Accounting in the news

The accounting issue that was discussed in this article was of disclosure requirements, accounting frauds and creative accounting. Satyam Corporation was formed by Ramalingua Raju. The government of Andhra Pradesh has handed over an Rs 78,000 billion scam to the CBI. The organization was charged because the founder of the organization was involved in the process of window dressing techniques and he was inflating company’s profits. The CBI and other related authorities were involved in this matter and a letter was sent to the prime minister which states that CBI was involved in this issue because of its complex nature. Read also research proposal on Forensic Accounting

The article links different aspects of course materials. Disclosure requirements, creative accounting and window dressing techniques are discussed in our course. This article discusses these elements in detail through the fraud of Satyam Corporation.

This article gives a glimpse of what happened in India when an organization involves itself in frauds and scams. The examples of accounting frauds by inflating the books of accounts are numerous and in particular we observed major corporations and accounting firms involved in accountings scandals which could be marked as the U.S. financial meltdown in early 2002.

Different multinationals and national organizations involve

themselves in accounting frauds and they believe that they are increasing their stakeholder’s value through inflating the books of accounts. Accounting laws are quite strict in every country and that is the reason why CBI screwed this organization and the organization’s VP who was responsible to manage the affairs of banks and financial services was asked to quit immediately (The Indian Express group , 2009)

Reference

The Indian Express group . (2009, February 16). CBI to probe Satyam fraud, senior VP told to quit.[online] Available from < http://www.expressindia.com/latest-news/CBI-to-probe-Satyam-fraud-senior-VP-told-to-quit/424219/> [Accessed 5 March 2009]