March 2003

Thursday, March 20, 2003
CityPlace Conference Center

Joint Meeting with Dallas
Chapter Association of
Certified Fraud Examiners

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

Terrorism Financial Review Group
The Largest Financial Crime Investigation in History

Presented by C. Thomas Atkins,
Senior Examiner - with the Federal Reserve Bank of Dallas

As a result of the 9-11 terrorist attacks, the Federal Reserve Bank began an investigation into the financial backing of the terrorists. Tom Atkins, who serves as an Anti-Money Laundering and Bank Secrecy Act specialist for the Federal Reserve Bank of Dallas, will provide us with the details on this investigation. No doubt some of the facts that this group uncovered will be useful in our audit projects! Come prepared with your questions for Tom!

C. Thomas Atkins (Tom) has been a Senior Examiner with the Federal Reserve Bank of Dallas for 18 years. Tom serves as an Anti-Money Laundering and Bank Secrecy Act specialist for Federal Reserve Bank of Dallas. Tom also represents the Federal Reserve Bank of Dallas as liaison with banking organizations and federal, state, and local law enforcement personnel in matters involving the Bank Secrecy Act and associated anti-money laundering laws. Tom has assisted anti-money laundering teams for the Departments of State and Treasury in training law enforcement and government officials in Russia and Armenia.

Speaker to various groups such as:

• Professional banking associations throughout Texas, New Mexico, and Louisiana
• State and Federal law enforcement anti-money laundering conferences in Texas and Arizona

Tom is currently working on coordinating the banking industry’s response to the terrorist attacks, working on the USA Patriot Act regulations and OFAC compliance. Tom is an associate member of the ACFE and is currently studying to take the examination. Education Bachelor of Science, Banking and Finance University of Southern Mississippi Military United States Navy Veteran.

Hobbies/Interests - Competitive roller speed skater for over 23 years. Five time U.S. National Roller Speed Skating Champion.

Family - Married, father of 3 girls: 7 year old twins, and 2 years old.

Pre-meeting 10:30am

Bill Beckhart, Senior Vice president with the Better Business Bureau, will provide us with timely and relevant information related to the following areas:

• Identity Fraud
• Protected Customer Lists
• B2B Fraud

Post-meeting 1:30pm

NO POST MEETING DUE TO AFTERNOON SEMINAR

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 14, 2003 or a $5 late fee will be charged.

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

Please mark your calendar these meeting dates for the balance of the 2002-2003 chapter year:

• April 17, 2003
• May 13, 2003

We Now Accept Credit Cards - Online Only

The IIA Dallas Chapter, in conjunction with PayPal, will now accept payment online for the monthly luncheons. There is no change in the cost to you for the lunch. We accept VISA, MasterCard, Discover, American Express, or eCheck. Note that some corporate-issued cards are not accepted by PayPal. This service is only available online at the time the reservation is made. This can be used to pay for individual or group reservations. Follow the instructions on our website. If you properly cancel a reservation before the meeting, the Chapter will either return the funds to you or reserve you for the next meeting. Any questions, contact Lynn Allsup, Treasurer, 214-559-1630 or Lynn.Allsup@RepubLink.com.

After you place your reservation online, you will see the link to pay via PayPal if desired.

Chapter Seminars

Fraud Risk Management:
Issues & Answers for Auditors and Fraud Examiners

1:30 - 5:30 on March 20, 2003

John J. Hall, CPA

The fraud handling expectations placed on auditors and fraud examiners grow each year. Most managers and Board members expect that audit, risk management, and security groups possess and can effectively deploy fraud-handling expertise. With the additional expectations from the Sarbanes-Oxley Act, professional auditors and others are working harder than ever to define their fraud-handling role and be part of the solution.

But even very experienced auditors will acknowledge that handling wrongdoing, misconduct and fraud issues, while interesting, is an area of great uncertainty and risk. What is needed is a place for auditors and fraud examiners at all levels to learn about the skills necessary to respond effectively to these challenges.

