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Section
407 of the Sarbanes / Oxley Act of 2002 (SOX) requires the Securities
and Exchange Commission (SEC) to issue rules to require issuers to
disclose whether at least one member of its audit committee is a
“financial expert”. This requirement has evolved into the
requirement that public companies disclose whether or not (and if not,
why not) its audit committee has a least one member who is a financial
expert. The term financial expert is defined as a person who has the
following attributes:
·
An understanding of
financial statements and generally accepted accounting principles
·
An understanding of
internal controls and procedures for financial reporting
·
An ability to assess
the general application of such principles in connection with the
accounting for estimates, accruals and reserves
·
Experience preparing,
auditing, analyzing or evaluating financial statements that present a
breadth and level of complexity of accounting issues that are generally
comparable to the breadth and complexity of issues that can reasonably
be expected to be raised by the registrant’s financial statements
The audit
committee expertise requirement raised the bar for Boards, but has also
shrunk the candidate pool because qualified individuals cannot serve on
as many Boards given increased responsibilities. The focus has no
shifted to finding directors who add the most values shareholders
consider critical. On the audit committee this would be financially
literate members or financial experts as defined above.
How we can Help
The search and
selection team at GTS Network develops and implements a recruiting
strategy tailored specifically to your company. We use an innovative
methodology for researching and finding candidates who
qualifications and performance not only meets Section 407, but also best
fit the culture of
your organization. We help accomplish this with the following steps:
-
Familiarize ourselves with your
Corporate culture and organizational structure
-
Analyze the marketplace as it
pertains to the position and develop and implement strategic
recruiting techniques
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Assess prospective candidates
-
Assist you in selecting the best
candidate, preparing a competitive compensation package and
negotiating the agreement
Why GTS
Our national and
regional strength and presence provides a network of resources, as well
as the name recognition you need for a successful search. And our local
focus gives us the regional knowledge to represent you business
effectively.
Working with GTS
not only save you time, but also gives you the confidence in knowing
you’ve selected the right candidate for the long term.
Global Technology Solutions, LLC (Your
One-Stop SOX Consultant) |
