Video: Audit Committee

In this engaging lesson, join Nick Palazzolo, CPA, as he delves into the responsibilities and composition of an audit committee within public companies. He skillfully unpacks the requirements set forth since 2002 for an audit committee to be responsible for the appointment, compensation, and oversight of the public accounting firm auditing the public company. Conversely, Nick clarifies the misconception about the necessity for a company to have an internal auditor or an entirely independent board of directors, highlighting instead the importance of fiduciary duties and vested interests in the company's success. He emphasizes the necessity of an audit committee to be independent and discusses what it truly means for a member to be considered a financial expert within the context of Sarbanes-Oxley Act provisions. Moreover, he shares insights on the educational and experiential background an audit committee financial expert should possess, while dispelling common confusions about their qualifications related to GAAP and financial statements.