Audit Committee Member

Owned by Steven Piliero
Last updated: May 21, 2024
2 min read

Name: Katherine "Kate" Johnson

Age: 58

Education: MBA from Wharton School of the University of Pennsylvania, B.S. in Accounting from New York University

Professional Background:

  • 30+ years of experience in finance and accounting, including executive roles at publicly traded companies.

  • Focus areas: Financial reporting, internal controls, risk management, corporate governance, and audit committee oversight.

  • Previous roles: Chief Financial Officer (CFO) at a technology company, Audit Committee Chair at multiple public companies, Partner at a Big Four accounting firm.

  • Special certifications or skills: Certified Public Accountant (CPA), Certified Management Accountant (CMA), extensive experience serving on audit committees.

Industry: Varies depending on the organization's focus (publicly traded companies)

Responsibilities:

  • Serve as a member of the organization's audit committee, providing independent oversight of financial reporting, internal controls, and risk management.

  • Review and approve the organization's financial statements.

  • Oversee the work of the internal and external auditors.

  • Assess the effectiveness of the organization's whistleblower program and ethics hotline.

  • Provide guidance to management on financial reporting and internal control matters.

Goals:

  • Ensure the accuracy and integrity of the organization's financial reporting.

  • Identify and address financial risks and control weaknesses.

  • Promote strong corporate governance and ethical practices.

  • Protect the interests of shareholders and other stakeholders.

Challenges:

  • Balancing the need for oversight with the need to avoid micromanagement.

  • Understanding complex accounting and financial reporting issues.

  • Staying informed about emerging risks and regulatory changes.

  • Building effective working relationships with management and auditors.

Motivations:

  • Contributing to the organization's long-term success and sustainability.

  • Protecting the interests of shareholders and other stakeholders.

  • Upholding high standards of corporate governance and financial reporting.

  • Sharing knowledge and experience to help the organization improve.

Tech-Savviness:

  • Comfortable with financial reporting software, data analytics tools, and collaboration platforms.

  • Understand the importance of technology in financial reporting and internal controls.

  • Open to learning about new technologies that can enhance audit committee oversight.

Behavioral Traits:

  • Independent and objective, with a strong commitment to integrity and ethics.

  • Inquisitive and skeptical, always asking probing questions.

  • Experienced and knowledgeable in financial matters.

  • Collaborative and respectful in interactions with management and auditors.

Sources of Information:

  • Financial statements and regulatory filings.

  • Audit reports from internal and external auditors.

  • Industry publications and research on financial reporting and corporate governance.

  • Networking with other audit committee members and financial professionals.

Quote:

"The audit committee plays a critical role in ensuring the accuracy and reliability of financial reporting, which is essential for maintaining investor confidence and protecting the interests of all stakeholders."