Interviewing With the Audit Committee Chair: What They Test

Many CFO recruitment processes include a meeting with the audit committee chair.

It might be a formal interview, a coffee or a phone call. It might come early in the process or near the end. Either way, it matters. The audit committee chair will work more closely with the new CFO than almost any other director. Their view can decide the outcome.

The audit committee chair also has a different agenda from the CEO. The CEO wants a partner. The chair wants someone they can trust with the numbers, the auditors and the board’s protection.

This article covers why the chair meets CFO candidates, what they test, the questions to expect, the questions to ask them and how this meeting differs from the CEO interview.

Why the audit committee chair meets CFO candidates

The audit committee chair is responsible for overseeing:

• Financial reporting

• The external audit

• Internal controls and risk

• Often internal audit and compliance

The CFO is their main partner in all of this. If the CFO is weak, the audit committee chair carries the risk. That is why most chairs insist on meeting final candidates.

What they test: judgement, integrity, auditor relationships

Judgement. How do you handle difficult accounting decisions? Do you take a sensible, balanced view?

Integrity. Will you hold the line under pressure from the CEO or others? Will you tell the board the truth?

Auditor relationships. Do you manage the auditors well? Do you resolve issues early, without conflict in front of the committee?

Communication. Can you explain complex matters clearly and briefly?

No surprises. Will you raise issues early?

Independence. Will you support the CEO while also serving the board?

Questions to expect

• Tell me about the most difficult accounting judgement you have made.

• Describe your relationship with your current audit partner.

• Tell me about a time you disagreed with the CEO on a financial matter. What happened?

• How do you decide what to bring to the audit committee?

• Tell me about a control failure on your watch.

• How would you handle pressure to meet a market expectation?

• What would you want from me as audit committee chair?

Many of these test integrity and judgement under pressure. See errors and audit findings in finance interviews for related preparation.

How to answer well

• Be specific. Use real examples, with numbers where appropriate.

• Be balanced. Show you can see both sides of a judgement.

• Be honest about mistakes. Chairs respect candour.

• Be clear about the line. Show you will not compromise the numbers.

• Be loyal to the CEO, but honest with the board. Show you can do both.

Example: “Tell me about a time you disagreed with the CEO on a financial matter.”

“Our CEO wanted to recognise a large contract win in the current half. The contract terms meant revenue should be recognised over three years. I explained the position, showed him the standard and the auditor’s likely view, and suggested how we could explain the win to the market without bringing revenue forward. He agreed. We announced the contract with clear disclosure, and the market responded well.”

Questions to ask them

The meeting is also your chance to learn about the board and the role. Ask:

• What does the committee see as the main financial risks?

• How would you describe the relationship with the external auditor?

• What did the committee value most in the previous CFO?

• How do you like to receive information between meetings?

• Are there any open audit or control issues I should know about?

• How does the committee work with management?

The answers tell you how the role really works.

How it differs from the CEO interview

The CEO focuses on partnership, strategy, culture and the business plan.

The audit committee chair focuses on integrity, controls, reporting quality and the board relationship.

Prepare for both. Some candidates do brilliantly with the CEO and then struggle with the chair, because they prepared only for commercial questions.

See the CFO and CEO relationship in interviews and first meeting with the board chair.

Following up

After the meeting, send a short thank-you note. Mention one point from the conversation that you found useful. Keep it short and professional. See thank-you emails after an executive interview.

Common mistakes

• Treating the meeting as informal and under-preparing

• Talking only about commercial results

• Criticising your current auditors or CEO

• Not asking questions about the committee

• Giving vague answers about integrity

How search consultants see this meeting

When I was in executive search, the audit committee chair meeting often decided close contests. Candidates who were strong commercially but vague on controls and integrity sometimes lost at this stage. Those who spoke clearly about difficult judgements and auditor relationships often won the chair’s support, and with it the role.

Your profile

If audit committee work is a strength, make sure it appears in your profile before the process starts. “CFO with direct audit committee experience, including regular sessions with the chair and clean audits across five years.”

A quick self-check

Prepare one example each of a difficult judgement, a disagreement with the CEO and a control failure. If you can tell all three calmly in under two minutes each, you are ready.

When the chair is a former CFO

Many audit committee chairs are former CFOs or audit partners. They know the job and will spot vague answers quickly. Be specific. Use real examples. Do not try to impress with jargon. They will be more impressed by clear thinking and honest reflection.

When the meeting is informal

Sometimes the meeting is a coffee or a phone call. Treat it as an interview anyway. The chair is still forming a view. Prepare your examples and questions, but keep the tone relaxed and conversational.

Talking about your current auditors

You will likely be asked about your current audit relationship. Be positive and balanced. If there have been tensions, explain how you resolved them. Never criticise the audit firm or partner.

If the business has open audit issues

Sometimes the chair will tell you about open audit or control issues. Listen carefully. Ask what has been done so far. Avoid promising quick fixes before you understand the details. Showing calm interest is better than rushing to solutions.

Your references

Audit committee chairs often ask your referees about integrity and judgement. Make sure at least one of your referees can speak to how you work with auditors and the audit committee.

A quick tip

Read the last two annual reports and audit committee charter before the meeting. Knowing the committee’s focus helps you answer and ask better questions.

After you are appointed

If you get the role, meet the audit committee chair early in your first month. Ask what they want from you, how often they want to meet and what they see as the top priorities. That first meeting often sets the tone for the whole relationship and your standing with the board.

Your next step

Before your next CFO interview, write down your three examples and practise them aloud. Then prepare three questions to ask the audit committee chair.

If you want help preparing for CFO interviews, my executive interview preparation helps senior finance leaders prepare evidence-based answers.

If you have a CFO process underway, book a complimentary Clarity Session.