Once upon a time, not so long ago, there were "Big Five" accounting firms. Arthur Andersen was one among them. Others in the list were Price WaterHouse Coopers, Deloitte Touche Tohmatsu, Ernst & Young and KPMG.
Them when the Enron scandal broke in the year 2001, this Arthur Andersen firm, who were auditing Enron's accounts then, was found guilty of the financial scandal. Later they voluntarily surrendered their CA license and went out of business. Thus the number was brought down as "Big Four"
Now after the Ramalinga Raju's confession and the Satyam Computers scam, the Price WaterHouse Coopers who are auditing Satyam's accounts, are under the same threat. The Institute of Chartered Accountants of India (ICAI) has already issued a show cause notice to the accounting firm. If proved (whats more to get proved!??) PwC will have to face the same fate as Arthur Canon.
Though the accounting firm says Satyam auditing was done with regular Auditing Standards and were supported with appropriate audit evidences, I personally feel, atleast few people in the PwC must have been aware of this fraud.
Its really sad to see how a mistake (ofcourse a big mistake) by very few people, can bring down the reputation.
A lesson for everyone...