An audit committee is a crucial component of a company, whether it has to do with the company’s balance sheet, or their 401(k). They have the responsibility of keeping an objective point of view when it comes to the legal and compliance aspects of the financial statements. Recently, in an Accounting Today article, Dr. Lola Gershfeld laid out nine effective habits of audit committee members:
- They create safety
- They take on a nonjudgmental stance
- They stay accessible even in times of stress
- They stay responsive to others through empathy
- They constantly monitor engagement
- They are attuned to their own emotions
- They track, reflect and question
- They shape board interactions into positive cycle
- They form a secure base for other members to go to
But what do these qualities mean? These qualities mean that an individual is a team player and can function well on an audit committee. The individuals that possess these qualities know how to relate to others, are aware of their own feelings and can adjust them to those around them. They know how to engage with others to build stronger relationships and make those that they work with feel comfortable when handling difficult situations and discussions. Overall, having individuals that possess these qualities on an audit committee allows for more security in your company’s financial future.
To get more detail on the nine habits, check out Dr. Gershfeld’s article on Accounting Today here.
By Alyssa Borrego