January 2004

Thursday, January 22, 2004
CityPlace Conference Center

Meeting 12:00pm - 1:20pm
Registration begins at 11:30pm

Enterprise Risk Management (ERM)
– The Next Generation

Amy M. Schillings, CIA, CCSA

Enterprise Risk Management (ERM) is not new. It is part of the evolution taking place since the inception of the Committee of Sponsoring Organizations’ Internal Control - Integrated Framework. Because of the complexity and depth of institutionalizing an ERM process, COSO has now developed an ERM Framework in hopes that it will assist organizations in understanding, communicating, initiating and implementing ERM in their organizations. ERM may also help answer plaguing questions about how to comply with Sarbanes-Oxley requirements.

Amy Schillings is an independent consultant who specializes in risk management, audit report writing, audit process innovation, and audit leadership/technical skills. She has conducted over 200 training sessions to 5,000 individuals from 20 different countries. In addition to seminar instruction, Amy provides consulting services both nationally and internationally. She has worked in the Internet services, construction, banking, utilities and investment industries.

Amy began her internal audit career in 1989 with Huntington Bancshares Inc. in Columbus, Ohio as an internal auditor. Later, Amy started and managed the Internal Audit and Compliance Department for Huntington Federal Savings Bank in Florida. Amy worked closely with the board of directors and executive management to ensure seamless coordination and communication throughout the organization. Amy also developed several training courses for the bank that were used at both the local and national level.

In 1995, Amy joined the Institute of Internal Auditors (IIA) as a Seminar Specialist. During her tenure with the IIA, she conducted internal audit seminars, trained and managed 150 volunteer instructors, and co-developed/edited several IIA courses and educational products. Amy was awarded the designation Distinguished Faculty Member for excellence in the classroom.

Prior to working in internal audit, Amy worked with John C. Christiansen & Associates, a public accounting firm in North Canton, Ohio. She conducted external audits, provided management consulting and worked closely with corporate tax groups. Amy participated in multiple projects with clients from many industries, ranging from transportation to health care.

Amy received her Bachelor of Business Administration in Accounting from Oklahoma State University.

Pre-Meeting 10:30am - 11:20am

Sarbanes - Oxley – A Marketplace Update/Discussion

Jonathan Pike and Robert E. Brant
Ernst & Young Business Risk Services

Are you addressing Section 404 of the Sarbanes-Oxley legislation consistently with those in the marketplace? Jonathan Pike and Rob Brant from Ernst & Young will share what they are seeing in the market place on how companies are reacting and addressing the requirements of SOX 404. They will also cover what is being completed in the areas of Internal Audit, Finance, Accounting and Risk Management as it relates to this legislation.

Jonathan Pike has provided professional services to a variety of companies for more than 18 years. Jonathan currently serves on Ernst & Young’s Southwest Area’s Section 404 Leadership and Implementation Group. Jonathan has served clients in the area for more than seven years, and previously worked in Ernst & Young’s National Office where he focused on new technology implementation. His experience includes assisting companies in performing customized risk assessments, overseeing engagements designed to provide operational efficiencies, working with companies to transform existing internal audit environments into leading practice functions, evaluating sensitive accounting estimates and processes surrounding those estimates, preparing and reviewing SEC filings, identifying and evaluating issues related to acquisitions (including integration of “back office” processes), and identifying and evaluating strategies to maximize synergies of merging entities. He is currently assisting a number of area companies with implementation of the new Sarbanes-Oxley Section 404 rules including Dresser Industries, EDS, Neiman’s, Network Associates, CompX, Concentra and Southwest Airlines.

Robert E. Brant is a Senior Manager in the Business Risk Services Practice and serves as the Southwest Area Operations Leader for the retail, distribution and manufacturing industries. Prior to this role, Rob served as the global internal audit services leader for the retail/distribution/manufacturing industry. Rob has over 18 years of relevant finance and operations experience, working with Ernst & Young and a Fortune 200 manufacturing company. In addition, Rob is the Southwest Area Business Risk Services Sarbanes-Oxley leader responsible for providing technical guidance to clients on emerging issues and trends. His clients have included Alcoa, PPG Industries, HJ Heinz, American Eagle Outfitters, PDM, Special Metals, IMC, Century Aluminum, Fleming Industries, Dresser Industries and Kimberly-Clark.

