This website uses cookies to ensure you have the best experience. Learn more

Corperate Governance Failure At Satyam Essay

813 words - 4 pages

1. Strategy, Governance Concepts and Business Terminology:
|1. Business continuity |7. Ownership structure |
|2. Balance sheet |8. Acquisition |
|3. Capital funds |9. Operating margins |
|4. Corporate governance |10. Minority shareholder’s interest |
|5. Global competitive strategy |11. Independent directors |
|6. Due diligence ...view middle of the document...

 Satyam's speed development across the world won Raju great wealth and personal honors. Second, Raju decided to found a group of companies called Maytas, which involved too many industries and costed too much capital. The inappropriate development of Maytas leaded to huge deficit and made Raju struggle to raise money.Last,Raju decided to let Satyam acquire Maytas, and faked the financial recorder to remain shareholders and raise money. This leaded to big losses of talents and independent directors, as well as losses of capital from lenders and shareholders.

4. Recommendations:
1. Strengthening the internal control. The critical cause of Satyam’s failure is lack of effective internal control. Therefore, if a company wants to avoid necessary frauds, it should improve the internal monitor. For example, the company can perfect the governance structure, create an excellent enterprise culture, or develop the monitor system. Internal control self-assessment (or "CSA") can be used in this process. A Control Self-Assessment (CSA) is a tool designed to assist in identifying and evaluating the effectiveness of internal controls. Typically the CSA is a survey (question and answer) used in evaluating the internal controls related to a business activity. A "control process" is a check or process performed to reduce or eliminate the risk of error.
2. Enhancing the auditors’ ability. From the case we know, the Satyam’s auditor had admitted the inaccuracies in its audits and the auditor firm faced the multiple-agency problems. Hence, the auditors should improve their professional knowledge and take more responsibly to do their jobs. This is the effort of external auditors. But the most important efforts should from the company’s internal auditors. They should strive to monitor operating results, verify financial records, evaluate internal controls, assist with increasing efficiency and effectiveness of operations and detect fraud; and review and confirm information...

Other Papers Like Corperate Governance Failure At Satyam

Issues In Corporate Govarnance In Bangladesh

4439 words - 18 pages state contexts, embraces action by executive bodies, assemblies (e.g. national parliaments) and judicial bodies (e.g. national courts and tribunals) (EC, 2001). The concept of governance is currently used in contemporary social sciences with at least six different meanings: the minimal state, corporate, governance, new public management, good governance, social-cybernetic systems and self organized networks (Rhodes, 1996). Thus, good governance

Audtin Essay

3208 words - 13 pages EXECUTIVE SUMMARY This paper investigates about the Enron Corporation and Arthur Anderson. This assignment is to identify the background of Enron and Arthur Anderson and Enron fail. Other than that, identify the business risks that faced by Enron. Moreover, determine the responsibilities of board of directors and steps to improve corporate governance. Besides that, differentiated between rules-based accounting and principle-based accounting

A Peaceful Evacuation

1950 words - 8 pages Corporate Governance and Ethical Responsibility Anthony D. Mcilwain Professor Traubert LEG 500 05/10/2013 Synopsis Corporate governance and ethical responsibilities are the key components for executive teams to make proactive decisions within the organizational environment. “The Ethics & Compliance Office has operational responsibility for education, consultation, monitoring and assessment related to the Code of Business Conduct and


2509 words - 11 pages . HOW APPLICABLE ARE THE PRINCIPLES OF THE VALUE CHAIN APPROACH? The value chain approach is comprehensive, with an extensive set of tools and best practices. This approach is not appropriate for every development project or in all country contexts. Prerequisites for taking a value chain approach include a minimum level of good governance and stability in the enabling environment, the existence of at least some market activity (even with low-value

Technical Controls Paper

905 words - 4 pages privilege. The principle of least privilege requires that an individual, program or system process is not granted any more access privileges than are necessary to perform the task. A blatant example of the failure to adhere to the principle of least privilege is logging into Windows as user Administrator to read Email and surf the Web. Violations of this principle can also occur when an individual collects additional access privileges over time. This

