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The paper shall be 12 pages in length and follow standard APA guidelines.(Please see APA tutorial on the course menu for more information.)

Topic choice on white color crime or scandal between 5-10 years case study.The paper should meet the following criteria:

  • Identify and classify all the key people involved in the crime including perpetrators and victims.Give all necessary background on the key players.
  • Thoroughly explain the type of crime committed and place it into a proper typology.
  • Discuss the legal process used to prosecute the crime(s).Was it proper and sufficient? What, if any defenses were raised?Did they have merit?
  • Analyze any regulations or social controls subsequently implemented to avoid future crimes of this nature.

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Attached.

RUNNING HEAD: THE CONTROL FRAUD OF SATYAM.

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THE CONTROL FRAUD OF SATYAM.
Student’s Name
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THE CONTROL FRAUD OF SATYAM.

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Introduction
Over the past decades, corporate governance has raised a lot of concern over the rearming
cases of corporate governance failures. The board of corporate governance is obligated to foresee
that the policies, customs, laws and processes directs, controls and administrate the operation of
the company. Ensuring accountability of individuals in an organization is amongst the core
importance of corporate governance through implementing mechanisms that tries to eliminate
and mitigate principal-agent problem. This kind of problems rises when a corporate principal
creates an atmosphere in which agent’s incentives do not align with those of the organization
principles. As depicted below is a SWOT study of Satyam Computer Service corporates based in
India that was involved in a $2.9 billion fraud.
Body
This paper covers an accounting fraud which occurred eight years in one of India’s
largest software company, Satyam Computer Systems Limited. In the year 2008, the World Bank
raised alarms on the security of global financial data seized at the bank database systems. Satyam
Computer Service come under scrutiny when World Bank chief retailer for cyber-security raised
claims that the IT system appeared vulnerable.
The scandal broke out when Ramalinga Raju the founder and chairman of Satyam
Computer confessed that the corporate accounts were tampered with. Emerging facts about the
scandal included persistent integrity questions about the bank, enormous accounting fraud and
ineffective response of the World Bank. The Satyam scandal highlighted a total of $1.4 billion
fraud after Byrraju Ramalinga Raju the chairman of Satyam resigned and confessed that he had

THE CONTROL FRAUD OF SATYAM.

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manipulated the company’s accounts fraud. The Indian government chosen a temporary board to
find out what caused the Satyam Computer Service Corporation to get involved in the scandal.
The rise of Satyam
The company was established in 1987 by B. Ramalinga and his brother-in-law D.V.S.
Raju and its productivity escalated after it was incorporated as a public company in 1991. The
company become the fourth largest international consulting IT Company in India after TCS,
Infosys and Wipro. Satyam expanded speedily in the 1990’s, offering many services like,
London based Citisoft Plc and Singapore Knowledge dynamics. It also served 500 companies,
390 multinational corporates and it was based on 55 countries.
During its operation it served as the back office for manufacturers, media companies,
health care, and large banks globally, handling their computer systems and customer service.
Corporates that had entrusted Satyam Credibility’s to handle client’s accounting and financial
data included the World Bank, Nestles, United States government, and General Electric. At the
time Satyam scandal broke out, the company had around 300,000 shareholders, with more than
53,000 employees and over 650 clients in over 60 countries globally.
Who were involved in the scandal?
After the research was carried out by the independent body, 10 people were found guilty.
B. Ramalinga Raju; his brother and Satyam’s prior managing director B. Rama Raju, Vadlamani
Srinivas who was a prior chief financial officer of the company, T Srinivas and former PwC
auditors: V.S. Prabhakar Gupta Former Internet chief auditor for Satyam.
Background information.

THE CONTROL FRAUD OF SATYAM.

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The first to be arrested were B. Ramalinga Raju and his brother B. Rama Rajuby Andhra
Pradesh police. The two brothers were placed under judicial custody facing charges of criminal
conspiracy, falsification of records and forgery, fraudulent deletion of securities and criminal
breach of trust. Accounting the scandal B. Ramalinga Raju resigned from Satyam board after
conceding to falsifying margins, revenues and 5000 crore cash company balances.
Ramalinga Raju and the Satyam Scandal.
Ramalinga Raju was the eldest amongst four children, he earned a degree in Bachalor of
Commerce from Andhra Loyala College. He was a business oriented man since after returning to
India he ventured into many commercial activities. In his career Raju developed Satyam
Computer Services. January 7, 2009, Mr. Ramalinga revealed a letter to Satyam Computer
services Company Board of directors, that should that he had manipulated the company’s
accounting numbers. Mr. Ramaling...


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