August 2014 Your Career Compass

Your Career

I s sue 3 – Augus t 2014

6 Taking The Journey

16 Certification Corner

46 Best Practices For Team Development

50 2014 Awards

Recruitment and Retention Strategies10Top

PRACTICES

DEVELOPMENTTeam for

Best

OUR PRINCIPAL PARTNERS MAKE A DIFFERENCEThe 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 2014!

Dear Friends and Colleagues:

The idea that people are an organization’s most valuable asset isn’t new. However, what is new is the difficulty that internal audit leaders are having in attracting, developing, and retaining talent in today’s marketplace. The economy is picking up and internal audit professionals have lots of options. In this issue of Your Career Compass, you’ll discover strategies for recruiting talent, developing your team’s skill sets, and fully realiz-ing the benefits of certification.

Five years ago brand wasn’t discussed much in internal audit circles, but today it’s an area of intense focus. You don’t get invited to the table if your internal audit function doesn’t have the right brand. You also don’t recruit and retain top talent without the right brand. Neither are you promoted without the right personal brand. Talent management is a critical risk for internal audit leaders today. Internal audit leaders must employ innovative thinking to create an environment that translates to an appealing place to work — letting their team know they care about them and that they’re willing to invest in the future of their careers.

I hope this issue gets you thinking about how you can use talent management to build and develop teams that bring a new level of insight to stakeholders. I also hope it inspires you to seek out other IIA resources — resources that are focused on making this profession, and its people, indispensable.

Sincerely,

Lawrence J. Harrington, CIA, CRMA Vice President, Internal Audit Raytheon Company

Table of ContentsSeminar/eLearning Course Calendar.................................. 4-5

Taking The Journey .............................. 6-7

IIA News. ......................................... 10-14

Achieve All Star Excellence in Las Vegas This Fall .......................... 15

Certification Corner. ........................ 16-18

Fraud............................................... 20-23

GRC ................................................. 24-27

Internal Audit Practice .................... 28-33

Information Technology ................... 34-37

Top 10 Recruitment/ Retention Strategies........................ 38-41

Local News ...................................... 42-43

Promoting the Profession Beyond May ...44

Train Your Way ......................................45

Best Practices For Team Development .......................... 46-48

2014 Awards ................................... 50-51

Learn more about Career Compass at www.theiia.org/goto/CareerCompass.

We welcome comments, questions, and feedback at [email protected].

Connect with us on: Twitter Facebook LinkedIn Group www.theiia.org/goto/connect

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) 2014.

Your Career

7/140477/PM/JP

ABOUT YOUR CAREER COMPASSTo support IIA members’ internal audit career development and growth with the latest knowledge, tools, and resources available, this is the guide to everything The IIA has to offer. Your Career Compass print edition is mailed with Internal Auditor magazine four times a year and Your Career Compass enewsletter is delivered to members’ email inboxes monthly.

An IIA membership means stronger connections, greater influence, and more opportunities for career development. Learn more about the tools and resources available at www.theiia.org/membership.

www.theiia.org | 3

Your Career

Palm Beach, FLAug. 25–28

San Francisco, CASept. 23–26

Chicago, ILOct. 7–10

Houston, TXNov. 11–14

San Francisco, CANov. 18–21

Orlando, FLDec. 8–11

New York, NYDec. 16–19

Four Day Courses

Audit Manager Tools and Techniques Aug. 25–28 Nov. 11–14 Nov. 18–21

Auditor-in-charge Tools and Techniques Sep. 23–26 Dec. 8–11

Beginning Auditor Tools and Techniques Aug. 25–28 Sep. 23–26 Oct. 7–10 Nov. 11–14 Nov. 18–21 Dec. 8–11 Dec. 16–19

Communication Skills for Auditors Oct. 7–10 Dec. 16–19

Leadership Skills for Auditors Aug. 25–28 Oct. 7–10 Dec. 16–19

Core Curriculum–Courses Under Four Days

Analyzing and Improving Business Processes Aug. 25–26 Sep. 23–24 Nov. 11–12

Assessing Risk: Ensuring Internal Audit's Value Oct. 7–8 Nov. 11–12 Nov. 18–19 Dec. 8–9

Audit Report Writing Aug. 27–28 Nov. 11–12 Nov. 20–21

Auditing Contracts: From Planning to Reporting Nov. 13–14

Best Practices in Internal Auditing Nov. 20–21 Dec. 10–11

Building a Sustainable Quality Program Sep. 23–24 Oct. 7–8 Nov. 11–12 Dec. 16–17

Construction Activity: Audit Strategies Nov. 13–14 Dec. 18–19

Continuous Auditing Sep. 25–26 Nov. 13–14

Control Self-assessment: An Introduction Sep. 25–26 Dec. 8–9

Control Self-assessment: Facilitation Skills Aug. 27–28 Dec. 10–11

Corporate Governance: Strategies for Internal Audit

COSO 2013: Implementing the Framework Aug. 27–28 Sep. 23–24 Oct. 7–8 Nov. 11–12 Nov. 20–21 Dec. 8–9 Dec. 16–17

Creative Problem-solving Techniques for Auditors Nov. 13–14 Dec. 18–19

Critical Thinking for Internal Auditors Aug. 25–26

Enterprise Risk Management: An Introduction Aug. 25–26 Dec. 10–11

Financial Auditing for Internal Auditors Sep. 25–26 Oct. 7–8

Lean Six Sigma Tools for Internal Audit Fieldwork Oct. 9–10 Dec. 18–19

Lean Six Sigma Tools for Internal Audit Planning Sep. 23–24 Oct. 7–8

Operational Auditing: Influencing Positive Change Oct. 9–10 Nov. 13–14 Dec. 18–19

Performing an Effective Quality Assessment Sep. 25–26 Oct. 9–10 Nov. 13–14 Dec. 18–19

Project Management Techniques Aug. 25–26

Risk Based Auditing: A Value Add Proposition Nov. 18–19 Dec. 8–9

Risk Management Assurance: Developing Your Internal Audit Strategy Dec. 8–9

Statistical Sampling for Internal Auditors Nov. 20–21

Access more than 100 courses to train your team on site. Contact The IIA’s On-site Training Department to discuss your team development needs by e-mail at [email protected] or call +1-407-937-1388. www.theiia.org/onsite

2014 SEMINAR COURSE MATRIX

4 | The Institute of Internal Auditors

Your Career

Palm Beach, FLAug. 25–28

San Francisco, CASept. 23–26

Chicago, ILOct. 7–10

Houston, TXNov. 11–14

San Francisco, CANov. 18–21

Orlando, FLDec. 8–11

New York, NYDec. 16–19

Four Day Courses

Audit Manager Tools and Techniques Aug. 25–28 Nov. 11–14 Nov. 18–21

Auditor-in-charge Tools and Techniques Sep. 23–26 Dec. 8–11

Beginning Auditor Tools and Techniques Aug. 25–28 Sep. 23–26 Oct. 7–10 Nov. 11–14 Nov. 18–21 Dec. 8–11 Dec. 16–19

Communication Skills for Auditors Oct. 7–10 Dec. 16–19

Leadership Skills for Auditors Aug. 25–28 Oct. 7–10 Dec. 16–19

Core Curriculum–Courses Under Four Days

Analyzing and Improving Business Processes Aug. 25–26 Sep. 23–24 Nov. 11–12

Assessing Risk: Ensuring Internal Audit's Value Oct. 7–8 Nov. 11–12 Nov. 18–19 Dec. 8–9

Audit Report Writing Aug. 27–28 Nov. 11–12 Nov. 20–21

Auditing Contracts: From Planning to Reporting Nov. 13–14

Best Practices in Internal Auditing Nov. 20–21 Dec. 10–11

Building a Sustainable Quality Program Sep. 23–24 Oct. 7–8 Nov. 11–12 Dec. 16–17

Construction Activity: Audit Strategies Nov. 13–14 Dec. 18–19

Continuous Auditing Sep. 25–26 Nov. 13–14

Control Self-assessment: An Introduction Sep. 25–26 Dec. 8–9

Control Self-assessment: Facilitation Skills Aug. 27–28 Dec. 10–11

Corporate Governance: Strategies for Internal Audit

COSO 2013: Implementing the Framework Aug. 27–28 Sep. 23–24 Oct. 7–8 Nov. 11–12 Nov. 20–21 Dec. 8–9 Dec. 16–17

Creative Problem-solving Techniques for Auditors Nov. 13–14 Dec. 18–19

Critical Thinking for Internal Auditors Aug. 25–26

Enterprise Risk Management: An Introduction Aug. 25–26 Dec. 10–11

Financial Auditing for Internal Auditors Sep. 25–26 Oct. 7–8

Lean Six Sigma Tools for Internal Audit Fieldwork Oct. 9–10 Dec. 18–19

Lean Six Sigma Tools for Internal Audit Planning Sep. 23–24 Oct. 7–8

Operational Auditing: Influencing Positive Change Oct. 9–10 Nov. 13–14 Dec. 18–19

Performing an Effective Quality Assessment Sep. 25–26 Oct. 9–10 Nov. 13–14 Dec. 18–19

Project Management Techniques Aug. 25–26

Risk Based Auditing: A Value Add Proposition Nov. 18–19 Dec. 8–9

Risk Management Assurance: Developing Your Internal Audit Strategy Dec. 8–9

Statistical Sampling for Internal Auditors Nov. 20–21

Access more than 100 courses to train your team on site. Contact The IIA’s On-site Training Department to discuss your team development needs by e-mail at [email protected] or call +1-407-937-1388. www.theiia.org/onsite

2014 ELEARNING COURSES

eSeminars

CIA Learning System Comprehensive Instructor-led Course - Part 1 Aug. 4–22

Assessing Risk: Ensuring Internal Audit’s Value Aug. 5–14, Nov. 17–20

Lean Six Sigma Tools For Internal Audit Planning Aug. 5–14

Statistical Sampling for Internal Auditors Aug. 11–14, Nov. 4–7

Operational Auditing: Evaluating the Supply Chain Aug. 19–21, Dec. 2–4

Risk Based Auditing: A Value Add Proposition Sep. 8–17

Audit Report Writing Sep. 9–18, Nov. 3–12

Operational Auditing: Evaluating Procurement and Sourcing Sep. 9–11

Performing an Effective Quality Assessment Sep. 22–25, Dec. 8–17

Data Analysis for Internal Auditors Oct. 6–7

CIA Learning System Comprehensive Instructor-led Course - Part 2 Oct. 7–30

Enterprise Risk Management: An Introduction Oct. 14–17, Dec. 2–11

Lean Six Sigma Tools For Internal Audit Fieldwork Oct. 15–24

CIA Learning System Comprehensive Instructor-led Course - Part 3 Oct. 20–Nov. 14

Operational Auditing: Influencing Positive Change Oct. 28–Nov. 6

Control Self Assessment: An Introduction Dec. 8–11

eWorkshops

Presentation Skills for Internal the Internal Auditor Aug. 5–7

Intentional Audit Leadership: 12 Lenses For Focusing Strength Aug. 11–13

Auditing Procurement System Performance (ACGA) Aug. 19–28

CGAP 4-Part Review (ACGA) Aug. 26–Sept. 4

Powerful Tips to Pass the CIA Exam Sept. 29–30

Basic Data Integrity, Mining and Analysis in Excel (ACGA) Oct. 7–16

Using Excel to Extract, Analyze and Report on Audit Samples (ACGA) Oct. 21–30

Fraud and Abuse: What Is It To You? (ACGA) Nov. 10–12

Powerful Tips to Pass the CIA Exam Dec. 1–2

COSO 2013’s Impact on Ethics Evaluation Dec. 8–12

www.theiia.org | 5

The JourneyHow Certification Sharpens Your Auditing Skills and Creates Opportunities

Taking

The journey metaphor is an apt analogy for certification. That’s because every step of the process provides a learning experience that will directly enhance your auditing

career. Whether pursuing any one of The IIA’s five auditing certifications — such as the global industry-stan-dard Certified Internal Auditor® (CIA®) designation — you’ll emerge with stronger skills, deeper knowl-edge and a renewed respect for your profession.

Just ask Stephan Noppes, manager of internal controls at Philip Morris International in Geneva, Switzerland. In 2013, he was part of a group of 15 company employees who decided the only way to motivate other colleagues to pursue CIA certification was to

lead by example. Throughout the year-long process, the group met to discuss potential exam questions and encourage each other.

