Corporate governance reforms have emphasized on the need for an audit committee and expanded its role and responsibilities over the last two decades. The purpose of this study was to examine the evolution of audit committee and document changes in audit committee’s composition and responsibilities in the Indian context. This article investigated the impact of regulatory changes on audit committee composition in terms of size, independence, and meeting frequency from 2003 – 2018. This study found that the size of the audit committee and its meeting frequency has increased over the years. Our findings suggested that in the absence of mandatory compliance regarding independence of audit committee, we saw a considerable decline in fully independent audit committees. We also documented increased presence of executive directors on audit committee.

1. Abbott, L. J., Parker, S., & Peters, G. F. (2004). Audit committee characteristics and restatements. Auditing : A Journal of Practice & Theory, 23(1), 69–87. https://doi.org/10.2308/aud.2004.23.1.69
2. Al - Mudhaki, J., & Joshi, P. L. (2004). The role and functions of audit committees in the Indian corporate governance : Empirical findings. International Journal of Auditing, 8(1), 33–47. https://doi.org/10.1111/j.1099 1123.2004.00215.x
3. Arcot, S., & Bruno, V. (2007). One size does not fit all, after all: Evidence from corporate governance. SSRN. http://dx.doi.org/10.2139/ssrn.887947
4. Bhagat, S., & Bolton, B. (2008). Corporate governance and firm performance. Journal of Corporate Finance, 14(3), 257–273. https://doi.org/10.1016/j.jcorpfin.2008.03.006
5. Bhasin, M. L. (2012). Audit committee mechanism to improve corporate governance : Evidence from a developing country. SSRN. http://dx.doi.org/10.2139/ssrn.2676489
6. Black, B. S., De Carvalho, A. G., & Gorga, É. (2012). What matters and for which firms for corporate governance in emerging markets ? Evidence from Brazil (and other BRIK countries). Journal of Corporate Finance, 18(4), 934–952. https://doi.org/10.1016/j.jcorpfin.2011.10.001
7. Böhm, F., Bollen, L. H., & Hassink, H. F. (2013). Spotlight on the design of European audit committees : A comparative descriptive study. International Journal of Auditing, 17(2), 138–161. https://doi.org/10.1111/j.1099-1123.2012.00461.x
8. Bradbury, M. E. (1990). The incentives for voluntary audit committee formation. Journal of Accounting and Public Policy, 9(1), 19–36. https://doi.org/10.1016/0278-4254(90)90019-V
9. Cadbury Committee. (1992). Committee on the financial aspects of corporate governance : Final report. Gee Publishing. https://ecgi.global/code/cadbury-report-financial-aspects-corporate-governance
10. Carcello, J. V., & Neal, T. L. (2003). Audit committee characteristics and auditor dismissals following "new" goingconcern reports. The Accounting Review, 78(1), 95 –117. https://doi.org/10.2308/accr.2003.78.1.95
11. Chen, F., & Li, Y. (2013). Voluntary adoption of more stringent governance policy on audit committees : Theory and empirical evidence. The Accounting Review, 88(6), 1939–1969. https://doi.org/10.2308/accr-50541 Collier, P., & Zaman, M. (2005). Convergence in European corporate governance : The audit committee concept.
12. Corporate Governance : An International Review, 13(6), 753–768. https://doi.org/10.1111/j.1467 8683.2005.00468.x
13. Confederation of Indian Industry. (1997). Desirable corporate governance: A code. http://www.nfcg.in/UserFiles/ciicode.pdf
14. Confederation of Indian Industry. (2009). Report of the CII Task Force on corporate governance. https://www.mca.gov.in/Ministry/latestnews/Draft_Report_NareshChandra_CII.pdf
15. Defond, M. L., & Hung, M. (2004). Investor protection and corporate governance : Evidence from worldwide CEO turnover. Journal of Accounting Research, 42(2), 269–312. https://doi.org/10.1111/j.1475-679X.2004.00138.x
16. Fichtner, J. R. (2010). The recent international growth of mandatory audit committee requirements. International Journal of Disclosure and Governance, 7(3), 227–243. https://doi.org/10.1057/jdg.2009.29
17. Gupta, A. (2019). A study into the acceptance level of Corporate Governance Code 2008 by Dutch listed companies. Indian Journal of Finance, 13(5), 25–36. https://doi.org/10.17010/ijf/2019/v13i5/144183
18. Karamanou, I., & Vafeas, N. (2005). The association between corporate boards, audit committees, and management earnings forecasts : An empirical analysis. Journal of Accounting Research, 43(3), 453–486. https://doi.org/10.1111/j.1475-679X.2005.00177.x
19. Khan, M. A., & Fatima, F. (2009). Corporate governance : A focus on disclosure and transparency practices of National Mineral Development Corporation Ltd. (NDMC). Indian Journal of Finance, 3(5), 39–47. http://www.indianjournaloffinance.co.in/index.php/IJF/article/view/71618
20. Klein, A. (2002). Audit committee, board of director characteristics, and earnings management. Journal of Accounting and Economics, 33(3), 375–400. https://doi.org/10.1016/S0165-4101(02)00059-9
21. KPMG. (2016, July). Private sessions with the external auditor. https://home.kpmg/content/dam/kpmg/pdf/2016/07/3-aci-private-sessions-external-fs-uk-v4-lr.pdf
22. Levitt, A. (2000, December 12). Speech by SEC Chairman : Remarks before the conference on the rise and effectiveness of New Corporate Governance Standards. Federal Reserve Bank, New York. https://www.sec.gov/news/speech/spch449.htm
