Is Corporate Audit Equipped Enough to Have Best Corporate Disclosure in State Owned Enterprises? A Reality Check on an Indian Context

The present paper attempts to highlight the impaired status of corporate audit on account of notable corporate misgovernance that is prevailing in over most of the State-owned Corporations. To be precise the corporate audit, as the most significant weapon to maintain corporate disclosure, should reflect more transparency and accountability in the procedure However, while the internal audit is influenced directly with the sceptic autocratic decisions of the Board of Directors of State Owned Enterprises (SOEs) with the prime motto being a personal gain, the supervisory external audit is also highly dependent and controlled by the most political peers of the country who usually take steps for an investigation when the matter gets high attention or there is any political advantage to muster with, or else they maintain a high reluctance. The paper therefore, expresses its great concern about the degree of accuracy and acceptability of these audit reports on account of various audit procedures and law of land. At the end, the paper suggests that the best corporate practice is nothing but an integrated effort of all the parties to an enterprise, i.e., Shareholders, Management, Auditors and Govt. it self; and a self audit and edit at each step from every one is the essence to maintain utmost transparency, accountability and functional autonomy in corporate audit that is imperative for the best corporate governance practices