• Bhasin, M. L. (2011). Corporate Governance Disclosure Practices: The Portrait of a Developing Country. International Review of Business Research Papers, 7(1), 393–419.
• Bhasin, M. L. (2012). Corporate Accounting Frauds: A Case Study of Satyam Computers Limited. International Journal of Contemporary Business Studies, 3(10), 16–42.
• Bhasin, M. L. (2012). Audit Committee Mechanism to Improve Corporate Governance: Evidence from a Developing Country. Modern Economy, 3(11), 856–872. doi 10.4236/me.2012.37109
• Bhasin, M. L. (2013). Corporate Accounting Scandal at Satyam: A Case Study of India’s Enron. European Journal of Business and Social Sciences, 1(12), 25–47.
• Bhasin, M. L. (2013). Corporate Accounting Fraud: A Case Study of Satyam Computer Limited. Open Journal of Accounting, 2(2), 26–38. doi 10.4236/ojacct.2013.22006
• Bhasin, M. L. (2013). Corporate Governance and Role of the Forensic Accountant: An Exploratory Study of an Asian Country. Amity Business Review, 14(1), 48–71.
• Bhasin, M. L. (2015). Forensic Accounting: Perspectives and Prospects. Pakistan Accountant, Oct.–Dec., 44–48.
• Bhasin, M. L. (2015). Menace of Frauds in Banking Industry: Experience of a Developing Country. Australian Journal of Business and Management Research, 4(12), 21–33. Retrieved from http://www.ajbmr.com/files/download/adee1c0429515a4
• Bhasin, M. L. (2015). Creative Accounting Practices in the Indian Corporate Sector: An Empirical Study. International Journal of Management Science and Business Research, 4(10), 35–52. Retrieved from http://thejournalofbusiness.org/index.php/site/article/view/948/610
• Bhasin, M. L. (2016). Debacle of Satyam Computers Limited: A Case Study of India’s Enron. Wulfenia Journal, 23(3), 124–162.
• Bhasin, M. L. (2016). Survey of Creative Accounting Practices: An Empirical Study. Wulfenia Journal, 23(1), 143–162.
• Bhasin, M. L. (2016). Unethical Creative Accounting Culture at Satyam Computers Limited: A Case Study of India’s Enron. International Journal of Business and Social Research, 6(7), 24–48.
• Bhasin, M. L. (2016). Strengthening Corporate Governance through an Audit Committee: An Empirical Study. Wulfenia Journal, 23(2), 2–27.
• Bhasin, M. L. (2016). Contribution of Forensic Accounting to Corporate Governance: An Exploratory Study of an Asian Country. International Business Management, 10(4), 479–492. Retrieved from http://www.isihome.ir/freearticle/ISIHome.ir-24088.pdf
• Chopra, A. (2011, January 25). Satyam fraud, not an accounting failure: ICAI. Business Standard. Retrieved from http://www.business-standard.com/article/economy-policy/satyam-fraud-not-an-accounting-failure-icai-111012500023_1.html
• Gupta, P. K. & Gupta, S. (2015). Corporate frauds in India: Perceptions and emerging issues. Journal of Financial Crime, 22(1), 79–103. doi 10.1108/JFC–07–2013–0045
• ICAI finds ex Satyam CFO, Price Waterhouse auditors guilty. (2009, September 28). The Hindu. Retrieved from http://www.thehindu.com/business/Industry/icai-finds-exsatyam-cfo-price-waterhouse-auditors-guilty/article26189.ece
• ICAI. (2014, April 22). The Institute of Chartered Accountants of India has imposed a life-time ban on four auditors. Retrieved from http://m.scirp.org/papers/70827
• India’s Satyam Scandal: A Blessing in Disguise? (2015, December 20). China India Institute. Retrieved from http://www.chinaindiainstitute.com/indias-satyam-scandal-a-blessing-in-disguise-2
• Kaul, V. (2015, April 10). Satyam scam: Ramalinga Raju, the man who knew too much, gets 7 years in jail. F. Business. Retrieved from http://www.firstpost.com/business/satyam-scam-ramalinga-raju-the-man-who-knew-too-much-gets-7-years-in-jail-2190739.html
• Krishnan, A. (2014, July 18). Finally, the truth about Satyam. The Hindu Business Line. Retrieved from http://www.thehindubusinessline.com/opinion/columns/aarati-krishnan/finally-the-truth-about-satyam/article6225718.ece
• Miller, G. S. (2006). The press as a watchdog for accounting fraud. Journal of Accounting Research. 44(5), 1001– 1033. doi 10.1111/j.1475-679X.2006.00224.x
• Pai, K. & Tolleson, T.D. (2015). India’s Satyam Scandal: Evidence the too Large to Indict Mindset of Accounting Regulators is a Global Phenomenon. Review of Business and Finance Studies, 6(2), 35–43. Retrieved from https://bibliotecausatpdqt.files.wordpress.com/2014/12/indias-satyam-scandal_evidence-the-too-large-to-indict-mindset-of-accounting-regulators-is-a-global-phenomenon.pdf
• Ramana, K. V. (2009, April 15). 7,561 fake invoices = Rs. 5,117 crore sales. DNA. Retrieved from http://www.dnaindia.com/money/report-7561-fake-bills-rs-5117-cr-sales-1247889
• Ramachadran, S. (2009). Raju brings down Satyam, shakes India. Retrieved from http://www.atimes.com/atimes/South_Asia/KA09Df01.html
• Reurink, A. (2016). Financial Fraud: A Literature Review. MPIfG Discussion Paper, 16/5. Retrieved from https://www.econstor.eu/bitstream/10419/141282/1/859161242.pdf
• SFIO. (2009). SFIO Report published in the Pioneer. New Delhi, India: n. d.
• Shirur, S. (2011). Tunneling vs. Agency Effect: A Case Study of Enron and Satyam. Vikalpa, 36(3), 9–20. Retrieved from http://www.vikalpa.com/pdf/articles/2011/Pages-from-Vikalpa36-3-9-20.pdf
• Shubhashish. (2015, April 9). All that you need to know about the Satyam Scam. DNA. Retrieved from http://www.dnaindia.com/money/report-all-that-you-need-to-know-about-the-satyam-scam-2067138
• Brown, V., Daugherty, B., & Persellin, J. (2014). Satyam Fraud: A Case Study of India’s Enron. Issues in Accounting Education, 29(3), 419–442. doi 10.2308/iace-50735
• Winkler, D. (2010, March 30). India’s Satyam Accounting Scandal. Retrieved from: http://blogs.law.uiowa.edu/ebook/content/uicifd-briefing-paper-no-8-indias-satyam-accounting-scandal
• Knowledge@Wharton (2009, January 09). Scandal at Satyam: Truth, Lies and Corporate Governance. Retrieved from http://knowledge.wharton.upenn.edu/article/scandal-at-satyam-truth-lies-and-corporate-governance

Identyfikatory

DOI

10.22178/pos.15-4