Post-Meeting 1:30pm - 2:30pm

Statistical Sampling Methods for Internal Auditors

Dr. Donald McConnell, University of Texas at Arlington

The internal control certification requirements of Sarbanes-Oxley Section 404 have rekindled an interest in statistical sampling techniques for testing internal controls. Most of the larger CPA firms, and many internal auditors had adopted non-statistical approaches in lieu of statistical sampling approaches. However, statistical sampling methodologies allow the auditor to quantify sampling risk, a very important consideration, in light of heightened legal liability concerns in the post Sarbanes-Oxley era.

Attribute sampling plans can be very easily and cost-effectively used by internal auditors to test controls. This presentation will show you how to utilize three major forms of attributes sampling plans: fixed sample size plans, stop or go plans, and discovery sampling. You will also learn when each should be used, as well as common practical pitfalls to avoid which can invalidate your test results.

Donald K. McConnell Jr., Ph.D., is a CPA and CFE with over three years of public accounting experience as an auditor in the Dallas office of KPMG Peat Marwick, where he attained the position of supervising senior. He has published in Journal of Accountancy, Auditing: A Journal of Practice and Theory, CPA Journal, The Journal of Accounting, Auditing, and Finance, and Journal of Business Research, in addition to other journals. He received an editor’s commendation for an article in the January 2003 issue of Journal of Accountancy. He is also the author of Public Company Auditor Changes and Big Eight Firms: Disagreements and Other Issues, a book published by the University of Michigan Press. He is presently vice president of the Dallas Chapter of the Association of Certified Fraud Examiners, and an accounting professor at the University of Texas at Arlington, where he has received a Distinguished Professional Publication Award and Outstanding Undergraduate Teacher Award from the UTA College of Business Administration. Recently, UTA recognized him as being the Outstanding Student Organization Advisor. He was recipient of the prestigious Association of Certified Fraud Examiners Distinguished Achievement Award in 2002.

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, January 16, 2004 or a $5 late fee will be charged. Those who register by the deadline and attend the Pre-Meeting will be able to "pre" check-in for the luncheon from 9:25am until 10:10 am.

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

Please mark your calendar for the balance of the 2003-2004 chapter year:

• Thursday, February 19
• Thursday, March 25
• Thursday, April 22
• Thursday, May 20

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 Pamela Krakosky, 972-849-3440 or pkrakosky@aol.com.

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

Auditing Using COSO
by Dr. Glenn Sumners

Dr. Glenn Sumners, director of the Center for Internal Auditing at Louisiana State University, will discuss incorporating the new COSO Risk and Control Model into your audit project. The seminar will be held on Thursday, January 15, 2004, from 8:30 a.m. to 4 p.m. at the World Trade Center in Dallas. The program cost is $149 for 8 hours of CPE credit. Please contact Anthony Palmieri, CIA, CISA at apalm6@jcpenney.com  for more information.

Glenn E. Sumners, DBA, CIA, CPA, CFE, is on the faculty of Louisiana State University where he teaches internal auditing in the Center for Internal Auditing. Prior to receiving his DBA at the University of Tennessee, he received a BS and MA from the University of Alabama.

As the current Director of the Center for Internal Auditing at LSU, Dr. Sumners has received the 2001 CIA Academic Outreach International Award, the 1999 LCPA Lifetime Achievement in Accounting Award, and the 1987 Educator-of-the Year award. Additionally, twelve students from the LSUCIA Program have won international awards for the highest score on the CIA exam.

Professor Sumners has over ten years professional experience in industry, consulting and public accounting. This experience includes three years as the Controller of ESP.

Professor Sumners has authored two IIA Monographs, “Developing the Internal Auditor’s Leadership Skills” and “Conducting Internal Audit Interviews.” In addition, he has authored articles in the Managerial Auditing Journal, Auditing: A Journal of Practice and Theory, Internal Auditing, Internal Auditor and others. He serves on the Internal Auditor Editorial Advisory Board and the editorial team of the International Journal of Auditing. He currently serves as an IIA Research Foundation Trustee.

In the last 15 years, Professor Sumners has made over 850 presentations to companies, organizations and IIA Chapters. This list includes over 150 CIA exam reviews in 35 cities and 7 countries. In addition, he provides quality assurance and consulting services to internal audit departments and audit committees. He is a co-presenter in the IIA/LSUCIA Vision University Program.
 

The Reid Technique of Interviewing and Interrogation
Week of January 27, 2004

The Dallas Chapter of the IIA has not recently offered seminars on interviewing and/or interrogation techniques. As a service to our members, we have negotiated with Reid & Associates to offer a discounted fee for their 3-day and 4-day courses in Dallas during the week of January 27, 2004.

