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Today A MESSAGE FROM THE INSTITUTE OF INTERNAL AUDITORS

ONE WORLD. ONE PROFESSION. ONE DESTINATION. A MILLION CONNECTIONS.

3rd Quarter 2013

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News from The IIA and the Internal Audit Profession

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Awards and Accolades for Those at the Forefront of Advancing the Profession

One World. One Profession. One Destination. A Million Connections.

IIARF Bookstore’s Digital Dreams Become Retail Reality


Our Principal Partners Make a Difference The IIA acknowledges the ongoing support from our Principal Partners, who help enhance the internal audit profession by sharing their resources and knowledge with our most valuable asset – our members. These partners actively serve as members and volunteers within The IIA, participate in the introduction of new guidance, develop world-class training, and show their commitment in many other ways in an effort to advance the internal audit profession.

The IIA encourages you to tap into the expertise of our Principal Partners in 2013!


Welcome message Dear Colleagues:

Today PUBLICATION DIRECTOR

Carrie Summerlin EDITOR

Paula Michaels STAFF EDITORS

Ariel Allen Shelli Browning Maggie Dunn Kristen Jason Lisa Krist CONTRIBUTING EDITORS

Georgeann Doyna

The word that comes to mind when I reflect on The IIA’s 2013 International Conference in Orlando this past July is “flawless.” From start to finish, it went off without a hitch! I have chaired many events throughout my career, but I have never been part of one that was so flawlessly executed. The combination of our Florida chapter volunteers and the IIA Global Headquarters’ staff was a recipe for success and the attention to detail was evident from the welcome reception. Attendees visited various stations where they were treated to signature delicacies from some of the Sunshine State’s favorite tourist destinations like the Florida Everglades and Key West. It set the tone for an amazing conference and provided the perfect atmosphere for guests to network — experiencing local flavors while mingling with colleagues from around the world.

ART DIRECTOR

Jon Peters Graphic Designers

Brandie Tate Cathy Watanabe CHIEF MARKETING OFFICER

Bill Michalisin IIA PRESIDENT AND CEO

Richard F. Chambers, CIA, CGAP, CCSA, CRMA IIA CHAIRMAN OF THE BOARD

Paul Sobel, CIA, CRMA

IIA Today is a quarterly publication produced exclusively for members of The IIA. To learn more about this publication, please visit www.theiia.org/IIAToday  . We welcome all comments, questions, and feedback. Please send your message to IIAToday@theiia.org and include your name and contact information.

The days that followed did not disappoint. Whether it was Madeleine Albright’s insightful Q&A with IIA President and CEO Richard Chambers, Tom Peters’ inspiring presentation on leadership, or the Blanco Night Gala, there was always something worth “tweeting” about. In fact, this year’s conference took advantage of technology on every front, from overhead badge scanners to a conference app to keep attendees up-to-date throughout the knowledge-packed days. If you were unable to attend this year’s conference, you can read a complete recap in this issue of IIA Today, and if you were lucky enough to be in Orlando, you will be able to relive what are surely treasured memories. Thanks to the hard work and dedication of our Florida chapter volunteers, the Global Headquarters’ staff, and everyone involved, the bar for the 2014 International Conference in London has been set that much higher. I was honored and humbled to serve as the 2013 International Conference Chairman and I hope to reconnect with as many of you as possible in London next year. Sincerely, Karen Brady, CIA, CRMA 2013 International Conference Chairman Corporate Vice President, Audit and Compliance Baptist Health South Florida

The Institute of Internal Auditors

247 Maitland Ave. Altamonte Springs, FL 32701-4201 USA +1-407-937-1100 www.theiia.org All contents copyright © The Institute of Internal Auditors (IIA) 2013.

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News

The IIA’s Richard Chambers and ISACA’s Greg Grocholski (pictured, right) opened the event and welcomed all in the crowded room.

IIA and ISACA Collaborate to Strengthen GRC Knowledge The IIA and ISACA collaborated for the first time ever to bring the 2013 Governance, Risk, and Control Conference to 500 participants at the Arizona Biltmore Hotel this past August. The conference opened with insights from keynote speaker Bhavesh Bhagat in his presentation, Identifying the Governance Forest Among the Trees: Survival of the GRC Professional in SoLoMo World. Also included were keynote presentations by: ■■ Richard Chambers who discussed Internal Auditing’s

Relevance in Governance, Risk, and Control: Progress and Prognosis. ■■ Robert Hirth, new COSO chair, who shared The Updated

COSO Framework–Implications to Organizations and GRC Professionals. ■■ Brian Swartz from the Apollo Group who presented

Industry Innovation and Changing Business Models– Setting the Tone at the Top. With 45 speakers presenting across concurrent 32 sessions, the event was exceptionally well received. One attendee, relatively new to audit, felt the conference offered a tremendous learning opportunity and noted he was “shocked to hear it was the first collaboration between The IIA and ISACA.” It certainly won’t be the last. Its success ensures a repeat collaboration for the 2014 GRC Conference.

