April 2002

Thursday, April 18, 2002
Lone Star Park, Grand Prairie

A joint meeting with the
Fort Worth Chapter of the

We are having a special joint meeting with the Fort Worth Chapter at
Lone Star Park Horse Racing Track. Note the alternate location!!!

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

Fraud and Financial Statements 2002

Presented by Bryan Finley, CPA, Deloitte & Touche

Don’t miss this exceptionally timely presentation!!! With the growing list of recent high-profile bankruptcies, earnings restatements, and daily news stories of accounting irregularities, awareness of financial statement fraud has never been higher. Bryan Finley, Deloitte & Touche, will lead a discussion on Fraud and Financial Statements. This presentation will include current issues and concerns related to this exceptionally “hot topic.” Additionally, the role of auditors and accountants in detecting and preventing financial statement fraud will be explored. Bryan will be assisted by members of Deloitte & Touche’s Forensic and Investigative Services Practice, who will discuss several recent cases of financial statement errors, their characteristics, and warnings signs.

As internal auditors we need to understand the risks and recognize the potential warning flags related to financial statement fraud within our own organizations. Bryan and team will provide you excellent and useable information on this high profile topic.

Bryan Finley, CPA is a Senior Manager in the Dispute Consulting practice of Deloitte & Touche. Bryan has over eleven years of experience in forensic accounting, litigation services, and fraud investigation and reorganization services. Bryan’s experience in these service areas includes practice in New York for six years and London for four years. As a result, Bryan has significant international experience in fraud, litigation and bankruptcy assignments. Bryan has provided these services to a wide range of industries, including banking, publishing, energy, government and manufacturing. Bryan has had extensive experience with internal fraud investigation, management and financial statement fraud investigation, commercial litigation damages determination, Chapter 11 bankruptcies, and other regulatory actions. Bryan, a Dallas area native, has returned to his home state of Texas and now specializes in Forensic & Investigative Services for the Dallas office of Deloitte & Touche. Bryan is a graduate of the Professional Program in Accounting at the University of Texas at Austin.

Pre-Meeting 10:30am

How to Audit Potential “Earnings Management”

Presented by Sonya Yoo, Texas Instruments Internal Auditing

Sonya Yoo, Texas Instruments Internal Auditing, will offer “hands-on” and timely advice related to performing internal audits aimed at preventing and/or detecting potential “earnings management.”

Operating management’s goals can lead to decisions being made to recognize sales or expenses early or late. This can impact the financial results reported for the quarter or the year. Sonya’s discussion will assist you and your internal audit team in understand the potential issues related to “earnings management.” Additionally, Sonya will outline the internal controls that should be in place to prevent and/or detect potential “earnings management” issues.

Post Meeting 1:30pm

The Business Of Horse Racing &
Tour of Lone Star Park

Have you ever wondered how the horse racing business works? The folks at Lone Star Park will walk us through the “business side of horse racing.” After this presentation, we will receive the VIP tour of the Lone Star Park facility.

You do not want to miss this “behind the scenes” discussion and tour!

This meeting is being held at Lone Star Park in Grand Prairie.

Attendees will need to come in Gate 5 and park in the preferred lot which is the second lot on the left.  The security guard at gate 5 will tell you where to park. Attendees should enter at the East gate in front of the valet parking area and go to the Pavilion Garden which is where the lunch will take place. There will be an IIA member there to help direct attendees to the proper area.

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 10:00am on Tuesday, April 16, 2002 or a $5 late fee will be charged.

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

Please mark your calendar for final meeting date for the 2001-2002 chapter year:

• Thursday, May 23, 2002

Chapter News

Chapter's Telephone Reminder Program

Periodic telephone calls are made to chapter members to remind them of upcoming meetings, events or seminars. The calls are brief and are made in the evenings and left on voicemail so as not to interrupt your work. If you would prefer not to receive reminder calls, you may "opt out" at the chapter website. Go to http://dallasiia.org/Reminder.htm and complete the form as requested. A message can also be left at (214) 740-5569 with your name and the telephone number to be removed.

