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: