Assess the responsibility of audit committees as well as internal auditors in relation to the Satyam scandal. I. The audit committee, which is part of the board of directors, plays an important role in preventing fraud. They are directly responsible for overseeing the work of any accounting firms, such as PwC, employed by the company. They must also pre-approve all audit services provided by the auditors. ii. Objectivity must also be assessed to ensure the reliability of the internal audit. Internal audit must also be free from conflicting responsibilities. b. Do you think that making changes to the regulations would help prevent such fraud?i. There can only be a limited number of changes to the audit process to prevent fraud. No matter what regulations one may apply, the audit process always comes down to human opinion. In a case like Satyam, an auditor performing his job to the highest standards would most likely have ended up catching Satyam. As noted in the case, false cash declarations are one of the easiest fraudulent activities to detect. Simply requesting bank statements allows you to verify how much cash the company actually has.VI. Legal and ethical implicationsa. Legal