“Certification is an excellent way to learn the rules of the auditing profession and then apply (that knowledge) to day-to-day business operations,” said Noppes. “I think it provides a theoretical perspective — bound by rules — for business in a broader context.”

Along with PMI’s strong commit-ment to certification, what set these

• Certified Government Auditing Professional (CGAP)

• Certified Financial Services Auditor (CFSA)

• Certification in Control Self-Assessment (CCSA)

• Certification in Risk Management Assurance (CRMA)

• Introducing QIAL: Qualification in Internal Audit Leadership

IIA Certifications & Qualifications

Apply for Your CIA® and Save in August!

The CIA program application fee (up to a US$200 value) is waived when you apply by Aug. 31.

Apply now at www.theiia.org/goto/CIA!


Your Career

employees up for success was the global company’s willingness to leverage resources to ensure employ-ees were thoroughly prepared for the exams. Most notably, the company participated in instructor-led courses provided by The IIA’s CIA Learning System®. And according to Noppes, along with support from internal company leadership, this on-site instruction was key to the group’s high exam pass-rate.

Creating OpportunitiesWhile becoming certified doesn’t guarantee career success, it doesn’t hurt either. A 2013 study by The IIA found the median salary of auditors who held the CIA designation is up to 40 percent higher than those without the certification. That alone is enough to make many auditors stop and reconsider. It certainly was for Seth Peterson, senior audit manager with MetaBank in Sioux Falls, S.D., who holds multiple IIA certifications.

“Having a certification in itself does not make you a better auditor, but it does create some opportunities. It helps demonstrate your commitment to the profession, the company, and your investment in yourself,” ex-plained Peterson. “Certifications can help your chances for promotions, and gain creditability with man-agement, regulators, and external auditors.”

Learning the SystemOf course, successfully earning a certification requires focus and discipline. And lots of studying, too. That’s why The IIA provides an array of powerful learning tools to prepare

candidates for their exam. Choose from seminars, on-site training, and eLearning options including eSem-inars, eWorkshops, webinars, and self-study courses.

Among the most popular aids is The IIA’s CIA Learning System, an interactive self-study program devel-oped by industry experts to prepare candidates for the three-part CIA exam. The course includes reading materials and online tools that allow candidates to follow a customized study plan based on their own strengths and weaknesses. It’s the program’s flexibility and effective ap-proach that exam candidates praise.

Instructing the StudentsGenerally, on-site instruction for parts one and two of the exam are conducted during a one-week period consisting of a total of 35 hours. Ini-tial assessments are provided to the students to set benchmarks prior to on-site training, and then aggressive study plans are developed to focus on performance weaknesses — all leading up to the week-long course. Part-three instruction is much broader in scope, but follows the same basic approach ending with a one-week course.

Vicki McIntyre (CIA, CPA) — an IIA instructor and president of FirstPlus Resolutions, Inc. — pro-vided the on-site training for Noppes and his PMI colleagues, which she described as one of the “best and brightest” groups she has worked with. One of the benefits of a class-room setting is how exam prepara-tion can be applied to the company’s own auditing methodology, providing

tangible examples. Plus, you have a subject-matter expert to guide you with any questions.

“Another great benefit is participants get to discuss the exam questions with the instructor, and decide why the best answer is truly the best answer,” said McIntyre. “Or why an incorrect response is an incor-rect response. An instructor brings their experiences — in my case, more than 30 years of auditing, risk management and compliance knowledge.”

Reaping the RewardsOnce you pass the exam, you’re well on your way to becoming a better internal auditor. You’ll have gained new auditing skills while continuing to refine your existing ones. And you’ll have potentially increased your career earnings. Plus, you’ll get to tell your boss they were right all along — certification matters. Start your certification journey today.

• Decide which certifications are right for you.

• Determine your eligibility and skill level.

• Register and prepare for the exam.

• Take the exam.

• Pass the exam and receive your certification.

• Maintain your certification with continuing professional education and CPE reporting.

Certification Steps

www.theiia.org | 7

Your Career

* Apple is not a participant in or sponsor of this promotion. The photo included in this promotional advertisement is for illustrative purposes only and is not meant to represent the actual prizes to be awarded. For complete details on sweepstakes rules and regulations, please visit www.theiia.org/Bookstore.

GET 10% OFF IIARF published products! Enter promo code CC914 at bookstore checkout. Offer expires October 31, 2014. www.theiia.org/Bookstore

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ENTER THE IIARF BOOKSTORE

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You could WIN The IIA’s CIA Learning System® and an iPad Mini!*

Enter before September 30, 2014 at www.theiia.org/Bookstore for your chance to win.

When you choose The IIA’s CIA Learning System for your CIA exam preparations, your materials are only a click away! Download your reading materials to your e-reader device and access mobile-optimized interactive online study tools and quizzes wherever you have an Internet connection. Prepare to pass the CIA exam at work, at home, or in between with The IIA’s CIA Learning System and the iPad Mini!

Visit www.LearnCIA.com/go today to try a FREE demo of The IIA’s CIA Learning System.

141334

2014_IIA_Career_Compass_Ad_8x10_875_BookstoreSweeps.indd 1 6/17/14 3:08 PM

Join The IIA today at TheIIA.org.

“My IIA membership has put me in touch with peers, education, research, and the Standards that I can’t get anywhere else. Being an active member has helped elevate my professional presence and expanded my network, and in our fi eld, this is critical to success. The value my IIA membership brings is extraordinary in terms of leadership opportunities and networking benefi ts, and I don’t think you can buy professional development like that.”

Membership in The IIA means stronger connections, greater infl uence, and more opportunities for career development.

I Am More with The IIA.

I Am Connected, Knowledgeable, Confi dent…

I Am More.

1405

06

Carmen Abela, CIA, CCSAMember Since 1998

140506 MEM-Membership April IA Ad.indd 1 2/21/14 11:56 AM

News

2014 Gaming Conference Shares Hot InsightsThe more than 300 attendees of The IIA’s Gaming Con-ference in Las Vegas enjoyed a keynote address by Geoff Freeman, president and CEO of the American Gaming Association. During Freeman’s first address to the annual conference, he focused on Global and Domestic Expan-sion of the Gaming Industry. The executive panel that followed, with experts Phillip Popehn, Robert Rudloff, Arthur Askins, and Faisal Khan, broke down gaming’s cur-

rent hot topics. The conference’s 24 concurrent sessions focused on topics ranging from auditing poker operations and Internet security network risk assessment programs to a Title 31 Bank Secrecy Act Update, and the event closed with general sessions on The Revised COSO Framework: What’s Changed, Why, and So What? and We Gotta Fail…To Succeed!

Internal Auditor magazine’s new web-site is now delivering the internal audit news you need in a visually enhanced, user-friendly, and responsive format. Optimized for any mobile device, the site features enhanced search with a new filter, cleaner design, integrated video coverage, and linking of relat-ed articles, blogs, and commentary, it keeps you connected to what’s trending while keeping you focused on the issues that remain at the forefront of the profession.

With new comment functionality, social sharing, and enhanced blog visibility on the homepage, the new website provides multiple ways for you to join the conversation and walk away with greater insight and share with your colleagues, stakeholders, and social media followers.

By connecting articles by topic, the site is more intuitive and offers more of the technology, governance, risk, and fraud, information you need in one place. Go explore the new site today at www.internalauditor.org.

Internal Auditor Magazine Launches a New Website to Deliver MORE.


Your Career

Record-Breaking Attendance for The IIA’s 2014 Leadership AcademyThis year’s 345 North American volunteer chapter leaders and board/committee members from 146 chapters set the highest attendance to date. The event, created to help IIA chapter leaders master the skills necessary to lead a successful chapter, feature general sessions, roundtable

discussions, and networking opportunities. Access the 2014 Leadership Academy photo gallery on Flickr, includ-ing 900 Scavenger Hunt photos!

Visit www.theiia.org/goto/leadershipacademy.

GAM 2014 RECEIVES RAVE REVIEWS FROM AUDIT EXECUTIVESAnother sold-out crowd proved that The IIA’s General Audit Management (GAM) Conference is the essential experience for CAEs. More than 1,000 audit executives were blown away beginning with a keynote address from Virginia Gambale, director of JetBlue Airways and managing partner of Azimuth Partners, on The Board’s View of Governance and the Important Role of Internal Audit. The panel discussion that followed, Leading Internal Audit in an Organization That Thrives on Change, focused on the importance of the audit function’s ability to adapt to changes on the fly in the strategic and operational objectives of the business. This energy was carried through the 35 concurrent sessions on topics from Auditing Forward to Privacy, Risk, and Data Management, motivating attendees to save-the-date for GAM 2015 in Las Vegas.

www.theiia.org | 11

Your Career

NEW RELEASES FROM IIA RESEARCH FOUNDATIONWith more than 200 research reports and thousands of publications on today’s most relevant topics and issues, The IIA Research Foundation Bookstore is your one-stop-shop for all things internal audit. Check out the newest releases at www.theiia.org/bookstore.

Bribery: Identify Hidden Risks in Your OrganizationThis publication provides practical information and advice to generalist internal auditors regarding the difficult-to-discover act of bribery.

Manual de Evaluación de Calidad Para la Actividad de Auditoria InternaWith more than 400 million native Spanish speakers around the world, the translation of Quality Assessment Manual for the Internal Audit Activity, one of the most critical tools for internal audit departments to ensure their performance is in line with the International Standards for the Professional Practice of Internal Auditing, is invaluable.

Become a Strategic Internal AuditorBased on in-depth interviews with leading organizations, this publication provides insight into whether internal audit has a seat at the table when it comes to organizational strategy and the reasons behind the answers.

Nine Elements Required for Internal Audit Effectiveness in the Public SectorThis new research report is based on The IIA’s Supplemental Guidance, The Role of Internal Auditing in Public Sector Governance, to assess common denominators for success in public sector auditing around the world, including greatest strengths, most significant barriers, and primary differences across regions.

Evaluating Internal Control SystemsThis new report offers a single defined framework that delivers an integrated assurance approach with a practical, detailed method for assurance over the internal governance systems. Some benefits

of CAM discussed in the report include its objective and systematic approach, flexible parameters, and support for the Three Lines of Defense model.

The Value of Quality Assurance and Improvement ProgramsThrough the Global Internal Audit Common Body of Knowledge study, The IIARF has released a report on the state of Quality Assurance and Improvement Programs (QAIPs) around the world. than 1,000 respondents from 46 countries, it discusses the prevalence of QAIPs, the benefits to the organization and the internal audit activity, and barriers to building or sustaining a QAIP.

Internal Audit Around the WorldThis report uses The IIA’s Common Body of Knowledge (CBOK) database to review the data from the 2006 and 2010 CBOK surveys and provide in-depth analysis of the factors and rationale behind the development

of the profession and its different facets.

Mergers, Acquisitions, and Sales This book examines how internal auditors can add value to the mergers, acquisitions, and sales (MA&S) process. It highlights the role of internal auditing through case studies, outlining international best practices and providing due diligence checklists. It also investigates how internal audit management — in particular, the chief audit executive — can be more effective in strategic decision-making regarding proposed MA&S.


Your Career

NEW GUIDANCE RELEASESTo assist practitioners with the interpretation and application of the Inter-national Standards for the Professional Practice of Internal Auditing, The IIA publishes practice guides and other materials. Explore the latest releases here.

Practice Guide: Auditing Anti-bribery and Anti-corruption ProgramsThis practice guide offers insight on the nature of bribery and corruption in organizations throughout the world. It discusses the current business landscape and stresses that no organization, regardless of sector or size, is immune from the potentially devastating impacts of bribery and corruption.

Practice Guide: Business Continuity ManagementThis practice guide defines BCM and Crisis Management and discusses the activities that may be performed by internal audit before, during, and after a crisis, as well as internal audit’s evaluation of key BCM elements.

Global Public Sector Insight: Independent Audit Committees in Public Sector OrganizationsThis global public sector insight communicates the importance and value of independent public sector audit committees and how organizations can properly establish them.

