Read the following case study:

Brown, Veena L., Daugherty, Brian E., & Persellin, Julie S. (2014). Satyam Fraud: A Case Study of India's Enron. Issues in Accounting Education, (29)3: 419-442.

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 Respond to the following case questions:

   

1. Planning an audit begins with brainstorming. Thinking about the corporate culture of Satyam, what risks can you identify? How should these risks impact the audit of Satyam by PW India? What about the corporate governance and culture of Satyam allowed the fraud to occur? 2. Thinking about PW India - What should they have done differently? In answering the question, be sure to address the following issues: 1. With regards to overall audit planning and activities: Was PW India required to follow the auditing standards set forth by the PCAOB for the Satyam audit engagement? Why or why not? 2. With regards to cash and accounts receivable: 1. What are the primary assertions related to cash? What audit procedures are typically performed to test these assertions? 2. In terms of the confirmation of cash balances, what deficiencies can you identify in terms of the procedures followed in the Satyam engagement? Reference PCAOB standards (you obtained these in Week 1).