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Wipro blams weak internal controls for fraud
Saturday, 27th November 2010
An independent legal counsel appointed by IT major Wipro has found that lack of internal controls led to the embezzlement committed by one of the former junior employees between November 2006 and December 2009.

The legal counsel submitted the probe report last week to the audit committee set up to investigate the fraud early.

Based on the findings of the legal counsel, Wipro said that if corrections were to be carried out to the annual financial results of the company in view of the �mis-statements identified during the probe together with other �uncorrected audit adjustments'', profit-after-tax for 2009-10 would have been higher by 2.1 per cent (approximately Rs 92 crore).

Stating that it has been able to recover most of the embezzled amounts, Wipro, which is listed on the New York Stock Exchange, in its latest disclosure to the US Securities and Exchange Commission, said its audit panel has concluded that mistakes were committed in certain accounting entries and that they were also not supported by any documents.

The material weaknesses related to sharing of online banking access passwords and Wipro's internal accounting system passwords by certain employees within the finance and accounting departments including those responsible for external financial reporting.

Publication : Hindu Business Line
TAGS : wipro  bangalore  


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