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Fraud case shows need for experts in finance

Fraud case shows need for experts in finance

by Rick Turoczy on September 19, 2006

On audit committees, experience can really count. Getting individuals with some accounting background can allow the boards to keep better tabs on companies’ financial measures and mechanisms.

The Sarbanes-Oxley corporate reform act has helped make that happen by forcing companies to disclose whether their audit committees include at least one member who is deemed a financial expert. If they don’t comply, they then must say why.

And that’s just what Herley did earlier this year. In a financial filing, the company said none of its audit committee members had the required financial expertise since they were not current on all aspects of generally accepted accounting principles. Known as GAAP, those are the standards companies must follow to complete their financial statements.

Fraud case shows need for experts in finance

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