Role of Audit Committee on Corporate Governance

• Date: November 10, 2009
• Source: www.articlebase.com

The SATYAM fiasco has opened a Pandora’s Box of how skewed corporate communications can be. More so the role of financial auditors like PriceWaterCooper has come under strict scrutiny to avoid any such occurring in the future. There has to be a revamp of the entire process starting with appointing, re-appointing, evaluation and selection of the auditors to checking the credibility and consistency of all company financial communication in the best interest of the various stakeholders.

Audit committee should set up internal control systems that periodically checks up with the auditors with regards to audit observations and reporting