Reports on the AC were subjected to a “content”
analysis to identify the title and format of such reports. The
content analysis of annual reports involves ‘codification’ of
qualitative and quantitative information into ‘pre-defined’
categories in order to derive ‘patterns’ in the presentation
and reporting of information. The ‘coding’ process also
involved reading the annual report of each corporation
and coding the AC information according to pre-defined
categories. Over the last decade, content analysis has been
used by several leading researchers to study the performance
and reporting (Beattie, 2007). Therefore, as part of the
present study, ‘content’ analysis has been used to analyze
the extent of an AC disclosures made by the top 500listed
companies in India. By looking at the disclosures made
within their annual reports, one can examine the extent to
which Indian corporations ‘publicly’ document the presence
(or importance) of an AC.Specifically, the paper covers the
following aspects related to anaudit committee: (a) The
structure and composition of an AC; (b) The criteria used
to select an AC members; (c) Examining the importance of
functions currently performed by an AC and also to analyze
any differences in the practices of companies in this regard;
(d) The areas of an AC review focus; and (e) The effects
of meetings on an AC functions. Finally, as part of this
study, an attempt will be made to examine and analyze the
trends about various characteristics of an AC, such as, their
size, composition and activity, as well as, extent of nonaudit
services provided by the auditors in the top 500 listed
Indian companies.