This “how-to” seminar does just that. It will help participants be more effective in:

• Assisting management with their fraud prevention and detection responsibilities
• Identifying fraud exposures and risks
• Detecting fraud and misconduct
• Handling fraud incidents

Topics Covered

• The role of the fraud examiner and auditor in risk management
• What the professional standards say (and what they don’t say)
• Responding to Sarbanes-Oxley Act requirements
• Creating a Current Loss Scorecard § Fraud Prevention: helping management create an anti-fraud environment
• Fraud risk assessment during project planning
• Creating a fraud risk inventory for your organization
• Fraud discovery skills for internal auditors and fraud examiners
• Fraud examples and the impact on audit planning, work programs and controls
• Example fraud indicators
• High payback audit steps
• The internal auditor’s role in investigations
• Helping management correct control weaknesses

Mr. Hall is a consultant, speaker, and seminar instructor. He leads programs to help clients:

• Create a comprehensive anti-fraud environment
• Identify and assess areas of exposure to wrongdoing, misconduct and fraud
• Strengthen fraud prevention and detection controls

John also helps clients handle incidents of wrongdoing, misconduct and fraud. These services include incident investigation, preparation and review of fidelity bond insurance claims, coordination with law enforcement and prosecutors, and identification and correction of control failures related to the incident.

Other training, consulting and coaching areas include:

• Behavior and communication skills enhancement for professionals, including:
  • Establishing rapport
  • Listening and interviewing
  • Speaking and presenting
  • Selling ideas
  • Influencing others to take action
• Consulting skills for professional auditors
• Internal audit department effectiveness, structure and strategy

John has 25 years of experience as a consultant, speaker and business owner and in public accounting, internal auditing, and corporate management positions. Prior to returning to his own business in December 2002, he was North American Practice Director - Internal Audit Services for Jefferson Wells International. In this position, John was responsible for internal audit co-sourcing and related specialty services (including fraud, litigation services and forensics) for the firm’s 37 offices throughout North America.

Mr. Hall is a member of the American Institute of CPAs and the Institute of Internal Auditors. He is chair of the 2002 and 2003 AICPA National Conferences on Fraud.

To register, go to http://dallasiia.org/March_03_Seminar.htm

SOFTWARE! SOFTWARE! SOFTWARE!

Tight audit budgets getting you down? Well, relax, my friend, as there IS A LOT OF GREAT SOFTWARE out there that can really help you. The Dallas IIA presents:

“AUDIT SMARTER… NOT HARDER”

This seminar will expose you to a ton of software useful in your everyday job. And, many of the packages are FREE. Regardless of your audit emphasis (I.T. audit, general audit, financial audit, compliance audit, regulatory audit, fraud audit or contract audit), you WILL come away from this class with new audit tools.

Now let’s get specific. Packages demonstrated in this course cover the range from “looking for unrecorded transactions” to calculating IP addresses. We’ll look at user-friendly statistical sampling software as well as packages, which automatically read code and flowchart the application (and point out control points). Other software looks for anomalies in data, or allows for real time triggers.

The teacher, Dr. Dan Kneer, just had an article published in the ISACA Journal on the need for and how to build a continuous assurance/real-time monitoring system. Also, he has been the #1 rated speaker, numerous times, at the IIA International Conference. In this class, you will see, first-hand, how to build such a system with software that you already have!

Let’s talk about software that you already have. Ever looked at the “Analysis Tool Kit” in Excel? It’s LOADED with tools that you could use for Control Self Assessment and I.T. Governance. “Dr. Dan” will also show you how to build a GUI-based CEO/CFO/CIO Dashboard.

Come along on this fantastic journey. Let’s have a lot of laughs, and learn LOT!

SEMINAR INFORMATION

Biography
Dr. Dan Kneer
Dr. Dan C. Kneer and Associates, Inc.

