Role of auditors and audit committees in effective corporate governance: A comparative study of US UK and India

Abstract

Role of auditors countries in like USA, UK and India and audit committees have come to be questioned in the public fore of discussion in recent times. Certain structural reforms have been undertaken by the respective countries such as the passing of Sarbanes-Oxley Act in the US, the Cadbury Committee reforms in UK, Naresh Chandra and Uday Kotak Committees in India with respect to corporate governance including the role played by auditors and audit committees. The researchers have tried to bring in perspectives from these three jurisdictions such as the legal framework, rights, duties and liabilities if these auditors and audit committees including the laws governing them. Questions have been sought to be answered especially from the Indian perspective as to what the current regulatory framework lacks and what the other jurisdictions have in the offer for the Indian Legal framework. The researchers have looked into the key issue of auditor independence and that whether in the existing regimes of law is he really independent? The questions regarding how important is it for the auditor to be independent from the perspective of corporate governance have been tried to be answered.

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