Satyam and PwC – Managing Foreign Affiliates

Read Case 6-9 (Attached), “Satyam: India’s Enron,” and watch the video Vineet Nayyar: PwC Was Actively Colluding in Satyam Scam from this unit’s studies.

Having a local-affiliated auditing firm helps to mitigate some of
the challenges of auditing foreign companies such as having an intimate
knowledge of local culture, customs, and legal and accounting practices.
However, it also introduces a challenge related to adhering to and
maintaining professional standards in an environment that transcends
different cultural and legal systems. Since basic audit steps such as
confirming bank statements were overlooked, do you think that peer
review would solve this issue, or do you believe, as alleged in the
video, that something more insidious was at work here? Video: