Financial Expert Definition

A term defined by the Sarbanes-Oxley legislation that was passed in 2003, which requires that least one member of the audit committees of boards of directors is a financial expert. Although the law issues guidelines for what a financial expert is, it is up to each board of directors to make a determination using five key qualities outlined in the law. A financial expert must: 1) understand Generally Accepted Accounting Principles (GAAP) and financial statements; 2) be experienced in preparing or auditing financial statements of comparable companies; 3) have experience accounting for estimates, accruals, and reserves; 4) understand internal accounting controls; and 5) understand the functions of an audit committee.
Webster's New World Finance

Find Similar Words

Find similar words to financial expert using the buttons below.

Words Starting With

Words Ending With


financial expert

Word Length