Inspection and Investigation

The responsibility of efficient running of the company, maintenance of adequate books of accounts and effective internal control is the responsibility of the management.

Inspections under Companies Act provide assurance to the regulators that the management has satisfactorily achieved these ends.

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World’s biggest accounting scandals (Other then Satyam)

Accounting Scandals

Several big firms have come under scrutiny recently for questionable accounting practices. Some of the world’s biggest accounting scandals.

WorldCom

WorldCom was one of the big success stories of the 1990s. It was a symbol aggressive capitalism. Founded by Bernie Ebbers, one of the most aggressive acquirer during the US mergers and acquisitions boom of the 1990s. WorldCom’s asset value had soared to $180bn before the US capital market started witnessing a downtrend.

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United States District Court found Former Ernst & Young Partner Guilty of Insider Trading

A former partner at the accounting firm Ernst & Young was found guilty on Friday of securities fraud for an insider trading scheme but not guilty of conspiracy charges.

A jury in United States District Court in Manhattan found that the ex-partner, James E. Gansman, who worked at the firm until October 2007, was guilty on six counts of securities fraud and not guilty on four counts of conspiracy, according to a court document.

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