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Fraudulent financial reporting practices can have significant consequences for organizations and all stakeholders, as well as, for public confidence in the capital and security markets. In fact, comprehensive, accurate and reliable financial reporting is the bedrock upon which our markets are based. Keen to project a rosy picture of the Satyam to investors, employees and analysts, Mr. Raju (CEO and Chairman) fudged the account books so that it appeared to be a far bigger enterprise, with high profits and fast growth rate, than it actually was. The Satyam fraud has shattered the dreams of different categories of investors, shocked the government and regulators alike, and led to questioning of the accounting practices of statutory auditors and corporate governance norms in India. This is an exploratory study based on secondary sources of information. An attempt has been made to provide an explanation for various intriguing questions about Satyam scam. After thorough investigations by the CBI and SEBI, they have unveiled the methodology by which Satyam fraud was engineered. Finally, we recommend "Fraudulent reporting practices should be considered as a serious crime, and accounting bodies, courts and other regulatory authorities in India need to adopt very strict punitive measures to stop such unethical practices". ; Мошеннические практика финансовой отчетности может иметь серьезные последствия для организаций и всех заинтересованных сторон, а также, для общественного доверия в столице и безопасности рынков. На самом деле, исчерпывающая, точная и надежная финансовая отчетность является основой, на которой базируются наши рынки. Движимый желанием создать радужную картину компании Satyam для инвесторов, сотрудников и аналитиков, г-н Raju (генеральный директор и председатель) подделал отчетность таким образом, чтобы предприятие казалась более крупным, чем на самом деле, с более высокой прибылью и быстрыми темпами роста. Мошенничество Satyam разрушило мечты разных категорий инвесторов, шокировало правительство и регулирующие органы и привело к расследованию практики бухгалтерского учета, аудита и норм корпоративного управления в Индии. Это предварительное исследование проведено на основе вторичных источников информации. Дано объяснение различным вопросам, касающимся жульничества Satyam. После тщательного расследования со стороны CBI и SEBI, была представлена методология, с помощью которой было спроектировано мошенничество Satyam. И, наконец, мы рекомендуем: «Мошеннические практики отчетности следует рассматривать как серьезное преступление, и бухгалтерские органы, суды и другие регулирующие органы Индии должны принимать очень строгие карательные меры для предотвращения подобных неэтичных практик.

Manipulative accounting practices are perennial and such practices have occurred in all eras, in all countries and affected millions of corporations. Unfortunately, there are few loopholes in accounting and auditing standards, which provide leeway and thus motivate accounting professionals to use aggressively manipulation practices. In fact, manipulative accounting (MA) involves the intentional cooking-up of financial records towards a pre-determined target. Every company indeed maneuvers the numbers, to a certain extent, as formally reported in its financial statements (FS) to achieve budgetary targets and generously reward senior managers. From Enron, WorldCom to Satyam, it appeared that window-dressing leading to MA is a serious problem that is increasing both in its frequency and severity, which undermines the integrity of financial reports and eroded investors confidence. The responsibility of preventing, detecting and investigating financial frauds rests squarely on Board of Directors and they should adopt preventive steps. Despite the raft of CG, and financial disclosure reforms, corporate accounting still remains murky and companies continue to find ways to play hide-and-seek game with the system. Satyam computers were once the crown jewel of Indian IT-industry but were brought to the ground by its founders in 2009 as a result of financial manipulations in FS. The present study provides a snapshot of how Mr. Raju (CEO and Chairman) mastermind this maze of AM practices? Undoubtedly, Satyam scam is illegal and unethical in which computers were cleverly used to manipulate account books by creating fake invoices, inflating revenues, falsifying the cash and bank balances, showing non-existent interest on fixed deposits, showing ghost employees, and so on. Satyam fraud has shattered the dreams of investors, shocked the government and regulators and led to questioning of the accounting practices of auditors and CG norms in India. Finally, we recommend that All types of MA practices should be legally recognized as a serious crime, and accounting bodies, law courts and regulatory authorities must adopt exemplary punitive measures to prevent such unethical practices.