Satyam Computer Service Accounting Scam Essay Example | Topics and Well Written Essays - 1000 words

Satyam Computer Service Accounting Scam - Essay Example After resignation of Srinivas Vadlamani as chief financial officer Ram Mynampati was appointed as the interim CEO of the Satyam computer services and this turned to be the worst scam in the company history. After an audit that was done the report stated that the company cash was not encouraging since the company was in a state of collapsing. After the scam, the aim of Satyam computer services is to ensure that the business continues. After the fraud was noticed, the government of India disbanded Satyam board and the government was not providing funds to the company. A team of auditors from the Securities and Exchange Board of India (SEBI) was appointed to investigate the fraud which is well known to regulate all Indian public companies (Winkler 2010). Satyam computer services is one of the companies that are under Bombay Stock Exchange and still under the New York Stock Exchange, meaning that the company is under the United States international regulators of capital market. The company will face legal process since United States believes that the company has broken the rules of stock exchange. Two of United States law firms are filling lawsuits against the company since the fraud has been in the history as the worst ever scam in India under the New York Stock Exchange and the aim is to recover some of the funds. The scam will have negative effects on the company and the Indian people in coming years since the company was the largest IT service provider and outsourcing giant in India Information Technology. This means Satyam computer service will either be sold but the auditors must recover the funds first if the company will go to that position of being sold. The competitors again will benefit from the company being sold. Its riv als like HCL, Wipro and TCS will pick the best employees and clients thus completely outdoing Satyam