FINANCIAL EXPERTS ON AUDIT COMMITTEES--An overdue implementation.

The article discusses a proposed implementation rule for Section 407 of the Sarbanes-Oxley Act of 2002. Authored by a blue ribbon committee empaneled by Financial Executives International (FEI), the measure would require that companies disclose the presence on their audit committees of one or more financial experts. In the wake of scandals involving Enron Corp. and others, financial expertise on audit committees has become more important than ever. The author discusses implications of FEI's proposals, as well as additional requirements sought by the U.S. Securities and Exchange Commission (SEC).