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ACOMS+ 및 학술지 리포지터리 설명회

  • 한국과학기술정보연구원(KISTI) 서울분원 대회의실(별관 3층)
  • 2024년 07월 03일(수) 13:30
 

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Fraudulent Financial Reporting Practices: Case Study of Satyam Computer Limited

융합경영연구 / The Journal of Economics, Marketing and Management, (E)2288-7709
2016, v.4 no.3, pp.12-24
https://doi.org/https://doi.org/10.13106/jemm.2016.vol4.no3.12
Bhasin, Madan Lal (School of Accountancy, College of Business, Universiti Utara Malaysia)
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Abstract

Fraudulent financial reporting practices can have significant consequences for organizations and all stakeholders, as well as, for public confidence in the capital and security markets. In fact, comprehensive, accurate and reliable financial reporting is the bedrock upon which our markets are based. Keen to project a rosy picture of the Satyam to investors, employees and analysts, Mr. Raju (CEO and Chairman) fudged the account books so that it appeared to be a far bigger enterprise, with high profits and fast growth rate, than it actually was. The Satyam fraud has shattered the dreams of different categories of investors, shocked the government and regulators alike, and led to questioning of the accounting practices of statutory auditors and corporate governance norms in India. This is an exploratory study based on secondary sources of information. An attempt has been made to provide an explanation for various intriguing questions about Satyam scam. After thorough investigations by the CBI and SEBI, they have unveiled the methodology by which Satyam fraud was engineered. Finally, we recommend "Fraudulent reporting practices should be considered as a serious crime, and accounting bodies, courts and other regulatory authorities in India need to adopt very strict punitive measures to stop such unethical practices."

keywords
Fraudulent Financial Reporting Practices, Satyam Computer, Modus-Operandi, Financial Statements, Corporate Governance, Auditors, Forensic Accounting, Corporate Culture and Ethics, SEBI, SFIO, CID, India

융합경영연구