[1] The audit assertions that is more relevant:

The auditors were required to follow the standard audit

procedures and requires to confirm the authentic of
balance of cash and account receivables with the third
party or external parties; however PCAOB has observed
that the procedure and method followed for confirmation
of balance amount of the cash and account receivables by
the audit firm were not up to the mark and were not as per
the auditing standards suggested by the board and failed
to notice that the cash balances (bank balances) was
materially overstated in the financial statements. And the
management of Satyam used this confirmation as part of
its scheme that inflates the reported cash balance around $
1 billion. Here; auditor was required to follow the
standards of PCAOB for confirmation of cash balance
with banks; instead they trusted on management’s report
that purported confirmation responses. The auditor did not
make direct contact to the six banks of Satyam, and failed
to test the existence and valuation of the Satyam’s
reported cash balances.
The Board also uncovered that; the method of quality
control of the audit procedure is jointly administered of
the five PW india firms that were failed to notice this lue
fall in the standard practice of the cash confirmation
process; so that penalty was imposed on all the five firms
instead of only to PW Bangalore and Lovelock & Lewes
by SAC & PCAOB. The penalty has been imposed under
section 105(c) (5); “that provides that this section can be
imposed in the event of (A) intentional or knowing
conduct, including the reckless conduct, that results into
a violation of the applicable statutory, regulatory, and the
professional misconduct, (B) repeated instances of
negligent conduct, each resulting in a violation of the
applicable statutory, regulatory, or professional
standard.”
[8] Review of order of PCAOB and section imposed on
the audit firm:
The PCAOB (The Public Company Accounting Oversight
Board) imposed penalty on all the five Pricewaterhouse
Coopers International auditors firms that is based in India
in order to settle an order against them and imposed
penalty of $ 1.5 million against two of the five firms in
connection with the audit of Satyam Computer Services
who is India based IT service provider and additionally
Securities and Exchange Commission also imposed
penalty of $ 6 million against all the five firms. So; there
is combined penalty has been imposed by SAC and
PACOB against the registered accounting firm. These
penalties have been imposed because there is violation
has been made by auditing firms in compliance of the
rules and standards of PCAOB and SAC.
It is obvious that; the reliability of the capital markets is
dependent on the auditors who require to fulfill their
obligations towards investors and requires performing the
robust audit as per standard procedures that result into
well-founded audit reports.