AUDIT COMMITTEE AND BOARD OF DIRECTORS: A SYNERGY FOR EFFECTIVE CORPORATE GOVERNANCE

Purpose: The aim of this study is to examine the collaborative dynamic between the Audit Committee and the Board of Directors, focusing on its role in promoting effective corporate governance, enhancing transparency, accountability, and corporate performance. Theoretical Framework: The study is grounded in the principles of corporate governance, which emphasize the importance of clear roles, responsibilities, and communication between governance bodies. It draws from theories related to organizational synergy, transparency, and risk management. Design/Methodology/Approach: This research employs a qualitative approach, analyzing case studies, recent events, and examples of governance practices. The study evaluates the interactions between the Audit Committee and the Board, focusing on legal, financial, ethical, and social dimensions. The methodology includes data collection from diverse sources, such as corporate reports and interviews with governance experts. Findings: The results suggest that effective collaboration between the Audit Committee and the Board of Directors leads to improved governance outcomes, such as enhanced decision-making, stronger internal controls, and better risk management. However, challenges related to divergent perspectives and interests between the two bodies can hinder optimal synergy. Research, Practical & Social Implications: The study underscores the importance of fostering better communication and coordination between the Audit Committee and the Board to overcome challenges and improve governance effectiveness. It provides actionable recommendations for companies to enhance governance practices, ensuring long-term sustainability and better stakeholder engagement. Originality/Value: The value of this study lies in its contribution to understanding the intricate relationship between the Audit Committee and the Board of Directors in shaping corporate governance. It offers insights into best practices for fostering synergy between these governance bodies, ultimately enhancing corporate performance and sustainability.