In order to be more responsive to investors and stakeholders, companies are gradually embracing the best practices in the domain of accountability of independent and functional directors and Audit committee. This development obviously has pushed for suitable mechanism for periodic review of responsibilities as carried out by the Audit committee and the functional directors. Some of these may have become mandatory in many political jurisdictions. Examples are:

• Reviewing adequacy of internal controls and satisfaction as to their working efficiently.
  
• Review of annual financial statements before submission to the Board of Directors.
• Satisfactory accounting treatment of major entries in the books of account involving estimation of figures based on the management judgement.
  
• Review of changes in accounting policies, practices and procedures and understanding their impact on the financial results of the company.
  
• Review of related party transactions and their disclosure
  
• Understanding and responding to the qualifications included in the Auditors report to the shareholders.
  
• Responding to the major adjustments in Annual Financial statements due to the report of the Auditors.
  
• Reviewing the functioning of internal audit; its mandate, independence, work plan and objectivity.
  
• Reviewing the anti-fraud mechanism, whistle blower protection and anti-reprisal policies.
  
• Review of investments in subsidiaries (listed and unlisted).
• Use of funds obtained through public issue, rights issue or preferential capital issue.
• Matters related to and arising out of Social audit.
• Environmental laws and regulations and compliance thereof.
• Working of compensation committee and sanctions committee.

Whereas many corporate houses may have established the mechanism to constantly/periodically review these issues, it is the arm's length independent exercise that may give enhanced confidence to the directors and the Audit Committee members. EthicsCall provides these professional services.