March 2002

Thursday, March 21, 2002
CityPlace Conference Center

A joint meeting with the Dallas Chapter of

at CityPlace Conference Center

Lunch Meeting 12:00pm
Registration begins at 11:30am

SEC Perspective on Fraud
and Business Trends

Presented by Harold Degenhardt,  District Administrator,
Forth Worth District Office of the Securities and Exchange Commission

Harold Degenhardt is district administrator for the Forth Worth district office of the Securities and Exchange Commission. Prior to joining the commission, he was a partner with Gibson, Dunn & Crutcher where he specialized in general commercial, securities, antitrust and product liability litigation.

Mr. Degenhardt's litigation experience includes white collar crime, class actions, government investigations and related matters involving the Foreign Corrupt Practice Act, the National Transportation Safety Board and Exchange Commission, the New York Stock Exchange, the United States Department of Justice's Antitrust Division, and Department of Defense.

Mr. Degenhardt received his bachelor's degree from Villanova University in 1968 and graduated from Fordham Law School in New York City in 1973. Prior to joining Gibson, Dunn & Crutcher, Mr. Degenhardt was a litigation associate from 1973 to 1977 in New York and litigation partner in Dallas.

Mr. Degenhardt had also been an adjunct professor at SMU Law School.

Pre-Meeting 10:30am

Digital Evidence in Fraud and Internet Investigations

Presented by Special Agent Mike Morris, Dallas Federal Bureau of Investigation

Special Agent (SA) Michael S. Morris, has been employed by the Federal Bureau of Investigation (FBI) for over thirteen years, the last nine of which have been in the areas of computer intrusions and computer forensics. As the director of the laboratory, SA Morris has oversight of fifteen computer forensic examiners, from local, state and federal law enforcement agencies.

SA Morris has been the case agent on several large multinational computer intrusion and copyright investigations. Due to his knowledge of computer intrusions and computer forensics, he has been featured in the Wall Street Journal, Business Week, numerous local newspapers and has appeared in the Arts and Entertainment documentary on Cyber Terrorism, as well as the Learning channel's documentary "Hidden Secrets of the FBI."

In December 1997, he received a commendation from the Director of the FBI for his training of law enforcement officers in Russia, Hungary, Egypt and Malaysia, in the area of computer intrusions and computer forensics. SA Morris holds a Masters Degree in Accounting Information Systems.

Post Meeting 1:30pm

Using Technology to Enhance Internal Audit

Eric Schwarz and Bert Lacativo of FTI Consulting will discuss the following:

• Fraud detection, technology and methodology
• Utilize all data (not just a sample)
• Data mining client and third party data
• Compare client data (employees, vendors) to outside data (social security, secretary of state, post office)
• Ghost employees, ghost vendors, diverted vendor payments
• Anomaly detection
• Visual data mining and computer-aided analysis
• Duplicate payments, unusual payment timing, unusual payment amounts
• Statistical analysis
• Benford's Law, payments clustering just under authority limits
• Report profiling and ranking
• Concentration of effort and investigative resources on highest risk areas

Eric Schwarz is a Director in FTI’s Electronic Evidence and Discovery practice. Mr. Schwarz has over ten years experience in the field and was formerly the National Coordinator for Computer Forensic and Electronic Discovery for Deloitte & Touche. Mr. Schwarz has led both national and international forensic and litigation engagements for clients based in the United States and abroad. As a nationally recognized expert in the field, Mr. Schwarz has written a number of articles on computer forensics and Cybercrime and has been featured in articles in local, national and international publications. Mr. Schwarz has been qualified and has testified as an expert in computer forensic science. Mr. Schwarz has developed training courses in computer forensic, electronic document discovery, and cyber fraud investigation techniques for corporate, legal and law enforcement groups throughout the United States. He has been a guest instructor for the Federal Law Enforcement Training Center in their SCERS certification training course.

Bert Lacativo, a former FBI Special Agent, is a CPA and CFE with over twenty years of combined financial and investigative experience obtained during his tenure in the corporate, government and consulting arenas. Bert is the Managing Director of FTI’s Dallas, Texas office. Prior to joining FTI, Bert was a senior member of the management team for a Big 5 firm where he was responsible for the conduct of white-collar fraud investigations. Bert has also consulted with clients and internal audit groups regarding the development and implementation of fraud prevention, deterrence and detection techniques and programs. Additionally, Bert has developed and delivered training programs concerning Bribery & Corruption; Effective Interviewing Skills; Fraud & Illegal Acts Risk Assessment and Fraud Awareness.

