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Audit committees at companies should ensure the independence of auditors, NFRA Chairperson Nitin Gupta said on Thursday, as he stressed the importance of good corporate governance practices.
He also listed out various fundamental principles for sound financial reporting, including the key role of external auditors.
The National Financial Reporting Authority (NFRA) has been taking steps to boost sound financial reporting practices and is also taking action against auditing lapses.
A comprehensive, effective internal control and sound risk management system should be areas of interest for good corporate governance, Gupta said.
He was speaking at the conference on 'Agile Governance: Fostering Transparency & Building Trust' organised by industry body Ficci in the national capital.
According to him, audit committees should ensure the independence of auditors.
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