ABSTRACT
The Sarbanes–Oxley Act in the US, post Enron scandal, was another landmark set of regulations that helped shape governance frameworks in many other countries, including India, especially in the areas of auditing. The Cadbury Committee was set up to help raise the standards of corporate governance and the level of confidence in financial reporting and auditing by setting out clearly what it sees as the respective responsibilities of those involved and what it believes is expected of them. Corporate India, representing a vibrant mix of small and large companies, with a similarly diverse mix of large institutional investors and small retail investors, is a key driver in the nation’s development. In 2004, the government of India formed the JJ Irani Committee to review aspects of the Companies Act 1956 to make it compact, remove ambiguity, and at the same time provide for flexibility to cater to the evolving business models of Indian companies.