Research Foundation - Research Priorities

The Research Foundation recently published a publication entitled Electronic Systems Assurance and Control (eSAC). The eSAC model sets the stage for effective technology risk management by giving companies a framework to guide an evaluation of their e-business control environment. A significant part of the eSAC planning involves feedback from the professional audit community. A brief survey (less than 20 questions), in which, the membership may provide their insights to the eSAC planning process is available now at the web site http://www.theiia.org/ecm/iiarf.cfm?doc_id=253. Please take a few minutes to complete the survey.

Take a friend to the movies-free - AND -
Win a $50 gift certificate

All you need to do is to write an article for one of the Departments in Internal Auditor magazine and submit it by Monday, April 22 for 2 movie passes.

• “Roundtable” submissions briefly recount actual internal audit experiences and findings and are limited to 500 words. (You can do that!)
• “Fraud Findings” remain anonymous and should be approximately 1,200 words.
• “In My Opinion” essays are 500 words in length and let you express a strong statement followed by 3 or 4 supporting paragraphs and a conclusion (You can do that, too!)
• “Back to Basics” contributions share information about introductory-level audit topics to provide guidance for beginning auditors and are between 1,000 and 1,500 words.

Of course, longer articles may also be submitted to Magdalena Kovats or Corinne Bryan for publication in Internal Auditor. For each submission by April 22 the Dallas Chapter will award 2 movie passes. For submission contact magdalena.kovats@mckesson.com or corinne.bryan@fhlb.com.

By participating you also have a chance to win two more times: 1st the member submitting the greatest number of articles will win a $50 gift certificate. 2nd the best Roundtable article published in Internal Auditor will win a $50 gift certificate for items featured in The IIA’s Bookstore Catalogue.

Be the member who submits the most articles for publication in Internal Auditor magazine by April 22 and walk away with movie passes and a $50 gift certificate!

Membership News

Is your resume state-of-the-art? Do you know how to research and target companies for employment opportunities? Are you successfully networking to get your next job?

To get answers to these questions, the Officers of the Dallas Chapter are inviting our members to attend a free session called Successful Tips to Help Get Your Next Job to be held on May 24, 2002, from 9:00am to 12:00 noon at the JCPenney Home Office in Plano.

If interested, please register or contact Pamela Krakosky, Membership Chair, at pkrakosky@aol.com for more information.

Please join us in welcoming our newest members to the Dallas Chapter:

Congratulations to New CIAs

New CIAs who passed the November 2001 Exam and met the eligibility requirements received their CIA certificates at the March luncheon. In total, 13 Dallas Chapter IIA members attained the Certified Internal Auditor designation. Congratulations to the following chapter members:

	In addition to becoming a Certified Internal Auditor, James Koehlinger was also awarded the William S. Smith Certificate of Honor.

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 March, 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 April 15, 2002. Contact Dace Ward (dace.ward@eds.com, 972-605-6128) if you have any questions.

The Dallas Chapter of The IIA would like to report the speaking engagements on internal audit related topics which our members have conducted since June 1, 2001. If you have made presentations that would qualify for continuing education credit, would you please let corinne.bryan@fhlb.com know the date, the group to whom the presentation was made, the number of hours of CPE, and the topic or title of your presentation. It will help the Dallas Chapter, and we thank you for it! (You need not repeat those that have already been reported.)

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.

Chapter Seminars

May 23, 2002

Presented by
Courtenay M. Thompson, Jr.

Schedule:

8:00am to 8:30am - Seminar Registration
8:30am to 11:30am - Fraud 2002 – Morning Session
11:30am to 12:00 noon - Lunch Registration
12:00pm to 1:15pm - Lunch – “Lessons From Major Fraud Cases”
1:30pm to 4:30pm - Fraud 2002 – Afternoon Session

Registration: On line

Cost: $25 for IIA members. Not a member? Become one!

