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Assignment
Background
On 7 January 2009, the chairman of Indian IT company, Satyam Systems resigned as well as confessing to manipulating the accounts to the extent of approximately Rs 14,162 crore or US $1.04 billion.
Task
It is 1 July 2008 and you have just been appointed Head of Internal Audit at Satyam in India. You have not previously worked for Satyam and on your first day in the office, members of your new internal audit team welcome you by raising concerns about a number of red flags which they believe indicate fraud is occurring.
As the new Head of Internal Audit:
1.Set out three major fraud red flags that concern you at Satyam and explain why these red flags raise concern?
2.How would you investigate the red flags to determine if fraud was occurring?
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