This report provides a detailed analysis of the Satyam Computer scandal, focusing on the audit and control failures that allowed the fraud to occur. It examines the corporate governance structure of Satyam, the role of auditors (specifically PricewaterhouseCoopers), and the specific loopholes in their processes and standards that facilitated the massive scam. The report highlights the manipulation of financial statements, the failure of IT audit controls, and the legal, professional, and ethical obligations of auditors. It discusses the audit methodologies that should have been followed and the consequences of the auditors' negligence. The Satyam case is compared to the Enron case, emphasizing the importance of strong corporate governance and the prevention of financial reporting crimes. The report concludes by emphasizing the critical role of auditors in detecting and preventing fraud, and the need for adherence to generally accepted auditing standards to ensure due care.
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