Audit Committee Essentials: From the Basics to Leading Practices
Being an audit committee member has never been harder. Members face public scrutiny, regulatory oversight, and legal exposure. Shareholder activism and regulatory interventions are forcing directors to go well beyond the common-law conventions aimed to direct directors to execute their duties with adequate 'duty of care' and 'duty of loyalty.'
Ideally, all audit committee members should be either a financial expert, or at least financial literate. The ability to read and understand financial statements should not be taken for granted as the complexity of US GAAP goes far beyond the accounting fundamentals of debits and credits. Prospective audit committee members should be tested in terms of their accounting knowledge and related internal controls, especially anti-fraud controls. This training will help enhance this understanding by exploring audit committee responsibilities and practical ideas for carrying out fiduciary duties. Topics include: