We all know that in addition to the Management, companies also need a governance framework primarily with a view to preserving the shareholder value. There are some major landmarks that defined the role of Audit Committees in augmenting the Governance aspects in companies.
The Treadway Commission Report of 1987 in the USA, the Cadbury Committee Report of 1992 in the UK and the Kumarmangalam Birla Committee Report of 2000 in India emphasized on the need for a certain minimum number of independent directors on the Audit Committees, expecting them to be “Sad, Discreet and Honest”. 6.