Secretarial Audit

Secretarial Audit

Secretarial audit is a comprehensive review of a company's compliance with various statutory and regulatory requirements under the Companies Act, Securities laws, and other applicable laws and regulations. This audit ensures that the company adheres to corporate governance standards, maintains transparency, and mitigates legal and compliance risks. The scope of a secretarial audit includes an assessment of the company's corporate records, minutes of meetings, filings with regulatory authorities, compliance with board resolutions, disclosure requirements, and adherence to internal policies and procedures.

The objective of a secretarial audit is to identify any instances of non-compliance or irregularities and recommend corrective actions to rectify deficiencies and strengthen corporate governance practices. It provides assurance to stakeholders, including shareholders, regulators, and creditors, regarding the company's compliance with legal and regulatory requirements. Additionally, secretarial audit helps companies enhance efficiency, transparency, and accountability in their operations, thereby fostering investor confidence and protecting the interests of stakeholders.

A secretarial audit is typically conducted by a qualified company secretary or a firm of company secretaries who possess expertise in corporate law and governance. The auditor submits a comprehensive report highlighting findings, observations, and recommendations to the company's board of directors and management. Based on the audit findings, the company can take corrective measures to address any identified non-compliance issues and strengthen its corporate governance framework.