The research from Huron Consulting is based on a sample of more than 700 audit committee members at 178 public companies from the NASDAQ 100 and Fortune 100 listings. The report analyzed patterns of audit committee composition between 2002 and 2005 using information contained in the companies' annual proxy statements and 10-K disclosures filed with the U.S. Securities and Exchange Commission.

In the report, the term "accountant" was categorized by title and experience, which included certified public accountants (CPA), controllers, accounting professors, and those who served on accounting standards or other similar boards.

"Despite an increase in the number of accountants on audit committees, they are still playing catch up to other categories of professionals. In fact, most people are very surprised to learn how few accountants are on audit committees," said Maureen Loftus, managing director, Huron Consulting Group. "Our report revealed that the number of accountants on audit committees doubled over the past four years. However, finance professionals exceeded accountants by 3 to 1 in 2005 and accountants and finance professionals represent less than half of all audit committee members."

Among the findings:

• The number of audit committee members who were accountants doubled from 5 percent in 2002 to 11 percent in 2005.
• The number of audit committees with at least one accountant increased from 20 percent in 2002 to 38 percent in 2005.
• The majority of companies sampled (six out of 10 or 111 companies) did not have an accountant on their audit committee in 2005.
• While all companies reported having an audit committee member with financial expertise in 2005, only 23 percent of the designated financial experts had biographies indicating they had accounting backgrounds.
• While the number of audit committee members considered accountants or finance professionals increased from 33 percent in 2002 to nearly 44 percent in 2005, audit committee members in the "other" category represented more than half of all audit committee members.

"A clear understanding of accounting is beneficial to companies and their boards of directors," said Joseph J. Floyd, managing director and practice leader, Huron Consulting Group. "Financial experts and accountants are in demand more than ever."

Download a copy of the six-page report here (PDF).