2014 IIA CONFERENCES

GRC (IIA/ISACA)Aug. 18–20, 2014The Breakers / Palm Beach, FL

NORTHEASTERN REGIONAL CONFERENCESept. 7–10, 2014New York Marriott / Brooklyn, NY

IT AUDIT & CONTROLS CONFERENCE (IIA/MIS)Sept. 30–Oct. 2, 2014Hilton Resort & Spa / San Diego, CA

IIA–CANADA NATIONAL CONFERENCE Oct. 5–8, 2014Westin Ottawa Hotel / Ottawa, ON, Canada

ALL STAR CONFERENCEOct. 28–30, 2014Caesar’s Palace / Las Vegas, NV

MAKING THE CONNECTION IN LONDONLook forward to a full recap of The IIA’s 73rd International Conference in the next issue that brought together 2,000 attendees repre-senting 109 countries in July.

NEW LEADERS APPOINTED TO IIA’S FINANCIAL SERVICES ADVISORY BOARD (FSAB)Mark Howard, senior vice president and chief audit executive for the United Services Automobile As-sociation (USAA), has been appointed chairman of The IIA’s Financial Services Advisory Board (FSAB),

and O. Dale Jeanes, CIA, CCSA, CFSA, general auditor for BB&T, has been appointed vice chairman. Howard succeeds longtime FSAB Chairman Scott D. White, vice president of M&M Consulting, LLC, who was instrumental in spearheading the creation of free FSAB webinars and The IIA’s Financial Services SmartBrief, a monthly e-newsletter providing infor-mation relevant to financial services auditors.

www.theiia.org | 13

Your Career

In response to growing demand by internal audit profession stakeholders, The IIA has introduced its first qualification program focused on cultivating stra-tegic and visionary leaders. The Qualification in Internal Audit LeadershipTM (QIALTM) identifies, assesses, and develops core skills linked to audit leader-ship success. It caters to CIAs and CAEs who are already strong performers and have potential for greater leadership.

Richard Chambers, president and CEO of The IIA, said: “QIAL is the latest way The IIA is serving the needs of our members and the audit profession. We anticipate those who earn the QIAL will gain a significant edge at their current companies and within the employment marketplace. QIAL com-plements existing IIA certifications but is unique. The skills mastered are essential for aspiring leaders and CAEs, even if they’ve been in the field for decades.”

Registration for the new qualification opens August 2014. Start your leadership journey TODAY. Learn more about this unique program at www.globaliia.org/QIAL or contact [email protected]

Building the Leaders of Tomorrow,

TodayDISTINGUISHES

Aspiring Leaders

New Leaders

Current Leaders

SKILLS MASTEREDInternal Audit Leadership

Organizational Leadership

Ethical Leadership

Innovation and Change Leadership

TAKE ADVANTAGE OF LIMITED TIME CIA APPLICATION FEE WAIVERDuring August, The IIA is waiving the Certified Internal Auditor® (CIA®) program application fee (up to a $200 value). Interested in demonstrating your commit-ment, competence, and credibility by achieving an IIA designation? Apply through The IIA’s Certification Candidate Management System (CCMS) from Aug. 1–31, 2014 at www.theiia.org/goto/CIA!

News


Your Career

The IIA’s highest rated presenters from the past year of conferences as evaluated by attendees are on the agenda

for The IIA’s All Star Conference. This is the premier networking and education opportunity to garner cutting-edge

insights on issues impacting the internal audit environment and beyond.

We sat down for a short Q&A with Pamela Jenkins, speaker at the 2014 All Star Conference and Vice President of

Audit Services, US Foods, on what to expect at this year’s event.

1. What are the top career-development benefits of attending the 2014 All Star Conference?

The conference was designed to showcase the “best of the best” of past speakers, all based on 2013–14 evaluations. The topics being presented are among the most-pressing issues for today’s internal auditors, so attendees will be prepared for the challenges they’ll be facing down the road. That’s probably the top career ben-efit — you’ll have auditing knowledge that your non-at-tending peers and colleagues won’t.

2. What are the biggest emerging challenges facing internal auditing, and how will at-tending this conference help internal audit professionals prepare?

The Conference Committee recognized the emerging challenges that modern internal auditors are faced with, and developed tracks that focused on these areas so they mirror each other. Among these tracks are “Fraud Aware-ness: Prevention, Detection, & Reporting,” “Corporate Governance: Trends & Developments,” “IT Trends: Im-pact on the Audit Environment” and “Managing Risks & Compliance: Current Trends.” It’s not a coincidence the conference’s theme is “Strategies for Achieving Internal Audit Excellence.”

3. If you had to convince your boss to allow you to attend the conference, what would you tell them?

It is important to stay up-to-date with the best practices of internal auditing as well as the current risks the indus-try faces.

4. Are there any conference speakers and/or topics you feel will be particularly impact-ful and why?

Well, the session I’m co-presenting with Mark Beasley — a Deloitte Professor of Enterprise Risk Management at North Carolina State University — would be a great place to start. The session is titled “Corporate Strate-gy and Risk: Making an Impact.” We take a tag-team approach that was extremely popular in the past. Mark provides the academic viewpoint, and I offer the practical application.

ACHIEVE ALL STAR EXCELLENCE IN

LAS VEGAS THIS FALL

2014ALL STARCONFERENCEOct.28–30, 2014 / Las Vegas, NV

Reserve your spot today at www.theiia.org/goto/AllStar2014!

www.theiia.org | 15

Your Career

CERTIFICATION SPOTLIGHT HERBERT OTTO HOMOLKA, CIA, CCSA, CFSA, CGAP, CRMA SENIOR INTERNAL AUDITOR (RETIRED) CAIXA ECONÔMICA FEDERAL, RECIFE, BRAZILMEMBER, IIA–BRAZIL

1. What prompted you to become certified?

In 1994, full of enthusiasm to start a career as an internal auditor at Caixa Econômica Federal (Brazilian Government Bank), I contacted The IIA for additional information on obtaining CIA certification. As a result of my inquiry, I received a heavy envelope with instructions on certification exams; however, because the exams had to be taken in the United States, I did not take further action.

Ten years after my initial inquiry, my involvement with IIA–Brazil had reawakened my desire to master the CIA. I studied exam review books and practiced more than 2,000 simulated exercises on CD. During 30 vacation days, I focused on my studies for up to 12 hours daily.

Exams were set to be taken in Sao Paulo, Brazil, in November 2005, which is a three hour flight from my home town of Recife. Against the advice of my friends and colleagues, I decided to take the four exams* at once, of which Part 3 was the hardest.

In February 2006, I received a phone call from the president of the IIA–Brazil congratulating me for passing the CIA. With the CIA exam know-how, I decided to pursue the remaining certifications.

The combination of my experience as an internal auditor for a major federal government bank in Brazil gave me the necessary experience to pursue all five IIA certifications. However, my desire to learn international auditing expertise (that I did not have on a daily basis) was my major motivation behind my efforts to pursue certifications.

Additionally, The IIA’s five certifications improved my resume and qualifications as an internal auditor.

CERTIFICATION Corner


Your Career

2. If you hold multiple IIA designations, what order did you earn them in and why?

CIA, Nov. 2005; CCSA, June 2006; CFSA, May 2007; CGAP, July 2007; and CRMA, Jan. 2013.As to the order, the CCSA was the easiest after passing the CIA exam. For the others, it was just a personal choice with no “decision process.”

3.Did your organization fund your exam fees or preparation materials? If yes, was it the corporate culture or did you have to sell the value of certification?

I paid for all the fees and preparation materials. The CAE authorized my travel expenses related to taking the CIA exams.

4. How many of your colleagues are certified?

In my previous company, I was the first to obtain IIA certifications and was the only one for years. When I retired in December 2012, there were maybe four or five colleagues who had obtained CIA certification.

5. How does having an IIA certification set you apart from your non-certified peers?

The three (CIA) or four letters (CCSA, CFSA, CGAP, CRMA) after your name is like an ID. You don’t need to “prove” anything about your competencies. You are distinguished. You are reliable. Your designation enhances its credibility, too.

6. How did you prepare for the exam?

For the CIA I studied exam the Gleim Exam Review (Exam 1, 2, 3, and 4) in English and practiced more than 2,000 simulated exercises on Gleim CDs. For 30 vacation days, I focused on my studies for up to 12 hours daily. My daily study program was I would begin to study as early as 4:00 or 5:00 a.m. until noon, followed by a 4-hour break. I would then resume study at 4:00 to 5:00 p.m. for about an hour before ending for the day.

For the specialty certifications, I dedicated two hours Monday-Friday and all day during on Saturdays and holidays. I studied The IIA study guides and practiced Gleim’s questions via CD (related topics).

My academic and professional background was a plus to pass the exams as well.

www.theiia.org | 17

Your Career

7. How has your certification helped your career?

Opportunities, opportunities, and more opportunities. Because of my certifications, I had often been invit-ed to participate in projects to enhance the internal audit function for my former company such as: write the first version of the internal audit charter; idealize the syllabus of an internal audit specialization course focused on The IIA’s Standards (540 course hours) and approve its study guide final version; review audit programs; and provide advice on a Quality Assurance and Improvement Program (QAIP) preparatory process.Another benefit is that I was offered an opportunity to teach internal audit for a well-known university in Brazil.

• Book Co-Author: DIGITAL CERTIFICATION Concepts and Applications – Brazilian and Australian Models, Published on March 2008 (http://www.lcm.com.br/).

• Committee member for both IIA Global and the board of IIA–Brazil. Currently, I am a member of the board of my former company’s retirement fund, the third largest in Brazil.

8. What advice do you have for others who are seeking certification?

Certifications open doors and windows to professional opportunities. They extend horizons. Our profession is on the rise and will continue to rise in the future. Let’s stay on the cutting edge! It is worth all the effort one can give to pursue the certifications. I became certified at the age of 48. No matter what stage or time of professional practice, get certified!

Herbert Otto Homolka currently serves as a board member at The Foundation of the Federal Savings (FUNCEF), the third largest closed pension fund in Brazil. In 2012, after nearly 20 years of professional experience, he retired from Caixa Econômica Federal in Recife, Brazil. Homolka has more than 10 years as a volunteer at IIA–Brazil including his current position as a member of the Board of Directors and is a former member of select IIA global committees. Additionally, he co-authored the book “Certificacão Digital, Conceitos e Aplicacões, Modelos Brasileiro e Australiano (Digital Certification – Concepts and Applications – Brazilian and Australian),” Editora Ciência Moderna Ltda, 2008. Homolka has also taught internal auditing at the Universidade Católica de Brasília.

In addition to receiving an MBA from Brigham Young University in Utah, he also holds all five IIA certifications.

For 15 years he has lead the coordination of the Helping Hands Program (www.maosqueajudam.org.br), a humanitarian and community service organization in Recife-Brazil.

* At the time Mr. Homolka took the exam, the CIA exam still consisted of four parts. It has since been reduced to three.


Your Career

141002

Let Us Come To You.

IIA On-Site Training Is…

n Customized to meet your needs.n Designed for convenience and flexibility.n A building block for teams.

n Developed with your budget in mind. n Relevant. n Facilitated by experts in their field.

With hundreds of courses available, including the vital new course, COSO 2013: Implementing the Framework, IIA On-site Training is uniquely positioned to deliver exactly what your team needs.

Prepare your team with world-class training. Contact On-site Training today for a no-obligation consultation.

+1-407-937-1388 n [email protected] n www.theiia.org/onsite

According to the ACFE’s Report to the Nations on Occupational Fraud & Abuse, the typical organization loses

5 percent of its revenues to fraud each year. Although it is management’s responsibility to design internal

controls to prevent, detect, and mitigate fraud, internal auditors are the appropriate resource for assessing

the effectiveness of what management has implemented. The IIA has a host of resources to ensure that you,

as an internal auditor, are equipped to do just that.

TRAINING RESOURCESLearn more about these courses at www.theiia.org/training.

Data Analysis for Internal AuditorsAre you seeking to improve the effectiveness of your audit planning and to ensure whether or not your results can be generalized to total populations? This course provides the opportunity to learn about the analysis of large data sets, particularly how to sum-marize and display data, and determine the appropri-ate measures for describing data.

eSeminar Session Dates: Oct. 6–7

CPE Hours Available: 8

Internal Auditing for Fraud Appropriate for auditors at all levels, this course is a joint effort between The IIA and Deloitte & Touche. It focuses on monitoring activities, understanding the nature of fraud and how it manifests itself, inter-nal audit’s role in detecting fraud, and audit steps to detect fraudulent activities.

