According to a survey report by global consultancy major KPMG, government regulation, compliance and cybersecurity were also viewed as major challenges.
"Audit committee members around the world, including 67 per cent from India, identified uncertainty and volatility (economic, regulatory and political) as a risk posing the greatest challenge for companies", it said.
"Clearly, a slowing global economy, the flare up of geopolitical hotspots, and the proliferation of major cyber breaches have intensified the spotlight on these issues", the report added.
"This is because the audit committee has too much on its plate, especially after the Companies Act, there is an increased focus on monitoring auditors' independence and performance, approval of related-party transactions, scrutiny of inter-corporate loans and investments, valuation of undertaking/assets, etc", KPMG said.
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It further said that in the country, only 52 per cent of those surveyed are entirely satisfied with the value that the internal audit function adds.
"While the audit committees are confident when it comes to financial reporting oversight and audit quality; new regulations, rising business complexities, increasing risk volatility and growing investor scrutiny are stretching audit committee agendas", said KPMG in India Head of Risk Consulting, Mritunjay Kapur.
KPMG surveyed 1,500 audit committee members across the globe for the report.