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Auditor and Audit Committee Independence in India

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  • Subrata Sarkar
  • Jayati Sarkar

Abstract

This article reviews the regulations and governance reforms carried out in India with respect to auditor and audit committee independence. In doing so it critically compares them with the regulations existing in the US. This is followed by a discussion of the existing research on the effectiveness of audit committees and audit independence in corporate governance. Recent trends in audit committee and auditor characteristics for a sample of large listed companies in the Indian corporate sector are then discussed. The article concludes by suggesting some governance reforms that may be considered to further strengthen auditor independence and the functioning of audit committees in India. [WP-2010-020]

Suggested Citation

  • Subrata Sarkar & Jayati Sarkar, 2010. "Auditor and Audit Committee Independence in India," Working Papers id:3117, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:3117
    Note: Institutional Papers
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    References listed on IDEAS

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    1. Michael Weisbach, 2010. "Corporate Governance," NBER Books, National Bureau of Economic Research, Inc, number weis10-1.
    2. Johnson, Marilyn F. & Nelson, Karen K. & Frankel, Richard M., 2002. "The Relation Between Auditor's Fees for Non-audit Services and Earnings Quality," Research Papers 1696r, Stanford University, Graduate School of Business.
    3. Lawrence J. Abbott & Susan Parker & Gary F. Peters & K. Raghunandan, 2003. "An Empirical Investigation of Audit Fees, Nonaudit Fees, and Audit Committees," Contemporary Accounting Research, John Wiley & Sons, vol. 20(2), pages 215-234, June.
    4. Xie, Biao & Davidson, Wallace III & DaDalt, Peter J., 2003. "Earnings management and corporate governance: the role of the board and the audit committee," Journal of Corporate Finance, Elsevier, vol. 9(3), pages 295-316, June.
    5. Sarkar, Jayati & Sarkar, Subrata, 2009. "Multiple board appointments and firm performance in emerging economies: Evidence from India," Pacific-Basin Finance Journal, Elsevier, vol. 17(2), pages 271-293, April.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Madan Lal Bhasin, 2012. "Improving Corporate Governance. The role of Audit Committee Disclosures by Indian Corporations," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 2(1), pages 128-149, January.
    2. Ganesh M. Pandit & Grace M. Conway & C. Richard Baker, 2017. "Audit committee requirements in six major capital markets: How far have we come?," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 14(1), pages 30-61, February.

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    More about this item

    Keywords

    Corporate governance; India; auditor independence; audit committee independence;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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