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2013 Internal Audit Compensation Report Reveals Notable Shifts The IIA’s 2013 Internal Audit Compensation Study documented some notable shifts in compensation and recruitment/retention strategies in North America. Compensation practices, which were on a two-year growth trajectory, appear to be tapering off in 2013 with predictions that 2014 increases will fall between 2 and 4 percent. However, the report also brought good news to light. A higher percentage of organizations are granting internal auditors salary increases of 4 percent or higher when compared to increases for nonaudit employees. Additionally, the number of organizations that are not awarding salary increases to any internal auditors decreased to 14 percent from 2012. Other highlights from the report included reaffirming the continued trend of significantly higher median salaries for internal auditors with specialty skills, such as those who focus on IT; fraud and forensics; and environmental, health, and safety. Additionally, the median income of noncertified internal auditors in the United States was US $29,000 less than that of internal auditors holding a professional designation.


News Finally, one of the more interesting findings was that in 2012, auditors holding a CPA earned slightly more than auditors holding a CIA. In 2013, however, CIAs outpace CPAs in salary earnings. The Executive Summary of the 2013 Internal Audit Compensation Study is available for free download at www.theiia.org. A detailed report, including exclusive data such as salary by geographic region, organization size, and other demographics, is available for purchase from The IIA Research Foundation’s Bookstore.

New Guidance NEW! Selecting, Using, and Creating Maturity Models: A Tool for Assurance and Consulting Engagements: This strongly recommended guidance provides practitioners with: key considerations to keep in mind during the selection of a model; guidance on how to effectively use the range of maturity models available; and a step-by-step approach to creating their own model if an appropriate model cannot be sourced.

NEW! Audit Sampling, Practice Advisory (PA) 2320-3: Issued in May 2013, the PA provides internal auditors with best practice approaches that consider a range of factors to ensure that the audit sample used to form an audit opinion or conclusion is reflective of the whole population.

NEW! Continuous Assurance, Practice Advisory (PA) 2320-4: Issued in June 2013, this PA provides internal auditors with best practice guidance on the implementation and use of continuous assurance, a method that employs technology to perform control and risk assessment on a more frequent basis.

NEW! GTAG 3: The second edition of GTAG 3: Continuous Auditing: Implications for Assurance Monitoring and Risk Assessment focuses on the technology-enabled aspects of continuous auditing. It provides practitioners the most up-to-date guidance and best practices to enable them to successfully implement a continuous auditing approach and provide stakeholders with real-time or near-time information.

Coming soon: Guidance covering anti-corruption/bribery; crisis management; audit committees in the public sector; a comparison of INTOSAI and IIA Standards; and more.

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News

Nominations Open for 2014–15 IIA Volunteer Leadership Positions The IIA is currently accepting nominations for qualified members to serve in the following leadership roles for its 2014–15 fiscal year: ■■ Executive Officers ■■ Board of Directors ■■ North American Board ■■ The IIA Research Foundation Board

of Trustees ■■ 15 Committees comprising 250 members ■■ District Advisors and Representative (North America only) Nominations are accepted from IIA Institutes and chapters, IIA members who know of interested candidates, or candidates themselves. Nominations must be completed and submitted electronically by Friday, Nov. 1, 2013. Forms can be accessed at www.theiia.org.

Certification Updates CRMA Exam Registration Opens Certification in Risk Management AssuranceTM (CRMA®) registration opened Sept. 1, 2013, with testing beginning Oct. 1. As of August 2013, more than 13,300 CRMA designations have been awarded to qualifying professionals through the Professional Experience Recognition period and nearly 400 professionals sat for the first official exam period ending Aug. 31. The CRMA exam is currently only offered in English.

CPE Reporting Deadline Approaching The Continuing Professional Education (CPE) reporting deadline is Dec. 31, 2013. All certified individuals

Expectations Gap Roundtable Report Just Released To better understand expectation gaps among key players in the financial reporting chain in deterring and detecting fraud, the Anti-Fraud Collaboration, comprising the Center for Audit Quality (CAQ), Financial Executives International (FEI), The IIA, and the National Association of Corporate Directors (NACD), held a roundtable in April. The discussion took place around a survey of members of the four organizations coordinated by The IIA in the fall of 2012 on this subject. Among key players (corporate directors, financial executives, external auditors, and internal auditors) there was consensus that audit committees are expected to have the financial expertise to ask the right questions and that there is a need for open and honest communication across all groups, in particular between the audit committee and the auditors, both internal and external. However, expectations varied widely on the responsibility of external and internal audit in the deterrence and detection of material fraud in financial reporting. Additionally, a large majority of survey respondents believe that financial management has primary responsibility in deterring financial reporting fraud, with a smaller majority believing financial management is responsible for detecting financial statement reporting fraud. The complete summary is available for download at www.theiia.org.

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News must report prescribed CPE annually for each IIA certification held. While CPE reporting is free for North American members, nonmembers are subject to reporting fees ranging from US $25 to US $100 depending on number and type of certifications. For information on qualifying CPE activities, visit www. theiia.org/goto/CPEOptions.

Last Opportunity to Sit for CIA Four-Part Exam in English Dec. 31, 2013, is the last day for candidates who began pursuing their Certified Internal Auditor® (CIA®) prior to June 30, 2013, to sit for the CIA four-part exam in English. These candidates can complete the program in the four-part format or through a combination of the four and three-part format. The CIA Transition Planning Tool, available at www.theiia.org/goto/ CIA2013, presents all options.

The Audit Executive Center Celebrates

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of Service to CAEs Since its establishment in 2010, The IIA’s Audit Executive Center has grown to serve more than 650 chief audit executives (CAEs) and their 5,400 staff members. The Center is continuously expanding its portfolio of services by adding thought leadership, knowledge sharing vehicles, benchmarking services, and networking opportunities to its web portal, which is being upgraded with soon-to-be-released enhanced functionality. “The Center empowers me to do my job more effectively by giving me a competitive advantage with opportunities to access information that other CAEs do not have,” says David Cook, CIA, CRMA, Chief Audit Executive, Robert W. Baird & Co. “They do a tremendous job of streamlining information into an easy-to-read format.” To commemorate the anniversary, the Center is offering 15 months of membership for the price of a 12-month membership. Learn more at www.theiia.org/cae.

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Feature story

ONE WORLD. ONE PROFESSION. ONE DESTINATION. A MILLION CONNECTIONS.

Take a candid discussion with the first female U.S. Secretary of State, an inspiring presentation from a management guru, an in-depth panel discussion on integrated governance, risk, and compliance (GRC) and add a smorgasbord of culinary delights, a team of salsa dancers, and a donation to a life-saving charity, and you have the recipe for one incredible conference. With more than 2,000 attendees representing 109 countries, The IIA’s 72nd International Conference held in Orlando, Fla., this past July more than lived up to its theme of “One World. One Profession. One Destination.”

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Feature story

The Wow Factor “You know it’s a great conference when the only thing anyone can find fault with is the weather!” IIA International Conference Committee Chairman Rod Winters, CIA, got more rain than he bargained for, but the countless bright spots throughout the conference more than made up for the weather. Winters, who has attended The IIA’s International Conferences for more than a decade and oversees the general committee providing guidance to the host committee each year, says the 2013 conference was one of the best yet. “There’s an evolutionary process with this conference, and each year the host team takes the best of prior conferences and incorporates it into their conference,” says Winters. “It makes it the global event to attend for the profession.” It is a sentiment IIA–Ghana President Eric Yankah echoed. “Is there a better place to go as an internal auditor? Between the learning opportunities and the people, I would never miss it!” Yankah was blown away by the infusion of technology into the conference and the unique touches he encountered at every turn. “From the conference smartphone app, to the exhibit hall, to logging our steps on the pedometers provided, it made this conference a most unique one,” says Yankah. “And to say that the conference was at my fingertips because of the app would be an understatement. I have not ceased to talk about that since returning.” Starting early, leading chief audit executives (CAEs) convened on

Sunday in an invitation-only CAE forum covering the updated Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control–Integrated Framework. The event, sponsored by the Center for Audit Quality, The IIA, and The IIA’s Audit Executive Center, featured a panel of experts moderated by 2013–14 incoming IIA Global Chairman of the Board and GeorgiaPacific Vice President and Chief Audit Executive Paul Sobel, CIA, CRMA. Panelists discussed key changes to the framework and examined its implications for internal audit activities. Afterward the CAEs joined other conference attendees to network at the welcome reception. Showcasing the foods of Florida, attendees tasted culinary delights, mingling with old friends and shaking hands with new ones.

Conference’s second annual Wellness Options Program. Success resulted in The IIA donating US $10,000 to the Susan G. Komen breast cancer organization. The challenge started with a dash to secure a seat for the much-anticipated session between IIA President and CEO Richard Chambers CIA, CGAP, CCSA, CRMA, and the 64th U.S. Secretary of State Madeleine Albright. For many, Albright’s discussion with Chambers was the highlight of the conference. “She said he could ask her anything and she meant it,” says Karen Brady, CIA, CRMA, 2013 International Conference Committee Chairman. “She was extraordinarily

Madeleine Albright Steals the Show Monday morning attendees hit the ground running using pedometers provided in registration packets. The goal was to collectively log 10,000 miles walking or running among attendees in support of the International w w w. t h e i i a . o r g

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knowledgeable, but her candor, wit, and sense of humor stole the show! I think it exceeded everyone’s expectations.” Albright shared her unparalleled experiences and delightful disposition closing the discussion with an important and resonating message. “Corruption is the cancer of our society, and you are the ones who ensure it doesn’t spread.” After lunch, a distinguished panel discussed the value of GRC. Once again, Paul Sobel moderated. The topics included the value of integrated GRC, whether GRC objectives can be

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achieved without formal integration, how GRC makes managing risk and compliance more effective, and ways that formal GRC is changing the role of internal audit. “As internal auditors, we report to the board; but if you’re more junior, you may not have direct experience or involvement with board members. It helps to understand the audience of your audit,” commented an enthusiastic attendee.

