Things may start to get even uglier for PwC over in India, as India's Central Bureau of Investigation (its equivalent of the FBI) now alleges that two auditors from PwC's India-based office were aware that Satyam's financial statements were being misstated, but still signed off the figures in return for an “exorbitant audit fee.” The CBI reportedly alleges in court papers that Satyam founder, B. Ramalinga Raju, two of his brothers, two PwC auditors and four other Satyam executives forged more than 7,000 fake invoices and dozens of bogus bank statements to inflate Satyam’s earnings.

The Times Online reports that auditors S. Gopala Krishnan and Srinivas Talluri, who have been suspended from the Indian-based audit arm of PwC and who are being held in prison, "received certificates of deposit from Satyam's banks that were in 'great variance with the figures provided by the company’s management' but signed off the fudged accounts anyway, the CBI claimed." The auditors reportedly received several times the normal market rate for their work at Satyam.