Secretarial Audit

A secretarial Audit is a compliance audit. It is a part of total compliance management in an organization. It is an effective tool for corporate compliance management, which helps to detect noncompliance and to take corrective measures.

Turnover > Rs. 250 crores If anyone of the criteria meets then also secretarial audit is mandatory. A practicing Company Secretary has been recognized to conduct a secretarial audit.

A secretarial Audit is an independent, objective assurance intended to add value and improve an organization’s operations. It helps to accomplish the organization’s objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

Secretarial Audit has not been made mandatory for private companies and small public companies. These companies may adopt secretarial audit practices for ensuring compliance and avoiding the risks associated with non-compliance.

An audit is to be on the principle of “Prevention is better than cure” rather than post-mortem exercise and to find faults. It strengthens the image and goodwill of a company in the minds of regulators and stakeholders. It acts as an effective compliance risk management tool or a governance tool.

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