Visit FTI’s web site at: www.FTIConsulting.com

This meeting is being held at CityPlace Conference Center.

The DART light rail station at CityPlace serves both the RED and BLUE lines. Check for schedules, routes and fare information at  http://www.dart.org/default.asp

Preferred Method:

The best method to place and confirm your reservation is via the web site at http://www.dallasiia.org/Reserve.htm.

Secondary Method:

An optional method is to use the telephone, fax, or e-mail. However, a $2 phone/fax/e-mail fee will be assessed to each reservation.

Reservations must be received by noon on Friday, March 15, 2002 or a $5 late fee will be charged.

We reserve the right to bill for "no-shows."

Please mark your calendar for future meeting dates for the 2001-2002 chapter year:

• Thursday, April 18, 2002
• Thursday, May 16, 2002

Chapter News

Our chapter is partnering with The Institute of Internal Auditors to offer our members annual subscriptions to IIAOnlineCPE Web-based training for only $95. (Effective April 1, 2002, the member fee is increasing to $199.)

In addition, for every ten (10) members who subscribe to IIAOnlineCPE, our chapter will receive two (2) free annual subscriptions to be raffled at chapter meetings.

Here is some information about IIAOnlineCPE:

• Your choice of over 75 educational courses currently used by more than 50% of Fortune 500 companies.
• Unlimited access to all courses.
• Courses use streaming video technology with excellent visual aids and graphics. At least 4 new lectures (courses) are added monthly.
• Timely information on financial news and trends.
• A personal CPE record that tracks the hours you've earned.
• The ability to print your own CPE certificates.
• One year subscription with unlimited usage (up to 48 hours of CPE credits). That’s less than $2 per CPE credit hour, an incredible value!!
• IIAOnlineCPE.org offers two free demonstration courses, so you can try before the buy.

To subscribe, call or e-mail Ray Brindley, Seminar Development, The Institute of Internal Auditors at 407-830-7600, extension 295 (rbrindley@theiia.org)

Review - Still time to register for Parts III & IV!

The Dallas Chapter will once again sponsor an interactive CIA review course to help prepare candidates taking Parts III & IV of the May 2002 CIA Exam. Part III will be held Saturday, March 23, 2002 and Part IV will be held Sunday, March 24, 2002. Each review course session will run from 8:00 AM to 5:00 PM. For further information on the review course, including cost, location and registration, log on to the IIA Dallas Chapter web site at http://dallasiia.org/CIAReview_S02.htm. If you have any further questions, you can contact the CIA Certification co-chairs as follows:

Chapter Social Events

Based on member input, the Social Committee has planned a couple of great social events for the second half of the year. Go to http://dallasiia.org/Social_02.htm for details and to register.

Wednesday, March 13, 6:30 - 9:00pm, Granada Movie Studio/Grill Dinner & Movie, The Time Machine starring Guy Pearce and Jeremy Irons, 5405 Beltline Road, Addison

Wednesday, April 10, 7:30pm - 10:30pm, Dallas Stars vs. Minnesota Wild Hockey Game, American Airlines Center, 2500 Victory Avenue, Dallas

Plan to attend one or both of these events!

Research Foundation - Research Priorities

The Research Foundation has the following as its current research priorities and requests proposals from researchers interested in submitting bids:

• Electronic Commerce
• Role of Internal Auditing Services in Corporate Governance and Management
• Auditing of Continuous/Online Controls

The deadline dates for submitting bids are May 30th and October 30th of each year. The Foundation also welcomes unsolicited proposals on other topics pertinent to Internal Auditing. For a brief summary on each of the topics above or to obtain additional information on submitting bids, please contact:

Susan Lione
Senior Manager of Research
407-830-7600, Ext. 285
slione@theiia.org

New Members

Please join us in welcoming our newest members to the Dallas Chapter, as well as congratulating some familiar faces:

Announcing the IIA Southern Region’s District 1 Conference
Moody Gardens Hotel, Galveston Island
September 30 - October 1, 2002

Four information filled tracks: Technology Audit Leadership Audit Skills - Smart Auditing Risk Management - Best Practices 16 hours of CPE An early bird special price of $495

Great speakers, including: Robert Stevenson Bill Bishop Ed Robinson Courtenay Thompson Basil Woller Dr. Raymond Clay

Contact Mary Ann Missman 713-237-2577 for details.

