November 2002

Tuesday, November 19, 2002
CityPlace Conference Center

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

National Economy Update

Evan F. Koenig Senior Economist and Vice President, Federal Reserve Bank of Dallas

During the latter part of the 10-year U.S. economic expansion that ended in 2001, many economists and policymakers recognized the emergence of a New Economy characterized by a higher sustained level of productivity growth brought on by the adoption of new information technologies. Rapid economic growth combined with low inflation and low unemployment led some to assert that the business cycle was dead. In November 2001, these claims were put to rest when an official declaration was made that U.S. economic activity had slipped into recession in March 2001. In his talk, I demonstrate that the 2001 recession was mild relative to other post-World War II downturns, and argue that this mildness reflects a broader trend toward a more flexible and resilient U.S. economy. Like the New-Economy productivity acceleration, the trend toward greater economic stability would not have been possible without the productive implementation of technologies that provide decision-makers with real-time access to critical information. So, the New Economy hasn't killed the business cycle, but the cycle is weaker as a result of the innovations responsible for the New Economy.

Evan F. Koenig is a senior economist and vice president at the Federal Reserve Bank of Dallas. In this position, he oversees macroeconomic research and analysis in the Research Department, briefs the president and directors of the Bank on current macroeconomic conditions and writes articles for Bank publications and scholarly journals.

In his research, Koenig seeks to characterize, predict and explain movements in prices, output and employment, particularly as these movements are affected by monetary policy. His articles have appeared in such publications as The Quarterly Journal of Economics, The Journal of Public Economics, The National Tax Journal, and the Dallas Fed's Economic and Financial Review.

Koenig holds bachelor's degrees (with honors) in mathematics and economics from the University of Wisconsin and a Ph.D. in economics from Harvard University. He joined the Federal Reserve Bank of Dallas in 1988, after teaching at the University of Washington, in Seattle. He is currently an adjunct professor of economics at Southern Methodist University.

Pre-Meeting 10:30am

Unfinished Recession and its Impact on the Dallas Metroplex

Bernard L. Weinstein (Bud) is director of the Center for Economic Development and Research and a professor of applied economics at the University of North Texas in Denton. The Center was established in 1989 to provide economic analysis and consulting services to university constituents in the private, non-profit, and public sectors. He also serves as director of the Institute of Applied Economics, which offers masters degree programs in economic development.

Dr. Weinstein studied public administration at Dartmouth College and received his B.A. in 1963. After a year of study at the London School of Economics and Political Science, he began graduate work in economics at Columbia University, receiving an M.A. in 1966 and a Ph.D. in 1973.

He has taught at several universities including the University of Texas at Dallas, and Southern Methodist University. He has worked for several U.S. government agencies including the President’s Commission on School Finance, the Internal Revenue Service, and the Federal Trade Commission.

Dr. Weinstein has authored or co-authored numerous books, monographs, and articles on the subjects of economic development, public policy, and taxation.

Dr. Weinstein has been a consultant to many companies, non-profit organizations, and government agencies, and he testifies frequently before legislative, regulatory, and judicial bodies.

He is currently a senior fellow with the Southern Growth Policies Board and the Texas Public Policy Foundation, and he serves on the boards of the Dallas Business Finance Corporation and Metroplex Citizens Against Lawsuit Abuse. He is also a director of Beal Bank in Dallas, Texas.

Post-meeting 1:30pm

How to Spot White Collar Crime in Your Organization

Brian Flood is an Assistant District Attorney (DA) in the Specialized Crime Division of the Dallas County DA’s office. He graduated from Texas A&M and attended law school at Texas Wesleyan University School of Law, graduating 9th in his class.

Mr. Flood will share with us some examples of white collar crime in the Dallas area as well as some tips for identifying these schemes within your organization. His front line perspective of fraud in Dallas county will no doubt give all of us some things to think about during our next audit!