Upcoming Offering: Sept. 23–24, Chicago, IL

Course Duration: 2 days / CPE Hours Available: 16

Internal Auditing for FCPA & Anti-corruption: Leading Practice Considerations from the SEC and DOJ GuidanceCompliance with anti-corruption laws such as the U.S. Foreign Corrupt Practice Act (FCPA) has been a growing focus of many organizations due to increased business activity in emerging markets, and an uptick in FCPA enforcement and fines that often reach hundreds of millions of dollars.

This interactive one-day course, a joint effort be-tween The IIA and Deloitte & Touche, will provide an overview of the FCPA and UK Bribery Act and will discuss the various roles internal auditors can play in auditing for corruption.

Upcoming Offering: Nov. 20, Dallas, TX

Course Duration: 1 day / CPE Hours Available: 8

Purchasing Fraud: Auditing and Detection TechniquesThis interactive course, a joint effort between The IIA and Deloitte, helps you to assess an organiza-tion’s risks relating to purchasing fraud, identify con-trols that can mitigate those risks, design audit tests to detect purchasing fraud, and investigate evidence of fraud occurring.

Upcoming Offering: Nov. 18–19, Dallas, TX


FRAUD

SEMINARS ON-SITE TRAINING CONFERENCESeLEARNING20 | The Institute of Internal Auditors

Your Career

Onsite TrainingGet your entire team up to speed on techniques to tackle fraud-related issues. Have our Onsite training team schedule any of the courses on the previous pages or additional courses for your team of five or more at your location.

• Corruption: Mitigation Strategies for Internal Audit

• Detecting, Preventing, and Reporting Internal and External Fraud

• Developing a Fraud Risk Management Program for Your Organization

• Evaluating Organizational Ethics• Financial Statement Fraud Detection for

Internal Auditors• Fraud Auditing Using ACL• Fraud Awareness for CAEs and Management• Fraud Detection and Investigation for

Government Auditors• Fraud Detection and Investigation for

Internal Auditors• Fraud Investigation Tools and Techniques

Explore more benefits of Onsite Training by visiting www.theiia.org/onsite or contact The IIA’s On-site Training Department by e-mail at [email protected] or call +1-407-937-1388.

eLEARNING

The IIA’s wide variety of webinars, eSeminars, on-de-mand self-study courses, and eWorkshops mean you can spend less time traveling and more time learning.

eWorkshopsNov. 10–12: Fraud and Abuse: What Is It To You?

eSeminarsOct. 6–7: Data Analysis for Internal Auditors CPE Hours Available: 8

Members-only WebinarsMembers-only Webinars offer free CPE opportunities at www.theiia.org/goto/MOW:

Sept. 16: Fraud and Embezzlement: Lessons from the Trenches

Learn more about these training opportunities at www.theiia.org/elearning.

CONFERENCES

Conferences offer a great way to delve into fraud issues with these educational tracks and network with your peers who are facing the same tough challenges.

Northeastern Regional ConferenceSept. 7–10, 2014 / Brooklyn, NY

• Ripped From the Headlines: Case Studies of Major Embezzlements

• Fraud in the Financial Services Arena

All Star ConferenceOct. 28–30, 2014 / Las Vegas, NV

• Fraud Awareness: Prevention, Detection, & Reporting

FRAUD

Consult the course matrix on pages 4-5 for offering dates and locations.

Learn more about any of the above courses and register today at www.theiia.org/training.

www.theiia.org | 21

Your Career

BOOKS AND EDUCATIONAL PRODUCTS

Bribery–Identify Hidden Risks in Your OrganizationBribery is often covert, tricky to prevent, and notoriously tough to uncover. Forensic accountants and fraud-focused auditors are often successful at detecting bribes, but it is

difficult for generalist internal auditors to find such transactions through regular auditing techniques. Bribery: Identify Hidden Risks in Your Organization offers practical information and advice on:

• Anti-bribery controls over an organization’s expenditure, revenue, assets, and liabilities.

• Legislative and regulatory considerations.• Organizational whistleblowing hotlines.• Third-party bribery.

Item No.: 1155

Member Price: $40.00

Non-member Price: $50.00

Order Your Copy through the IIA Research Foundation Bookstore. www.theiia.org/Bookstore

The Intermediate Audit Library Collection BUY A BUNDLE - SAVE A BUNDLE! IIA Members save $453.00!

• COSO Internal Control – Integrated Frame-work: 2013 Framework NEW!

• Internal Auditing: Assurance & Advisory Ser-vices, 3rd Edition NEW!

• International Professional Practices Framework (IPPF) 2013 NEW!

• Quality Assessment Manual for the Internal Audit Activity NEW!

• Sawyer’s Internal Auditing, 6th Edition NEW! • The Internal Auditor’s Guide to Risk

Assessment NEW! • And more

Item No.: 1042

Member Price: $1,100.00

Non-member Price: $1,553.00

GUIDANCE RESOURCES

Practice Guide: Auditing Anti-bribery and Anti- corruption ProgramThe IIA’s new Practice Guide: Auditing Anti-bribery and Anti-corruption Programs offers internal audit practi-tioners insight on the nature of

bribery and corruption in organizations throughout the world. It discusses the current business land-scape and stresses that no organization, regardless of whether it is public, private, large or small is immune from the devastating impacts bribery and corruption bring.

FRAUD


Your Career

GTAG 13: Fraud Preven-tion and Detection in an Automated WorldThrough a step-by-step process for auditing a fraud prevention program, an expla-nation of the various types of data analysis to use in detect-

ing fraud, and a technology fraud risk assessment template, this GTAG aims to inform and provide guidance to CAEs and internal auditors on how to use technology to help prevent, detect, and respond to fraud.

Practice Guide: Internal Auditing and FraudThis guide discusses fraud and provides general guidance to help internal auditors comply with professional standards. Because fraud negatively impacts organizations in

many ways — financial, reputational, and through psychological and social implications — it is important for organizations to have a strong fraud program that includes awareness, prevention, and detection programs, as well as a fraud risk assessment process to identify risks within the organization.

Consult these guidance resources, part of the International Professional Practices Framework (IPPF)®, at www.theiia.org/guidance.

THOUGHT LEADERSHIP AND RESEARCH

Ia Magazine: Businesswide CybersecurityFrom the board and management to the chief infor-mation officer and the CAE, organizational leaders typically now discuss cyberthreats not solely as an IT problem but as a fully fledged business risk. Internal auditors can help assess security weaknesses, but they must also be engaged at a more strategic level, knowing what the board’s approach to security is, working proactively with systems administrators, and getting involved with new IT implementations at an early stage. www.internalauditoronline.org

Case Study: Combating Financial Reporting Fraud, Builds on Prior Case Study SuccessThe Anti-Fraud Collaboration published a second innovative case study for members of the financial reporting supply

chain. The Carolina Wilderness Outfitters Case Study explores potential material fraud at a fictitious public company. The hypothetical examination is designed to facilitate a discussion of how and when to conduct an internal investigation when fraud is suspected. Download at www.theiia.org/goto/anti-fraudcollaboration.

AuditChannel.tvCatch the latest insight into fraud with leading ex-perts on www.AuditChannel.tv – Approaching Fraud Risk Proactively, Data Analytics and Fraud, Future of Fraud, Vendor Fraud Case Study, and more.

Carolina Wilderness OutfittersCase Study (A)

FRAUD

www.theiia.org | 23

Your Career

As an internal auditor, you are called upon to assess and make appropriate recommendations for improving the

governance process; evaluate the effectiveness and contribute to the improvement of risk management processes;

and assist the organization in maintaining effective controls by evaluating their effectiveness and efficiency and by

promoting continuous improvement. As the professional association established to support you, the internal auditor,

we have developed a host of resources to assist you in achieving those objectives.


Assessing Risk: Ensuring Internal Audit’s ValueThis course provides practical insights relating to contemporary best practices of risk assessment activities and allows participants to apply what they have learned so they can implement risk assessment activities at their organization. Covering funda-mentals and nuances such as audit universe, risk appetite, and fraud; and the challenges of imple-mentation. It also addresses skill gaps many internal auditors struggle with such as how to develop their own risk assessment frameworks and how to select or construct a risk ranking system.

Upcoming Offerings: Aug. 5–14, eSeminar

Sept. 25–26, San Francisco, CA

Oct. 7–8, Chicago, IL

Nov. 11–12, Houston, TX

Nov. 17–20, eSeminar

Nov. 18–19, San Francisco, CA

Dec. 8–9, Orlando, FL


Risk-based Auditing: A Value Add PropositionThrough case studies, group discussions, round-tables, and facilitator presentations, this course will help audit team leaders and other management level audit professionals align their organizations’ strategies, visions, and values with the internal audit process. Participants will come to understand the importance of corporate governance and enterprise risk management, while learning to identify risks, perform risk assessments, develop a risk-based assurance plan, understand entity wide controls, and plan a risk-based engagement.

Upcoming Offerings: Sept. 8–17, eSeminar




GOVERNANCE, RISK, AND CONTROLS




Your Career

eLEARNING

The IIA’s wide variety of webinars, eSeminars, on-demand self-study courses, and eWorkshops are available conveniently whenever and wherever you are. www.theiia.org/elearning

eSeminarsAug. 5–14, Nov. 17–20: Assessing Risk: Ensuring IA’s Value

Aug. 5–14: Lean Six Sigma Tools for Internal Audit Planning

Aug. 11–14, Nov. 4–7: Statistical Sampling for Internal Auditors

Aug. 19–21, Dec. 8–17: Operational Auditing:

Evaluating the Supply Chain

Sept. 8–17: Risk Based Auditing: A Value Add Proposition

Sept. 9–18, Nov. 3–12: Audit Report Writing

Sept. 22–25, Dec.8 –10: Performing An Effective Quality Assessment

Oct. 6–7: Data Analysis for Internal Auditors

Oct. 14–17, Dec. 2–11: Enterprise Risk Management: An Introduction

Oct. 15–24: Lean Six Sigma Tools For IA Fieldwork

Oct. 28–Nov. 6: Operational Auditing: Influencing Positive Change

Sept. 9–11: Operational Auditing:

Evaluating Procurement and Sourcing

Sept. 23–Oct. 2: Value-Added Business Controls:

The Right Way to Manage Risk

Dec. 8–11: Control Self-Assessment: An Intro

Members-Only WebinarsSave the dates for this line-up of Members-only we-binars addressing governance and risk-related issues. Learn more about these free CPE opportunities at www.theiia.org/goto/MOW:

Aug. 19: Risks Around Social Media

Oct. 21: Integrated Reporting: Case Studies

Financial Services Auditor Group WebinarsSept. 4: Hot Topics in Compliance

Nov. 6: The Intersection of the Audit and Risk Committee

CONFERENCES

Conferences offer a great way to gain additional information to assist you in managing your role addressing governance, risk management, and con-trols issues. Check out these upcoming sessions at conference events:

Governance, Risk, and Control Conference (IIA/ISACA)August 18–20, 2014 / Palm Beach, FL

• IT GRC – Current Trends and Approaches

• Enterprise Solutions for GRC

• ERM: Bridge to Excellence in Auditing


• Best-in-Class Risk Management...Getting It Done

• Risk Sensing

• Using Data Mining for Audit Planning and Beyond


• Corporate Governance: Trends & Developments

• Managing Risks & Compliance: Current Trends

Visit www.theiia.org/conferences for more info.


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Your Career

CERTIFICATIONSFind the Key to Your Success with the Certification in Risk Management Assurance® (CRMA®) Designation.

The CRMA is designed for internal auditors and risk management professionals with responsibility for and experience in providing risk assurance, governance processes, quality assurance, or control self-assessment (CSA). It demonstrates your individual ability to evaluate the dynamic components comprising an organization’s governance and enterprise risk management program and provide advice and assurance around these issues.

Individuals with knowledge of the fundamentals of control self-assessment and facilitator experience can showcase their

expertise by earning the Certification in Control Self Assessment® (CCSA®).

Visit www.theiia.org/certification for information and to apply.

BOOKS AND EDUCATIONAL PRODUCTS Enterprise Risk Management: Achieving and Sustaining Success – ebookIn today’s rapidly changing business climate, orga-nizations are looking for proactive ways to foresee risks. To be successful, organizations must find ways to create new value and protect existing value from being prematurely destroyed. Managing the risks associated with any strategic plan is vital to ensuring the organization’s ongoing success.

