Corporate governance through an audit committee: an empirical study

Even though there are many measures to put corporate governance (CG) in place and practise, an important tool essential for the success is the efficacy and effective functioning of an audit committee (AC). Nowadays, an AC is being looked upon as a distinct culture for CG and has received wide-public...

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Main Authors: Lal Bhasin, M., Shaikh, Junaid
Format: Journal Article
Published: www.Inderscience.com 2012
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/23131
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author Lal Bhasin, M.
Shaikh, Junaid
author_facet Lal Bhasin, M.
Shaikh, Junaid
author_sort Lal Bhasin, M.
building Curtin Institutional Repository
collection Online Access
description Even though there are many measures to put corporate governance (CG) in place and practise, an important tool essential for the success is the efficacy and effective functioning of an audit committee (AC). Nowadays, an AC is being looked upon as a distinct culture for CG and has received wide-publicity across the globe. Government authorities, regulators and international bodies all have indicated that they view an AC as a potentially powerful tool that can enhance the reliability and transparency of financial information. Being mandatory under SEBI's clause 49 of the listing agreement, an AC can be of great help to the board in implementing, monitoring and continuing 'good' CG practises to the benefit of the corporation and all its stakeholders. This study performs a 'content' analysis on the AC reports of the top 500 listed companies in India during 2005 to 2008 to determine the information content of these reports and the extent to which these reports conform to the clause 49 requirements of the SEBI. Also, discussed are the various trends about an AC characteristics viz., size, composition, activity, as well as the extent of non-audit services provided by auditors in the top 500 listed Indian companies.
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spelling curtin-20.500.11937-231312017-09-13T13:58:22Z Corporate governance through an audit committee: an empirical study Lal Bhasin, M. Shaikh, Junaid board size SEBI clause 49 financial reporting listing agreement board of directors board activity Sarbanes-Oxley Act non-audit services audit committees auditors India board composition corporate governance Even though there are many measures to put corporate governance (CG) in place and practise, an important tool essential for the success is the efficacy and effective functioning of an audit committee (AC). Nowadays, an AC is being looked upon as a distinct culture for CG and has received wide-publicity across the globe. Government authorities, regulators and international bodies all have indicated that they view an AC as a potentially powerful tool that can enhance the reliability and transparency of financial information. Being mandatory under SEBI's clause 49 of the listing agreement, an AC can be of great help to the board in implementing, monitoring and continuing 'good' CG practises to the benefit of the corporation and all its stakeholders. This study performs a 'content' analysis on the AC reports of the top 500 listed companies in India during 2005 to 2008 to determine the information content of these reports and the extent to which these reports conform to the clause 49 requirements of the SEBI. Also, discussed are the various trends about an AC characteristics viz., size, composition, activity, as well as the extent of non-audit services provided by auditors in the top 500 listed Indian companies. 2012 Journal Article http://hdl.handle.net/20.500.11937/23131 10.1504/IJMFA.2012.049676 www.Inderscience.com restricted
spellingShingle board size
SEBI clause 49
financial reporting
listing agreement
board of directors
board activity
Sarbanes-Oxley Act
non-audit services
audit committees
auditors
India
board composition
corporate governance
Lal Bhasin, M.
Shaikh, Junaid
Corporate governance through an audit committee: an empirical study
title Corporate governance through an audit committee: an empirical study
title_full Corporate governance through an audit committee: an empirical study
title_fullStr Corporate governance through an audit committee: an empirical study
title_full_unstemmed Corporate governance through an audit committee: an empirical study
title_short Corporate governance through an audit committee: an empirical study
title_sort corporate governance through an audit committee: an empirical study
topic board size
SEBI clause 49
financial reporting
listing agreement
board of directors
board activity
Sarbanes-Oxley Act
non-audit services
audit committees
auditors
India
board composition
corporate governance
url http://hdl.handle.net/20.500.11937/23131