And They Danced All Night… As anticipation for Tuesday night’s Blanco Gala began to build, day two offered an opening keynote presentation by management guru Tom Peters, author of Reimagining Business Excellence in a Disruptive Age. Peters, who Brady proclaims “lived up to the hype,” had an infectious energy felt in both his words and his demeanor. He encouraged professionals to break out of their routines and expand their circle of influence. He also highlighted the unique strengths that women bring to leadership roles. One attendee, who followed Peters while completing her masters in business administration, captured the experience saying, “I was thrilled to be in the same room with him.”

The day closed with a general session emphasizing the importance of coordinated communication among practitioners and reporting entities around the world. Paul Druckman, CEO of the International Integrated Reporting Council (IIRC), spoke about the Integrated Reporting Framework and what it means for the future saying, “Integrated reporting is an idea whose time has come.” Druckman noted that financial reporting today accounts for only 19 percent of a company’s performance — a complete flip from 40 years ago. “All the different reporting regimes around the world need to be going in the same direction and align.” He also reported that the IIRC is reviewing responses to the framework’s recently released consultation draft and is working on the final version. As the sun set in the Sunshine State, attendees donned their best “white” attire for the “Blanco” Night Gala, a Latin inspired event with a cocktail hour, sit-down dinner, and a band complete with salsa dancers. “I was one of the people on the dance floor throughout the evening and even when the band was finished, we just wanted them to play more!”proclaimed one attendee.

A Strong Finish Between the star-studded general sessions, conference goers had the option to attend 77 concurrent knowledge-packed sessions spanning 11 tracks that ranged from fraud and corruption to career development. “The session with John Tonsick, The Magic of Fighting Fraud, was awesome and funny,” says Renato Trisciuzzi, CIA, CCSA, CRMA, who


Feature story

started attending the conference in 2008 and was a conference speaker this year. “However, I was really impressed with Diane Henriques’ presentation on the lessons learned from the Bernie Madoff scandal.” Henriques, best-selling author of The Wizard of Lies: Bernie Madoff and the Death of Trust, provided a historical overview of the now infamous Ponzi scheme, stressing the importance of lessons learned. While Henriques brought to life the devastation of the Madoff scandal, the conference’s final general session speaker got attendees thinking about things that still seem like science fiction, like implantable technology devices. Scott Klososky, principal of Future Point of View, told the audience the transition from mobiles to “wearables” to “implantables” is not too far off. He discussed technological advancement, struggles future generations may face, and how organizations must adapt as they become more virtualized. He stressed that organizations that fail to recognize technology’s implications will pay the ultimate price, pointing to the downfall of Borders Books as a prime example.

Until We Meet Again Immediately following the close of the conference, the torch was passed from the 2012–13 IIA Global Chairman of the Board Phil Tarling, CIA, CMIIA, CRMA, to the 2013–14 incoming chairman Paul Sobel. Tarling’s theme, “Say it Right,” was celebrated when the conference opened through a video documenting his vast travels throughout the year to share his message. During his term, he visited 34 chapters and Institutes, six conti-

nents, 25 IIA conferences, conducted an eight-city African Institute tour, visited seven cities in the United States and the Caribbean, logged 207,279 travel miles, and connected with more than 60,000 members. As one of his last acts as IIA Global Chairman, Tarling signed a Memorandum of Understanding with the president of The International Federation of Accountants (IFAC), Warren Allen, outlining a new plan for enhanced collaboration between the organizations. Collaboration was a theme not just among organizations but among attendees. Two IIA chapters funded a conference participant this year — IIA–New York sponsored Armen Simonyan of the National Assembly of the Republic of Armenia, and IIA– Atlanta sponsored Gerard Nyangezi, who works at the Bank of Kigali in Rwanda. They served as escorts throughout the event to ensure the two scholarship recipients gained the most value from the conference, embodying the spirit of connecting that has become a signature for the event. “I’m amazed at how far people travel every year and what an incredible opportunity it is to be able to network with practitioners from over a hundred countries in one location. We had practitioners travel from Korea and the Philippines,” says Brady. In fact, there was such a large South Korean presence that The IIA provided a Korean translator for all the general sessions. “It really speaks to the caliber of the speakers, the relevance of the topics, and the attendees’ overall experience. I can’t wait to see what London has in store for us next year!”

