Components

Primary File

Satyam Computer Services Ltd.: Accounting Fraud in India

Barton, M., Bhutta, P., and O’Rourke, J.S. (Editor)
February 15, 2018
SKU:
BUS-004131
Region: 
Asia - Pacific
Topic: 
Strategy & General Management, Accounting & Finance
Length: 
12 pages
Keywords: 
Corporate, Fraud, resignation, reputation, India
Student Price: 
$4.00 (€3.56)
Average rating: 
0

On January 7, 2009, Ramalinga Raju resigned as chairman of Satyam Computer Services. This resignation came as a result of the largest corporate fraud in India’s history. Questions remain for Satyam executives about the company’s survival, as well as the reputational effect on PriceWaterhouseCoopers offices in India. 

Learning Outcomes: 
  1. To demonstrate the effects of business fraud on a company and its stakeholders;
  2. To highlight the possible implications that can befall an entire nation’s business credibility, when a major business of that country is engaged in improper business dealings;
  3. To provide an example of a catastrophic business event and how a business must struggle in order to remain sustainable;
  4. To illustrate the importance of critical communication during a major business fraud;
  5. To show how the external auditor of a publicly traded company can suffer major loss of reputation by being linked to a major corporate scandal.