He has prepared publications for many different types of media including:

• “Cybercrimes, A Focus on Texas Laws”, Electronic Law Enforcement Seminar, University of Texas at Dallas, July 16, 2002,
• Contributing writer to the National College of District Attorneys White Collar Crime Course “Issues in Bank Fraud” and “Issues in Insurance Fraud” for October, 2001,
• Appeared on “Good Morning Texas” on March 14, 2001 and KERA FM 90.1 “The Evening Talk Show” on April 5th, 2001 to present material related to ID fraud.
• Appeared in Kiplinger’s Personal Finance Magazine, November 2000, “Many Ways to Lose” pg. 98.

In addition to Mr. Flood’s experience within the DA’s office, he has also participated in training sessions for numerous organizations including U.S. General Accounting Office, FBI, National Association of Insurance Commissioners, Southwest Securities Enforcement Conference, Texas Department of Insurance, and the Independent Bankers Association.

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, November 15, 2002 or a $5 late fee will be charged. Reservations will close promptly due to the Tuesday meeting.

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

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

• December 19, 2002
• January 16, 2003
• February 13, 2003
• March 20, 2003
• 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

Control and Risk Self Assessment
Facilitation & Implementation Skills

November 6, 7, & 8

Time is limited… register now…

The Dallas Chapter of the IIA is presenting a 3-day seminar on facilitation skills for auditors taught by Joan Pastor, founder of Joan Pastor & Associates International, an international consulting company. Control and Risk Self Assessment Facilitation & Implementation Skills will teach you the responsibilities and skills of the auditor as facilitator and teacher of self-assessment methodology. This program has been carefully designed to integrate facilitation, leadership, and communication skills within the specific needs of the auditing profession. This program is also highly participatory, allowing all attendees the opportunity to practice, refine, and reinforce the facilitation skills you have learned.

You will learn:

• Effective facilitation skills and the role of the facilitator in self-assessment auditing
• How to deal with difficult audit clients and manage conflict
• How to open and close self-assessment meetings
• How to feel comfortable in front of a group
• How to influence the group to cooperate with you and to work together as a team
• How to keep yourself and the group energized through the self-assessment process
• How to handle people of mixed authority levels in the same group

In addition,

• Training fulfills facilitation requirements for CCSA
• CIA candidates who have successfully completed the examination requirements for the CCSA are eligible to receive Professional Recognition Credit for Part IV of the CIA exam.For more information, go to theiia.org's certification page.

Make Checks payable to IIA Dallas Chapter and mail to:

Anthony Palmieri
6501 Legacy Drive
Mail Stop # 4321
Plano, Texas 75024-3698
apalm6@jcpenney.com

Cancellation Policy: No refunds will be given after October 8, 2002.

Chapter News

It doesn't get any better than this....

For a very limited time, The Institute of Internal Auditors is offering non-members the opportunity to join for only $85 and no application fee, a savings of $50.  You will receive all the benefits and services of The IIA and opportunities for local chapter participation. This is a one-time offer being extended to you through the Dallas Chapter and must be acted on by November 15, 2002.  To take advantage of this opportunity, simply complete the application provided at http://dallasiia.org/Members.htm. Feel free to pass this message on to your colleagues.

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 October, 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 November 8, 2002. Contact Magdalena Kovats (972-389-3344 or magdalena.kovats@mckesson.com) if you have any questions.

Why aren’t you certified?

It is too late to register for the November exam, but it is not too early to plan for the May 2003 exam. Make a commitment to become certified in 2003!

What's in it for you?

OVERALL:

• Affords you access to higher-paying jobs.
• Develop your knowledge and skills.
• Carries weight with clients.
• Demonstrates your ability to add value.
• Demonstrates your proficiency.
• Demonstrates your qualifications and professionalism.
• Distinguishes you from your peers.
• Increases your marketability.
• Enables you to better adapt to professional changes and challenges.
• Gives you personal satisfaction of achievement.
• Improves your image and credibility.
• Increases your recognition within the workplace.
• Prepares you for many career challenges.
• Provides you with greater job mobility.

Visit the IIA website at http://www.theiia.org (certification tab) for test information and study aids.

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."

Did you know the IIA offers more than just the CIA exam? Make a commitment to become certified in 2003!

