Tuesday, April 12, 2016, 9:30 AM to 12:00 PM
@Gore Recital Hall, Roselle Center for the Arts, University of Delaware :
With investors increasing focus on board composition and director skill sets, and new risks emerging for markets and public companies, the role of the audit committee-and the skill sets of its members-are more important than ever. As audit committees confront these new risks, along with growing market complexities and heightened attention from regulators, some are calling for a fresh look at the definition of an “audit committee financial expert” as well as a reexamination of the number of financial experts required for boards. Recent regulatory activity from the SEC and PCAOB have focused on the audit committee’s role in serving investors and other capital markets stakeholders through disclosure and audit quality.
With the spotlight on audit committees, this expert panel explored what the composition of the audit committee will look like in the future. Should the SEC and/or the stock exchanges reexamine their definition of an audit committee financial expert? Is the current definition of an “audit committee financial expert” too broadly written? Are audit committees better served by having members with more diverse skills and experience? Should the audit committee chair be required to be an “audit committee financial expert?” Would audit committees benefit from having more than one financial expert? Would investors benefit from a more comprehensive understanding and enhanced disclosure of the relevant skills and expertise that all audit committee members possess?
Panelists included:
- Angela Brock-Kyle, Audit Committee Member, Infinity Property and Casualty Corp.
- Dennis Berefsord, Executive-in Residence, J.M. Tull School of Accounting, Terry College of Business, University of Georgia; former Chairman of the Financial Accounting Standards Board
- Cindy Fornelli, Executive Director, Center for Audit Quality
- The Honorable Randy J. Holland, Justice, Delaware Supreme Court
- Philip Livingston, Audit Committee Chair, Vision Energy; former CEO of Financial Executives International
- Paula Loop, Leader, PwC Center for Board Governance
- Zach Oleksiuk, Americas Head, Corporate Governance and Responsible Investment, BlackRock
- John White, Partner, Cravath, Swaine & Moore
Moderator: Charles Elson, Director, John L. Weinberg Center for Corporate Governance, Alfred Lerner College of Business & Economics, University of Delaware; Edgar S. Woolard Chair in Corporate Governance; and Professor of Finance
Summary Article, CAQ Insights, June 2016
Noted in:
- PwC’s Governance Insights (June 14, 2016)
- Society of Corporate Secretaries and Governance Professionals’ Society Alert (June 15, 2016)
- KPMG’s Board Leadership Weekly (June 16, 2016)