Lesson: Audit Committee and Financial Experts

In this lesson, Nick Palazzolo discusses the importance and roles of audit committees and financial experts within these committees in the context of the Sarbanes-Oxley Act of 2002 (SOX 2002). He explains the relationship between an audit committee and the auditing firm, emphasizing the need for the committee members to be independent in order to act in the best interest of the company. He also highlights the role of financial experts within the committee, discussing their necessary qualifications, such as understanding of GAAP and internal accounting controls, as well as their responsibilities. Finally, he stresses that certain elements, such as being a certified independent or having significant audit experience as a CPA, are not required for financial experts.