CERTIFIED INTERNAL AUDITOR (CIA) - The premier certification:

• Demonstrates your commitment to the internal audit profession.
• Demonstrates your understanding of The IIA's Standards for the Professional Practice of Internal Auditing.
• Enhances your overall skills and knowledge of internal auditing.
• Establishes credentials in internal auditing.
• Provides a comprehensive study for new internal auditors.
• Provides a global measure of your value in internal auditing.
• Provides for greater acceptance as an advisor to management.

CERTIFICATION IN CONTROL SELF-ASSESSMENT - The IIA's first specialty certification:

• Enhances clients' and senior management's confidence of your understanding of the CSA process.
• Offers prospective employers clear evidence of CSA knowledge and training.
• Provides a training ground for performance.
• Provides the required knowledge of areas such as risk and control models.
• Provides eligibility for Professional Recognition Credit for Part IV of CIA exam.

CERTIFIED GOVERNMENT AUDITING PROFESSIONAL

• Demonstrates commitment to auditing excellence in the government sector.
• Demonstrates that you understand government auditing standards including The IIA's Standards and GAGAS.
• Identifies leaders in government auditing.
• Provides the opportunity to serve as an example of the best in public sector auditing.
• Provides eligibility for Professional Recognition Credit for Part IV of CIA exam.

CERTIFIED FINANCIAL SERVICES AUDITOR (CFSA) - the newest specialty examination:

• Designed for financial services auditing, banking, insurance and securities.
• Demonstrates competency in financial services auditing practices and methodologies.
• Demonstrates you are a professional who has demonstrated comprehensive knowledge of audit and financial services.

SPECIAL DISCOUNTS FOR MICROMASH!

The Dallas Chapter has negotiated a special discount for Dallas Chapter IIA members with MicroMash, a leader in PC-based self-directed exam preparation. You can study for the exam on your own PC, at your leisure, and let the savviest software ever guide you. You decide whether you study for the test in full or in part. This review method gives you total flexibility. For a demo of the software, checkout http://www.micromash.net/AccountingReviews/CIA/cia_frame.htm.

Chapter members will receive the complete course for $300 plus shipping. That is a 25% discount! To order, simply call 800-272-7277 and identify yourself as a Dallas Chapter IIA member. You will need to know the computer platform on which the software will be run (e.g. Windows, DOS or Macintosh).

Research Foundation

One of the Research Foundation’s newest publications is entitled A Balanced Scorecard Framework for Internal Auditing Departments. Internal auditing’s changing mission, roles, and strategies have led departments to rethink and refine their strategy and performance priorities. The balanced scorecard is an effective tool for fine-tuning and implementing strategy and for showcasing the value of an internal audit department. The author of this 96 page paperback publication can help you refine and translate your departmental strategy into positive action using a balanced scorecard framework.

The publication (order number 414, price is $50 for IIA members and $65 for nonmembers) can be purchased through the IIA Distribution Center (toll free in the U.S. 1-877-867-4957).

Member News

We extend our congratulations to the following members of the Dallas Chapter who were recognized for their ten, fifteen, twenty-five, and thirty year anniversaries with The Institute of Internal Auditors. Also please welcome our newest members.

Membership Updates

• The IIA newsletter Auditwire will go electronic January 1, 2003. This means no hard copies will be mailed. Please check your member profile via the IIA Web site to make sure that your current email address is included. You can update the information online or contact customer service at custserv@theiia.org or +1-407-937-1111.
• With the IIA Headquarters move to a new building and the change in logo, new membership cards will be sent to all members. The cards will have member ID and Web password imprinted on them and will be mailed in December. Keep an eye out for them!
• Effective January 1, 2003, a number of membership categories for individuals and audit groups will experience a small dues increase. We encourage you to renew your memberships or take advantage of the membership madness nonmember program. The new dues structure for individual memberships as of January 2003 is as follows:

       Please call +1-407-937-1375 for audit group rates.

New Book Written by Dallas IIA Chapter Member

Mark Nigrini Ph.D., a Dallas IIA Chapter member since 1997, and former SMU faculty member, has recently completed a new book titled “Using Microsoft Access for Data Analysis and Interrogation.” The book is aimed at internal auditors and focuses on finding anomalies in data sets. These anomalies will usually be evidenced by abnormal duplications, or extreme ratios between related records. The anomalies could indicate possible fraud, potential errors, outliers, biases in the data (numbers skewed to a value or range of values), processing inefficiencies, or a change in the composition of the numbers between time periods for continuous monitoring.