Item No.: 1117.ep

Member Price: $80.00 / Nonmember Price: $115.00

The Internal Auditor’s Guide to Risk Assessment – ebookRisk assessment is a core activity that impacts internal auditors on a daily basis. That is why it is so important for

everyone in the internal audit function to have the skills and knowledge to assess risk. The Internal Au-ditor’s Guide to Risk Assessment will show you how to:

• Conduct a risk assessment, step by step • Use the risk assessment to create the audit plan • Align risk assessment to business objectives

Item No.: 1134.epMember Price: $105.00 / Nonmember Price: $125.00

Management’s Guide to Sarbanes-Oxley Section 404: Maximize Value Within Your Organization – ebookOrganizations with Sar-banes-Oxley programs are required to use a formally

recognized internal controls framework. The only framework recognized by the SEC is COSO’s Internal Control–Integrated Framework, updated in 2013. The guidance presented in this updated book is consistent with COSO 2013 and promotes a top-down, risk-based assessment program.

Item No.: 1151.epMember Price: $30.00 / Nonmember Price: $40.00

Access hundreds of other practitioner-reviewed educational products at www.theiia.org/bookstore.



Your Career

GUIDANCE RESOURCES

IPPF Practice Guides Covering GRC:• Business Continuity Management NEW! • Assessing the Adequacy of Risk Management

• Information Technology Controls

• Change and Patch Management Controls

• Auditing Privacy Risks, 2nd Edition

• Auditing Application Controls

• Identity and Access Management

• Auditing External Business Relationships

IPPF Practice Advisories covering GRC:• Internal Audit Charter

• Board Interaction

• Linking the Audit Plan to Risk and Exposures

• Using the Risk Management Process in Planning

• Communication and Approval

• Assurance Maps

• Reporting to Senior Management and the Board

• Governance: Definition

• Governance: Relationship With Risk and Control

• Governance: Assessments

• Assessing the Adequacy of Risk Management Processes

• Managing the Risk of the Internal Audit Activity

• Assessing the Adequacy of Control Processes

• Information Reliability and Integrity

Evaluating an Organization’s Privacy Framework

Consult these guidance resources in the Interna-tional Professional Practices Framework (IPPF)® at www.theiia.org/guidance.


Ia Magazine: Road to Process ImprovementFor several years, the Texas Department of Transpor-tation’s (DOT’s) Internal Audit Office has been on a mission to improve its audit program by infusing elements of COSO’s Internal Control–Integrated Framework. Since the release of COSO 2013, DOT auditors have been able to leverage the new frame-work to achieve increased consistency, quality, and productivity. www.internalauditoronline.org

Evaluating Internal Control SystemsThis new report offers a single defined framework that de-livers an integrated assurance approach with a practical, detailed method for assurance over the internal governance

systems. Some benefits of CAM discussed in the report include its objective and systematic approach, flexible parameters, and support for the Three Lines of Defense model. www.theiia.org/research

Catch the latest insight into governance, risk, and control with leading experts on www.AuditChannel.tv – Integrating IT into ERM, Who Owns Your Controls? How COSO Can Help?, The MDM-GRC-ERM Puzzle, The Marriage of Internal Audit and Risk Management, and more.


www.theiia.org | 27

Your Career

Whether you are just starting your career, coming into internal audit midway through your career, or needing to

enhance your skill sets with latest best practices, here are resources to support your internal audit expertise to make

an impact and maintain relevancy with your colleagues, superiors, executive leadership, board, and audit committee.


Analyzing & Improving Business Processes This course provides participants with a set of tools and techniques that can be used in any process anal-ysis engagement. In addition, it includes numerous opportunities to apply those tools and techniques in real-world scenarios. The best way to build business process analysis skills is by doing the work, and this course is full of hands-on applications using case studies and the participants’ understanding of their own processes to apply these tools and tech-niques often.

Upcoming Offerings: Aug. 25–26, Palm Beach, FL

Sept. 23–24, San Francisco, CA



Audit Manager Tools and Techniques Through practical exercises and case studies, participants will learn how to manage the roles and relationships of the diverse parties involved in the auditing process. Participants will learn how to maintain lines of communication with the CAE and executive management, and problem solve while motivating a team and delegating tasks.





Audit Report Writing This is a hands-on course that focuses on the orga-nization and structure of audit reports, and includes case study activities for practicing the basics of audit report writing. This course is a good prep course for more advanced audit report writing courses.


Sept. 9–18, eSeminar





INTERNAL AUDIT PRACTICE


Your Career

Auditor-in-charge Tools and Techniques Whether you are a recently promoted audi-tor-in-charge, assuming the role, or seeking a re-fresher, this informative session covers the organiza-tional, time management, and problem solving skills necessary to manage a successful team. Through the use of a case study that is woven into the course, participants will learn about the roles and responsi-bilities of an auditor-in-charge for the phases of an internal audit.

Upcoming Offerings: Sept. 23–26, San Francisco, CA



Beginning Auditor Tools and Techniques To become a successful auditor, a strong base of knowledge and an understanding of basic audit skills are essential. With this program, new auditors, as well as non-auditors with internal control responsi-bilities, can learn the ins-and-outs of an audit from beginning to end. Through team exercises, group discussion, and facilitator presentations, attendees will gain a foundation of knowledge that will allow them to prepare properly for and conduct a successful audit. A basic understanding of how to identify risks and internal controls in auditing will also be stressed, along with interpersonal and team-building skills.


Sept. 23–26, Nov. 18-21, San Francisco, CA




Dec. 16–19, New York, NY


Best Practices in Internal Auditing This course will use best practices to help attendees transform their audit departments, create a desired culture, market their valuable capabilities, and measure the results.

Upcoming Offerings: Nov. 20–21, San Francisco, CA



Building a Sustainable Quality ProgramAn internal audit activity demonstrates its commitment to quality by meeting the expectations of its stakeholders while continuing to improve the effectiveness and efficiency of its operations. A successful quality assurance and improvement program (QAIP) is crucial to achieving this goal.

Upcoming Offerings: Sep. 23–24, San Francisco, CA





Communication Skills for Auditors Through facilitator presentations, group discussions, case studies, practical exercises, and individual coaching and feedback, participants will learn to see themselves as others see them, in terms of style and the impressions they create, and increase their ability to reach negotiated agreements.

Upcoming Offerings: Oct. 7–10, Chicago, IL




SEMINARS ON-SITE TRAINING CONFERENCESeLEARNINGwww.theiia.org | 29

Your Career

COSO 2013: Implementing the Framework This course examines how a principles-based approach can be used to design, implement, and evaluate a system of internal controls. You will have an opportunity to discuss the implications that the updated COSO Framework presents to the internal audit profession and to individual internal audit activities. You will also identify opportunities for uti-lizing the updated Framework in your internal audit process and increase the value of your assurance and consulting services.


Sept. 23–24, Nov. 20-21, San Francisco, CA






Creative Problem-solving Techniques for Auditors Through facilitator presentations, group discussions, practical exercises, case studies, and self-assess-ments, this course will help participants define creativity and the dimensions of creative problem solving. Experienced facilitators will demonstrate five strategies for creativity and divergent thinking and explain the ground rules for convergent think-ing. By the end of the course, participants will know how to jump-start creative approaches to problems and have new, immediately usable tools for logical problem solving.

Upcoming Offerings: Nov. 13–14, Houston, TX



Financial Auditing for Internal Auditors Taking on such topics as “common recipes for cook-ing the books,” and covering information flow from business process to financial statement and more, this course will help participants understand how key business processes relate to financial statements, as well as the impact of information technology on financial statements.

Upcoming Offerings: Sept. 25–26, San Francisco, CA



Risk-based Auditing: A Value Add Proposition Through case studies, group discussions, roundtables, and facilitator presentations, this course will help audit team leaders align their organizations’ strategies, visions, and values with the internal audit process. Participants will come to understand the importance of corporate governance and enterprise risk management, while learning to identify risks, perform risk assessments, develop a risk-based assurance plan, understand entity-wide controls, and plan a risk-based engagement.

Upcoming Offerings: Sept. 8–17, eSeminar








Your Career

Statistical Sampling for Internal Auditors The course includes different methods of random sampling and non-random sampling; explains how to calculate sample size and adjust for population size and resource constraints; and examines the concept of strategic sampling to get the most information for minimum cost, including how to combine results and extrapolate, and what to report.

Upcoming Offerings: Aug. 11–14, eSeminar




eLEARNING

The IIA offers a wide variety of webinars, eSeminars, on-demand self-study courses, and eWorkshops. www.theiia.org/elearning.

eWorkshopsAug. 19–28: Auditing Procurement System Performance

Aug. 26–Sept. 4: CGAP Exam Review Course

Sept. 29/Sept. 30: Powerful Tips to Pass the 3-Part CIA Exam

Oct. 7–16: Basic Data Integrity, Mining, and Analysis in Excel

Oct. 21–30: Using Excel to Extract, Analyze, and Report on Audit

Samples - Microsoft Excel Audit Training

eSeminarsAug. 4–22: CIA Learning System Comprehensive

Instructor-led Course - Part 1

Aug. 5–14, Nov. 17-20: Assessing Risk: Ensuring IA’s Value

Aug. 11–14: Statistical Sampling for Internal Auditors

Aug. 19–21, Dec. 2–4: Oper. Auditing: Evaluating the Supply Chain

Sept. 9–18, Nov. 3–12: Audit Report Writing

Sept. 9–11: Oper. Auditing: Evaluating Procurement / Sourcing

Sept. 22–25, Dec. 8–17: Performing an Effective Quality Assessment

Oct. 7–30: CIA Learning System Comprehensive Instructor-led

Course - Part 2

Oct. 15–24: Lean Six Sigma Tools For Internal Audit Fieldwork

Oct. 28–Nov. 6: Operational Auditing: Influencing Positive Change

Members-only WebinarsSave the dates for this line-up of Members-only webinars addressing internal audit activity. Learn more about these free CPE opportunities at www.theiia.org/goto/MOW.

Oct. 21: Integrated Reporting: Case Studies

Dec. 16: Creativity and Innovation in Internal Audit

Specialty Group WebinarsFinancial Services Auditor Group

Oct. 2: Internal Audit – the World’s Greatest Profession

Gaming Group

Sept. 9: Changes to Internal Audit in Tribal Gaming Operations

CONFERENCES

Check out these upcoming conference sessions focused on internal audit best practices:

Northeastern Regional ConferenceSept. 7–10 / Brooklyn, NY

• Meaningful Reporting to Senior

• Management and the Audit Committee

• Becoming a More Strategic Internal Auditor

All Star ConferenceOct. 28–30 / Las Vegas, NV

• Small Audit Shops: More for Less!

• Risk: It’s More than Compliance

Visit www.theiia.org/conferences.



Your Career

CERTIFICATIONS

Your Master Key to Career Success – IIA Global Certifications Whether you are mastering the fundamentals of internal

audit or moving into audit management, you owe it to yourself and your organization to pursue the Certified Internal Auditor® (CIA®), the only globally recognized internal audit credential and standard for excellence within the profession. Earning the CIA demonstrates your commitment to the profes-sion and your career. Achieving it will increase your confidence, serve as an example for current or future staff, and build credibility with internal audit clients.

Auditors specializing in financial services or gov-ernment disciplines can further distinguish their expertise by earning the Certified Financial Services Auditor® (CFSA®) or Certified Government Auditing Professional® (CGAP®) designations.

Did you know? According to The IIA’s 2013 Compensation Study, internal auditors with one or more certifications earn up to 45 percent more than internal auditors with no certifications.

Visit www.theiia.org/certification to review the exam syllabi and eligibility requirements, explore preparation resources, and to start your appli-cation or register for the CIA or one of The IIA’s specialty designations.


The IIA’s CIA Learning System This comprehensive and interactive CIA review program teaches and reinforces the entire global CIA exam syllabus in a flexible, on-demand format. It combines reading materials, in printed and e-reader formats, with online tests and study tools to ensure you’re prepared to pass the CIA exam and armed with critical tools and knowledge to excel in your internal audit career.

Item No.: 1150


Value and Competency: The Stakeholder Perspective Successful professionals recognize that feedback from stakeholders is essential for personal growth and orga-nizational success. This research report compares how stakeholders and internal auditors rate the profession on core competencies and organizational value. Inter-nal auditors can use the findings about competency and value from this report to promote professional growth and achieve organizational objectives.

Item No.: 5028




Your Career

Sawyer’s Guide for Internal Auditors, 6th Edition This 6th edition is a 3-volume set, making the con-tent more navigable for the reader, and each volume includes an index and glossary for easy reference.

