Effectiveness of Audit Committees in Strengthening Corporate Governance in India

Corporate governance has increasingly become a focal point for businesses worldwide, especially after the emergence of corporate scandals that exposed weaknesses in oversight mechanisms. In India, corporate governance gained momentum during the early 2000s, emphasizing transparency, accountability, and investor protection. Among the various governance mechanisms, audit committees emerged as a key pillar in enhancing corporate accountability, particularly concerning financial reporting, internal controls, and regulatory compliance. This research paper examines the effectiveness of audit committees in strengthening corporate governance in India up to 2010. The study evaluates the legal framework, composition, functioning, challenges, and overall impact of audit committees on corporate practices. Case studies, empirical data, and examples from pre-2010 corporate India are analyzed to assess the role of audit committees in promoting better corporate governance practices.