In order to remain compliant with ongoing SEC regulations, all publicly traded companies are required to hire an independent financial expert to serve as chairman on the audit committee within the board of directors. As the liaison between management and the board, this individual plays a critical role in ensuring the successful implementation of board directives, provides oversight of the financial reporting process, and helps ensure complete compliance at every level.
With so many responsibilities, selecting the right individual for this position is critical from both a management and board perspective. Consider the following qualities of a successful financial expert:
As the most important component of all, the selected director of the audit committee must be impartial, or not a prior member the company they are chosen to oversee. Conflicts of interest can violate SEC regulations and make it difficult to maintain boundaries.
As the independent financial expert, the audit committee chairman must be well versed in all federal regulations, in particular new and changing SEC guidelines. Maintaining continuous knowledge and disseminating this information to other necessary personnel throughout the company is critical for the long-term success, growth, and stability of the enterprise.
Successful financial professionals are individuals with years of experience providing high level oversight for the accounting and financial components of an enterprise. In addition to expertise in auditing and analysis, this individual should be adept in the nuances of each industry and applicable SEC guidelines.
As the liaison between management and the board of directors, the financial expert; must be able to help each entity understand the limitations and goals of the other. Often, the responsibility of educating C-suite executives on new expectations set by the board of directors and expectations for a successful audit falls on the shoulders of the audit committee chairman. As head of the committee, the financial expert must also be able to work with other board appointed members to reach a consensus on important financial decisions, such as internal accounting process
Find your Financial Expert Today
For boards looking to hire an independent financial expert to serve as the chairman for your audit committee, The Accfin Group offers comprehensive outsourced board member services for companies nationwide. Our CPAs are knowledgeable in the ongoing needs of boards and can help your business achieve sustainable growth compliantly. Contact our Dallas-Fort Worth firm today to learn more about this outsourced service.