Confession as discovery trigger
Definition
Unlike Enron and WorldCom, which were uncovered by auditors, journalists, or internal whistleblowers, Satyam was exposed by the chairman's voluntary confession letter. This unusual trigger raised questions about what conditions make voluntary disclosure rational.
Related terms
- Forensic audit
- An examination of an organisation's financial records and systems conducted specifically to gather evidence for legal proceedings. Distinguished from a regular audit...
- Mark-to-market accounting
- Recognising the fair value of a contract or asset on the balance sheet rather than historical cost. Enron applied mark-to-market to long-term...
- PCAOB
- Public Company Accounting Oversight Board, established by SOX to set auditing standards and inspect audit firms performing public-company audits. It replaced the...
- Sarbanes-Oxley Act (SOX)
- US federal legislation enacted in July 2002 in direct response to Enron and WorldCom. Its key provisions include CEO/CFO certification of financial...
- SFIO
- Serious Fraud Investigation Office: a statutory body under India's Ministry of Corporate Affairs that investigates corporate frauds under the Companies Act 2013....
Explained in
- Case Studies: Enron, WorldCom, and SatyamUnlike Enron and WorldCom, which were uncovered by auditors, journalists, or internal whistleblowers, Satyam was exposed by the chairman's voluntary confession...