Secretarial Audit is an independent process assuring to add value and improve an organization’s operations. It helps to bring 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". 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.
The benefits are available to the following stake holders of the company-
Every company to which secretarial report applies -
The objectives of Secretarial Audit are mentioned below as follows:-