17 CFR 240.10A-3(b)(1). 21 17 CFR 240.10A-3. 22 Each member of the audit committee must also: (1) not have participated in the preparation of the financial statements of the company or any current subsidiary of the company at any time during the past three years; and (2) be able to read and understand fundamental financial statements, including a company's balance sheet, income statement, and cash flow statement. See Rule 5605(c)(2)(A). See also infra note 23. 23 During the phase-in period a company must comply with the requirement in Rule 5605(c)(2)(A) that every listed company’s audit committee – without distinction as to the committee’s size – have at least one member who has past employment experience in finance or accounting, requisite professional certification in accounting, or any other comparable experience or background which results in the individual's financial sophistication. 24 See Securities Exchange Act Release No. 68013 (Oct. 9, 2012), 77 FR 62563, 62569, n.67 (Oct. 15, 2012) (Notice of Filing for SR-NASDAQ-2012-109). See also Securities Exchange Act Release No. 68640 (Jan. 11, 2013), 78 FR 4554 (Jan. 22, 2013) (approving SR-NASDAQ-2012-109)