September 2003

Tuesday, September 23, 2003
CityPlace Conference Center

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

Section 404 and 302 Compliance -
What's Happening

James W. DeLoach, Jr.
& Scott Graham,
Managing Directors, Protiviti

New SEC and PCAOB developments

• Other developments of interest
• What's coming down the road
• Implications to and opportunities for internal auditors

Jim DeLoach has provided advice and counsel to clients for over 33 years. He is Protiviti’s leader in developing the firm’s market offerings of governance services (including SOA compliance), enterprise-wide risk management and other intellectual property. He chairs Protiviti’s Corporate Governance Committee, which meets weekly to discuss new and emerging issues. He also chairs Protiviti’s SOA PMO Task Force, which is responsible for the quality, consistency and growth of the firm’s initiatives to serve clients and go-to-market with respect to SOA offerings across its operations.

Jim is co-author of Managing Business Risk: An Integrated Approach, published by The Economist Intelligence Unit in 1995, and of numerous articles covering various aspects of business risk assessment and management. Mr. DeLoach’s latest book, Enterprise-wide Risk Management: Strategies for Linking Risk and Opportunity, was published by Financial Times in June 2000 and was the first book written on the subject of enterprise-wide risk management. He has delivered numerous presentations on governance and risk management matters to many companies and groups in 26 countries on every inhabitable continent. He writes The Bulletin, Protiviti’s publication on governance-related issues, and recently wrote Frequently Asked Questions Regarding the Sarbanes-Oxley Act Executive Certification Requirements and both editions of Guide to the Sarbanes-Oxley Act: Internal Control Reporting Requirements. He has written Managing Risk to Create and Protect Enterprise Value, which will be published this fall.

Scott Graham is a Managing Director of Protiviti and leads the Dallas office internal audit and governance practice. Scott is a member of Protiviti’s Corporate Governance Competency Team, serving as a Sarbanes-Oxley subject matter expert on multiple Section 404 engagements.

Prior to joining Protiviti in May 2002 at its inception, he spent seventeen years with Andersen serving as a partner for clients in two offices - Salt Lake City, Utah and San Jose, California. During his 8+ years in San Jose, he was instrumental in establishing the premier internal audit outsourcing practice in the Bay Area among the Big 5. Scott is focused on helping clients manage risk through internal audit assistance, and is currently working on a number of Sarbanes-Oxley engagements. During Scott’s first 10 years with Andersen, he performed financial statement audits, including working closely with large SEC registrants. He has supervised and/or performed audit work for clients in over 20 countries in Europe, Asia and Latin America.

Pre-Meeting 10:30am

The IT Implications of Sarbanes-Oxley Compliance
- Stacey Hamaker, Shamrock Technologies

Stacey Hamaker, CISA is Managing Principal and Founder of Shamrock Technologies. A thought-leader and published author on Governance issues, she has 25 years experience with enterprise-wide technology initiatives at Fortune 500 as well as mid-sized clients. Her background spans strategic needs assessment, CRM requirements, ERP implementation review, legacy evaluation, mergers & acquisition conversion, due diligence review, E-business planning, business continuity, data base administration, IT project management, and internal controls.

Post-Meeting 1:30pm

Panel on Sarbanes-Oxley Compliance

Jim DeLoach & Scott Graham, Protiviti
Steve McDowell, Centex Homes
Harry Korin, J. C. Penney Company, Inc.
David Shackleford, Jefferson Wells

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, September 19, 2003 or a $5 late fee will be charged.

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

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

• Tuesday, October 21
• Thursday, November 20
• Tuesday, December 9
• Thursday, January 22
• 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.

Chapter Seminars

Access Unleashed:
Powerful Data Analysis, Benford’s Law,
Database Functions, & Statistical Sampling

Register now because space is limited!

Access Unleashed: Use the powerful Data Analysis and Database functions of Microsoft Access to add value to your audits and audit administration

Do you want:

• State-of-the-art data analysis technologies in your audit reviews?
• Value-added activities that management will rave about?
• To easily review large size data sets for unusual activity?
• To know how a mathematical phenomenon can help you uncover fraud and other irregularities?
• To have a formal database system for documenting audit issues and other items related to the audit function?

Here is your opportunity to learn more about:

• Benford’s Law (It’s a secret law of numbers)
• Innovative data analysis techniques for both revenues and payments
• How Microsoft Access can be used as a rigorous data analysis tool
• The state of the art related to data analysis and the auditing profession

Do you need to buy software to do all of the above?

• No! If you have Microsoft Access then your software is just a double-click away.

