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Requirements for audit committee members are: 1. They must be independent. That is, they must not be employed by the company in any capacity other than as a member of the audit committee, the board of directors, or any other board committee. 2. One member of the audit committee must have accounting or financial management expertise. 3. All members of the audit committee must be financially literate. The organization's vice president of operations is a member of management and thus would not be independent.
Requirements for audit committee members are: 1. They must be independent. That is, they must not be employed by the company in any capacity other than as a member of the audit committee, the board of directors, or any other board committee. 2. One member of the audit committee must have accounting or financial management expertise. 3. All members of the audit committee must be financially literate. A retired executive of a firm that had been associated with the organization would be an independent director and as an executive, would be financially literate. Thus, this person would be an appropriate member of the audit committee.
Requirements for audit committee members are: 1. They must be independent. That is, they must not be employed by the company in any capacity other than as a member of the audit committee, the board of directors, or any other board committee. 2. One member of the audit committee must have accounting or financial management expertise. 3. All members of the audit committee must be financially literate. An academic specializing in business administration would be an independent director and with knowledge of business administration would be financially literate. Thus, this person would be an appropriate member of the audit committee.
Requirements for audit committee members are: 1. They must be independent. That is, they must not be employed by the company in any capacity other than as a member of the audit committee, the board of directors, or any other board committee. 2. One member of the audit committee must have accounting or financial management expertise. 3. All members of the audit committee must be financially literate. The vice president of the local bank would be an independent director and, as the vice president of a bank, would be financially literate. Thus, this person would be an appropriate member of the audit committee.