This tool includes points to consider when evaluating current involvement in an organization’s control environment.
Checklist items include: The audit committee has at least three members; all members are independent, as defined by rules applicable to the organization; at least one member has accounting or related financial management expertise; the board has determined whether at least one committee member meets the definition adopted by the SEC of an “audit committee financial expert;” the name of the "audit committee financial expert" is disclosed in the proxy; and the committee has a full understanding of the composition of the company's balance sheet.