23. Mautz, R. K., & Neuman F. L. (1977). Corporate audit committees: Policies and practices. Ernst & Ernst.
24. Narayanaswamy, R., Raghunandan, K., & Rama, D. V. (2015). Satyam failure and changes in Indian audit committees. Journal of Accounting, Auditing & Finance, 30(4), 529–540. https://doi.org/10.1177/0148558X15584124
25. Organisation for Economic Co-operation and D evelopment. (2019). OECD corporate governance factbook 2019. https://www.oecd.org/corporate/Corporate-Governance-Factbook.pdf
26. Okike, E. N. (2007). Corporate governance in Nigeria : The status quo. Corporate Governance: An International Review, 15(2), 173–193. https://doi.org/10.1111/j.1467-8683.2007.00553.x
27. Pomeroy, B., & Thornton, D. B. (2008). Meta-analysis and the accounting literature: The case of audit committee independence and financial reporting quality. European Accounting Review, 17(2), 305–330. https://doi.org/10.1080/09638180701819832
28. Pucheta - Martínez, M. C., & De Fuentes, C. (2007). The impact of audit committee characteristics on the enhancement of the quality of financial reporting : An empirical study in the Spanish context. Corporate Governance : An International Review, 15(6), 1394–1412. https://doi.org/10.1111/j.14678683.2007.00653.x
29. Raghunandan, K., & Rama, D. V. (2007). Determinants of audit committee diligence. Accounting Horizons, 21(3), 265–279. https://doi.org/10.2308/acch.2007.21.3.265
30. Sandhya, S., & Parashar, N. (2019). A study on corporate governance practices of selected banks in India. Indian Journal of Finance, 13(2), 36–47. https://doi.org/10.17010/ijf/2019/v13i2/141686
31. Sarbanes-Oxley Act. (2002). 107th Congress Public Law 107-204. https://pcaobus.org/About/History/Documents/PDFs/Sarbanes_Oxley_Act_of_2002.pdf
32. Sarkar, J. (2010). Ownership and corporate governance in Indian firms. https://indiacorplaw.in/wpcontent/ uploads/2017/03/CG_9.pdf
33. Securities and Exchange Board of India. (n.d.a.). Reports. https://www.sebi.gov.in/reports-and-statistics/reports.html
34. Securities and Exchange Board of India. (n.d.b.). Legal: Master circulars. https://www.sebi.gov.in/sebiweb/home/HomeAction.do?doListing=yes&sid=1&ssid=6&smid=0
35. Securities and Exchange Board of India. (1999). Draft Report of the Kumar Mangalam Committee on Corporate Governance. http://www.nfcg.in/UserFiles/kumarmbirla1999.pdf
36. Securities and Exchange Board of India. (2000, February 21). Clause 49 listing agreement. https://www.sebi.gov.in/legal/circulars/feb-2000/corporate-governance_17930.html
37. Securities and Exchange Board of India. (2003, March 21). The Report of Shri N R Narayana Murthy Committee on Corporate Governance. https://www.sebi.gov.in/reports/reports/mar-2003/the-report-of-shri-n-rnarayana murthy-committee-on-corporate-governance-for-public-comments-_12986.html
38. Securities and Exchange Board of India. (2004, October 29). Corporate governance in listed companies - Clause 49 of the listing agreement. https://www.sebi.gov.in/legal/circulars/oct-2004/corporate-governance-inlisted companies-clause-49-of-the-listing-agreement_13153.html
39. Securities and Exchange Board of India. (2010, April 5). Listing conditions - Amendments to the equity listing agreement. https://www.sebi.gov.in/legal/circulars/apr-2010/listing-conditions-amendments-to-theequity listing-agreement_1703.html
40. Securities and Exchange Board of India. (2014a., April 17). Corporate governance in listed entities - Amendments to Clauses 35B and 49 of the equity listing agreement. https://www.sebi.gov.in/legal/circulars/apr 2014/corporate-governance-in-listed-entities-amendments-to-clauses-35b-and-49-of-the-equitylisting agreement_26674.html
41. Securities and Exchange Board of India. (2014b.,September 15). Corporate governance in listed entities Amendments to Clause 49 of the equity listing agreement. https://www.sebi.gov.in/legal/circulars/sep 2014/corporate-governance-in-listed-entities-amendments-to-clause-49-of-the-equity-listingagreement_ 27973.html
42. Securities and Exchange Board of India. (2017, October 5). Report of the SEBI Uday Kotak Committee on Corporate Governance. https://www.sebi.gov.in/reports/reports/oct-2017/report-of-the-committee-oncorporate governance_36177.html
43. Shleifer, A., & Vishny, R. W. (1997). A survey of corporate governance. The Journal of Finance, 52(2), 737–783. https://doi.org/10.1111/j.1540-6261.1997.tb04820.x
44. Venkatraman, K., & Selvam, M. (2014). Impact of corporate governance practices and firm performance : An empirical study. Indian Journal of Finance, 8(12), 34–45. https://doi.org/10.17010/ijf/2014/v8i12/71691
45. Walker, R. G. (2004). Gaps in guidelines on audit committees. Abacus, 40(2), 157–192. https://doi.org/10.1111/j.1467-6281.2004.00156.x
46. Woidtke, T., & Yeh, Y. - H. (2013). The role of the audit committee and the informativeness of accounting earnings in East Asia. Pacific-Basin Finance Journal, 23, 1–24. https://doi.org/10.1016/j.pacfin.2012.12.002