Outline:

• Describe Benford’s Law and how it can be used by auditors as a powerful analytical procedures test.
• Review of the architecture of MS Access and the elements of good database design
• Review the elements of Access designed specifically for data analysis
• Discuss the use of Tables, Forms, Reports, and Queries in accounting systems
• Discussion of fourteen data analysis tests with tips, hints, and notes for auditors, with demonstrations of at least eight of the tests in MS Access
• Demo showing how to do statistical sampling tests in Microsoft Access
• Demo showing how the database functions of Access can be used in an audit environment to manage the audit function (this session will be led by Bryon K. Chesser, CISA, Senior IT Auditor, Americredit, Fort Worth)
• Demo showing proactive fraud detection techniques in practice (at the time of writing this DFW-based speaker has not yet been able to confirm the date)
• Contemporary issues such as interrogating large data sets, continuous monitoring, Sarbanes-Oxley section 404, and the new versions of Monarch and Crystal Reports

Note: You don’t need Access experience! Each student in the technical session will be given as a handout a copy of Mark’s book: “Using Microsoft® Access for Data Analysis and Interrogation”. The book includes data sets and Excel templates so that the tests in the book can be practiced on your own computer. (The retail-selling price for this book is $70! To learn more for this book, please visit http://www.nigrini.com/data_analysis_books/data_analysis_using_access.htm.)

Other Handouts: One copy of Using Microsoft Access in the Audit Function, 20 page handout on using database functions of Access. This handout might be posted on the Chapter’s website to control costs. Out goal is to also provide some files related to actual Access-based systems used at a major DFW area audit department. The files could be used as a template for your organization. If the department agrees to this then the files will be posted to a website for download.

About the Seminar leader

Mark J. Nigrini, Ph.D. was formerly on the faculty at the Cox School of Business at Southern Methodist University. He is a Research Fellow at the Ernst & Young Center for Auditing Research and Advanced Technology at the University of Kansas. His current line of research addresses continuous audit and the detection of earnings manipulation.

In 1995 his data analysis work was publicized in The Wall Street Journal, Canadian Business, Technology in Government, Contingencies, The Globe and Mail, and CA Magazine, among others. His work has also been written about in publications such as The Financial Times, The New York Times, Der Spiegel, Business Week, Dallas Morning News, Philadelphia Inquirer, The Journal of Accountancy, and USA Today. He has presented numerous academic seminars and professional seminars for accountants in North America and abroad. He has published papers on Digital Analysis in academic journals such as The Journal of the American Taxation Association, Auditing: A Journal of Practice and Theory, and The Journal of Accounting Education, and in practitioner journals such as Internal Auditor, Journal of Accountancy, IT Audit Forum, The White Paper, and IEEE Potentials. Mark has also written four web-based seminars for the IIA’s web-based seminars at www.auditlearning.org. At the time of writing, two of the seminars are up and running.

Mark J. Nigrini is the author of “Digital Analysis Using Benford’s Law: Tests and Statistics for Auditors” and “Using Microsoft Access for Data Analysis and Interrogation”. To learn more about Mark and his books, visit his website at http://www.nigrini.com.

Chapter News

New Endorsed Internal Audit Program Sponsored by Dallas Chapter Approved - University of Texas at Dallas

IIA International approved the 45th Endorsed Internal Audit Program during the June International meetings. The program has been designed to be unique in that it is geared towards graduate students of any area of emphasis. The program will leverage the strong technology background of the University and offer students an opportunity to learn controls and internal audit as part of any University program.

The International Committee who approved the program was impressed by the systems and multi-discipline approach and felt like this was the type of Internal Audit program for the future. The strengths of the program include:

• support from the local chapter
• location
• new School of Management
• fastest growing university in Texas
• leverage current courses
• utilize the infrastructure of the Center for Information and Technology Management
• built with emphasis of systems integration and multi-discipline
• core faculty support
• international scope of UTD programs

Lots of various activities are planned for the new program including a student chapter starting this fall. A reception and open house is planned in the near future with invitation to all IIA members and those interested in audit. The first core course is offered this fall and is called "Business Process Design and Internal Audit". Students will be members of the IIA and attend many of the IIA and ISACA meetings during the semester. In addition, numerous guest speakers will be participating in the class along with a number of case study projects. Students will also be studying for the CIA exam as part of the course.

On September 4th, Dr. Glenn Sumners made a presentation to the class reviewing the LSU Endorsed Internal Audit program and explaining great career opportunities to the students in the class and over 40 guests. The presentation stimulated a lot of new interest in the program and had lively question and answer. Similar to the LSU program no pre-requisites are required to get into the EIAP, however the UTD program is at the graduate level only. The program is also designed to assist companies who are transitioning employees from other areas to a role in Internal Audit.

