Chairing an audit committee is a natural progression for many non-executives. But what’s involved in stepping up to supervise the auditors and the accounts?
Boardroom. Photo: Alex, Flickr
Where do you start? The requirement for a non-financial services company is that you can demonstrate "recent and relevant financial experience".
This is generally interpreted to mean that you have some form of financial qualification, and can refer to a business role in which you have practised financial expertise.
Beyond this, audit committee chairs can be varied. The vast majority have an accountancy qualification, although some boards will appoint a non-executive with banking or actuarial experience.
In my experience that is unlikely to occur through a search process, but more through being in place on the board as a general non-e
For thoughtful journalism, expert insights on corporate governance and an extensive library of reports, guides and tools to help boards and directors navigate the complexities of their roles, subscribe to Board Agenda
Reforms to corporate governance could require greater board evaluation, but this needn’t be a headache. Technology in the shape of an external evaluation tool can help give businesses an edge, especially in the collection and anonymisation of data.
A mix of gender and ethnic differences inside the boardroom is broadly accepted as better for a company's prospects. Recent research suggests, however, that diversity has more complex facets than previously understood.
Register to receive free article views and resource downloads, plus all the latest news alerts straight to your inbox. Register