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TRAINING

2014 Seminar Course Matrix (Courses through June 2014) Updated 10/2/13

Course Code

Course Level

Duration

Analyzing & Improving Business Processes

ABP

Basic

2

Assessing Risk: Ensuring Internal Audit's Value

ARV

Advanced

2

Assessing Your Organization's Risk Management Process

ARM

Intermediate

2

Audit Manager Tools and Techniques

TTM

Intermediate

Audit Report Writing

ARW

Auditing Derivative Strategies

San Diego, CA Feb. 18 - Feb. 21

Atlanta, GA March 4 - March 7

Phoenix, AZ April 8 - April 11

April 8 - 9 Feb. 18 -19

March 4 - 5

4

Feb. 18 - 21

March 4 - 7

Intermediate

2

Feb. 20 - 21

ADS

Intermediate

2

Auditing Investment Activities

AIA

Intermediate

2

Auditor-in-charge Tools and Techniques

AIC

Intermediate

4

Beginning Auditor Tools and Techniques

TT

Basic

4

Feb. 18 - 21

March 4 - 7

Building a Sustainable Quality Program

IQA

Intermediate

2

Feb. 18 - 19

March 4 - 5

Communication Skills for Auditors

ECA

Basic

4

Construction Activity: Audit Strategies

EAC

Intermediate

2

April 8 - 9

Continuous Auditing

CA

Advanced

2

April 10 - 11

COSO 2013: Implementing the Framework

COSO

Intermediate

2

Feb. 18 - 19

Creative Problem-solving Techniques for Auditors

CPS

Basic

2

Feb. 20 - 21

Critical Thinking for Internal Auditors - Deloitte Public Offering

CTA

Basic

2

Effective Writing for Auditors

EWA

Intermediate

2

Enterprise Risk Management: An Introduction

ERM

Intermediate

2

Financial Auditing for Internal Auditors

AFA

Intermediate

2

Leadership Skills for Auditors

LSA

Intermediate

4

March 4 - 7

Lean Six Sigma Tools for Internal Audit Fieldwork

SSF

Intermediate

2

March 6 - 7

Lean Six Sigma Tools for Internal Audit Planning

SSP

Intermediate

2

Operational Auditing: Influencing Positive Change

POA

Intermediate

2

Feb. 20 - 21

March 6 - 7

Performing an Effective Quality Assessment

QAE

Intermediate

2

Feb. 20 - 21

March 6 - 7

Project Management Techniques

PMT

Intermediate

2

Risk Based Auditing: A Value Add Proposition

RBP

Intermediate

2

Statistical Sampling for Internal Auditors

SSI

Intermediate

2

Value-Added Business Controls: The Right Way to Manage Risk

VAB

Basic

2

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April 8 - 11

March 4 - 5

April 8 - 11

April 10 - 11

April 8 - 9


TRAINING

New York, NY April 22 - April 25

Tampa, FL May 6 - May 9

April 22 - 23

Dallas, TX May 20 - May 23

Chicago, IL June 10 - June 13

May 20 - 21 May 6 - 7

June 10 - 11 May 22 - 23

May 6 - 9 May 8 - 9 June 10 - 11 June 12 - 13 April 22 - 25 April 22 - 25

May 6 - 9

May 20 - 23

June 10 - 13

May 20 - 23

June 10 - 13

May 20 - 21

time is running out.

April 22 - 25 April 24 - 25 June 10 - 11 April 22 - 23

May 6 - 7

May 20 - 21

does your team have all its 2013 cpes?

June 10 - 11

April 22 - 23 April 24 - 25

June 12 - 13

April 24 - 25

June 12 - 13 May 20 - 21

Let IIA On-site Training customize the training your team needs now, no matter if they’re all together or in several different locations. Customized to suit the needs of your team, IIA On-site Training can… n Be delivered in person or virtually, allowing your team to log on and learn together.

April 24 - 25

May 22 - 23

n Minimize travel expenses and reduce registration fees.

May 20 - 21

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May 8 - 9

June 12 - 13 May 22 - 23

May 8 - 9

Contact us today for your no-obligation consultation. May 20 - 21 May 22 - 23

April 22 - 23

With more than 100 courses to choose from, including the new COSO 2013: Implementing the Framework, IIA On-site Training can develop the curriculum necessary to get your team all of its CPEs and back to work fast!

GetTraining@theiia.org

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+1-407-937-1388

www.theiia.org/onsite

May 22 - 23

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special feature

Awards and Accolades

for Those at the Forefront of Advancing the Profession They say if you find a job you love, you will never work a day in your life. It is an adage that has been exemplified by many internal auditors — a profession that has more than its fair share of individuals who are passionate about the work they do. During The IIA’s 72nd International Conference, a handful of these individuals were recognized for their contributions to a profession that has undergone a transformative evolution in recent decades and shows no signs of losing momentum. Part of what propels the profession forward is the sharing of knowledge among practitioners through published works. Three individuals were recognized for their contributions in this area. Douglas G. Secrest, who graduated from Louisiana State University’s Center for Internal Audit Excellence in May 2013, received The 2013 Esther R. Sawyer Research Award. Created in honor of Larry Sawyer’s wife, the award challenges students to address subjects that reflect the current state of the profession. Secrest’s submission, Ethics and Compliance Programs: Key Elements of an Effective Ethics and

Compliance Internal Audit Program, identified four elements internal auditing needs to address to effectively audit an organization’s ethics and compliance program.

different phases of implementation, and provided insights on the benefits, barriers, and challenges, as well as the key steps for a successful implementation.

