This paper examines the largest fraud in India at Satyam Computer Services Ltd. This fiasco occurred in January 2009 when Mr. Ramalinga Raju, the chairman, confessed to an extensive accounting fraud. Since then, a large number of articles have been written on this subject. Most of this research has blamed the Board of Directors and independent auditors of Satyam for this fraud. We argue that independent directors were following their roles as they saw it and they viewed their role as “strategic advisors” and not as “watchdogs”. We recommend that Indian regulatory framework needs to be strengthened and the roles of independent directors need to be clearly defined to prevent such frauds. We provide the shortcomings of the Indian auditing industry and argue that this industry is fragmented and needs consolidation. This paper contributes to the literature by documenting Satyam’s fraud and arguing for the independent directors.
CITATION STYLE
Kumar, G., Paul, P., & Sapkota, P. (2012). The largest corporate fraud in India: Satyam Computer Services Limited. International Journal of Critical Accounting, 4(4), 449. https://doi.org/10.1504/ijca.2012.048795
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