Role of Corporate Governance on Corporate Fraud in Indiaa Case Study of Satyam Computer Services Ltd.

Abstract

Corporate Governance is about promoting corporate fairness, transparency and accountability. This paper highlights the role of Corporate Governance on Satyam Corporate scam. It also tries to highlight the efforts made by Govt. of India for proper implementation of Corporate Governance in Corporate Sector. Moreover, in this paper, we have discussed poor Corporate Governance issues that were responsible for Satyam scam, which took place on 7th January, 2009 with Rs. 14,000 crore. Two of the Auditors from renowned auditing firm PWC were responsible for the scam. So, ethics of Auditor was in question. Satyam Company actually violated all rules of Corporate Governance like failure of concept of independent auditor, role of Audit committee and role of CEO/CFO. In a conclusion, we can say that Indian Company’s Act needs to incorporate some amendments regarding the Corporate Governance issues against wrong financial reporting with the assistance of SEBI and ROC.