The Sawyer name was front and center once again when Gerrit Sarens of Belgium accepted the Larry Sawyer Research Foundation Project of the Year Award for his report, Combined Assurance: Case Studies on a Holistic Approach to Organizational Governance, which was co-authored by Loïc Decaux and Dr. Rainer Lenz. The report examined the path of six multinational organizations, all at

To round out the awards for literary contributions, Andrew Cheskis, president of Cheskis Consulting in Scarsdale, NY, received the John B. Thurston Award for his Ia magazine article, “What’s Your Brand?” published in October 2012. The article, which provided a branding overview and pitfalls to avoid, outlined how a winning internal audit brand can help to drive effectiveness by positively

Douglas Secrest

Gerrit Sarens

Andrew Cheskis

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special feature

impacting the influence a department has within an organization. Beyond research and writing accomplishments, The IIA recognized achievements in an area critical to professionalism...certification. Three individuals from Spain, Poland, and China were recognized for achieving high scores on their Certified Internal Auditor core exam parts. Juan Carlos Diaz, CIA, of IIA–Spain earned the William S. Smith Gold CIA Exam Award for being the highest-scoring candidate during the 2012 calendar year. Anna Agnieszka Stepien, CIA, of IIA–Poland earned the Kurt Riedener Bronze CIA Exam Award and Wang Yang, CIA, of IIA–China earned the Dr. Glenn Sumners Student CIA Exam Award for being the highest scoring full-time student. The awards could not be complete without recognizing those that have tirelessly served The IIA throughout their careers. Stephen Goepfert, CIA, CRMA, vice president of Internal Audit for United Airlines, and Patricia Miller, CIA, CRMA, CPA, CIFA, owner of PKMiller Risk Consulting LLC, are two names that surface frequently within The IIA because they consistently offer

Juan Carlos Diaz

The American Hall of Distinguished Audit Practitioners 2013 Inductees

their time and expertise by serving on committees, writing articles and authoring research, and inspiring others to get involved. Their efforts were recognized as they each received the Victor Z. Brink Award for Distinguished Service. “Steve Goepfert and Patty Miller are exemplary role models for advocacy, education, and activism on behalf of the global internal audit profession,” said 2012–13 IIA Chairman of the Board Phil Tarling when presenting the awards.

tions to the evolution of the internal audit profession over the course of their careers. The American Hall of Distinguished Audit Practitioners is reserved for such individuals, and in 2013 eight of them were honored as inductees:

Internal auditing is fortunate to have a deep pool of individuals who have devoted themselves to the profession. However, even among these individuals, there are those who set themselves apart by demonstrating their leadership on a national level and making significant contribu-

■■ Joel Kramer, CIA – Practitioner

■■ William G. Bishop, III, CIA –

Posthumous historical inductee ■■ Mortimer Dittenhofer, CIA –

Emeritus inductee ■■ Robert B. Hirth, Jr., CIA –

Practitioner

Wang Yang

■■ Patricia Miller, CIA – Practitioner ■■ Basil Pflumm, CIA – Emeritus

inductee ■■ Anthony J. Ridley, CIA –

Emeritus inductee ■■ Rod Winters, CIA – Practitioner

To be considered for the honor, an internal auditor must exemplify high ethical conduct, integrity, moral character, service, and leadership. Each of the inductees certainly fit the bill as captured by IIA North American Board Chairman Michael Peppers, CIA, CRMA, when he said, “They have carved out a path to excellence and skillfully used their influence to shape the landscape we practice in today.” w w w. t h e i i a . o r g

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LOCAL News

IIA MEMBER/STAFF NEWS Professionals on the Rise Accomplished Assurance, Compliance, and Control Executive Appointed CCO of Title365 IIA member Clay White, CIA, CRMA, has been promoted from director of compliance and implementations to chief compliance officer for Title365, a title insurance and escrow services provider headquartered in California. He will use his extensive experience to focus on growth and continuous improvement of procedural standards and compliance initiatives.

Long-standing BlueCross BlueShield Employee Named Director of Internal Audit IIA member Robbie Sims has been promoted from manager of internal audit to director of internal audit for BlueCross BlueShield in Tennessee. Recognized as instrumental in implementing a high performance, risk-based internal auditing function for the organization, he will now oversee the activities and resources of the department.

“Top 50 Women in Business” Recipient Appointed to Corporate Resource Services, Inc. Board of Directors. IIA member Karen Amato, a former KPMG partner and a “2010 Top 50 Women in Business” for Long Island Business News has been appointed to the board of directors for Corporate Resource Services, Inc., a diversified technology, staffing, recruiting, and consulting firm. She will chair the firm’s newly constituted audit committee.

corporate governance leaders and puts him in the company of leaders such as Nasdaq-OMX President and CEO Robert Greifeld and Public Company Accounting Oversight Board Chairman James Doty who also made the list.