• Volume 1: Internal Audit Essentials • Volume 2: Internal Audit Processes and Methods• Volume 3: Governance, Risk Management, and

Compliance Essentials

Item No.: 1099


GUIDANCE

The IIA’s International Professional Practices Framework (IPPF®) is the authoritative guidance on the internal audit profession and consists of three mandatory elements:

the Code of Ethics, the Definition of Internal Auditing, and the International Standards for the Professional Practice of Internal Auditing (Standards). The IPPF presents current, relevant, internationally consistent information that is required by internal audit professionals worldwide. Visit www.theiia.org/guidance


Ia Magazine: A Lifetime of OpportunitiesJohn Wszelaki’s 35 years as an internal auditor have been anything but dull. From traveling the world to working for a large U.S. government agency, the profession has given him exposure to a variety of cultures, business practices, and people. His newest role, built on 25 years as an IIA volunteer, is serv-ing as chairman of The Institute’s North American Board. www.internalauditoronline.org

Internal Audit Around the WorldCBOK RESEARCH - Internal Audit Around the World taps into the power of The IIA’s Common Body of Knowledge (CBOK) database that was developed in recent years to

allow researchers to glean insights from a longitudi-nal study of the profession. The report reviews the data from both the 2006 and the 2010 CBOK sur-veys to provide in-depth analysis of the factors and rationale behind the development of the profession and its different facets.

IIA members download research free. Visit www.theiia.org/Research

AuditChannel.tvCatch the latest insight into internal audit best practices and insight with leading experts on www.AuditChannel.tv – Adding Value, Creating Value Through Integrated Reporting, and more.


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Your Career

Technology continues to play an ever-increasing role in internal audit as both an audit tool and audit area. Whether

you’re looking for the latest guidance on the use of technology or need to sharpen your IT skills, we have a variety of

solutions to fit your ever-changing needs.

Keep Your Finger on the Pulse of Technology with The IIA and Deloitte – an IT audit curriculum created specifi-

cally for IT pros, IT novices, and everyone in between. These hands-on courses are taught by skilled instructors

with real world experience who make today’s technology issues clear. www.theiia.org/training.

Auditing Oracle ApplicationsAcquire a solid understanding of how the implemen-tation and use of Oracle applications will impact your organization. This course includes facilitated discussions, and computer-simulated class exercises. It provides a thorough overview of Oracle security basics, network and operating system security, data conversion and interfaces, and much more.

Upcoming Offerings: Oct. 21–24, Costa Mesa, CA

Course Duration: 3.5 days / CPE Hours Available: 32

Auditing the CloudThis course introduces the seemingly new and spe-cific risks of the various types of cloud computing. Through reviewing recent cloud computing failures and breaches, together with a detailed discussion of traditional contract compliance issues and associat-ed risk mitigation strategies, participants will come away with an ability to assess and prioritize risks as-sociated with their organization’s planned or existing implementation(s) of cloud computing.


Introduction to IT AuditingUnderstanding the ins and outs of information tech-nology is critical to the success of audit departments in every industry. Having baseline knowledge of general computer control concepts and knowing how information systems impact the audit environment is the key to doing your job well today and achieving greater success tomorrow.

Upcoming Offering: Sept. 9–12, Atlanta, GA


SAP ERP Technical AuditToday, SAP ERP software is used by a wide range of businesses, from small private enterprises to billion-dollar corporations. The curriculum includes facilitated discussions and practical exercises allow-ing participants to gain a deep understanding of SAP ERP security and technical concepts. You will also be introduced to the SAP GRC suite of tools former-ly known as Virsa. In addition, gain an introduction to SAP NetWeaver and SAP Solution Manager. Note: Most concepts apply to SAP R/3 environments.

Upcoming Offering: Sept. 16–19, Dallas, TX


INFORMATION TECHNOLOGY


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SAP GRC Access Control and Process ControlThis course provides an essential knowledge base, as well as hands-on learning for internal audit profes-sionals, including information technology auditors, working in a SAP GRC environment, as well as those involved in SAP GRC implementation and configuration. Hands-on learning will be conducted with Access Control and Process Control 10.0.

The curriculum includes lectures, group discussions, case studies, and practical exercises, allowing partici-pants to explore the many ways that a SAP GRC implementation impacts internal auditing.

Upcoming Offering: Oct. 6–9, Chicago, IL


SAP Implementation and Process AuditingCovers the structural elements and technical fea-tures of SAP ERP, SAP ERP security, the internal control features and functions of the various SAP ERP business processes, and the SAP GRC suite of tools formerly known as Virsa.

Upcoming Offering: Nov. 4–7, Costa Mesa, CA


Visit www.theiia.org/training for more information on these courses and to register.

eLEARNING

The IIA’s wide variety of webinars, eSeminars, on-de-mand self-study courses, and eWorkshops mean you can spend less time traveling to training and more time learning. www.theiia.org/elearning.

eSeminarsAug. 11–14, Nov. 4–7: Statistical Sampling for Internal Auditors

Members-Only WebinarsSave the dates for these technology-focused Members-only Webinars:

Aug. 19: Risks Around Social Media

Nov. 18: Master Data: Best Practices and New Challenges

Dec. 16: Creativity and Innovation in Internal Audit

Learn more about these free CPE opportunities at www.theiia.org/goto/MOW.



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CONFERENCES

Conferences offer a great way to delve into informa-tion technology and network with your peers who are facing the same tough challenges:

Governance, Risk, and Control Conference (IIA/ISACA)Aug. 18–20, 2014 / Palm Beach, FL

• IT GRC – Current Trends and Approaches

• Enterprise Solutions for GRC


• Cyberattacks: How Organizations Can Respond

• Transforming Your Audit Department Through Technology

• Third Party IT Services: Do Outsourcing Benefits Outweigh

the Risks?


• IT Trend: Impact on the Audit Environment

IT Audit & Controls Conference (IIA/MIS)Sept. 30–Oct. 2, 2014 / San Diego, CA

• Understand Advanced Persistent Threats

• Develop, Execute, and Maintain an Effective IT SOX Program

• Conduct Successful Cyber Incident Investigations

• Build a Big Data Ecosystem For Continuous Audit

• Transition to the COSO Framework

Visit www.theiia.org/conferences for more information.

GUIDANCE

GTAG 3: Continuous Audit-ing: Implications for Assur-ance Monitoring and Risk Assessment, 2nd EditionThe second edition of GTAG 3 provides the most up-to-date guidance and best practices to successfully implement a con-

tinuous auditing approach. It focuses on the technol-ogy-enabled aspects of continuous auditing.

GTAG 4: Management of IT Auditing, 2nd EditionThis guide takes into account the latest developments in the IT landscape and empowers CAEs to more efficiently and effectively manage their IT audit work by focusing on three core areas: determining where IT audit resources are needed; accurately evaluating IT-related risks; and executing IT audit work.

GTAG 7: Information Technology Outsourc-ing, 2nd EditionThis guide is to help CAEs and their audit teams determine the extent of internal auditor involvement when IT is partially or fully outsourced in their entities by providing information on the types of IT outsourcing (ITO), the life cycle of ITO, and how internal auditors can approach risk in connection with ITO delivery.

Consult these guidance resources, including GTAGs that address IT, part of International Professional Practices Framework (IPPF®), by visiting www.theiia.org/guidance.



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A New Auditor’s Guide to Planning, Performing, and Presenting IT AuditsInformation technology is a highly dynamic, rapidly changing environment. IT auditors are expected to stay current with the latest tools, technologies, and trends, and may need to do additional research to prepare for specific audits. This book is designed to help internal auditors take a step back and under-stand the general process and activities involved in conducting an audit around technology.

Item No.: 1070 Member Price: $60.00 / Nonmember Price: $70.00

Auditing Social Media: A Governance and Risk Guide If you want your business to stay ahead in the game, then this one-stop guide will help you navigate through the maze of risks and governances surround-ing social media. Auditing Social Media explains how

your organization can thoroughly ensure it has the adequate measures in place to capitalize on social media while protecting itself from excessive risk.

Item No.: 1081 Member Price: $39.95 / Nonmember Price: $49.95

Access hundreds of other practitioner-reviewed educational products at www.theiia.org/bookstore.


Ia Magazine: Auditing at the Speed of TechnologyInternal Auditor magazine goes behind the scenes at Google, LinkedIn, and Cisco to explore how top auditors at these Silicon Valley giants reduce risk in a rapidly evolving environment where innovation is im-perative for survival. www.internalauditoronline.org

Tone at the Top: Big Data: Collect It, Respect ItExplores the increasingly popular — and risky — prac-tice of collecting, storing, and using large amounts of data. Access now at www.globaliia.org/Tone-at-the-Top.

AuditChannel.tvCatch the latest insight into internal audit best practices and insight with leading experts on www.AuditChannel.tv – Technology Expertise, 5 Risks of Cloud Computing, Updates to FTC Disclosure Guidelines, and more.


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Recruitment and Retention Strategies10Top

Successful enterprises quantify the value of human capital within their organizations and create strategies

for recruiting and retaining top talent. Despite the global economic crisis of recent years, signs of recovery are

increasing and the impact is being felt in the internal audit job market. “It’s a very prolific job market right now.

People have choices,” says Paul McDonald, senior executive director at Robert Half International.


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His advice? “If you see someone who looks good, react swiftly.” The question is how do you recruit the right candidates and keep them? With McDonald’s help, we have compiled 10 recruiting and retention strategies that will help keep your talent coffers filled.

1. Do Your Homework BEFORE You Grade Applicants

In a fast-paced work environment, it’s tempting to take the “warm body approach” by simply filling desks. However, it’s important to align your talent strategy with the overall busi-ness strategy. Posting a job without doing your due diligence is putting the cart before the horse. According to Robert Berry, director of internal audit at the University of North Florida, recruiting new staff is the last step in the five critical elements of the talent management process:

n Truly understand the environ-ment in which you operate.

n Understand your organization’s as well as your department’s goals and objectives.

n Identify the skills and competencies personnel must possess and com-municate them to staff.

n Assess your current staff to identify gaps in skill sets.

n Fill gaps by training current staff or re-cruiting new staff with desired skills.

“Mapping existing skill sets to the business strategy helps companies

determine whether there will be a talent shortage in certain roles or jobs,” says Lynn Schmidt, a 26-year talent management professional who has authored several books on the subject, adding that company lead-ers can then decide whether it’s best to “buy or build” the talent needed.

2. Tap Into the Power of Mobility

There are those who argue that social media outlets and online networking sites are one of the best ways to reach top talent. While this is still up for debate, the importance of your online presence cannot be dismissed. This means your pres-ence on Facebook, Twitter, and LinkedIn and your website must be up-to-date and reflect your organi-zation’s brand and culture. It also means these tools need to be set up to engage candidates in a dialogue to begin the relationship building process with top talent.

According to an article published in November 2013 by Lumesse New Rules, a platform designed to promote the development of human resources, nearly a quarter (23%) of all Google searches that contain the word “job” come from mobile devices. If you’re not mobile friendly, you may be dismissed before top talent even sees what you have to offer. According to the same article, emerging “Mobile first” vendors are now offering HTML5-based web design that enables sites to be easily accessed via desktop PCs, mobile devices, tablet PCs, and televisions noting that this versatility is import-ant: candidates have four screens

and move between devices expecting a seamless experience.

3. Focus on Relationships, Relationships, Relationships

Recruiting is all about building relationships. Don’t just reach out to candidates when you have an open-ing; recognize talent in your regular networking activities to make sure you have candidates in mind when needs arise. You can meet candi-dates brimming with talent through:

n Partnering with college and universities to strengthen their internal audit programs.

n Attending your local IIA chapter meetings and special events.

n Becoming involved as an IIA volunteer leader.

n Becoming active in LinkedIn groups.

The key to building relationships is using a multiple angle approach. While a lot can be done today from behind your desk, don’t discount the value of meeting for coffee with a friend, attending local chamber of commerce events, or organizing a lunch with a group of colleagues from a former job.

4. Know Your Competition (all of it)

Internal audit has more than one source of competition; other internal audit departments and other depart-ments within the organization. The latter is not a bad thing. Through providing strong training and ample audit challenges to new recruits, you can help ensure that those who do not choose a career in internal audit-

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ing become knowledgeable risk and control advocates within the organi-zation. It is also possible that these same individuals could come back to the internal audit department to be groomed for leadership positions.

