The Case Marshall and Bolt-Lee yam Computer Services, Limited - CASH & CASH EQUIVALENTS (Satyam) required financial reports, with a confession letter attached! The letter, from the company's You can imagine the surprise of the SEC when they received Satyam Computer Services Chairman, B. Ramalinga Raju (Raju), stated that the cash and cash equivalent balance of $1 billion reported in the financial statements was fictitious. The correct cash and cash equivalent balance that should have appeared in the financial statements was only $66 million. Raju also stated that the fictitious cash and cash equivalent balances resulted from recording cash sales that did not exist. The SEC charged several senior and mid-level executives (Chairman, CFO, VP for Accounts and Audits, Senior Manager for Treasury, Global 08883049420 POSTAL MONEY ORDER GOOOODBOR 13 OBAR18491 70 What's a money market fund? A money market fund's purpose is to provide Investors with a safe place to invest easily accessible, cash- equivalent assets. It is a type of mutual fund characterized as a low-risk, low-return investment. 3% 2% 1% 0% usbank CAMMER'S CUCK Real 3-Month TB Rate (10 Year Moving Average) 1% Sangmont 1970s 9264 1978 1960 1982 1904 1986 Year 9 2000 billions of dollars 1500 1000 United States 500 Commercial Paper Outstanding weekly 0 Internal Audit Head, and Assistant Manager for Invoicing) and the lead audit engagement partners from the independent auditing firm with fraudulent activity. The SEC alleged that the former executives provided certain employees with "super user" login usernames and passwords, and required that these employees input false sales invoices for services that were never provided. In some cases, fake customers were created to record cash sales. Satyam allegedly created 200-300 ctitious invoices per month (over 6,600) during the years 2004 through 2009. Requirements 1. 2. :. Which of Satyam's accounts, if any, were affected by this fraud? What is the effect (overstatement, understatement or no effect), if any, on Satyam's Total Assets? What is the effect (overstatement, understatement or no effect), if any, on Satyam's Total Liabilities? What is the effect (overstatement, understatement, or no effect), if any, on Satyam's Total Equity? What is the effect (overstatement, understatement or no effect), if any, on Satyam's Total Revenues? What is the effect (overstatement, understatement or no effect), if any, on Satyam's Total Expenses? What is the effect (overstatement, understatement or no effect), if any, on Net Income? Which of Satyam financial statements, if any, were affected by this fraud