New Additions to IIA Staff IIA Hires Director for Future Government Audit Center To launch its new American Center for Government Auditing to better serve the needs of the estimated 100,000 U.S. government auditors, The IIA has hired IIA member James Pelletier as the new Director of Government Audit Services. Previously a city auditor in Palo Alto, Calif., Pelletier brings more than 15 years of experience in both the public and private sectors to the position. Gina Eubanks, CIA, CRMA, CCSA, CISA, joins us as Vice President of Professional Services. She brings 18 years of senior level internal audit experience including 15 years with Deloitte, where she spent a significant amount of time in India. Eubanks also worked as a practitioner and director in the retail and financial services sectors. She sits on the Audit Committee for a local financial institution and has served as a volunteer leader with The IIA for nearly 15 years.

IIA CEO Richard Chambers Named to Two Top 100 Lists

Lina Kalfayan, Ph.D., joins us as Director of Operations for IIA–Canada working in Ottawa. Most recently, Kalfayan served as director of operations for the Canada India Centre for Excellence in Science, Technology, Trade and Policy where she liaised with partner and government offices and oversaw the planning and implementation of the center’s activities. She has a Ph.D. in microbiology and immunology from McGill University in Montreal and speaks fluent French, Arabic, and Armenian.

IIA Global President and CEO Richard Chambers, CIA, CGAP, CCSA, CRMA, was recently named to two prominent Top 100 Lists — the National Association of Corporate Directors (NACD) Directorship 100 and Accounting Today’s Top 100. Making the NACD’s list recognized Chambers as one of the year’s most influential

Kristen Darby will join us as Vice President of Relationship Management. Most recently Darby served as the chief operating office for the Marketing Research Association. Prior to that, she was the director for membership programs at the Institute of Management Ac-

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LOCAL News countants. This is her second position with The IIA. A Florida State University graduate, she worked as The IIA’s assistant vice president of membership development from 1999 to 2003. Dave Gorman, CIA, CPA, CFF, joins us as Director of Standards & Guidance. A former police officer, market manager, and manager of fraud investigation, Gorman most recently served as director of financial audit for CSX Corporation where he had a successful 20 plus year career in internal audit. He is a graduate of the University of Florida and University of Maryland.

Chapter News IIA–Atlanta Chapter Uses the Lure of Competition to Attract Students One IIA chapter has found an innovative and highly effective way to grab the attention of students and local internal audit leaders alike. In 2011, The IIA‘s Atlanta Chapter partnered with the Georgia State University IIA–Student Chapter to organize an event that went beyond being informational and entertaining and gave students real world experience, cash prizes, and perhaps the ultimate win — connecting with leading employers within their area. The chapter put the word out to local colleges and universities that they would be holding a competition in which teams of three students each would have the opportunity to present their solutions to case studies to a panel of judges comprising internal audit leaders in the community. The response was immediate and the overwhelming success of the event led to the second competition in 2012.

IIA–Atlanta Chapter is launching its third annual Internal Audit Case Competition for internal audit students on Nov. 15, 2013, and is ready and willing to mentor other chapters that are interested in employing this successful strategy to provide real world experience for students, connect internal audit leaders with potential employees, and build awareness of student memberships in their chapter. For more information, please contact academic@theiia.org.

IIA–Florida West Coast Chapter Supports Student Development This past June, The IIA’s Florida West Coast Chapter supported the educational development of two college students by awarding them the John Harmon Scholarship, named in honor of the former IIA president. The recipients, Sara van Spronsen and Joel Marrero, were selected for their compelling essays on “Ways in Which the Internal Audit Function Can Improve Organizational Governance.” Each had a choice between a US $500 check to be used toward the pursuit of their university degree or a package valued at approximately US $1,500 to cover expenses associated with sitting for The IIA’s Certified Internal Auditor® (CIA®) Exam. As added support, the chapter also offered to provide a CIA liaison to assist the student with studying for the exam and navigating the administrative requirements to sit for it. The scholarships were presented in front of an audience of more than 50 students at the chapter’s student night where keynote speaker Maunda Land, CMP, manager, College and University Relations at The IIA discussed how to succeed in an internal audit career. The event and the presentation were well received with Land noting, “Several students came up to me at the end of the night and said they were now considering internal audit as a career.”

Have news to share? The IIA wants to share the achievements, accolades, and initiatives of our members and chapters.

