Accounting Fraud - Bernie Madoff

Accounting Fraud case Satyam Systems, a global IT telephoner ground in India, has just been added to a notorious key out of companies heterogeneous in fraudulent financial activities, one that includes such name as Enron, WorldCom etc. The Satyam Computer Services shite was publically announced on 7 January 2009, when Chairman Ramalinga Raju confessed that Satyams accounts had been falsified. The explorative investigations by Registrar of Companies and confession by Mr. Raju revealed the balance aeroplane 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 increase quest of Rs 376 crore (US$ 83.85 million) which was described by Raju as `non existent , an inform financial obligation of Rs. 1,230 crore (US$ 274.29 million) on account of funds was lay 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 pass off ? - Like legion(predicate) companies, Satyam had a multiple-step process for taking customer orders, compute 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, near 75,000 of these spare invo ices were created. Of these, 7,561 were frau! dulent, generated to make Satyam look as if it had more patronage than it did. The invoices named 11 different Indian companies but were never reliable by those customers. From 2004 until the fraud came to light, sales were inflated 18 share a quarter on average, for a total of close to 42.6 billion rupees, or $840 million. Satyam has said the invoices were paid through the bare-assed York...If you exigency to get a full essay, order it on our website: OrderCustomPaper.com

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