4 minute read 23 Jan 2019
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How our Independent Audit Quality Committee strengthens our focus on audit quality

By

Kelly Grier

EY US Chairman and Managing Partner and Americas Managing Partner

Inclusive leader. Change maker. Passionate about giving back and building future leaders. Lifetime Chicago White Sox fan. Wife and mom. Avid runner and traveler.

4 minute read 23 Jan 2019
Related topics Assurance

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The IAQC harnesses the value of independent perspectives to help further strengthen audit quality and build confidence in capital markets.

The Independent Audit Quality Committee (IAQC) advises EY US senior leadership on the many aspects of the firm’s business, operations, culture, talent strategy, governance and risk management that affect audit quality. It’s comprised of three external senior leaders with extensive diverse and highly relevant experiences to provide us with meaningful insights and advice. 

EY is very honored to have F. William (Bill) McNabb III (IAQC chair), Jeanette M. Franzel and Charles (Chuck) H. Noski as our inaugural IAQC members.  

We were very intentional in how we constituted this group because we believe that audit quality is predicated on having a strong ecosystem across financial reporting and capital markets, including auditors, issuers, investors, regulators, audit committees and stewards of governance. It’s our view that this ecosystem must work with a common purpose of promoting audit quality to sustain strong capital markets and investor confidence. 

We believe in diverse points of view in all aspects of our business. In a dynamic and fast-paced world, audit quality is not static and the IAQC’s independence and objectivity is the key to continuous strengthening of audit quality, which is our central mission and a top priority.

About the IAQC members

Jeanette M. Franzel  Ms. Franzel was previously a member of the Public Company Accounting Oversight Board (PCAOB) where she provided strategic oversight for all PCAOB mission programs to oversee the audits of public companies and brokers and dealers that file with the Securities and Exchange Commission (SEC). She was appointed by the SEC in February 2012 and served until January 2018.

Jeanette M. Franzel

Ms. Franzel was previously a member of the Public Company Accounting Oversight Board (PCAOB) where she provided strategic oversight for all PCAOB mission programs to oversee the audits of public companies and brokers and dealers that file with the Securities and Exchange Commission (SEC). She was appointed by the SEC in February 2012 and served until January 2018

Ms. Franzel brought extensive audit experience to the PCAOB. after a distinguished career at the U.S. Government Accountability Office (GAO). She ended her tenure as Managing Director, overseeing all aspects of GAO’s financial audits of the US federal government. She also provided leadership for GAO’s interdisciplinary teams, which performed a wide range of high-profile performance audits related to how well federal agencies met their objectives and missions. During and after the financial crisis, Ms. Franzel’s team provided oversight of the US government’s efforts to stabilize the financial markets and promote economic recovery.

Ms. Franzel has testified numerous times before congressional committees and subcommittees on governance and accountability issues.

Ms. Franzel devotes time to providing guest lectures and meeting with faculty in accounting and business programs at colleges and universities around the country. She also serves as a Member of the Accounting Advisory Council of the School of Business at George Mason University.

Ms. Franzel has a BA in accounting and Spanish from the College of St. Teresa and an MBA from George Mason University. She also completed the Senior Executive Fellows program at Harvard University. She is a certified public accountant, a certified internal auditor, a certified management accountant and a certified government financial manager.

William McNabb

F. William McNabb III
Chairman of IAQC

Mr. McNabb is the former chairman of the board of directors and board of trustees of Vanguard, a position he held from 2010 through 2018. He served as the company’s CEO and president from 2008 to 2017. During his 30-year career with Vanguard, he had the opportunity to lead each of Vanguard's client-facing business divisions.

Mr. McNabb is a board member of UnitedHealth Group. In addition, he is the chairman of the board of the Zoological Society of Philadelphia and serves on the Wharton Leadership Advisory Board and the Dartmouth Athletic Advisory Board. He is also a board member of CECP: The CEO Force for Good and a board member of the Philadelphia School Partnership. Mr. McNabb served as Chairman of the ICI from 2013 – 2016 and is the Executive in Residence of the Drexel University Raj & Kamla Gupta Governance Institute.

Mr. McNabb earned an AB at Dartmouth College, holds an MBA from The Wharton School of the University of Pennsylvania, and was awarded an honorary doctorate from Saint Joseph's University.

Having served at the helm of an organization directly accountable to investors, confidence in the public audit is an area of great passion for me. I look forward to working with EY and my fellow committee members towards the goal of audit transparency, trust and confidence.
F. William McNabb III
EY US Independent Audit Quality Committee Chairman
Charles H. Noski

Charles H. Noski

He also currently serves on the boards of directors of Booking Holdings Inc. and Microsoft Corp., is chairman of the board of trustees of the Financial Accounting Foundation, and is a member of the AICPA and Financial Executives International.

In September 2012, Mr. Noski retired as vice chairman of Bank of America Corp. From May 2010 through June 2011, he served as executive vice president and chief financial officer, with responsibility for all finance functions as well as corporate treasury, global corporate strategy planning and development, investor relations, corporate investments and global principal investments.

From 2003 to 2005, Mr. Noski was corporate vice president and chief financial officer of Northrop Grumman Corp., and was a director from 2002 to 2005. From 1999 to 2002, Mr. Noski served as senior executive vice president and chief financial officer of AT&T Corp., and he retired as vice chairman of the board of directors upon the completion of AT&T’s restructuring in November 2002.

Before joining AT&T, Mr. Noski was president, chief operating officer and a member of the board of directors of Hughes Electronics Corp., a publicly-traded subsidiary of General Motors Corp. in the satellite and wireless communications business. He began his career as an auditor, serving seven years as an audit partner at another Big Four firm before moving to a corporate role.

Over the course of his career, Mr. Noski has served on the boards of directors of Air Products & Chemicals Inc., Automatic Data Processing Inc., Avery Dennison Corp., Avon Products, Inc., Morgan Stanley and the National Association of Corporate Directors. He is also a past member of the Standing Advisory Group of the PCAOB.

Mr. Noski holds an MS in accounting and a BS in business administration from California State University, Northridge, and received an honorary doctorate from the California State University system. He also was a member of the inaugural class of the Financial Executives International Hall of Fame in 2006.

Summary

Diverse points of view from experts help us improve the quality of our audit, impacting all aspects of our business. 

About this article

By

Kelly Grier

EY US Chairman and Managing Partner and Americas Managing Partner

Inclusive leader. Change maker. Passionate about giving back and building future leaders. Lifetime Chicago White Sox fan. Wife and mom. Avid runner and traveler.

Related topics Assurance