INTRODUCTION

The Auditor's report is a formal opinion, or disclaimer thereof,

issued by either an internal auditor or an independent external
auditor as a result of an internal or external audit or evaluation
performed on a legal entity or subdivision thereof (called an
“auditee”). The report is subsequently provided to a “user” as an
assurance service in order for the user to make decisions based on
the results of the audit.
There are different types of audit report
Unqualified Opinion report
Qualified Opinion report
Adverse Opinion report
Disclaimer of Opinion report
Auditor's reports are important to users of financial statements
because they inform users of the auditor's opinion as to whether or
not the statements are fairly stated or whether no conclusion can be
made with regard to the fairness of their presentation. Users
especially look for any deviation from the wording of the standard
unqualified report and the reasons and implications of such
deviations. Having standard wording improves communications for
the benefit of users of the auditor’s report. When there are
departures from the standard wording, users are more likely to
recognize and consider situations requiring a modification or
qualification to the auditor’s report or opinion.
Auditors Responsibility
Hence it can be noted that the auditor plays a very important role by
giving a view of the trueness and fairness of the accounts.Every
outsider depends on this statement.There fore the auditor should not
take advantage of his position and resort to any form of corruption
and give a misleading opinion of the financial statements.
In this project we showed a role-play considering of 2 main scenes
Scene 1:we showed what actually happened with Satyam computer
services ltd and how PWC chartered accountants firm gave an
unqualified report and there was a big scam since the accounts were
cooked up .Some months later B.Ramalingam Raju the chairman of
the company confessed his mistake and was arrested along with the
CFO and the external auditor of Pwc-S.Gopalakrishnan.It was also
shown that the auditor was bribed.
Scene 2:We showed what actually should hav happened in the case of
satyam and how at the audit level itself the scam in the books of the
accounts should have been rectified and the auditors did not take a
bribe and gave an adverse opinion report.
INTRODUCTION TO SATYAM COMPUTER SERVICES LTD
Satyam Computer Services Ltd) was founded in 1987 by B Ramalinga
Raju. The company offers consulting and information technology (IT)
services spanning various sectors, and is listed on the New York Stock
Exchange, the National Stock Exchange (India) and Bombay Stock
Exchange (India).It is considered as an icon among the IT companies
and at one point had over a billion dollar revenue.
Satyam's network covers 67 countries across six continents.The
company employs 40,000 IT professionals across development centers
in India, the United States, the United Kingdom, the UAE, Canada,
Hungary, Singapore, Malaysia, China, Japan, Egypt and Australia.It
serves over 654 global companies, 185 of which are Fortune 500
corporations.
Satyam Maytas Fiasco
Satyam Computers had on  December 16, 2008,  announced that it will
acquire two group firms - Maytas properties and Maytas InfraThe BOD
of Satyam had approved the founder’s proposal to buy 51 per cent
stake in Maytas Infrastructure and 100 % in Maytas Properties. This is
the move that sparked a row over alleged violation of corporate
governance laws. This deal is not profitable for investors .So after this
announcement they started to raise their voices against the deal.
Investment giant Templeton and brokerage house CLSA opposed to
this decision.That aborted attempt at expansion precipitated a collapse
in the price of the company’s stock and a shocking confession of
financial manipulation and fraud from its chairman, B. Ramalinga Raju.
Raju tried to fill the gap b/w actual profits of the company and the profits
that were shown in records, balance sheets etc. and also tried to cope
up the situation till last minute . But now the situation were beyond his
hands and therefore he confessed the frauds(on Jan 7, 2009) made
by him by showing inflated profits in the balance sheet According to
the‘confessional’ statement of Mr. Raju, the balance sheet shortfall was
more than Rs.7000 crore.
How was the manupilation done?
 Simple manipulation of revenues and earnings To show
superior performance
 Raising fictitious bills for services that were never rendered.To
increase the Cash & bank balance correspondingly.
 Operating profits were artificially boosted from the actual Rs 61
crore to Rs 649 crore.
 Its liability was understated by $ 1.23 Billions
 The Debtors were overstated by 400 millions plus.
 The interest accrued and receivable by 376 Millions never
existed