Choose a topic about recent or past news on major accounting issues or internal control failures, or other fraud-related topics. Your paper should be at least 4 pages, double spaced, times new roman...

Satyam Scam India –
This scandal is regarded as India’s biggest scandal, amounting to the manipulations of the accounts of 14,462 crores Indian rupees.1In this scandal, the company chairman Ritik Agarwal confessed that there has been some manipulations in the account books of Satyam Corporation. This news came into light in 2009, and stock price plummeted.
Ramalinga Raju, the chairman of the firm carried fictitious accounts on the balance sheet of the Satyam Corporation and Maytas acquisition was the last attempt to fill these fictitious assets with the real assets. However, the failure of this deal led to total catastrophe and the stock markets reacted negatively to these practices leading to 7 years jail for Ramalinga Raju.
Deemed as India “Enron Scam” by the Economist 2009, this has been the biggest scandal in the Indian history, exposing the loopholes in the corporate governance as well the regulatory requirements fulfilment by the accounting institutes.
Satyam corporation’s stock price fell to all time low to 6 rupees. Later Tech Mahindra acquired Satyam Corporation.
How did this happen?
Satyam corporation chairman allegedly reported a gap of revenue and operating margins and over the time and that led to inconsistencies in the cash balances and liabilities.
As per the letter to the board members by Ramalinga Raju, due to the threat of hostile takeover, because of the equity erosion due to poor operating performance.
Fictitious profits and revenues were generated as well as the fake invoices were generated using the IT infrastructure to ensure the sustainable profits.
Board resolution was managed to ensure that the consistent financing was also available.
Promoters were able to enjoy higher dividends on the fictitious profits. This access funds were siphoned off and there were plenty of fictitious items including the accrued interest, payables to debtors, deferred revenues and loans and advances.
This is the classic case of the agency issue, where for the short...