Dr. Dan Kneer’s amateur computer crime prevention career started in the early 1970’s when he hacked (it was pre-approved) into the management simulation game in college (as a system “test”). Dr. Dan’s professional computer security career started at Deloitte & Touche, in San Francisco. His national award winning Ph.D. thesis in 1981 predicted security issues in decentralized or distributed processing (the precursor to “client/server”). Dr. Dan served as the National Director of Research of the (then) EDP Auditors Association (now ISACA) and he initiated the Research Monograph Series editing Monograph #1 Computer Assisted Audit Techniques. He has taught many CAAT's packages including ACL and IDEA. He also was involved with the EDPAF’s “Control Objectives” (the “father” document of the CobiT). Dan served on the Arizona Society of CPAs Audit Standards Committee and was involved in the content of SAS 47, SAS 48, and SSAE 1. He also provided advice to the AICPA on SAS 55. Dr. Dan co-founded the Masters Degree in Computer Auditing at Arizona State University (the largest program of this type in the nation). He has won college-teaching awards in each of the last three decades. Dr. Dan has ranked in the “top 5%” of speakers at every conference for which he has made presentations.

His specialty is the application of computer control and security, and computer auditing. He is the world’s biggest believer in real-time monitors and analytics. “Doc” stresses a “process focus” and the mindset of a “value-added” consultant. Dan says match the control and security to the client’s business model.

Dr. Dan has been assisting the Big-5, internal audit shops, and governmental auditors for over 21 years. His clients include the Fortune top 50 and numerous Inspector General’s Offices, State Auditors’ Offices, Attorney Generals’ Offices and Law Enforcement Agencies. Dan’s IT security cases are utilized on 5 continents.

Dr. Dan was hired by PricewaterhouseCoopers in the 1980’s to assist in the design and deployment of their CAG (Computer Audit Group) practice. Dan has also taught at the Becker Center (Ernst & Young’s National training faculty) and St. Charles, Illinois (Arthur Andersen’s National training faculty). “Doc” consulted with Andersen Worldwide regarding the subsequent split of AA and Accenture.

Dan is a renowned speaker and has delivered talks at such famous venues as 1) Caesars Palace, 2) the Washington D.C. National Press Club, 3) the Downtown New York Athletic Club (home of the Heisman trophy), 4) the grand ballroom at the Waldorf-Astoria Hotel, 5) Madison Square Garden, and 6) the Palace de Concorde (Paris).

Dr. Dan assists many organizations in internal fraud analysis, forensic accounting, litigation support and asset recovery investigations. His proven techniques in data mining have earned him praise from many agencies for his contributions to asset recovery and revenue protection. Dan holds both a CPA certificate (1975; license is currently inactive) and CFE … Certified Fraud Examiner (1999).

Recent Accomplishments include:

• Completion of a three-year consulting project with the United States Postal Service which saved $900,000,000 per year on bulk mail handling … both revenue protection and cost avoidance (1994-1996)
• A “Lifetime Achievement Award” from the American Institute of Certified Public Accountants for innovative teaching of technology. (1997)
• Assisting the Internal Revenue Service (Office of Inspector General) in developing a statistical sampling policy and internal fraud investigation techniques. (1998)
• Acknowledgement by Courtenay Thompson (a well known fraud investigator) that “Dan’s regression analysis ideas for continuous process monitoring are the best preventive medicine for fraud.” (1997)
• Information Systems Audit and Control Association (ISACA) study on Model Curricula for Computer Auditors. (1996-1998)
• The Governor of Arizona Award for Excellence in Education Design. (1996)
• A National Literary Award from Managerial Auditing (United Kingdom). (1997)
• Increased the Department of Defense Audit Agencies efficiency by 33% (several thousand man-days of labor). (1999)
• Volunteered for President Clinton’s Computer Cyber-Terrorism Team. (2000)
• ISACA Editorial Review Board. (2000)
• Co-founded KPMG’s Information Risk Management (IRM) University (1996-Present)
• A highly regarded Inspector General recently introduced Dan by saying “all other teachers I have ever seen (in 25 years) teach in black and white; Dr. Dan teaches in color.” (2001)

Dr. Dan has extensive knowledge in:

• Computer Security
• Forensic Investigation
• Fraud
• Privacy
• Intrusion detection
• Accounting
• Auditing
• Data Mining
• Network Architectures & Security

Chapter News

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, 2003. Contact Magdalena Kovats (972-389-3344 or magdalena.kovats@mckesson.com) if you have any questions.

Phone Call Opt Out

If you want your name removed from our reminder phone call list, go to the chapter website. Click on the "Members" tab and then click on "Opt Out."

