Satyam Computer Services and its former auditor PricewaterhouseCoopers (PwC) have agreed to pay a combined $17.5m (£10.7m) in fines in the US after one of India's biggest corporate scandals.

Satyam, an outsourcing company, will pay $10m for falsely reporting more than $1bn in profits over five years.

The company's chairman Ramalinga Raju admitted to the fraud in 2009.

Satyam's shares were indirectly traded on the New York Stock Exchange (NYSE) as well as in India.

The US Securities and Exchange Commission (SEC) said it had fined the Indian affiliate of PwC $7.5m, describing it as the largest American penalty against a foreign firm.

The SEC said the auditor, PW India, failed to independently verify cash balances in Satyam bank accounts.