Satyam Computer Services Ltd.: Accounting Fraud in India
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.
- To demonstrate the effects of business fraud on a company and its stakeholders;
- 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;
- To provide an example of a catastrophic business event and how a business must struggle in order to remain sustainable;
- To illustrate the importance of critical communication during a major business fraud;
- 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.