John E. Reid & Associates has been conducting training seminars on The Reid Technique of Interviewing and Interrogation since 1974, and have trained over 300,000 investigators in the art of interviewing and interrogation. In the world of fraud investigation professionals, the Reid Technique is considered the cream of the crop and is now the most widely used approach to question subjects in the world.

The 3-day training seminar features a discussion of three primary topics: Behavior Symptom Analysis (the verbal and nonverbal behavioral characteristics which can be used to distinguish a truthful person from a deceptive individual); the Behavior Analysis Interview (a non-accusatory interview process utilizing both investigative and behavior provoking questions); and, The Reid Nine Steps of Interrogation. The 4-day seminar consists of our 3 day regular seminar followed by our 1 day advanced seminar. The advanced program focuses on developing interrogation strategies, including how to psychologically profile subjects for the interrogation; how to handle defiant suspects; how to effectively use bonding statements; and, how to address such situations as juvenile interrogations and interrogations which focus on guilty knowledge.

The 3-day training session is $395 per person (a savings of $155 per person).

More information and register at: http://www.reid.com.

To receive your reduced fee, you must register using the Dallas IIA Preferred Association Number A2036.

Brief Course Outline

Interview and Interrogation Preparation

• Distinction between an interview and interrogation
• Proper room environment
• Factors affecting a subjects behavior

Behavior Symptom Analysis

• Evaluating attitudes
• Evaluating nonverbal behavior
• Evaluating verbal behavior
• Evaluating paralinguistic behavior

Reid Behavioral Analysis Interview TM

• The baiting technique
• Analyzing factual information prior to the interview
• Asking behavior provoking questions

The Reid Nine Steps of Interrogation®

1. The Positive Confrontation
2. Theme Development
3. Handling Denials
4. Overcoming Objections
5. Procuring and Retaining the Suspect's Attention
6. Handling the Suspect's Passive Mood
7. Presenting an Alternative Question
8. Detailing the Offense
9. Elements of Oral and Written Statements

IT Audit Skills that Every Auditor Should Possess

The Return of Dr. Dan (Chapter II)
By Dan Kneer

Last year, the “Almost Free” seminar was so good, you asked for a follow-up.

Day 1: "Enterprise Network Security for Secure Electronic Commerce"
This course is designed for internal auditors who desire to review the company’s intranet, extranet and Internet security architecture.

Day 2: "Hands-On"
Option 1 is "Statistical Sampling Made Easy." The SOX Act reflects the resurgence of internal control testing. Dr. Dan can and does make ‘stat’ sampling funny and understandable.

OR

You can select Option 2, which is "Advanced Features of Excel and Advanced Analytics." Excel is packed with an armada of audit optimizing techniques, which can reduce audit cycle time while increasing audit findings. Kim Kneer will demonstrate that you should be able to do more with Excel than just sum and average.

Space is limited for Day 2 since it is “hands-on.”

CIA Review Course

The Dallas Chapter is once again sponsoring an interactive CIA review course to help prepare candidates for the CIA Exam. This four-day course will be taught by Dr. Glenn Sumners, Director of the Center for Internal Auditing at Louisiana State University. Comprehensive printed study materials will be provided for the course. Refer to the Dallas IIA Chapter Web site for more information.

NAFTA Seminar/Compliance Certificate Series

The International Trade Center is part of the Small Business Development Center network. It is a non-profit organization that is funded by a partnership of the Small Business Association, Dallas County Community College District, Greater Dallas Chamber of Commerce, and International Business Development.

The International Trade Center is presenting a global market series that focuses on import/export trade and includes compliance issues. The seminars have been approved for CPE/CPM credit.

Global Market Series: Import Certificate Program*: Everything importers must know. Seminars offered on consecutive Wednesdays, 8:00 a.m. - 12 p.m. Cost: $45 per session; $285 entire series. Early Payment by January 21: $40 per session; $250 entire series. Participants must complete series for NAPM Import Certificate. CPE/CPM Credit.

Topics include:
February 4 - Customs and Border Protection
February 11 - International Sourcing and Purchasing
February 18 - Legal Issues and FTZ
February 25 - C-TPAT/Audits
March 3 - Documentation and Transport
March 10 - Letters of Credit
March 17 - Managing Communications

Contact: 214-747-1300 or www.iexportimport.com  for more information.
*Dates, times & cost subject to change.
Seminar location: World Trade Center

Chapter News

Early Registration Discount offer for the 2004 Dallas Regional Conference

We are offering a significant savings on the 2004 Regional Conference that is being hosted in Dallas. This is an early bird special being offered only to local companies as our way of giving back to the local firms and members of our chapter. This is a good way to stretch your training dollars for 2004.