A complete list of conference speakers and specific topics will be announced soon.

IIA Seeks Items For Time Capsule

Messages and memorabilia representing the internal audit profession and The IIA are being collected for a time capsule for The Institute's new international headquarters. The capsule will be opened in 2041 in celebration of The IIA's 100th anniversary. Affiliate leaders are encouraged to send something unique about their affiliate, city, or country such as a pin, newsletter or magazine, or message before the April 5 deadline. Additionally, The IIA is encouraging individual members to submit their own messages for the time capsule.

Senior Manager of Research Susan Lione (407-830-7600, Ext. 285 or slione@theiia.org) is coordinating this project. For more information, visit the IIA's web site at http://www.theiia.org/iia/timecap.cfm

Report Your Speaking and Writing

It's time again for the survey to determine which IIA Dallas Chapter members have submitted articles or spoken during February, or earlier if not previously reported. Each speaking engagement on internal auditing that a Dallas Chapter member completes will earn the Chapter 1 credit per CPD hour. Each full article, Roundtable article, Fraud Finding, etc. submitted that meets basic editorial guidelines will earn 5 credits. For each full article published 20 credits are earned. Each internal audit related article published in any other trade or professional journal that is authored by a chapter member is 5 credits.

To report your writing and speaking go to http://dallasiia.org/Speaking.htm and complete the provided form by March 15, 2002. Contact Dace Ward (dace.ward@eds.com, 972-605-6128) if you have any questions.

Chapter Seminars

We are repeating our big year-end (almost) free seminar this year!! We hope to have full details to give you at the March 21st meeting. Check the web site soon!

Career Opportunities

Position: Managing Analyst

Location: Position opening in Dallas/Fort Worth with a leading Healthcare Finance company.

Requirements:

• Qualified applicants will have a CPA or CIA or MBA;
• 5+ years related experience in either public accounting, internal audit or asset based lending;
• must be willing to travel approximately 50% - much in the Texas region;
• applicant can work out of their own home and once trained will run project teams.

Great benefits and salary $65-80K

Contact: Rick Nelson at PSI 1-800-444-6760, ext. 12
E-mail:  Buffalo@psi4jobs.com

Professional Support, Inc.

Senior Information Systems Auditor

Job Description:

• Develops and executes audit plans, performs test work and performs Team Leader responsibilities for various Information Systems and integrated audits and projects.
• Leads audit Teams in conducting audits to analyze computerized business systems to determine if they are effective and efficient in processing and controlling data.
• Makes use of audit software packages to analyze data integrity and evaluates security of various systems infrastructure components such as operation systems and database management systems.
• Assists the operational team with IS issues and shares knowledge with the department.
• Documents audit work in clear and concise work papers that adequately support conclusions.
• Conducts meetings without supervision.
• Documents IS audit issues in written reports and reviews reports prepared by audit staff for factual content.

Job Requirements:

• Bachelor’s Degree in Information Systems Auditing, Management Information Systems, Computer Information Systems or Accounting Information Systems required.
• Two to five years of information systems audit experience.
• CISA preferred.

If interested please send you resume to Julie Blanco by email: julie.blanco@wnco.com

Resumes may also be faxed or mailed

Fax # (214) 792-5015

Mailing Address:
Southwest Airlines
Attn: Julie Blanco 4HR
P.O. Box 36611
Dallas, TX 75235

Visit Southwest Airlines at www.southwest.com

Looking for a career change or companies seeking employees? Let the Dallas IIA Employment Committee help you. Individuals seeking positions can send an updated resume to:

Greg Dubis
JCPenney Company
P.O. Box 10001
Dallas, TX 75301-4321
Phone: (972) 431-5946
Fax: (972) 431-5995
E-mail: gdubis@jcpenney.com

Resumes will be kept on file and forwarded to Companies and Recruiters seeking to fill positions. This service is offered to members at no charge.

Also, any Company desiring to advertise a job opening in the Monthly eNews and on the web site may do so for a small fee. Contact Tracie Martin (traciem@baylordallas.edu) at 214-820-6970 for more information.