According to a report in the Financial Times, Subramani Gopala Krishnan and Talluri Srinivas, who audited the Satyam books,have beenaccused of abetting the company's former chairman B Ramalinga Raju, who admitted to cooking the books.
"During interrogation theyconfessed their involvement in the crime," said deputy superintendent N Balaji Rao, according to the Financial Times report. They also colluded in window dressing of the company's accounts and lured the investors to invest the money, said Rao.
Raju admitted this month that he had fiddled the company's books for several years. The revelation came in a letter to the company, in which Raju offered his resignation and confessed to inflating the company's financial figures.
Earlier this week a statement from Price Waterhouse India said, "We greatly regret that two partners have been detained today for further questioning. We do not know the basis for them being detained."
The company said,"We share the regulators' concern in understanding the full extent of the fraud and how it was accomplished. Like everyone else, we were shocked by the massive fraud at Satyam and by the steps undertaken to conceal it. PW-India will continue to co-operate fully with the authorities."
Read more on IT legislation and regulation
Satyam succeeds in avoiding becoming India's Enron
Indian offshore IT service provider Satyam could be emerging from the turmoil of its recent past...