Author(s)

Madan Lal Bhasin

School of Accountancy, College of Business, Universiti Utara Malaysia, Sintok, Malaysia.

Keen to project a perpetually rosy picture of the Satyam to the investors, employees and analysts, Mr. Raju (CEO and Chairman) manipulated the account books so that it appeared to be a far bigger enterprise than it actually was. The Satyam fraud has shattered the dreams of different categories of investors, shocked the government and regulators alike, and led to questioning of the accounting practices of statutory auditors and CG norms in India. An attempt has been made to provide an explanation for various “intriguing” questions about Satyam scam, such as: What was the need to commit a fraud on such a large scale? How Raju managed to cook-up books? What was Raju’s real modus-operandi to manipulate the accounts for eight years? Why was Raju forced to blow his own whistle? Why was not there a stricter punitive action against the auditors of Satyam PwC?, etc.” Now, after thorough investigations done by the CBI and SEBI, they have unveiled the methodology by which Satyam fraud was engineered. Finally, we recommend that “CA practices should be considered as a serious crime, and as such, accounting bodies, law courts and other regulatory authorities in India need to adopt very strict punitive measures to stop such unethical CA practices”.

Creative Accounting, Satyam Computer Services Limited, Modus Operandi Unveiled, Financial Statements, Corporate Governance, Auditors, Forensic Accounting, SEBI, SFIO, CID, India

Bhasin, M. (2016) Creative Accounting Scam at Satyam Computer Limited: How the Fraud Story Unfolded?. Open Journal of Accounting, 5, 57-81. doi: 10.4236/ojacct.2016.54007.