In Episode 21 of the S.R. Snodgrass Podcast, Director of Human Resources Lenore Seifer speaks with Brendan Whalen, Audit and Assurance Principal, about the evolving responsibilities and expectations of audit committees in community banks.
Audit committees play a central role in protecting financial integrity, supporting sound governance, and ensuring regulatory compliance. But what separates a good committee from a truly effective one? Brendan outlines the key factors that drive audit committee performance and sustainability.
Key Insights:
- Defining Effectiveness: The ability to oversee financial reporting, external and internal audits, and risk management.
- Structure and Size: Typically three to six independent members, balancing financial literacy with diverse experience.
- Attributes of Effective Members: Experience, integrity, independence, professional skepticism, and confidence.
- Diversity of Skills: Committees benefit from members with backgrounds in finance, risk management, technology, and cybersecurity.
- Culture and Communication: Building trust through strong leadership, transparency, and open dialogue with management and auditors.
- Continuous Education: Ongoing training keeps members proactive amid evolving regulations and emerging risks like AI and cyber threats.
- Evaluation and Accountability: Annual self-assessments aligned with the committee charter ensure continual improvement.
“A high-performing audit committee begins with engagement and education,” says Whalen. “The more proactive the committee is, the better equipped it is to oversee risk and support growth.”
🎧 Listen to the full episode now on Apple Podcasts, Spotify, or YouTube.
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