Audit Committee Masterclass

Beyond the GAAP Checklist

Being deemed an "audit committee financial expert" by SEC rules often simply requires having been a CFO. It does not mean the director knows how to spot modern revenue recognition manipulation or off-balance-sheet liabilities. This program bridges that gap.

Module	Focus Area	Simulation Data Source
Module 1: Non-GAAP Distortions	"Adjusted EBITDA" engineering and recurring "one-time" charges.	Historical 8-K filings prior to SEC comment letters.
Module 2: Capitalization of Expenses	Software development costs and shifting OPEX to CAPEX.	Post-mortem analysis of the Wirecard and Valeant collapses.
Module 3: Whistleblower Protocols	Handling anonymous tips without tipping off the implicated executives.	Redacted internal investigation reports.

Common Mistakes on the Audit Committee

Relying solely on the external auditor. The external auditor works for the audit committee, not management, but in practice, they spend all year with the CFO.
Ignoring cyber risk as an "IT problem." Cyber breaches are material financial risks and belong under the purview of the audit or risk committee.

Interactive Tool: Non-GAAP Divergence Metric

GAAP Net Income ($M): Non-GAAP "Adjusted" Net Income ($M):

Pair this training with our ESG Reporting Matrix to handle climate disclosures, or return to the Board Training portal.