SPECIAL OFFER!

Register and pay in full by January 31, 2004 and receive a special discount of one of the following:

• $100 off the registration fee for each delegate, or
• Free registration for the fourth delegate. For every three people from the same organization who attend the conference at the regular rate, a fourth can attend free. Registrations must be made and paid for together.

What do you get for your money?

There will be outstanding speakers and topics with concurrent tracks (including management skills, fraud, information technology, and risk and governance. There will also be an outstanding CIA review course as a track. The Texas CPA Ethics course will be offered as well). You will have an opportunity to network with others and are guaranteed to come away with ideas for better and smarter audits. The Westin City Center Dallas Hotel is located in the middle of the Arts District in downtown Dallas and an easy commute via Dart Rail.

Check out our web site -- http://iiadallas2004.org  -- for more details, contact information, and registration forms. We would love to have you join us in this special opportunity.
 

Academic Relations Fund-Raiser

Plan now to attend a ½ day seminar the morning of our February meeting, February 19, 2004.  Dr. Dan Kneer will be presenting current and relevant topics to the internal audit profession.  Details will be forthcoming.  The net proceeds from the seminar will be used in our chapter's academic relations efforts.  Thanks for your support!

New Dallas IIA Members

The Dallas IIA added 38 new members in the months of October, November and December. As the chapter grows, so do the opportunities for networking and the sharing of knowledge. Please welcome the following new chapter members:

University of Texas at Dallas Endorsed Internal Audit Program (EIAP) Update

This first semester of the new EIAP program was a complete success with the concluding event of the December 9 Dallas Chapter IIA meeting. Our kickoff reception at the new School of Management in November was attended by more than 100 people. I would also like to thank all of the guest speakers for the Internal Audit class this past semester and look forward to this next semester as we continue to enhance the program.

Some of the next semester events include: a recruiting week in February for interns and full time auditors, a number of company visits to internal audit groups, additional audits with the UTD audit group, sponsored audit projects and planning for various audit seminars. If your company is interested in participating in any of these activities, please contact Mark Salamasick at 972-883-4729.

As we enter our second semester with a number of events and activities planned around the Student IIA Chapter, one activity that the student chapter will take on is the establishment of a comprehensive Internal Audit library that will be available for checkout to Chapter members. Most of the IIA Research Foundation publications will be available along with much of the material available through IIA Educational Products. The library will be housed in the Student Chapter office and more about the checkout process will be available in February’s newsletter.

The new EIAP is also designed to meet the needs of those employees transferring from other areas of the company to an internal audit role. The program also encourages audit practitioners who want to get current on audit techniques and prepare for the CIA exam. If you have interest in such a program please contact Mark Salamasick at 972-883-4729 or to learn more about the program visit http://citm.utdallas.edu/eiap. The Internal Audit class is offered this spring semester on Thursday evenings.
 

IIA Research Foundation

The Research Foundation is currently conducting an E-Commerce Control and Risk Analysis Survey. This survey relates to a project that is being conducted for the Institute of Internal Auditors Research Foundation. The focus of the project is on identifying the key risk factors involved with B2B e-commerce and understanding the risks that an organization inherits via its relationships with a given business partner. Your feedback via this survey is extremely important to the project. It should take no longer than 15-20 minutes to complete this survey and your efforts will contribute to the success of this research project and to further the understanding of auditors internationally as to key e-commerce risk factors. The link to the survey is http://www.gain2.org/ecommerce.

Report Your Speaking and Writing

It's time again for the survey to determine which IIA Dallas Chapter members have submitted articles or spoken in December 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 January  15, 2004. Contact Magdalena Kovats (972-389-3344 or magdalena.kovats@mckesson.com) if you have any questions.

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, give us a call or e-mail us. We look forward to helping you.

Fred Herman, Employment Committee Chairman, 972-801-1208, fsjnherman@aol.com.

Resources Connection Inc. (Resources) is a public (NASDAQ: RECN), project-based professional services firm that was created to help businesses manage change. Resources provides experienced professionals in accounting and finance, human resources management, internal audit, information technology and procurement to corporate clients on a project-by-project basis. Resources was founded as a division of one of the Big Four professional services firms in 1996 and became a wholly owned subsidiary in January 1997. Resources became an independent company following a management-led buyout of the firm that was completed in April 1999. The company successfully completed its initial public offering of common stock in December 2000 and was recently named as one of Forbes 200 Best Small Companies.