Location: CityPlace Conference Center

Seminar:

As we enter the 21st century, fraud is alive and well. Auditors and managers are being challenged as never before to provide the leadership, techniques and technology to keep fraud to a minimum.

This course explores the current fraud-related challenges facing auditors and their organizations and provides practical proven solutions to real problems. The program will be highly participative. Attendees will have the opportunity to share their questions and greatest fraud-related concerns, and share their own proven techniques and ideas.

Fraud – What all auditors must know!

• Get executive commitment. Changing executive belief, defining management responsibility for detection, a model fraud initiative.
• Fraud implications of the changing business environment. Explore the quality movement, empowerment, globalization, restructuring, reengineering, downsizing, markets and distribution methods, technology, the current computerized business environment, the Internet, cost pressures, relying on outsourcing, marketing fraud, and diversity of experience and values.
• Lessons from recent major cases. Examine the lessons for auditors and management, and learn how to protect your organization.
• What is new in fraud! Explore technology, cellular and toll fraud, credit card fraud, counterfeiting, investments, fraud by vendors and contractors. What new exposures do you have?
• Fraud-related best practices. Learn what other organizations are doing, and share your own effective practices.
• Mistakes to be avoided. Examine the mistakes and practices that have cost auditors and their organizations dearly.
• Practical approaches to fraud-related controls. Discover how some departments have been able to encourage management responsiveness and accountability. Learn ten reasons controls breakdown and what auditors can do to promote control conscious management.
• More effective detection. Learn specific techniques for building detection into routine audits, monitoring for fraud, and using computer retrievals for detection.
• Bring your current concerns and questions.

About Mr. Thompson:

Mr. Thompson is a recognized authority on training managers, auditors and investigators in fraud-related matters. Since 1981 he has designed and presented courses on fraud prevention, detection and investigation for business and government organizations worldwide. His courses are known for providing practical, proven approaches to real problems. These practical approaches have yielded dramatic results for class attendees.

In addition to providing training on fraud-related matters, Mr. Thompson provides training on behavior and communication skills and internal auditing. He is the co-developer with R. L. Townsend, of a series of courses on audit and control of construction costs. He is also co-developer with Richard Stohl of a series of courses on audit and control of health benefits administration. Mr. Thompson is currently editor of "Fraud Findings" in The Internal Auditor magazine.

Mr. Thompson's experience prior to entering the consulting field includes public accounting with a Big 5 CPA firm, audit supervisor for consumer financial services for a large retailer, and director of auditing for a life insurance company. His career in public accounting and internal auditing provided exposure to a number of types of impropriety including embezzlement, insurance fraud, loan fraud, stock fraud, kickbacks and bribery, misappropriation of funds and mail fraud.

In addition to personally detecting and investigating suspected fraud cases, he established corporate policies for fraud and trained other auditors in fraud detection and investigation. Responsibilities included working with top management and reporting to the audit committee on the status of open cases. He has worked closely with legal counsel, law enforcement and prosecutors.

Courtenay Thompson received his BBA and MBA degrees from Southern Methodist University and is a Certified Public Accountant. He is a member of the Institute of Internal Auditors, Inc., the American Institute of Certified Public Accountants, and the Texas Society of Certified Public Accountants.

Go to http://www.dallasiia.org/Fraud_2002.htm for additional info and to register.

North Texas ISACA Spring Training Series For 2002

There are less than two weeks left until NT-ISACA's Spring Training Series, but the good news is there is still time left to register! However, don’t delay since seats are limited and they are filling up fast!

If you are interested in signing up, NT-ISACA wants to make the registration process as painless as possible. They don’t need to have your company check in hand to register you. Simply fax your registration form to Dave Sarabacha at 214-880-5083 and mail a check later, or pay at the door.

