Pursuant to Section 407 of Sarbanes-Oxley, public companies will be required to annually disclose whether they have at least one “audit committee financial expert” on their audit committee, and if so, to disclose the name of that expert and whether the expert is independent of management.
The rules define an “audit committee financial expert” as a person who has an understanding of financial statements and GAAP; has experience preparing, auditing or analyzing financial statements; has an understanding of internal controls and procedures for financial reporting; and has an understanding of audit committee functions.
