Search Directorship.com for:
Top Tags:
accounting & audit board administration calpers ceo ceo succession compensation corporate governance director news director recruiting korean investment corp. kuwait investment authority merrill lynch mizuho corporate bank of japan proxy say on pay sec shareholders strategy & leadership yahoo
 November 01, 2006 Wanted: More Director EducationCHALK IT UP TO THE increasing complexity
and scrutiny of financial reporting and accounting issues: Audit
committee members today undoubtedly spend more time "doing their
homework." But chances are they're not following a formal curriculum.
In ACI's annual survey of audit committee members, more than 60 percent
say their companies do not provide periodic in-house education. At
companies that do, more than 80 percent of committee members devote
fewer than eight hours to it.
Robust orientation and ongoing education are essential to ensure audit committee members have the depth and breadth to carry out oversight. (The New York Stock Exchange requires listed companies to address director orientation and education in their corporate governance guidelines.)
Topics will vary, of course— from industry and regulatory issues to business and accounting practices—but the hallmarks of a good education program are participation of management, internal and external auditors, corporate counsel, and outside "experts," as well as a curriculum to meet members' needs.
Also, new-member orientation— or "on-boarding"—can be key to helping new members become familiar with the workings of the committee and the board, as well as the company's financial management, operations and key areas of risk. Tags: accounting & audit (199) education & conferences (1)
|
        
  Related Content |
