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Noting that it has been auditing Satyam Computer since the quarter ended June 2000 till September 2008, Price Waterhouse said that all those financial statements were prepared by the management.
It further said that it relied "on management controls over financial reporting, and the information and explanations provided by the management, as also the verbal and written representations made to us during the course of our audits."
Satyam as well as PwC are the subject of regulatory and government investigation into the country's biggest corporate fraud - involving Rs 7,800 crore - disclosed by Satyam founder Ramalinga Raju. Raju, his brother Rama Raju and Satyam CFO Vadlamani Srinivas are in judicial custody now.
"We hope to work with the company and provide assistance to the new board of directors to address any issues that arise in the course of such investigations to enable both the company and us as your statutory auditors to fulfill obligations under applicable law."
Copies of the letter, dated January 13, were also sent to RoC Hyderabad, SEBI, RBI, Central Board of Direct Taxes, BSE, NSE and NYSE.
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It's ridicluous statement made by PWC. They relied on management controls of Satyam,up to what extent? They should have verified independently with the bankers. It show their inefficiency and un ethics in the professiionalism. We need to a/c Rs.7800 crore Stock market loss. PWC should be banned in India immly, causing huge financial loss to the country and to the public.
PWC has stated that they had relied on Bank Statements for at least 3000 crores of deposits as at end March 2008. A simple way to check it is to ask the banks concerned to confirm those figures. If it is confirmed, then it is a simple case of misappropriation post March 2008. In the event that the bank statements are forged then obviously, the fraud is very deep and is unlikely to have been committed without the active connivance of some bank staff as well.