When competing against other internal audit departments, do your research. Compensation trends vary by company size, industry, and location. The IIA’s Audit Executive Center releases an annual Compen-sation Study based on a survey of CAEs, and Robert Half produces an annual salary survey that includes various internal audit positions. These reports can be helpful in get-ting started. Also realize that salary is far from the only motivator. If you have limited budget dollars, consider sweetening the pot by offering more vacation time or a flexible schedule.

5. To Get the Right Candi-date, Conduct the Right Interview

“If you messed up on the hiring, the rest is a waste of time,” says Dan Kilgore, principal of Riviera Advisors, Inc., a global human resources con-sulting firm. Don’t wing the interview. Do an apples-to-apples comparison by making sure you’re the apple. Determine an interview process and stick with it for each candidate. Your

process should include asking the right ques-tions and right types

of questions. In-clude close-end-ed fact-finding questions, open-ended explorative ques-

tions, and hypothetical “what would you do” soft skill testers.

Additionally make sure to give the candidate most of the air time. Ac-cording to “Hiring the Best People” by Robert Half, if you’re talking more than 20 percent of the time, you’re talking too much. Finally, don’t just trust your gut. Evaluate the candidate based on the com-bination of their technical skills, soft skills, and overall fit with your organization’s culture.

6. Start Off on the Right Foot With a Strong On-boarding Process

You expect your employees to hit the ground running so have a strong on-boarding process in place. Joanne Whitmore, director of internal audit for North Carolina’s Mecklenburg County, suggests implementing a buddy system. “We provide some-one who can show them the ropes,” says Whitmore. “We then provide them with training on our processes, policies, and procedures because we want them to start having successes right off the bat so they feel good about the choice to join us.”

7. Remember the Employee-Employer Relationship Is a Two-way Street

You want your employees to help the organization grow and succeed, but it is equally important for you to help your employees grow and succeed if you want to retain them. Whitmore communicates this before she hires a candidate, telling them during the interview, “We want you

to not only be successful in the job we’re hiring you for, but what do you want to do five years from now and how can we help you get there?”

Following through on your commit-ment to helping your talent develop means having open lines of commu-nication and an individual develop-ment plan created in partnership with each employee, put in writing, and treated as a living document. A good development plan should communicate a well-defined career path. “Many companies lack clear career paths, so workers are left guessing what they need to do to get promoted,” explains consultant Dan Tobin, formerly vice president of design and development for the American Management Association. “When that happens, people often end up jumping to another company to advance their career.”

8. Create a Triple-ThreatThe best and brightest internal auditors thrive in an environment that constantly offers new challeng-es, so make sure there are ample opportunities for them to rise to the occasion. When they do shine, acknowledge their outstanding ac-complishments. “Don’t be afraid to ‘play favorites’ when it comes to your best performers. Acknowledge their accomplishments privately as well as publicly though awards and more prestigious assignments,” says IIA President and CEO Richard Cham-bers. “Striving to acknowledge every member of staff equally will do little to motivate marginal performers, and will demotivate the best performers or worse yet, drive them away.”


Your Career

Chambers also points out that it is equally important to reward perfor-mance through tangible means. “As much as a member of your team may value working for you and your organization, promise of a substan-tial salary increase will often prove too tempting.” The triple threat of offering continuous challenges, acknowledgement, and tangible rewards keeps you well-positioned to retain top talent.

9. Make Your Employees Your Brand Ambassadors

Your organization should not just be a place of work, but a place employees like to work. Top employees invest a lot of time and effort in their job performance, so it’s critical that top employers invest in their employees. Beyond ongoing training, this also means investing in corporate culture through providing team-building activities and perks that make your organization a pleasant, if not highly desirable, place to work. Whitmore says employers should not discount the impact of the little things most employees really value like birthday celebrations, employee appreciation activities, and holiday events. They allow employees to talk about things other than work, feel part of a greater community, and most importantly feel valued by their employer.

While no one likes their job all of the time, creating an environment that employees enjoy working in creates a walking advertisement for your organization. Employees share how they feel about their job with friends, colleagues, and most im-portantly members of their network

that could be your next great hire. Investing in their job satisfaction works toward retaining your best employees and building a reputation that attracts new talent.

10. Support Your Auditors During the Face of Adversity

By nature of the work internal auditors do, there are bound to be occasions when engagements turn contentious. The fastest way to alienate top talent and eliminate any sense of loyalty they feel to a chief audit executive or the organization is to fail to support your staff during these contentious episodes.

“Even if the staff has made a mistake or handled a situation badly, there are usually exit strategies short of throwing the staff under the bus with management,” says Chambers, whose biography Lessons Learned on the Au-dit Trail was released earlier this year, illustrates these types of scenarios. “I recall making the difficult decision to leave my third internal audit assign-ment because my timid CAE sat on a potentially contentious draft audit report for more than six months rath-er than releasing it for management comment.”

While you can’t control all the factors that ultimately influence a candidate’s choice to work for and ultimately stay with your organiza-tion, by employing these combined strategies you will position yourself for success.

For information on the strategies mentioned above and further

resources on compensation trends, talent management, and career resources from The IIA and Robert Half, please visit The IIA’s online Audit Career Center.

Free Webinar: Show Them the Way: Using Employee Career Paths to Build, Improve, and Retain Your Internal Audit Team Hosted by Robert Half and The IIA Sept. 25, 2014 2:00–3:00 p.m. ET

• Learn how to gain a better understanding of internal audit team members’ career objec-tives and motivations.

• Gain insights on identifying opportunities to help employees build their skills and advance as well as communicating potential career opportunities within your organization.

• Hear how to work with staff to develop a mutually beneficial career path.

• Discuss how to use career road maps as a motivation, retention, and succession-planning tool.

Speakers: Paul McDonald, Senior Executive Director, Robert Half International Larry Harrington, CIA, CRMA, Vice President, Internal Audit, Raytheon Company; IIA Global Vice Chairman

Register today at www.theiia.org/goto/mow

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Local HighlightsMember Promotions

Camacho named LGC+D partnerMichael S. Camacho (left) has been named partner at LGC+D, where he will serve as internal control specialist and lead the firm’s corporate solutions niche.

He joined the firm nine years ago after serving eight years as an audit manager at Deloitte & Touche where he was responsible for managing the audits of domestic and multinational public and private companies, as well as serving as a local and national facilitator for the firm. Camacho’s focus at LGC+D is on audit, attest, and consulting for public and private companies, and his expertise is concentrated in serving commercial niches (manufacturing, service, distribution, technology, media, and telecommunications). He is a member of The IIA’s Ocean State (RI) Chapter.

Hoster Joins BrownIT Holdings’ Board of DirectorsBrownIT Holdings Corporation added Robert Hoster to its board of directors for his robust financial and risk management expertise to ensure compliance moving forward.

Hoster has over 30 years of experience in accounting and auditing and is employed as the director of internal audit at Bucknell University, a private liberal arts university in Lewisburg, Pa. Previously, he was a principal in a regional accounting firm, responsible for their risk management practice, and he served 15 years in the financial services and banking industry with a $6 billion financial institution as the vice president for internal auditing. Hoster is a member of The IIA’s Central Pennsylvania Chapter.

Bernhard Appointed Head of Internal Audit at Hamilton Insurance GroupKeith Bernhard (left) is responsible for developing and executing a risk-based internal audit plan for Hamilton Insurance Group and its subsidiaries.

Bernhard came to Hamilton Insurance Group from Markel Corporation, where he was director of internal audit. Prior to Markel’s acquisition of Alterra Capital, he was head of internal audit for Alterra, a position he held from 2007. Before joining Alterra, Bernhard was a senior manager in the risk advisory services practice of KPMG. His experience in internal audit and risk management also includes tenures at Deloitte in the U.S., South Africa, and New Zealand. He is a member of the


Your Career

Institute of Risk Management and the New Zealand Society for Risk Management, and is the president of IIA–Bermuda.

IIA–San Diego Chapter Hosts “A Day in the Life of an Auditor” Student EventOver 60 local college students paired with more than 20 internal audit professionals for the opportunity to experience the profession of internal auditing in IIA–San Diego Chapter’s “A Day in the Life of an Auditor” student event at Cal State San Marcos from the local universities of Cal State San Marcos, University of San Diego, San Diego State University, and Point Loma Nazarene University.

Students were guided through a mock audit of the accounts payable function of a fictitious firm, progressing through various phases of an audit by practicing specific skills. IIA–San Diego Chapter is planning more events with local universities.

STUDENTS EXPLORE OPPORTUNITIES IN INTERNAL AUDITDePaul University and The IIA’s Chicago Chapter co-hosted a successful student night event April 30. More than 55 chief audit executives from the Chicago area attended the Internal Audit Night reception. Students were invited to network with the executives, ask questions, and learn about career and internship opportunities in internal audit. IIA President and CEO Richard Chambers delivered a keynote address, which was followed by a panel discussion featuring venerable internal audit executives from KPMG, Exelon Corp., Inland Bank & Trust, and Hyatt.

How are you supporting students locally? Have other news to share? From a member’s promotion to great chapter program, we want to hear about it and share. What can you submit? Anything you think is newsworthy. We encourage photo submissions, if applicable. Submit at www.theiia.org/newsletter-submission-form.

Members of the Advisory Board for the DePaul University Internal Auditing Education Partnership program with IIA President and CEO Richard F. Chambers. From left to right: Richard Anderson, Vic La Mantia, Rick Kokoszka, Richard F. Chambers, Jim Czarnecki, Jean Dorsch, Sandra Shelton, Mike Keps.

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By all accounts, International Internal Audit Awareness Month (May) was tremendously successful. Internal auditors around the world enthusiastically promoted the profession in a variety of ways.

Multiple chapters received proclamations from their state and/or local government officials, including The IIA’s Bahamas, Ottawa, North Central Florida, Los Angeles, and Hawaii Chapters, among others. Like IIA–Singapore and The IIA’s Colorado Springs Chapter, many institutes and chapters held networking events for their members, where they served sweet treats and offered educational materials promoting the profession.

A number of professionals also promoted internal auditing within their organizations. Carolyn Saint, vice president of internal audit for 7-Eleven, took to her company’s intranet and email newsletter to introduce her audit

team and spread the word about how 7-Eleven’s internal auditors add value. Emirates Transport’s internal auditors promoted the profession within their office by educating coworkers about internal auditing, internal controls, and global studies, as well as distributing posters about internal audit’s objectives.

Many professionals shared Awareness Month messages on social media using “#IIAMay.” For example, P.J. Lhuillier’s audit services division posted a video on Facebook of the team participating in a flash mob for their audit clients. SekelaXabiso, a South African professional services firm that delivers internal audit and business consulting services, posted messages throughout the month explaining the importance of internal auditing and how it can benefit organizations.

Each May, Awareness Month serves as a reminder of the importance of promoting the internal audit profession, reaching out to stakeholders, and initiating a dialogue that leads to a greater understanding of internal audit’s value. Though we may speak the loudest in May, advocacy is truly a year-round effort.

Let’s keep the momentum going! Email [email protected] for more information.

Promoting

BEYOND MAYthe Profession


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When you begin with training from your global association solely dedicated to the practice of internal auditing, add peer-reviewed content developed by subject matter experts, and offer multiple delivery options that are flexible and convenient for your members, the result is an opportunity to train your way. Get familiar with the training options available to you with this at-a-glance view.

COMPARISON OF THE IIA’S LEARNING SOLUTIONS TRAINING METHODS

Seminars eSeminars On-site Training eWorkshops Self Study Conferences Vision

University Webinars

ACCESSIBILITY

On location X X X X

Online X X X X X

You choose location X X X X X

Course variety X X X X X X

Face-to-face instruction X X X X X

ENGAGEMENT

Best practice exchange X X X X X X X X

Network with other participants X X X X X

Q & A interaction X X X X X X

SCHEDULING FLEXIBILITY

Time bound X X X X X X

Choose time convenient for you X X X

Available around the clock X X

CONTENT

NASBA Compliant X X X X X X X X

NASBA and IIA CPE Compliant X X X X X X X X

Developed by subject matter experts X X X X X X X X

Peer reviewed X X X X X X X X

Customizable X

Based on internal audit member input X X X X X X X X

VALUE

Economically priced X X X X X X X N/A

Group or other discounts available X X X X X X

TIME COMMITMENT/ COURSE DURATION

1-4 Consecutive day training X X X X

Several hour sessions over multiple days X X X X

Several hour sessions over multiple weeks X X

LEARNING DEVICE

Apple- Mac X X X X

Microsoft Windows X X X X

Tablet LIMITED LIMITED

Smartphone LIMITED LIMITED

TRAIN

WAYYour

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Best PRACTICESDEVELOPMENTTeam

You’re Only as Good as Your Team - Successful Team Development StrategiesYou’re only as strong as your weakest link. The question is: how do audit leaders ensure that their weakest link is

anything but, and conversely, how do audit staff ensure that they continue to develop professionally to add more

value to their organization?

