Satyams internal auditor arrested

The Central Bureau of Investigation CBI today arrested the internal auditor of former Satyam Computer Services Limited V S Prabhakar Rao. Rao was under investigation for his role in assisting the Raju brothers in cooking up the balance sheets and forging bank statements. A CBI official said that though Raos role was suspected since the beginning,they could not establish a link till now. We have arrested him today. We have adequate proof to link him with the entire scam, the official said. Rao was also a key aide of Satyam founder B Ramalinga Raju and is learnt to be the brain behind suggesting how to fudge the account statements. Rao was produced before the Nampally court which remanded him to four days in CBI custody.

Meanwhile, the Institute of Chartered Accountants of India ICAI has announced its decision to issue separate notices to six auditors found prime facie guilty of professional misconduct in the Satyam Computer Services case.

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These notices are being served on four auditors belonging to the statutory audit team of PriceWaterhouse,Bangalore S Gopalakrishnan,Srinivas Talluri,Shiva Prasad and Ch Ravindranath. Besides that,notices are also being issued to V Srinivasu,chief finance officer of the company,and V S Prabhakar Gupta,head of the internal audit cell of the company. Notices will also be issued to the New Delhi and Kolkata offices of PriceWaterhouse. These notices are being issued based on the report of Director Discipline of the ICAI into the role of external and internal auditors in the commission of the financial regularities in Satyam Computer Services Ltd.