Episode 4 | Skepticism and the Audit Committee
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How can the board and the audit committee play a key role in preventing financial reporting fraud? Join moderator Michele Hooper in exploring the clear answer: by exercising skepticism. In this insight-packed webinar, Hooper, an experienced audit committee chair, joins Marty Coyne, lead director and audit committee member at Akamai Technologies, and Ken Daly, CEO of NACD, the leading U.S. director organization, to coach directors in this much-needed skill.
Directors are part-time and subject to the inherent risk of asymmetric information, so they need skepticism to ensure that the information they receive is valid. Skepticism doesn’t mean being mistrustful, playing devil’s advocate or asserting superior financial expertise. Rather, it means understanding the industry and business, and applying business acumen. It also means insisting on logical responses to relevant questions. Common sense is a critical variable; sometimes the best questions come from the non-expert. An effective board and audit committee can bring the best out in external auditors, internal auditors, and financial executives as all parties grapple with important issues of accounting judgment.
War stories from these three experienced directors show skepticism at work in the boardroom — ranging from broad areas such as revenue recognition to the more arcane mysteries such as title reserves. This webinar is a must for directors and the professionals who work with them to counteract the fraud “triangle” of motive, opportunity and rationalization.
Martin M. Coyne, II is lead director and audit committee member of Akamai Technologies and a director of BioClinica and RockTech. He is also president and CEO of NACD’s New Jersey Chapter. Previously, he was a director of OpenPages, Avecia Group Plc, and AdvaMed and director and chairman of Welch Allyn. The chairman and founder of the CEO Learning Network, Mr. Coyne is author of How to Manage Your Board While Your Board Manages You. He has served in a variety of senior management positions including executive vice president of Eastman Kodak and group executive of its Photography Group.
Kenneth Daly has served as the president and CEO of the National Association of Corporate Directors (NACD) since May 2007. Prior to joining NACD, Mr. Daly was a partner at KPMG, where he served as the partner-in-charge of the National Risk Management practice. Retiring in 2005 after 27 years as a partner, Mr. Daly became executive director of KPMG’s Audit Committee Institute (ACI). Mr. Daly is a recognized expert and resource on corporate governance, executive compensation, and corporate board transformation.
Michele J. Hooper serves on the NACD board of directors and on the boards of PPG Industries, Inc. and UnitedHealth Group. She chairs the audit committee for PPG, and the Nominating and Governance committee for UnitedHealth Group. She is also co-chair of the CAQ Working Group focused for the Deterrence and Detection of Financial Reporting Fraud. Ms. Hooper previously was a board member of Target Corporation, AstraZeneca PLC, DaVita Corporation, and Seagram Company Ltd. She is President and CEO of The Directors’ Council, which specializes in corporate board of director recruitment.
Any questions? Email us at webinars@NACDonline.org or call 571-367-3700.