What is good corporate governance?
Good corporate governance is characterized by a firm commitment and adoption of ethical practices by an organization across its entire value chain and in all of its dealings with a wide group of stakeholders encompassing employees, customers, vendors, regulators and shareholders (including the minority shareholders), in both good and bad times. To achieve this, certain checks and practices need to be whole-heartedly embraced.
Some considerations in this respect are outlined below:
• Codes of conduct and whistle blower policies are important, but more important is how they are communicated and practiced. It is vital for board members and senior ...view middle of the document...
- Where entrusted, to provide technical guidance and support to local bodies including Panchayati Raj Institution to enhance their accountability.
The term comptroller evolved in the 15th century through a blend of the Middle English countreroller (someone who checks a copy of a scroll, from the French contreroule "counter-roll, scroll copy") and the French compte ("an account"), thus creating a title for a compteroller who specializes in checking financial ledgers. This etymology explains why the name is pronounced identically to "controller" despite the unique spelling.
149. Duties and Powers of the Comptroller and Auditor-General - The Comptroller and Auditor-General shall perform such duties and exercise such powers in relation to the accounts of the Union and of the States and of any other authority or body as may be prescribed by or under any law made by Parliament and, until provision in that behalf is so made, shall perform such duties and exercise such powers in relation to the accounts of the Union and of the States as were conferred on or exercisable by the Auditor-General of India immediately before the commencement of this Constitution in relation to the accounts of the Dominion of India and of the provinces respectively.
The organizations subject to the audit of the Comptroller and Auditor General of India are:-
• All the Union and State Government departments and offices including the Indian Railways and Posts and Telecommunications.
• About 1500 public commercial enterprises controlled by the Union and State governments, i.e. government companies and corporations.
• Around 400 non-commercial autonomous bodies and authorities owned or controlled by the Union or the States.
• Over 4400 authorities and bodies substantially financed from Union or State revenues
Audit of Government Companies (Commercial Audit)
There is a special arrangement for the audit of companies where the equity participation by Government is 51 percent or more. The primary auditors of these companies are Chartered Accountants, appointed by the Comptroller and Auditor General of India, who gives the directions to the auditors on the manner in which the audit should be conducted by them. The Comptroller and Auditor General of India is also empowered to comment upon the audit reports of the primary auditors. In addition, the Comptroller and Auditor General of India conducts a test audit of the accounts of such companies and reports the results of his audit to Parliament and State Legislatures.
Audit Board Setup in Commercial Audit
A unique feature of the audit conducted by the Indian Audit and Accounts Department is the constitution of Audit Boards for conducting comprehensive audit appraisals of the working of Public Sector Enterprises engaged in diverse sectors of the economy.
These Audit Boards associate with them experts in disciplines relevant to the appraisals. They discuss their findings and conclusions with the managements of the...