Satyam

Satyam was the fourth largest information technology group in Indian and won various award pertained to innovation, governance and corporate accountability. However, Satyam was involved into a massive accounting fraud. As mentioned in the case, corporate governance at Satyam is unsuccessful due to the lack of obligation of the company interest to serve the stakeholders. Given that the shareholders have the right to obtain key information regarding to acquisition, request transparency of managing the company and review the financial statements, Satyam failed to preform those obligations, which they acquire Maytas infrastructure and properties without getting the consent of its shareholders.

Failures at Satyam
Corporate governance
Satyam governance is weak since it did not follow the rules to manage the business. It gives improper benefits to its staff and conduct malicious attacks on the bank’s information system. The ethics in the company is also a failure. The top management use the business revenue to purchase the lands and also use the inside information to trade shares of the company. When the confession happened, the top management sold their shares of the company.
Reporting failure
The top management team manipulated the balance sheet in order to blow up the profits and the internal auditor did not questioned about the financial figures. Also, the external auditors fail to detect the fraud behaviors among the Satyam.

Recommendations
In order to enhance the corporate governance at Satyam, there are several steps should be followed:
Enhance the internal control. Satyam currently lacks effective internal control and supervision over its business process. Satyam can redesign its governance structure to build a stronger internal control system. Different personnel should be allocated depending on the tasks and responsibilities. Segregation of duties also help the company to eliminate fraud behaviors.
Strengthen the supervision of auditors. PWC, as the