Resources operates from more than 60 offices worldwide to serve its diverse base of more than 1,200 clients. These clients range in size from Fortune 100 corporations to mid-sized companies to small entrepreneurial entities in a broad range of industries. For more information on Resources please visit our website: www.resourcesconnection.com.

The Director of Client Service - Accounting/Finance has primary responsibility for the development of new business, the management of existing clients, engagements and Associates, and participates in recruiting of Associates. This position will be located in the Dallas area.

The primary responsibilities of this role are:

• Continually develop new business by identifying and meeting with target clients, networking, and selling all Resources’ service lines.
• Cultivate and expand existing business relationships through frequent communication and regular client visits.
• Sell projects to new and existing clients, clarify the scope of projects with clients, identify business solutions, present qualified Associates to the client, and negotiate billing arrangements.
• Represent Resources in appropriate professional and community organizations.
• Identify future project needs of client and minimize disruption through managing engagement and ensuring clients’ expectations are met.
• Minimize “unassigned time” by managing Associate roll off dates and communicating regularly with Associates regarding additional client needs and/or other appropriate engagements in the pipeline.
• Assist in the recruitment of Associates.
• Ensure approved business contracts are executed by taking responsibility for the completion of all engagement paperwork, including the timely receipt of signed engagement letters.
• Support team goals of office by participating in strategy meetings, including discussing candidate and Associate pipeline, marketing strategies, and current challenges.
• Provide for timely collection of receivables by monitoring payment of client invoices.
• Maintain strong communications with Associates assigned to client engagements.

Requirements:

We are currently seeking a Director of Client Service - Accounting/Finance in the Dallas market who possesses the following minimum requirements:

• Ten (10) years of experience, including Big Four public accounting/auditing experience and management level experience in the Accounting/Finance industry. Internal audit experience is also preferred.
• A professional network in the Dallas/Fort Worth area.
• CPA and/or CIA preferred.
• Experience identifying opportunities with clients, networking and generating leads.
• Demonstrated track record of positive change in all positions held.
  Personal characteristics:
  • A high level of enthusiasm and passion for building a business, a personal sense of urgency, and the capacity to overcome obstacles.
  • The ability to respond effectively and quickly to clients’ needs and issues.
  • The ability to negotiate and communicate complex concepts/business issues verbally and in writing to clients, Associates and management.
  • The ability to prioritize multiple responsibilities/projects and proven ability to develop business relationships.

The Director of Client Service reports to the Office Managing Director who is located in Dallas.

The company is offering an attractive compensation package including a competitive base salary, incentive plan with no cap, and stock options. The long-term success of this individual will only be limited by his/her performance. We are an equal opportunity employer. We do not offer relocation assistance.

For immediate consideration, please email your resume to Dallasrecruitingmanager@resources-us.com, reference DCS-AF in the subject line.

Attention all auditors! Kelly Financial Resources is currently searching for an auditor for a direct hire position with a large growing company in Dallas. The position will require up to 50% travel throughout the US and international locations.

The ideal candidate will be responsible for planning the approach and scope of the audit program and assisting in its preparation. Assessing the internal controls and operating efficiency of business units throughout the organization by evaluating key financial operational processes. Preparing formal written reports, expressing the opinions on the adequacy and effectiveness of the system control. Appraising the adequacy of the actions taken to implement recommendations.

Minimum Qualifications include:

• Bachelors degree in Accounting or Finance
• MBA preferred
• CPA or CPA candidate
• 2 to 3 years audit experience
• Big four audit experience preferred
• Consumer Products or Manufacturing background
• Financial Audit experience
• Outstanding communication skills

Relocation benefits are not available. Due to the volume of resumes that we receive, only those candidates selected for interviews will be contacted.

For immediate consideration please email your resume to ks5804@kellyservices.com.
Please reference: IIA Auditor

Kelly Financial Resources® (KFR) specializes in the placement of finance and accounting professionals on a project, contract-to-hire and direct hire basis. We are a specialized business unit of Kelly Services, Inc., a US-based Fortune 500 company and global staffing industry leader. KFR relies on a vast network of offices located in the major business centers of the world to deliver our services internationally. Visit us at www.kellyfinance.com.

Jeff Corritori
Professional Recruiter
Kelly Financial Resources
972-432-0256 / 866-519-6884