While authorities in India work to unravel a $1 billion fraud scheme at Satyam Computer Services, its U.S. customers would be wise to do some digging into their own books, some audit experts are advising.
The fear: that Satyam’s internal control failures could undermine the comfort level U.S. companies have about their own internal controls over financial reporting. Satyam presumably provided SAS 70 Level II audit reports to its public company customers to assert their financial data was secure with Satyam. But discovery of the massive fraud calls that audit into question—consequently giving Satyam customers reason to wonder if their financial data may have been compromised.
