Accounting Fraud for an Indian Company - Article Example

They fined Price Waterhouse, $6 million for allowing the fraud to go on without reporting it. In effect, the accountants were complicitous in the scheme. The was recently taken over by the Indian government which also placed criminal charges against its several executives. The moral issue involved here is simply that they were wrong to lie about their assets and the accountants were wrong to knowingly report the soup-up numbers.

Are there any arguments that could justify such fraud? Was there a greater good Satyam Computer Services was seeking? One could argue that they had to do what they did to attract investment so that the company could experience further growth and attract new clients. In this possibility, as the new clients were brought on, the phony invoices would be removed until they were all gone. If this argument were allowed then other companies could do the same until there was nothing but a paper empire built in the business world. Another argument would be that the activity represented more the creativity of the executives of Satyam Computer than it did their greed. They could have stopped the activity, say, after one or two years and no one would have been the wiser.

Virtuous responsibility requires one to make the best decisions possible that are based on temperance and justice. Another view is that it is based on everyone should get what they deserved. Either way, the Satyam Computer Company violated both moral tenets and they were certainly trying to get more than they deserved. Read More