[Reader-list] The caste of a scam

[Kshmendra Kaul]

As far as I know (I may be corrected), the Independent Directors are not responsible for "preparation" of the Balance Sheet. 
 
That is the domain of Executive Directors and other Operating Officers
 
In my opinion, as far as the financial irregularities are concerned, "Incompetence" is the apt charge against the Independent Directors and not "Complicity" 
 
K

--- On Sat, 2/14/09, Shivam V <lists at shivamvij.com> wrote:

From: Shivam V <lists at shivamvij.com>
Subject: [Reader-list] The caste of a scam
To: "sarai list" <reader-list at sarai.net>
Date: Saturday, February 14, 2009, 2:51 PM

It is not by accident that independent directors, auditors, and CFOs
associated with the Satyam scam have pleaded guilty to the lesser but
more ignominious charge of incompetence than be arraigned for the
higher crime of complicity in financial irregularities. The CFO of
Satyam - Vadlamani Srinivas has confessed that he does "not pay much
attention to the details of the balance sheet", and that he just
passes the balance sheets and accounts statements prepared by his
assistants. Perhaps the CFO was recruited on the basis of reservation
and hence was incompetent and inefficient? He has also stated that
PricewaterhouseCoopers – the auditors of Satyam – "never pointed out
any 'deficiencies' during their discussions with me".
PricewaterhouseCoopers is known for recruiting from the IIMs and other
reputed business schools. Is it the IIMs and other business schools
that have produced the incompetent auditors employed by the company?

More here by D Parthasarathy:
http://kafila.org/2009/02/13/the-caste-of-a-scam-a-thousand-satyams-in-the-making/
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