The first three chapters discuss data analysis theory (including Benford’s Law), practical data analysis issues for auditors, and the basics of data analysis using Access. Chapter 4 gives an overview of data analysis in Access. Chapters 5 to 11 discuss data interrogation tests for auditors with tips and hints for auditors and how to do the tests in Access (demonstrated with detailed screen shots). Chapters 12 and 13 cover the tests included in specialized data analysis packages including audit sampling, histogram, gaps, duplicates, and aging. Chapter 14 is a review and discussion chapter.

Nigrini shows that Microsoft Access is an excellent data analysis tool. The main features in Microsoft Access supporting data analysis through queries are:

• The ability to create a query using the wizards, design view, or SQL view
• The ability to query tables, prior queries, or both tables and queries
• The ability to use SQL view to modify a query created in Design view
• Performance Analyzer (Tools, Analyze, Performance) to assist in making queries more efficient
• The ability to format the output of the query
• The ability to sort and resort query results without creating multiple dynasets along the way
• Built in functions for calculated fields including Iif (Immediate If) function and full set of operators such as less than or greater than and also And, Or, and Not
• Tolerance of empty (null) fields
• The ability to read all the main file formats with its ODBC capabilities.
• The ability to easily join tables allowing queries that are based on conditions in both tables.
• The ability to seamlessly export results to Excel for further analysis or neat presentation
• Excellent support available on the Microsoft website

The book includes two test data sets that allow users to duplicate the screen shots, and Excel templates that produce graphs that match the format of the graphs in the book. More details can be found at:

http://www.nigrini.com/data_analysis_books/data_analysis_using_access.htm

Would You Like An Elegant Dinner And A Night Of Chocolate And Champagne At A Fancy Dallas Hotel?

The Chapter is happy to announce a Special Door Prize Drawing at the end of the Chapter Year for people who have attended 4 or more monthly luncheon meetings between September 2002 and April 2003. The drawing will be held at the May 2003 luncheon. You need not be present to win, but since the winner would be a "frequent attendee", he/she will probably be there! The prize will include a gift certificate toward dinner for two and the "Chocolate and Champagne" one night special at the Hotel Intercontinental.

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

The Federal Reserve Bank of Dallas is seeking experienced AUDITOR candidates.

The position requires:

• 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.

Persons in this position:

• 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 a comprehensive benefits package that includes: medical and dental benefits on your first day, tuition reimbursement for full/part-time employees, employer matching 401(k), an on-site cafeteria, free, underground, on-site parking, and a 24 hour fitness center. We are proud to be an equal opportunity employer!

Due to the large volume of resumes we receive, we do not acknowledge receipt of each resume and are unable to give status updates. If a strong match is found between your qualifications and the requirements of the position, a member of the recruiting staff will contact you to further discuss the career opportunity. In the event that you are not contacted within a 2 to 3 week period, it is likely that we are pursuing other applicants. However, your resume will be maintained within our resume database should your skills and qualifications present a strong match to future positions. We encourage you to return to our website on a regular basis in the event that another position is of interest to you.

To apply visit the employment section on our website at www.dallasfed.org.

Senior Information Systems Auditor

The DFW International Airport is the world’s third busiest airport based on total operations, and the fifth busiest in passengers. DFW Airport employees approximately 1600 people, and is seeking a Senior Information Systems Auditor.

Under the general direction of the Assistant Director or Audit Manager, the incumbent in this newly created position will assist in the Automated Parking System design review process, as well as program and perform professional-level information systems audit work to assist the Board of Directors and management by independently reviewing programs, activities, and resources for which the Airport is accountable and by communicating results useful for increasing accountability and ensuring efficient, effective, and ethical management practices.

MINIMUM REQUIREMENTS:
Bachelor's degree in information systems, accounting, or a related field.
Three (3) years of experience auditing information systems.
Possession of a valid Class C driver's license.

