The way an organization is to be governed is named as Corporate Governance. It means that the stakeholders trust is held with prominence in the organization. Corporations are actually run by the management and which leads to the formation of concerned committees for the wellbeing of the stakeholder’s faith in the organization. Corporate Governance is all about balancing societal and individual goals. Transparency is ensured by the Corporate Governance which in connection ensures strong and balanced economic development. Interests of all shareholders (majority and minority shareholders) are also ensured and safeguarded. It leads to enable each one shareholder full freedom to exercise their rights and for which the organization also fully recognizes their rights. Accounting is the essence which transforms into the financial statements of an organization which is a communication mechanism which foretells the stakeholders all they seek to know. Thus it becomes so much vital that the information in the financial statements is free from any error or fraud. Corporate governance does not ensures the reliability of the financial statements but it does helps to curb out deficiencies by fixing the roles and responsibilities and various committees and by adhering to various rules and regulations applicable on the organization. This paper entails the need of stronger corporate governance in the organization which work as a strengthening mechanism for early detection and prevention of accounting errors and frauds.

KEYWORDS:  Accounting, Errors, Frauds, Corporate Governance, Financial Statements.