To learn more about the program visit http://citm.utdallas.edu/eiap or contact Director of EIAP, Mark Salamasick at 972-883-4729.

Report Your Speaking and Writing

It's time again for the survey to determine which IIA Dallas Chapter members have submitted articles or spoken over the summer 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 September 20, 2003. Contact Magdalena Kovats (972-389-3344 or magdalena.kovats@mckesson.com) if you have any questions.

Phone Call Opt Out

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

Membership Updates

Please welcome our newest members who joined over the summer:

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.

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

Fishback Financial Corporation, a successful community bank holding company based in Brookings, South Dakota, has recently formed FFC Risk Management Solutions, a bank consulting company with expertise in areas such as internal audit and regulatory compliance. The early success of this venture has created an immediate need to expand our field audit staff.

We are currently searching for an Audit and Compliance Specialist who will perform field audits for bank clients with subprime lending programs conducted through third parties operating from hundreds of retail locations throughout the country.

The successful candidate must have a Bachelors degree and at least two years of experience in financial services audit or regulatory compliance. The individual must also possess an understanding of bank operations, principles of internal control, basic accounting, and federal compliance regulations. Strong verbal and written communication skills, as well as the ability to work independently, are essential. Preference will be given to candidates holding one or more of the following certifications: CPA, CISA, CIA, CRP, or CRCM.

The position requires frequent overnight travel (approximately two weeks per month) throughout the southeast United States and is based in Arlington, Texas.

Salary is commensurate with experience. Benefits include health, life, and dental insurance, 401K, and onsite daycare.

To apply, send a resume to:

Doug Arrington, CPA, CISA
Audit Manager - National Products
501 E. Border Street
Arlington, TX 76010

or

email your resume to
darrington@firstnb.com

Corporate Senior Auditor

Bachelors degree in accounting, finance or related field and a minimum 3-5 years experience in internal or external auditing, and/or relevant experience. Certification preferred (e.g., CPA, CIA, CISA).

Strong knowledge of audit procedures, including planning, techniques, tests and sampling methods required. Ability and willingness to travel 50-60%. Experience with SAP a plus. Strong PC skills, including Word and Excel. Oilfield industry experience a plus. Strong technical, analytical and decision making skills. Self-motivated. Able to work independently. Good interpersonal skills. Excellent oral and written communication skills. Able to interact with all levels of management. Commitment to customer service and ability to work in team-oriented environment. Good judgment - fair and objective.

Plan, organize and perform various audits worldwide, including financial and operational audits. Develop accurate and complete audit workpapers that adequately support audit findings and document work performed. Prepare audit points summarizing findings and recommendations and discuss them with auditee. Prepare draft audit report to division and senior management. Coach and train auditors on an as-needed basis. Participate on special projects and investigations on an as-needed basis.

Contact: Joe Rosello
jrosello@threepds.com
www.threepds.com
214.540.7738
1.866.Three PDS

IT Auditor

The successful candidate will have a Bachelors degree in information systems or computer science and a minimum of 3-5 years experience in internal or external auditing, and/or relevant IT experience.

• Knowledge of audit procedures, including planning techniques, testing and sampling methods, and documentation.
• Ability to travel 20-25% to international locations.
• Strong skills in information technology including SAP and Windows 2000 experience.
• Oilfield industry experience a plus.
• Relevant Certification (e.g., CISA, CISSP, CFE, or CIA).
• Strong technical and analytical skills.
• Team-oriented.
• Excellent oral and written communication skills.
• Strong interpersonal skills.
• Able to interact with all levels of management.
• Demonstrate initiative.
• Ability to work with minimal supervision.
• Committed to customer service.
• Ability to recognize business risks and demonstrate sound business judgment and decision making skills.
• Demonstrates BHI Core Values of Teamwork, Integrity, Performance, and Learning.

• Plan, organize and perform information technology audits at various locations worldwide including general controls, application controls, system design and development, and project management reviews.
• Develop accurate and complete audit workpapers that adequately support audit findings and document work performed.
• Prepare audit issues summarizing findings and recommendations and discuss them with management during the audit.
• Prepare draft audit report to division and senior management.
• Mentor IT auditors as requested.
• Participate on special projects as requested.

