Satyam Computer Services Ltd.: Accounting Fraud in India
Image
Region
Asia - Pacific
Topic
Strategy & General Management
Accounting & Finance
Length
12 pages
Keywords
Corporate
Fraud
resignation
reputation
India
Copyright Holder
Notre Dame
Student Price
$4.00
Target Audience
Graduate Students
Undergraduate Students
On January 7, 2009, Ramalinga Raju resigned as chairman of Satyam Computer Services. This resignation came as a result of the largest corporate fraud in India’s history. Questions remain for Satyam executives about the company’s survival, as well as the reputational effect on PriceWaterhouseCoopers offices in India.
Learning Outcomes
- To demonstrate the effects of business fraud on a company and its stakeholders;
- To highlight the possible implications that can befall an entire nation’s business credibility, when a major business of that country is engaged in improper business dealings;
- To provide an example of a catastrophic business event and how a business must struggle in order to remain sustainable;
- To illustrate the importance of critical communication during a major business fraud;
- To show how the external auditor of a publicly traded company can suffer major loss of reputation by being linked to a major corporate scandal.