Opportunity
A manufacturing client listed on the NASDAQ and registered with the U.S. Securities and Exchange Commission (SEC) experienced some turnover at the Board level. This turnover resulted in the Audit Committee needing two new members, one specifically serving as the Chair and the designated “accounting expert.” As with any turnover, the need to get up to speed quickly on the fiduciary responsibilities and company operations was paramount.
Solution
As part of our promise to deliver unparalleled guidance, Wolf & Company routinely provides trainings to our clients’ boards and management teams. One such event is the annual CEO & Board University. The event is designed to provide educational seminars on a multitude of areas that a Board member will need to meet his or her fiduciary responsibilities. At this conference, Wolf provides a session updating Audit Committee members on what is new in their area of focus.
When the manufacturing client expressed interest in Board-level training, Wolf set about customizing the presentation to focus on the client’s specific areas of concern. The presentation focused on providing an overview of:
- New standards outlining audit risks and auditor communications issued by the Public Company Accounting Oversight Board (PCAOB)
- SEC Advisory Committee findings for emerging companies
- Recently issued Financial Accounting Standards Board (FASB) standards
- New Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control Integrated Framework
- Current information technology risks
- A framework of Audit Committee Responsibilities, including resources available to public company directors, issued by the American Institute of Certified Public Accountants (AICPA)
Result
After Wolf presented the customized Audit Committee session, the new Board members returned to their next scheduled meeting to review their Audit Committee Charter and make revisions. After discussing these proposed changes with company management and the Wolf engagement partner, the members were better able to chart their calendar for the upcoming audit year. The way that Wolf was able to customize the education program to the Client’s needs helped guide them through their new responsibilities.