Nhp National Health Programs

1417 words - 6 pages National Health Programs | Assessment of problems to achieve the goals | Submitted by- Amanpreet Caur Chopra PRN- 10040141041 | Time and again the National Health Programs have shown failure in achievement of the set goals. Essentially three broad factors can be blamed * poor governance and the dysfunctional role of the state * unrealistic goal-setting and lack of a strategic vision * weak


5241 words - 21 pages of Management and Organizations, Vol. X, No. 4, pp.15-41. Hunt John W. 1992. Managing people at work, 3rd. A manager’s guide to behaviour in organizations. McGRAW-HILL Book Company Europe Owen Geoffrey. 2000. Sources: Well Suited, a History of the Leeds Clothing industry. Katrina Honeyman, Oxford, OUP. Richard L. Daft. 1983. Oranization Theory and Design. West Publishing. Rhodes R.A.W. 1997. Understanding Governance – Policy Networks. Governance

515fin Homework Wk1

921 words - 4 pages individual assets and portfolios of assets. G Given a company's financial statements and sales forecast, develop a monthly cash budget for at least one year and pro forma financial statements for five years. Utilizing financial ratios and other analytical techniques, evaluate the company's strengths and weaknesses and its long-term financial requirements. Homework Assignment Complete the following graded homework assignment in a Word document


3218 words - 13 pages controlled by the IT organization rather than the enterprise. Without an understanding of what is possible through new BI systems, executives on the business side did not inquire about the reporting, analytics and intelligence potential. This “accountability” gap fostered a lack of governance, a failure to effectively conform sources, and poor data quality. The situation is exacerbated by multiple policy, claims, billing, and other legacy systems. It

Corporate Compliance Plan

4306 words - 18 pages , inventoried, maintained, and incorporated into the accounting system. Riordan must develop a process for tracking these assets. Raw material is already tracked at each facility; however, these processes do not proactively minimize the loss of raw material due to damages from equipment failure or shipping & handling. Furthermore, Riordan has no follow up or investigation process, should raw material go missing. In addition to developing a physical

The Collapse Of Enron

1122 words - 5 pages Guidelines at Enron. Journal of Public Affairs , 5 (2), 84-98. Brennan, D. M. (2003). Policy and Corporate Governance in the Wake of Enron's Collapse. Social Text , 21 (4), 35-50. Lawrence, A. T., & Webber, J. (2011). Business and Society Stakeholders, Ethics, Public Policy. New York: The McGraw-Hill Companies.

Related Essays

Abc Firm Essay

685 words - 3 pages Satyam, but rather indicative of a much larger quality control failure throughout PW India.Additionally, India authorities filed criminal charges against several former officials as well as two lead engagement partners from PW India. "PW India violated its most fundamental duty as a public watchdog by failing to comply with some of the most elementary auditing standards and procedures in conducting the Satyam audits. 1. Unsafe labor conditions in

Project Governance Essay

1193 words - 5 pages Ekinci 2009 ). Project Governance extends the principle of Governance into both the management of individual projects via Governance structures, and the management of projects at the business level, for example via Business Reviews of Projects. Today, many organisations are developing models for ‘Project Governance Structures', which can be different to a traditional Organisation Structure in that it defines accountabilities and responsibilities for

Corporate Governance Essay

4476 words - 18 pages Corporate governance: Ireland must learn the lessons of recent corporate governance failures in Ireland and Irish-listed companies must meet evolving international market expectations if they are to attract international investment, the Chief Executive of the Irish Stock Exchange, Deirdre Somers has said. Somers (pictured) made her comments at a special conference on corporate governance hosted by the Irish Stock Exchange in Dublin today

Securities And Exchange Board Of India

5600 words - 23 pages establish individual responsibility for its failure and to put in remedial actions. The SEBI was also asked to conduct an independent audit of its systems to prevent trading of unlisted shares in DEMAT format.   6 Critique of functioning of SEBI 6.1 Indifferent consent orders: Recent study undertaken by SEBI to analyze the orders passed by its adjudicating officers and whole-time members, has raised serious concerns of governance. A