It’s the potential for sudden conflagrations in developing countries that keeps the global audit firms – PwC in this case – up at night. The legal quagmires in developed countries are messy, too. PwC may want to put the Satyam scandal behind them but, unfortunately, I fear there’s still much more pain for the firm to come.
Big 4 audit firms are focusing on growth in their global consulting businesses but the conflicts that drove three out of four of the firms in the US to sell them after Enron are a bigger problem than ever before.
In December of 2009, India’s Central Bureau of Investigation (CBI) arrested Mahindra Satyam’s internal audit head V S Prabhakar Gupta for his alleged involvement in the Satyam fraud.
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Columns for the week ending November 12, 2010:
I have been inundated the last few days with Google Alerts for PwC UK’s study on key business destinations in the emerging markets countries. I guess China is getting a little too problematic and expensive, and India is too “developed” and expensive, Moscow is PwC’s Achilles heel and Brazil is funky, so the advisory firm […]