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The Sarbanes-Oxley
Act of 2002 (the Act) requires public
companies whose securities are traded on national exchanges to have
audit committees made up of independent directors. (Click here for more
information about the
role of an audit
committee.)
The Act also requires
among
other things, that public companies disclose whether any
member of the audit committee qualifies as a “financial expert” or if,
not, why not.
It's not easy to find
people who are both available and can meet the high minimum standards (see next
paragraph) for service as a "financial
expert." But PBTK has identified individuals among its Principals
who are not only able to meet but
easily surpass these standards, and they are willing and available to offer their
considerable talent, knowledge and experience to your company's audit
committee. With experience approaching as much as 40 years serving public
companies as independent auditors, dealing with and advising their
audit committees, these individuals are particularly well-suited to
meet the needs of public companies in this area. Of course, for
independence reasons, we
cannot provide such services to our audit clients, but we are available to
public companies who retain other firms as their auditors.
Rules
promulgated by the SEC under the Act provide criteria for qualifying
“audit committee financial experts" as follows:
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1.
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An
understanding of financial statements and generally accepted
accounting principles
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2.
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An
ability to assess the general application of such principles in
connection with accounting for estimates, accruals and reserves
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3.
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Experience
preparing, auditing, analyzing or evaluating financial statements
with a breadth and level of complexity of accounting issues
generally comparable to those of financial statement issues that can
reasonably be expected to be encountered, or experience actively
supervising one or more persons engaged in such activities
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4.
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An
understanding of internal controls and procedures for financial
reporting; and
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5.
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An
understanding of audit committee functions.
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Contact us so we can explore opportunities to serve your company in this way.
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