I want to know the effects of Satyam scam on investors and e

Solution

The satyam scam has been one of the biggest , of Rs.7000 crores, accounting fraud in corporate history indian IT area. The investment and corporate investors are totally affected by the scandals.

Effects : a) The good checking and control of the chairman activities.

b) The auditors also have come under intense scrutiny with their proceedings and confirmations.

c) The internal financial control of the corporate are under due questions.

d) The board of the companies are also eyed acutely by the controlling authorities.

e) The employees of various coporates mainly the IT companies have become more cautious.

Actions : 1) Strengthening of the corporate governance and its standards.

2) More and more vigilance on the corporate corporate and lots of checking of balances and cash or cash equivalents.

3) The government has come into action to protect the corporate world and sell out the satyam and their working strengths to the established IT company Mehindra Tech.

4) The financial reporting of the corporates has been strengthened and proofs.

5) Heavy penalties and criminal actions are taken in any kind of frauds in the corporate world.

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