May Meeting - Frisco Roughriders Baseball game

We need to have your reservations by May 1, 2003 for the May meeting. Please go to the signup page for more information.  http://www.dallasiia.org/May_03.htm.

Dallas IIA Student Day and Seminar

There were over thirty students, and approximately 50 Dallas IIA members that attended the “Audits Role in Risk Management and Awareness” Seminar on Thursday morning, February 13, 2003, at the City Place Conference Center in Dallas. A mix of mostly graduate and some undergraduate accounting students from Louisiana State-Shreveport, Midwestern State University, North Texas State University, University of Texas at Arlington, and University of Texas at Dallas were in attendance. Guest speakers for the seminar included Howard Johnson, Senior Vice President and Director of Auditing, for JCPenney; Kathryn Barton of Lone Star Technologies and Al Bazis of Dallas Area Rapid Transit (DART); plus Thomas Keils and Charles Sulack of Protiviti Consulting.

After the luncheon, the students attended a forum chaired by Rhonda Allen of Southwest Airlines, and supported by Lesley Jeffcoat of JCPenney, Maurice Gilbert of Catterton Financial Recruiting, Eugene Miller of the Army and Air Force Exchange Service, and Earnest Thomas of Jefferson Wells. The focus of the forum was the specific discussion of internal auditing, as well as key issues currently surrounding the career field. This session also allowed students the opportunity to ask panel members questions concerning the profession, and about possible future audit positions that may come available.

The Dallas IIA Student Day Seminar and forum were an unquestionable success, in bringing the active members of IIA and the internal audit profession together with students who will also one day be IIA members and internal auditors as well.

IIA Research Foundation

The Research Foundation is requesting your support in completing the following two surveys.

• The first one is entitled Auditor Roles in Government Performance Measurement. The project’s main objective is to identify, publish, and present “best practices” of state and local government auditors with respect to performance measurement. To access and complete the survey, please visit http://www.gain2.org/performance.htm.
• The second one is entitled Internal Audit Use of Continuous Auditing: Current Reality and Future Potential. The IIA is conducting research on current use and future feasibility of internal audit use of continuous monitoring. The term can be defined as a methodology to enable monitoring of processes and controls on an ongoing basis using computer-based technology and manual procedures. Among others, procedures may encompass interrogation software (e.g., ACL or IDEA); embedded audit modules to monitor transactions during processing; Computer Audit Assisted Techniques (CAAT's); and data extraction for review by an external process to generate alarms when specific conditions are met. To access and complete this survey, please visit http://www.gain2.org/cm.

Membership Updates

At our April meeting, we will again be honoring our members with ten, and up to thirty-five years of membership with The Institute of Internal Auditors. Please come out and show them your support!

WARNING!

Your opportunity to take the May CIA is about to pass. The deadline to register is MARCH 31st. Visit the IIA website at theiia.org (certification tab) for test information and study aids or call (407) 937-1100.

Career Opportunities

Are you currently in the job market either voluntarily or involuntarily? Let the Employment Committee help you. Send us your resume and we will include you in our resume database. We receive calls from recruiters and hiring managers for open positions and will forward your resume if there is a match. We get calls for staff to director levels, IT to finance, local to out of town. All inquiries will be handled confidentially. If you have any questions, we will have a table set up at the next chapter meeting, or give us a call or e-mail us. We look forward to helping you.

• Brad Bates (chair) 214-840-7364 bbates@deloitte.com
• Fred Herman 214-273-0877 fherman@dynacare.com
• Rene Scott 972-855-4371 rscott@komen.com

Internal Audit Department

Come grow with us! One of the Southwest region’s largest CPA and Consulting firms is looking to create an Internal Audit Practice. This newly created practice in the Dallas/Ft Worth area will provide the right candidate with an opportunity to establish and grow Internal Auditing within this prestigious firm.

We are seeking a candidate with significant corporate and/or Big 4 experience who has a demonstrated track record in growing an internal audit practice. Candidate must be a self-starter with demonstrated interpersonal, written, and presentation skills. CPA preferred and CIA required.

Please contact recruiter@weaverandtidwell.com for a confidential screening.