*More positions available similar to this

Contact: Joe Rosello
jrosello@threepds.com
www.threepds.com
214.540.7738
1.866.Three PDS

Audit Specialist-Texas, New York, Philadelphia

Reviews moderately to very complex business processes. Develops an in-depth understanding of the function to be audited, and uses business knowledge, analytical skills and experience in identifying control risks to improve efficiencies. Responsible for consolidating issues for management level review; developing clear and concise written recommendations, which require minimal editing; presenting recommendations and resolving issues with management. May supervise routine projects/audits and completes special projects as required.

Candidate should have

• 2 - 4 years public or internal auditing work experience or 3-6 years related work experience;
• BS/MBA in Accounting, Finance, at least a 3.0/4.0 overall GPA
• Demonstrated effective leadership and interpersonal skills; excel in a team environment
• Demonstrated creative and innovative solutions to strategic business issues
• Excellent verbal and written communication skills
• Ability to travel 50% (domestically)
• Proficiency in PC skills (preferably with the Microsoft Office suite of products)
• Bilingual in Spanish a plus
• CPA or pursuing CPA a plus, CIA a plus, knowledge of Verizon Retail operations and systems a plus.

*More positions available similar to this

Contact: Joe Rosello
jrosello@threepds.com
www.threepds.com
214.540.7738
1.866.Three PDS

Audit Senior

Plans, supervises and performs internal audits in accordance with GAAP and internal audit standards promulgated by the IIA. Internal audits consist of assessing the quality of earnings, the accuracy of financial statements, quality of internal controls, assessment of the risk profile of a division and efficiency and effectiveness of operating units.

Qualifications and Skills:

• Undergraduate degree in Accounting or Finance
• 4-6 years of financial/audit experience
• CPA is required
• CIA is preferred
• Prior Treasury or IT auditing experience is strongly preferred
• Willingness to travel up to 40%
• Thorough knowledge of use of personal computers
• Good Understanding of GAAP and IA standards
• Good written verbal and communication skills
• Ability to work and communicate effectively with all levels of management and staff
• Initiative and creativity to work with minimal supervision
• Effective presentation skills
• Analytical skills to review and analyze business operations and to identify accounting and operating issues as well as opportunities for improvement
• Leadership capability
• Candidates that are fluent in SPANISH or Portuguese is highly desirable

Contact: Joe Rosello
jrosello@threepds.com
www.threepds.com
214.540.7738
1.866.Three PDS

Senior Internal Auditor

Lone Star Technologies, Inc. is a holding company whose principal operating subsidiaries manufacture and market oilfield casing, tubing, and line pipe, specialty tubing products including finned tubes used in a variety of heat recovery applications, and flat rolled steel and other tubular products and services.

Job Description:

• Identify business risks
• Understand and document business processes and controls
• Develop, plan, and execute internal audits to include:
• Risk assessments o Flowcharts of business processes
• Risk focused audit programs
• Tests of identified controls
• Communicate observations and make recommendations orally and in writing to address the needs of different levels of management
• Conduct audits both individually and in team settings
• Issue audit reports that address the level of business risks and effectiveness of controls, then provide consultative business solutions
• Develop strong client relationships through interactions with client personnel
• Gain understanding of client’s business processes to effectively perform audit projects
• Contribute to project planning and ensure that products/deliverables meet the work plan
• Recognize and communicate opportunities to help client solve business issues
• Contribute to a positive team attitude

Qualifications:

• BA/BS in accounting or related field
• Display teamwork, integrity and leadership · Support colleagues and value others' contributions
• Strong orientation toward internal control, risk assessment and operational auditing
• 3 to 5 years audit experience in industry or public accounting with exposure to audit program development, entrance and exit conferences, internal audit methodology, work paper documentation and risk assessment
• Excellent verbal and written communication skills
• Willingness for up to 50% travel
• Ability to work both independently and in a team environment
• Analytical skills and experience in developing clear and concise audit work papers and report drafts
• Ability and willingness to utilize technology and tools to continually learn and innovate
• CPA, CIA, CISA or CFE preferred

Please send resumes to Jill Graham, graham@lonestartech.com
15660 N. Dallas Parkway, Suite 500, Dallas TX 75248

Audit Seniors
National Consulting Firm

National consulting firm experiencing tremendous growth has a career opportunity for Audit Seniors in their Dallas office. The position will enable you to plan, supervise and execute internal audits. You will also be providing advice and execution on Sarbanes-Oxley section 404 implementation. Excellent career path to partner while avoiding the liability issues associated with a CPA firm.

For immediate consideration please forward your resume to:

Maurice Gilbert, CPA
Catterton, Inc. - Audit Search
Email: maurice@catterton.com
Web: www.catterton.com