Accounting Fraud - Bernie Madoff

Accounting Fraud case Satyam Systems, a global IT smart set ground in India, has just been added to a notorious inclination of companies heterogeneous in fraudulent financial activities, one that includes such(prenominal) name as Enron, WorldCom etc. The Satyam Computer Services indignation was publically announced on 7 January 2009, when Chairman Ramalinga Raju confessed that Satyams accounts had been falsified. The prelim investigations by Registrar of Companies and confession by Mr. Raju revealed the balance public opinion poll of Satyam for the grade 2008 contained `cash and bank balances of Rs 5040 crore (US $ 1.12 meg) as against the Rs 5361 crore (US$ 1.12 billion) reflected in the books, an accrue quest of Rs 376 crore (US$ 83.85 million) which was described by Raju as `non existent , an minimise financial obligation of Rs. 1,230 crore (US$ 274.29 million) on account of funds was set by himself and an misinform debtors position of Rs. 490 crore (US$ 109.27 million) as against Rs. 2,651 crore (US$ 591.17 million) in the books. No wonder battalion are calling this Indias Enron. How did this obtain ? - Like legion(predicate) companies, Satyam had a multiple-step process for taking customer orders, reason what the scat would cost and generating invoices.

Managers in different departments checked and cross-checked the figures as they passed finished the system. But employees on the accounts receivable team could in addition exercising emergency generating of invoices, which bypassed most of the steps. From the beginning of April 2003 to the end of 2008, well-nigh 7 5,000 of these spare invoices were created.! Of these, 7,561 were fraudulent, generated to make Satyam look as if it had more duty than it did. The invoices named 11 different Indian companies but were never acquire by those customers. From 2004 until the fraud came to light, sales were inflated 18 percent a quarter on average, for a total of or so 42.6 billion rupees, or $840 million. Satyam has said the invoices were paid through the vernal York...If you exigency to get a full essay, order it on our website: OrderCustomPaper.com

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