REQUIRED KNOWLEDGE, SKILLS AND ABILITIES:
Knowledge of the principles, practices, and techniques of accounting and auditing; techniques, tests, and sampling methods involved in conducting audits; computer-oriented business systems and related controls.**Skill in using Microsoft Office Suite, including development of Access databases; developing retrievals, queries, and reports of computerized information; monitoring the acquisition and development of complex information systems.**Demonstrated ability to gather, analyze and evaluate facts and to prepare and present concise oral and written reports.**Ability to communicate clearly and effectively, both orally and in writing, including the ability to interview persons to extract politically sensitive information.

DESIRABLE:
Master's degree in information systems, accounting, or a related field.
Certified Information Systems Auditor (CISA), Certified Public Accountant (CPA), or Certified Internal Auditor (CIA) designation.

Salary Range:
Commensurate with experience

Requisition Closes:
This position closes when filled. Interested candidates should apply immediately. Please visit our website at www.dfwairport.com to apply. The Dallas/Fort Worth International Airport is an Equal Opportunity Employer.

Internal Audit Opportunities

Belo, headquartered in Dallas, Texas, is one of the nation’s largest media companies, with a diversified group of television broadcasting, newspaper publishing, cable news, and electronic media assets. We’re seeking talented individuals to join one of the DFW area’s most progressive Internal Audit Departments to work with management to enhance the effectiveness and efficiency of operations.

IT AUDITOR

This is a perfect opportunity for an experienced professional to assist the Manager/Information Technology Audit in a hands-on capacity in performing audits in all areas related to Information Technology. The ideal candidate has 3+ years’ experience in a combination of public accounting, consulting and internal audit. CISA is required with an MBA, CIA or CPA highly desired. PeopleSoft Financial applications, ACL software, HP-UX, Oracle database, client/server, firewall configuration, and national enterprise frame relay network experience is preferable. Nationwide travel of approximately 25% is required, including some weekend stays.

INTERNAL AUDITOR

Excellent opportunity for an individual interested in rotating to another department of the Company, locally or nationwide, within 2-3 years. The position requires 3+ years’ experience, preferably with a combination of public accounting/consulting and internal audit with an undergraduate degree in accounting or similar discipline. CPA certification is required and a MBA, CIA and ACL software experience is desired. Nationwide travel of approximately 50% is required, including some weekend stays.

Candidates for both positions must have strong technical, professional, interpersonal and facilitative skills. Belo offers a convenient downtown location with free parking and a competitive salary and benefits package. Qualified candidates may mail, fax or email resumes with salary requirements to:

Belo
Human Resources
P.O. Box 655237
Dallas, Texas 75265

Fax: (214) 977-6603
e-mail: belojobs@ahbelo.com.

Equal Opportunity Employer

Please visit www.ahbelo.com

Senior Internal Auditor

Cadbury Schweppes is a multinational beverages and confectionery company with subsidiaries such as Dr Pepper/Seven Up, Inc., Mott's, Snapple Beverage Group, and the Dr Pepper/Seven Up Bottling Group in North America. We are looking for a Sr. Internal Auditor who will perform audits of financial and management information systems. The Sr. Internal Auditor has significant interaction with business unit management, as the role is responsible for the issuance of reports that summarize audit results and recommendations for improvements to the Company's financial and management information systems.

The target candidate for this position will possess a Bachelor's Degree in Accounting, Finance, Management, Business Administration, or other business related major, and have 3-4 years of recent internal audit experience with some public accounting experience. The ability to understand and analyze complex problems using sound judgment to identify solutions for business issues is critical to success in this role.

CPA preferred.
Excellent oral and written communication skills.
Knowledge and experience using SAP, PC technology and office productivity programs.
Approximately 50% travel

If you meet these requirements, please apply through the following link:
Apply to DPSU.

No phone calls please. Only those who meet these requirements will be considered.

Dr Pepper/Seven Up is an EEO Employer and complies with all applicable statutes including ADA. Accordingly, Dr Pepper/Seven UP will reasonably accommodate otherwise qualified individuals with disabilities.

Please visit www.dpsu.com.