New Delhi: The study institute Center for Economic Policy Research (CEPR) said in a report that the accounting committees of the board of directors of companies need to take a more active role to investigate all financial and governance related irregularities.
The CEPR report states that the role and accountability of auditors and accounting committees need to be clearly defined. The report stated, “Management expects auditors to spot deficiencies with impartiality. But the limited scope and undefined area of work and powers makes it almost impossible to detect many of them. “
According to the report, in such a situation it would not be appropriate to just blame the auditors. The Institute of Studies said that the role of accounting committees would need to find ways to improve and make them more active and accountable.
