Satyam crumpled and so is the trust of investors on the figures as depicted in the Balance sheets of various Indian companies especially IT companies.
The entire episode has created furor across the investors and employees as the trust factor has been maligned, but do we have to blame the Board of directors only? I guess not. In my opinion when the auditors are there to operate and provide independent opinion, then they should do that only.
Downfall of Satyam is not actually shameful for the Board of Directors and Promoters, but also for the World of Auditors. What were the Internal and External Auditors doing for letting this shameful incident materialize? Are not they also party to the downfall?
In my opinion, PwC's (The Auditors in this Case) license to operate as Auditor must be cancelled with immediate effect. The independence of PwC Auditors was certainly impaired and the act has proven as breach of trust that investors and market regulators lay on the Auditors.
It is not only that the Corporate Governance at Satyam failed, it is also that the Auditors compromised and let a company hit dirts.
Certainly PwC must meet the fate of What Anderson met after Enron.