Winning team of The IIA 2012 Internal Audit Case Competition from the University of Georgia with Keith Ordan (L), The Intersect Group, and Brian Lay (R), EY

From a member’s promotion to an innovative chapter event, we want to hear about it and share through IIA Today or IIA Connection. Submit at www.theiia.org/newsletter-submission-form. w w w. t h e i i a . o r g

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special feature

IIARF Bookstore’s Digital Dreams Become Retail Reality At The IIA’s 2013 International Conference held in Orlando, Fla. this past July, dynamic keynote speakers like former U.S. Secretary of State Madeleine Albright and management guru Tom Peters had conference attendees forming lengthy lines at The IIA Research Foundation’s (IIARF’s) onsite Bookstore. Attendees were anticipating getting prized autographs, but there was even more in store, as the conference served as the stage for the Bookstore’s unveiling of its new digital platform. It was an event two years in the making that involved a team of dedicated IIA staff members and volunteer leaders to bring to reality. The end result was the introduction of over 30 of the Bookstore’s mostread products in e-book format that are ready for purchase online. IIARF Board of Trustee Member Phil Flora, who credits the hard work of the IIARF and IT staff at The IIA with making the launch happen, said it is evidence that The Foundation is listening and responding to the needs of customers whom it is continuously working to better serve. “Oftentimes, shipping costs prove cost prohibitive for our international audience and the digital platform overcomes that hurdle,” says Flora. “It also offers a whole new level of convenience for all the Bookstore’s customers, regardless of where they call home.” For internal auditors — many of whom spend a signifi18

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through the pages of indispensible publications on your touch screen. Just a handful of the e-books now available for purchase include: ■■ Clarity-Impact-Speed:

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cant amount of time traveling — the convenience and flexibility of having a portable library can prove invaluable. The e-books are compatible with a customer’s Kindle, iPad, or ereader of choice, lightening the load in a practitioner’s briefcase while still providing the peace of mind of having critical reference materials at their fingertips. Beyond convenience, The IIA team responsible for implementing the project — led by IIARF Vice President Margie Bastolla, CIA, and primary project manager, Arnaldo Diaz, director, Publishing and Retail Development — ensured that functionality and readability were paramount. Each e-book offers time-saving functionality such as bookmarks, highlighting capabilities, note-taking tools, and search options. Additionally, the team reviewed each digital conversion thoroughly (with some titles undergoing as many as four rounds of revisions) to ensure that the digital version flowed as well as if not better than the hard copy. “That can be a challenge with digital platforms and we wanted to ensure that the flow of the original piece was not compromised by the conversion process,” says Flora.

Conference attendees had the opportunity to take the new platform on a test drive by walking through the e-book tutorial available at the onsite Bookstore. Those who chose to purchase e-books could do so online and receive their new addition to their personal library within seconds. Members and customers alike have enthusiastically embraced the new platform. Since the launch, e-books have been purchased from customers in locations as distant as the United Arab Emirates, Singapore, and Australia. Moving forward, every new release from the Bookstore will be available as an e-book, and Bastolla and her team are excited about the impact the introduction of the digital platform will have on the way practitioners access information. “Digital books will revolutionize the way The Bookstore distributes books,” says Bastolla. “Members and customers around the world will have easy access to our books at their fingertips… and no shipping fees!” Whether you need to brush up on your report writing skills or you’re looking for best practices related to risk, you will now be able to thumb

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Delivering Audit Reports That Matter Enterprise Risk Management: Achieving and Sustaining Success Sawyer’s Guide for Internal Auditors, 6th Edition Board Effectiveness: What Works Best, 2nd Edition A New Auditor's Guide to Planning, Performing, and Presenting IT Audits

To see all of the Bookstore’s e-books now available for purchase, as well as walk through an e-book tutorial, visit www.theiia.org/bookstore. E-books are clearly marked with an e-reader icon.

The IIARF has prided itself on providing the most comprehensive collection of practitioner-reviewed content available anywhere and now they are delivering it in the most convenient and cost-effective way possible. “An internal auditor will now be able to carry around a wealth of knowledge with them on their readers. It truly is like having a portable library,” says Bastolla.

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IIA Conference Schedule

IIA Members: Register early for IIA Conferences and save! Call +1-407-937-1111 to ask about group discounts. www.theiia.org/Conferences 247 Maitland Avenue Altamonte Springs, FL 32701-4201 USA

March 24–26, 2014

General Audit Management Conference

Please recycle this newsletter by passing it along to a colleague.

Hilton Bonnet Creek / Orlando, FL

April 14–16, 2014

Gaming Conference The Mirage / Las Vegas, NV

May 19–21, 2014

Central Regional Conference Hyatt Regency / Indianapolis, IN

July 6–9, 2014

International Conference ExCeL London Exhibition and Conference Centre / London, England

August 18–20, 2014

Governance, Risk, and Control Conference An IIA and ISACA collaboration September 7–10, 2014

Northeastern Regional Conference New York Marriott at the Brooklyn Bridge / Brooklyn, NY

October 27–29, 2014

10/131537/PM/JP

The Breakers / Palm Beach, FL

All Star Conference Caesar’s Palace / Las Vegas, NV 3rd Quarter 2013

ONE WORLD. ONE PROFESSION. ONE DESTINATION. A MILLION CONNECTIONS.

Today A M E M B E R S - O N LY P U B L I C AT I O N


IIA Today - 2013 Q3