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Audit Committee Observation/Recommendations Versus Practices as a Compliance of Corporate Governance in India

DLSU Business & Economics Review

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Title Audit Committee Observation/Recommendations Versus Practices as a Compliance of Corporate Governance in India
 
Creator Chatterjee, Debabrata; BIT, Mesra, Ranchi, Jharkhand
 
Subject Business Management
audit committee; corporate governance; internal auditors; statutory auditors
 
Description The series of accounting scandals have intensified pressure from stakeholders and regulators on the audit committees to do the jobs for which they are hired. Though most companies have audit committees, their role has been limited due to the lack of expertise and time. An active audit committee is important because it indicate the commitment to the issues of interest because of the reports it release about the activities undertaken during the financial year and the efforts made to ensure adequate internal control. Audit committees must be given the role to approve and review audit fees, thus neutralizing the bias of management influence on the negotiations with the auditors. Of equal importance, auditor independence can be safeguarded if audit committees were composed of a majority of independent and non-executive directors and this might indicate that their independent status would contribute to auditor independence through bridging communication networks and neutralizing any conflict between the management and the auditor. Audit committee can go a long way in enhancing the credibility of the financial disclosures of a company and promoting transparency. Thus, it is essential for the Indian companies to accept and continue with the reforms that are demarcated by the challenges of the new millennium.Keywords: audit committee; corporate governance; internal auditors; statutory auditors DOI: 10.3860/ber.v20i2.1914DLSU Business & Economics Review 20.2 (2011), pp. 67-78
 
Publisher De La Salle University
 
Contributor —
 
Date 2011-01-26
 
Type Peer-reviewed Article
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Format application/pdf
 
Identifier http://www.philjol.info/philjol/index.php/BER/article/view/1914
10.3860/ber.v20i2.1914
 
Source DLSU Business & Economics Review; Vol 20, No 2 (2011); 67-78
 
Language en
 
Coverage India
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