NEW DELHI: Accounting regulator ICAI has barred two Lovelock & Lewes auditors from practice for life and slapped a penalty of Rs 5 lakh each on them for their role in the Rs 14,000-crore Satyam accounting scam.  A probe by an ICAI disciplinary committee has found Chartered Accountants Pulavarthi Siva Prasad and Chintapatla Ravindernath from Lovelock & Lewes guilty of professional misconduct, the Institute of Chartered Accountants of India (ICAI) said in a statement.

“The committee has ordered the removal of the name of these two chartered accountants from the Registers of Members permanently and also imposed a fine of Rs 5 lakh on both of them (which is the maximum amount as per the Act),” it said.

“The Disciplinary Committee finally noted that there was serious gross negligence on the part of these two chartered accountants in the discharge of their duties as audit team members which carried out the statutory audit of Satyam Computer Services for the period April 1, 2001, to September 30, 2008,” the statement said.

Lovelock & Lewes, Kolkata, had an understanding with Price Waterhouse, Bangalore, pursuant to which the former was deputed to carry out the audit of Satyam Computer Services.

The audit of Satyam was appointed in the name of Price Waterhouse, Bangalore.

Price Waterhouse and Lovelock & Lewes could not be contacted for comments.

A massive accounting fraud in IT company Satyam Computer came to light in January 2009 after its founder B Ramalinga Raju admitted to fudging the account books for many years.

Source- PTI

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0 responses to “Satyam scam – ICAI barred two Lovelock & Lewes auditors from practice for life, slaps Rs 5 lakh penalty”

  1. BasuC says:

    Not enough…they should have got the death penalty for raping the principals of fair and balanced accounting.

  2. Pradeep Singh says:

    As it has been provided that in case of Joint Auditors, both are equaly accountable. It is not clear why clean chit is given to Price Waterhouse. Now a days all major audits are associated with these so called Big 4s, so the ICAI should also make them accountable.

  3. Kanj Goel says:

    Good step taken by ICAI committee, it may teach some lessons to people who do it for the money.

    Regards
    C.A Kanj Goel 

  4. CMA Arif Farooqui says:

    Not enough

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