As risks soar, current and former CFOs are in high demand for audit committees

Good morning. As audit committees face a rapidly growing risk landscape, their role in corporate governance is evolving. Boards have often turned to current and former CFOs—especially for audit committees—due to their ability to translate complex operational and financial realities into effective oversight.

For example, this month, , former EVP and CFO of Corporation, was appointed to Paychex’s audit committee. In July, , EVP and CFO of Corporation, joined Align Technology’s board audit committee. And in November, , CFO of GoCardless, was named chair of Twinkl’s audit and risk committee.

Last week, I attended the launch event of the Institute of Internal Auditors’ (IIA) Global Audit Committee Center in Washington, D.C., which addressed the challenges and opportunities facing audit committees. The center is designed to be a resource to strengthen the alliance between board audit committees and internal audit in a fast-changing risk environment. It offers research, webinars, and events, and will eventually add formal training programs.

“The center has a strong core belief: well-informed, engaged, and well-supported audit committees are essential to corporate governance,” said Anthony Pugliese, president and CEO of the IIA.

Pugliese emphasized that board audit committees need to rely on internal audit to truly understand what is happening inside an organization. The event drew participants from across the U.S. and around the world—including Canada, Europe, Africa, Latin America, and the Middle East—with Abdullah Alshebeili, CEO of the Saudi Authority of Internal Auditors, in attendance.

, in particular, collaborates with internal audit on risk assessment, internal controls, and audit readiness, and shares information about financial processes and control issues. Finance chiefs also communicate regularly with the board’s audit committee.

AI and analytics reshape how audit committees see risk

During a panel discussion at the event, Ann Cohen, CFO of the IIA, noted that audit committees are increasingly using AI and advanced technology to connect different types of risk—third-party, financial, operational, cyber, and regulatory. They use analytics to surface anomalies and emerging risks earlier, support proactive oversight, and run “what if” analyses before risks materialize. “It allows us to be more responsive to risks and provide more robust assurance to stakeholders,” she said.

A major focus is “everyday AI,” said Sarah Francis of the EY Center for Board Effectiveness. “I think audit committees are also asking, ‘How do we start to touch, feel, and get used to the products that are out there?’” Directors, many of whom are active executives, are also thinking about how to deploy these tools effectively. “Clear governance frameworks for AI and analytics are necessary,” she said, noting that prompts—and the people who craft them—matter. She highlighted the need for experts who can help frame broader ethical questions within responsible AI frameworks.

Audit committees can and should engage with technology as they work toward a fully defined plan, commented Luke Whorton, executive search and leadership consultant at Spencer Stuart’s Financial Officer Practice. “How do you create a foundation that’s agile and responsive, since it will continue to change rapidly?” he asked.

“Audit committees need to be curious,” Cohen said. “They need to challenge management on their inputs, assumptions, judgment, and what they’ve embedded into their AI outputs.”

Committees that challenge assumptions, embrace technology, and maintain strong partnerships with internal audit could be well-positioned to safeguard trust in an uncertain world.

Sheryl Estrada