US Auditors missed Satyam Fraud. The Public Company Accounting Oversight Board (PCAOB), which was set up by the US Securities and Exchange Commission to oversee auditors in the wake of the Enron and WorldCom scandals, visited India for the first time last year and conducted a review of the auditing processes of several international accounting firms that audit US-listed Indian firms.
Satyam employees have set themselves a deadline, January 31, whether to stay with the IT major or switch jobs. Incidentally, the date also coincides with many multinational corporations (MNCs) unveiling their new projects and recruitment drives for the next fiscal.
US-based employees of the embattled Satyam Computer Services have been asked to return their credit cards by an American financial institution. Employees, who are still coming to terms with the uncertainty about the firm’s fate, have also found that their medical insurance is no longer valid.
Speculation is rife that the government is considering a package of up to Rs 2,000 crore to bailout the crisis-ridden Satyam Computer but no confirmation could be obtained.
The government has sounded out the former chief of software industry body NASSCOM Kiran Karnik among other luminaries to join the board of Satyam.
The government will not appoint executives of Satyam's rivals such as Infosys, TCS or Wipro or anyone directly in the IT industry to this board because of concerns about conflict of interest. Appointment of a new board was seen a key to restore confidence in the company, and by extension to the rest of India's IT sector.
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