The answers to the two questions have a lot of overlap, as we discov-ered when we interviewed four inter-nal audit leaders who have put best practices in team development to use to build and maintain their audit functions. Below are five key take-aways from our conversations that continue to be evidenced by leading internal audit functions around the world.

Hire the Right People“Of course,” you say, but how? As Jeff Stone, vice president-internal audit, ethics & compliance at Duke Energy Corporation explains, “When we hire people, one of the criteria we use is whether we believe this person can be promoted a couple of levels…not are they ready now, but is the raw material there. We’re looking for peo-ple that we can develop into leaders.”

So what skills and attributes do poten-tial leaders possess? “We need people with the ability to communicate,” says Stone. “They need to be able to take a complex topic and communicate it succinctly and simply.” Beyond the soft skill of communication, he looks for people that are willing to take a hard, tough look at themselves. “I look for self-critical people, not self-pro-moters,” says Stone. “Self-critical people will take feedback and absorb it. Self-promoters will deflect it.”

Adopt the Mantra: Communication, Communication, Communication!Once you’ve hired the right people, set the right tone at the top by stressing the importance of communication. You must be able to communicate effectively with audit clients, audit

committee members, executive management, supervisors, and team members to learn what each entity needs from you and be able to provide insights into what the company can do better.

As Jeff Browning, CIA, senior vice president and chief audit executive corporate audit services at Fiserv, emphasizes to his team, “I always say that audits are done for peo-ple, not to them and conducting good audits requires building good relationships. Relationships are all about trust so you must communi-cate throughout the entire audit process, not just

for


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at the end.” To this end, Browning is a strong proponent of any train-ing opportunities for his team and himself that focus on strengthening communication skills.

See the Opportunities that Hide in Plain SightTeam development opportunities are everywhere, if you just look for them. “We have 160 leaders we meet with every year,” says Stone. “Our rule is you never go alone to

visit with a leader. Find someone else on the team who would benefit from interfacing with and meeting that leader.”

Browning could not agree more with leveraging the power of internal

networking. “Internal networking is under-rated as you can learn a lot from it,” says Browning. “If I were taking a mulligan on certain facets of my career, it would be to network more early on, so I encourage my junior staff to do that.”

“We need people with the ability to communicate. They need to be able to take a complex topic and

communicate it succinctly and simply.”

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Your Career

Empowering your team to connect with others internally is not the only opportunity that can hide in plain sight. Empowering your team to design their own training can be a learning experience that extends far beyond the actual training session, as Allen Cooper, CIA, vice president of internal audit, at ConAgra Foods knows from first-hand experience. “For group learning, we utilize quarterly learning conferences,” says Cooper. “Each quarter, a different

group of five of our employees selects the theme, develops the agenda, lines up the speakers, and handles every other detail of the training.”

Leverage Succession PlanningEnsuring you have a strong line up of potential candidates to fill key po-sitions at any given time is critical to meeting stakeholder demands. And evaluating each employee’s organiza-tional trajectory on a near-term and long-term basis will not only make the employee feel like they have a future with the organization, but it will allow you to spot succession planning opportunities that might otherwise be missed.

“For key roles in the department, we develop succession plans each year which includes the management team analysis on each associates’ timeframe to be promoted and potential must-have development,”

says Kris Shellum-Allenson, vice president of internal Aaudit at Sears Holdings. “This is discussed with the associates to ensure transparen-cy and any differences on readiness for the next level are talked through. This is an important metric which we report on to senior management and the audit committee. In the past 18 months, we’ve promoted 14 people within the department which demonstrates our ability to develop and retain talent.”

Ask and Keep AskingInformation-gathering is critical to what internal audit departments do. However, it’s important to remember that your team as a whole, and as individuals, should be asking just as many questions of themselves as they do of their clients in order to take their development and perfor-mance to the next level.

As Richard Anderson, CPA, CFSA, a clinical professor of risk manage-ment at The Center for Strategy, Execution, and Valuation at DePaul University highlighted in his Oc-tober 2009 Internal Auditor article, “Critical Skills for CAE Success,” you must commit to continuous learning by continuously asking questions like, “What capabilities do I need to take advantage of new ideas and trends and where and how do I get the training or education I

need?” Discovering the answers to these questions will strength-en the skills of individual team members and the team as a whole, which translates to in-creased value for stakeholders.

“What capabilities do I need to take advantage of new ideas and trends and where and how do I get the training or education I need?”


Your Career

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The IIA’s Standards require an external assessment at least once

every five years. External quality assessments (EQAs), like those

provided by IIA Quality Services LLC, build stakeholder confidence by

documenting the internal audit activity’s commitment to quality and

successful practices, as well as the internal audit team’s mindset for

professionalism. IIA Quality Services offers two approaches to external

assessments — full independent team review and self-assessment with

independent validation.

Just for contacting us... You will receive a complimentary Quality Assessment Manual CD* when

you request a proposal for an IIA Quality Services’ EQA.

To get your EQA proposal started today, complete the no-obligation EQA

online inquiry form by accessing the free quote link or contact us for

more information at [email protected] or +1-407-937-1399.

Request a free quote and enter Promo Code QADISC082014 at

www.theiia.org/goto/quality-services.

*Not valid with any other offer. Offer is not available to organizations where other IIA institutes offer external assessment services. One CD per organization. Discount offer must be accepted by Dec. 31, 2014.

When you accept an IIA Quality Services EQA proposal in 2014, you’ll be eligible for:

US$1000* off a full scope QA

or US$500* off a validation of

self assessment.

In addition to EQA services,

IIA Quality Services provides

guidance and resources to get

your quality assurance and

improvement program started.

For more information, go to

www.theiia.org/quality.

141166 QAL-Quality August IA Ad_5.indd 1 6/24/14 9:32 AM

Professionals helping advance internal auditing honored at IIA International Conference

Passion and enthusiasm for internal auditing have help advance the profession through the years. Indeed,

those who push the boundaries for innovation within the profession are what make it great. During The IIA’s

73rd International Conference in London, we recognized a number of these individuals for their contributions

to the advancement and evolution of internal auditing.

Roderick M. Winters, CIA, CRMA, CPA, accepted the Victor Z. Brink Award for Distinguished Service for contributions to the profession through global service to The IIA. Winters, past chairman of The IIA Global Board of Directors, has more than 30 years of professional experience, including serving as general auditor for Mi-crosoft Corporation and working 11 years for Deloitte & Touche. He has been an active member of The IIA since 1994, and he currently serves as chair of the International Conference Committee.

Andrew D. Chambers, Ph.D., CEng, FCCA, FCA, FIIA, FBCS, CITP, FRSA, received the Bradford Cadmus Memorial Award for contributions to the global profession of internal auditing. Chambers is recognized worldwide as an authority on corporate governance, having served on numerous boards, panels, and commit-tees. He was founder and general editor of Blackwell’s International Journal of Auditing, a peer-reviewed research

journal, and wrote Chambers’ Corporate Governance Handbook, now in its fifth edition, as well as nearly 20 additional books on audit-related topics.

Certification AwardsAlessandro Segalini, CIA, IIA–Italy, won the 2014 William S. Smith Gold Medal Award, given to the in-dividual achieving the highest score on the CIA examination.

Alberto Aimola, CIA, IIA–Italy, won the 2014 Hans J. Spoel Silver Medal Award, given for achieving the second highest score on the CIA examination.

Mark de Jong, CIA, IIA–Netherlands, won the 2014 Kurt Riedener Bronze Medal Award, given for achiev-ing the third highest score on the CIA examination.

Laust Helmig, CIA, IIA–New York, won the 2014 Glenn E. Sumners Student Highest Achievement

Accoladesand

Awards


Your Career

Award, given to the student achieving the highest score on the CIA examination.

Annalena Baer, CIA, CCSA, CRMA, IIA–Norway, won the CCSA Highest Achievement Award.

Emily Durbin, CGAP, IIA–Springfield (IL) Chapter, won the CGAP Highest Achievement Award.

Ryan Gibbs, CFSA, IIA–New York Chapter, won the CFSA Highest Achievement Award.

Min Li Chan, CRMA, IIA–Singapore, won the CRMA Highest Achievement Award.

Internal Auditor Literary Excellence AwardsNorman Marks, CRMA, CPA, accepted the 2014 John B. Thurston Award for the most outstanding paper in the field of internal auditing published in Ia magazine, for “Assurance That Matters,” which appeared in the October 2013 issue.

Other outstanding contributors were: Manny Rosenfeld, CIA, CRMA, for “Framework for Excellence” (February 2013)

Marinus de Pooter, RA, CIA, CMA, CFM, for “10 Ways to Improve Risk Management” (April 2013)

James Ratley, CFE, for “Become a Better Interviewer” (June 2013)

Larry Rittenberg, Ph.D., CIA for “COSO 2013: A Reflection of the Times” (August 2013)

Bruce Turner, CGAP, CRMA, CISA, CFE, for “The ABCs of Adding Value” (December 2013)

Sajay Rai, CPA, CISSP, CISM; and Philip Chuk-wuma, CISSP, were awarded the Ted Keys Award, presented for the most outstanding article submitted, for “Auditing Governance of Critical Information,” to Ia mag-azine, which appeared in the August 2013 issue.

Research AwardMohammad J. Abdolmohammadi, Ph.D., DBA, CPA; Sridhar Ramamoorti, Ph.D., CIA, CFSA, CGAP, CRMA; and Gerrit Sarens, Ph.D., CIA, CCSA, were honored with the Larry Sawyer Research

Foundation Project of the Year Award, given to a published research or educational project addressing an emerging issue relevant to internal audit, for their project “CAE Strategic Relationships: Building Rapport with the Executive Suite.”

Dissertation AwardIan Burt, CPA, University of Waterloo, Canada, received the Michael J. Barrett Doctoral Dissertation Grant. Burt’s dissertation, “The Effect of the Internal Auditor’s Dual Identities (Trusted Advisor vs. Assessor) on Identify-ing and Assessing Internal Control Weaknesses,” discuss-es whether the dual and potentially conflicting roles of advisor and assessor improve or detract from the internal auditor’s overall evaluation of the organization’s system of internal control.

Student AwardAndrew Carmichael, Louisiana State University, earned the Esther R. Sawyer Research Award, which recog-nizes students, enrolled in or who recently completed an internal audit higher education program, for an original manuscript on a specific topic related to modern internal auditing.

American Hall InducteesDuring The IIA’s annual General Audit Management (GAM) Conference in Orlando in March, six were named to the American Hall of Distinguished Audit Practitioners: Nicholas DiMola, Edward Dudley, Sam McCall, Betty McPhilimy, Roger Carolus (posthumously), Leon Radde (posthumously).

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Your Career

You’re successful, well-respected, and committed to the profession.

What does it take to get to the next level?

Today, growth and change in the internal auditing field is demanding a new type of leader — one who drives

a high performing audit team while delivering value by consistently addressing stakeholder needs, top-down

risks, and expectations of an evolving marketplace. The IIA has developed the Qualification in Internal Audit

Leadership™ (QIAL™) to support you on this journey to be the next generation of visionaries in the profession.

The QIAL identifies, assesses, and develops core skills linked to audit leadership success. It caters to CIAs and

CAEs who are already strong performers and have potential for greater leadership.

Richard Chambers, president and CEO of The IIA, said: “QIAL complements existing IIA certifications but is

unique. The skills mastered are essential for aspiring leaders and CAEs, even if they’ve been in the field for

decades.”

Registration opens August 2014. Start your leadership journey TODAY. Learn more about this unique

program at www.globaliia.org/QIAL or contact [email protected].

QIAL: The Gold Standard of Excellence in Audit Leadership Performance.

Building the leaders of tomorrow, today.

Documents

August 2014 Your Career Compass