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March 2002

President's Letter

Larry Rex, Chapter President I guess I must be having fun because I’m amazed at how time is flying by. I find it hard to believe that we are into March already and before we know it summer will be here and another Chapter year will draw to a close. I think the Chapter is having a great year and I’m looking forward to some exciting events during the next few months. Hint, Hint - click on the upper right hand corner of our Web site for details on two great social events in the works - one coming up right away at the Granada Movie Grill on March 13th, and a Stars game on April 10th. Keep your eyes on the Web site for details on the remaining CIA review course, seminars, and other events. If you haven’t heard, we are repeating our big year-end (almost) free seminar this year !! We hope to have full details to give you at the March 21st meeting. If you feel that there is more that the Chapter could be doing for you, I’d like to hear from you.

Last month I mentioned that one of my favorite meetings of our Chapter year was the February meeting with all the students. Unfortunately, I could not make the meeting due to a commitment with my real job, but I hear it was a great meeting with many students in attendance. This month brings one of my favorite topics - Fraud. This will be our second annual joint meeting with the Dallas Chapter of the Association of Certified Fraud Examiners. Please help me in making our CFE friends feel welcome and glad to be with the IIA.

Our presentations on fraud are always enlightening and entertaining. Hopefully as part of their messages, our speakers will be able to give us some details and war stories. Our luncheon speaker will be Harold Degenhardt with the 4th District Office of the SEC and he will be speaking to us about SEC perspective on fraud and trends that they are seeing. Our pre-meeting will focus on Digital Evidence in Fraud and Internet Investigations brought to us by a FBI Special Agent Michael Morris. Our post meeting will focus on Using Technology to Enhance Internal Audit brought to us by Eric Schwarz and Bert Lacativo of FTI Consulting. So be sure to join us for some informative sessions.

Some of you may not be aware that the IIA is building a new headquarters facility just outside Orlando, Florida. I said facility but it really is supposed to be a world-class professional development and operations center to serve internal auditors all around the world. A major portion of the funding for the new facility is coming from donations from corporations, individuals, and Chapters and Affiliates from around the world. The Board of Governors of your Chapter has pledged $25,000, part of our proceeds for the 1998 International Conference that was held in Dallas. Large donations earn the right to naming opportunities in the new building - naming opportunities for lobbies, foyers, conference rooms, executive offices, etc., which recognize the donor(s). We are working on a coordinated large pledge with other Texas Chapters and anticipate having a significant building piece - like maybe the main lobby - named “The Texas Foyer” with contributing Texas Chapters named as the donors. We'll keep you informed as this effort moves forward.

One recently announced aspect of the new building is a Time Capsule. Messages and memorabilia representing the internal audit profession and the IIA are being collected for a time capsule for the new building. The capsule will be opened in 2041 in celebration of the IIA's 100th anniversary. Chapters are encouraged to send something unique about their Chapter before the April 5 deadline. Additionally, the IIA is encouraging individual members to submit their own messages for the time capsule. If you have ideas for what the Dallas Chapter might submit, please let me know !!

See you on the 21st!

Larry Rex

This Month's Meeting

Thursday, March 21, 2002
CityPlace Conference Center

A joint meeting with the Dallas Chapter of
Association of Certified Fraud Examiners
at CityPlace Conference Center

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

SEC Perspective on Fraud
and Business Trends

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

Seal of the U. S. Securities and Exchange Commission

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

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

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

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

Pre-Meeting 10:30am

Digital Evidence in Fraud and Internet Investigations

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

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

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

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

Post Meeting 1:30pm

Using Technology to Enhance Internal Audit

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

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

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

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

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

Map to CityPlace Conference CenterCityplace Confernce CenterThis 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.


Lori Cannafax
Phone: 972-431-5981
Fax: 972-431-5995
e-mail: lcann3@jcpenney.com

Meeting / Luncheon Fees:

IIA Members: $25
Non-Members: $30
Students: $15
Walk-ins (members or non): $30
Phone/Fax/E-Mail Fee: $2

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

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

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

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

Chapter News

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

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

Here is some information about IIAOnlineCPE:

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

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

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

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

Mike Kennedy
Scott Sullins

Chapter Social Events

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

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

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

Plan to attend one or both of these events!

theiia.orgResearch Foundation - Research Priorities

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

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

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

Susan Lione
Senior Manager of Research
407-830-7600, Ext. 285

New Members

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

March New Members
William Boasberg
Steven Estes
Ammie Hauck
Patrick Penton
Sherry Brewer
Michele Fair
John Lazarine
Rita Saluja
Warren Stoker
Nancy Dark
Kenneth Goff
Rebecca Nielsen
Ryan Simpson
March Anniversaries
25 Years
Bobbie Adrian
Harold Korin
Greg Stiebling
Dave Walsh

20 Years
Jesse Crawford
Adolf Enthoven
Richard Lyng

15 Years
Ted Domitrovich
Randy Earley
Marcus Fritz
Jim Williamson

10 Years
Lisa Choate
Glenn Gaylord
Charlie Hill
Elizabeth Jamison
Mike Ragsdale
John Sparks

10 Years (cont.)
Susan Croff
Rudy Herrera
Philip Hodge
Rusalyn Kosofsky
Dan Reese
Vic Summers
Jerry Whitehead
Jack Evans
Michael Hienz
Mike Howard
Ray Lindsay
Amy Schillings
Wilson Varghese

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
Moody Gardens Hotel

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

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

IIA Seeks Items For Time Capsule

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

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

Report Your Speaking and Writing

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

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

Chapter Seminars

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

Career Opportunities

Position: Managing Analyst

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


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

Great benefits and salary $65-80K

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


Professional Support, Inc.

Senior Information Systems Auditor

Job Description:

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

Job Requirements:

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

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

Resumes may also be faxed or mailed

Fax # (214) 792-5015

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

Southwest Airlines

Visit Southwest Airlines at www.southwest.com

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

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

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

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

Comments, questions, suggestions?
Contact the webmaster@dallasiia.org

© 2002 Dallas Chapter of the IIA
All Rights Reserved

Contact information for all Chapter Officers
Contact information on all Chapter Committee Chairs
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Information on all 2001 - 2002 Monthly Meetings
Information on all 2001 - 2002 Chapter Seminars