structure, and audit functions. Government authorities,
regulators and international bodies (for example, IOSCO
and the OECD) have indicated that they view an AC as a
potentially powerful tool that can enhance the reliability and
transparency of financial information (Sandra, 2005). The
SOX Act, 2002 has expanded the formal responsibilities
of an AC. The status of an AC report has evolved from
non-existence to voluntarily and now mandatory for
publicly traded companies under the SEBI and Companies
Act jurisdiction in India. Therefore, this paper seeks to
“contribute to our understanding of the value and potential
of an AC as a CG mechanism in a developing country like
India.” It seeks to examine the structure and functions that
are currently performed by an AC in the Indian corporate
world.