Sample Case Study

Sample Case Study - Case study related to chapter 2 Case...

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Case study related to chapter 2 Case Objectives: - Understand what purpose of corporate governance is - Realize why audit committee is so important in the corporation’s operations - Investigate whether Satyam Board contained a financial expert as required by Sarbanes- Oxley and supporting SEC regulations Introduction: The founding chairman of the Indian outsourcing company Satyam, B. Ramalinga Raju, wrote a letter of resignation to his Board of Directors in which he said that he ". ..overstated profits for the past several years, overstated the amount of debt owed to the company, and understated its liabilities". Raju prepared the portion of the financial statements that presented over $1 billion in cash, when in fact the cash balances were about $66 million. He finally wrote the letter when "...the scheme reached 'simply unmanageable proportions' and he was left in a position that was 'like riding a tiger, not knowing how to get off without being eaten'". The scandal has raised questions about the role of the auditors, PricewaterhouseCoopers, and the company's Board of
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This note was uploaded on 03/08/2012 for the course ACCT 7050 taught by Professor Razai during the Fall '11 term at U. Memphis.

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Sample Case Study - Case study related to chapter 2 Case...

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