Seminar Information:

This time they are offering a 3-day, 2-track seminar concentrating on mainframe and network audit, security and control and featuring 3 highly skilled and experienced instructors. This promises to be an exceptional training opportunity at an affordable price, so be sure to register today!

Dates: April 15-17, 2002

Location: CityPlace Conference Center

If you are interested in attending, outlines for Track 1 and Track 2 as well as a registration form with all contact information can also be downloaded from the Events page on their website at http://www.isacantx.org. As always, remember to visit frequently for the most current, detailed information on all chapter events.

Career Opportunities

The Federal Reserve Bank of Dallas is seeking AUDITOR and INFORMATION TECHNOLOGY AUDITOR candidates.

Both positions require:

• 3 to 5 years experience in internal auditing or a closely related field.
• Audit, accounting, and/or information technology certification.
• Bachelor’s degree in accounting, management, computer science/information technology, engineering, or a related field.
• Excellent project management, teamwork, communications, and report writing skills.
• Ability to handle multiple projects, establish priorities, work effectively independently and as part of a team.
• IT Auditor candidates should have experience auditing distributed processing / client/server / database environments.

Persons in these positions:

• Plan, conduct, and report on audits of internal Federal Reserve Bank operations.
• Interact with all management and staff levels in the organization.
• Evaluate internal controls, develop and perform audit tests, identify manual and automated risks and exposures, develop and recommend improvements to management, and communicate audit results (oral and written).
• Maintain expertise in the operations of one or more assigned Bank operations or functions as part of Audit Liaison Program; consult with management in areas of expertise.
• May travel occasionally (10% annually) to other Federal Reserve cities nationwide.

The Federal Reserve Bank of Dallas is one of the 12 district banks that, along with the Board of Governors in Washington, make up the central bank of the United States. The Federal Reserve System’s three major responsibilities are to set monetary policy and manage the money supply; to regulate and supervise banks; and to serve as a bank for the banking industry, provide financial services, and serve as the fiscal agent for the Federal government. The majority of the operations at the district banks, and the focus of audit activities, are focused on this last responsibility.

The Federal Reserve Bank of Dallas is located near downtown Dallas. The Bank offers competitive salaries, an excellent benefits package, a casual dress work environment, and free, underground, on-site parking. The Bank is an Equal Opportunity Employer M/F/D/V.

Interested candidates can find additional information about the Fed at www.dallasfed.org.

Resumes may be forwarded as noted below. When responding, please reference Code 412 HS for Auditor; Code 413 HS for IT Auditor.

resumes@dal.frb.org

fax - 1-888-304-2317

Mail:

Federal Reserve Bank Dallas
P.O. Box 549238, Suite 102
Waltham MA 02454-9238

INTERNAL AUDITOR

OmniAmerican, ranked one of the top 100 credit unions in America, seeks an experienced, detail-oriented internal auditor. Responsibilities: plan & perform financial, operations, compliance audits.

Other duties include:

• Conducts and assists in performing audits to assess effectiveness of internal controls.
• Verifies compliance with Credit Union policies and procedures, verifies accuracy of accounting practices, reporting systems, and financial records and recommends corrective measures where prudent.
• Determines or assists in determining the audit procedures to be used.
• Plans or assists in the planning of the audit program.
• Performs the audit in a professional manner and in accordance with the approved audit program.
• Analyzes data obtained for evidence of deficiencies in controls; duplication of effort; fraud; lack of compliance with laws, regulations, policies and procedures.
• Prepares audit reports identifying weaknesses in controls, procedures or operations. Recommends changes, including new procedures and techniques to correct weaknesses.

Accounting degree required; CPA or CIA preferred. Financial institution operations and/or audit experience preferred. The position is located in west Ft. Worth. Competitive salary and superb benefits! Fax cover letter, salary history, & resume to 817-367-2786 or email: jadams@omniamerican.org.

EEO/AA M/F/D/V

Please visit http://www.omniamerican.org

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.