October 2003

Tuesday, October 21, 2003
CityPlace Conference Center

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

Investigative Interviewing Techniques

NBC 5 News Anchor Brendan Higgins

Brendan Higgins will share bit about investigative reporting and show some examples of the work he has produced as a premiere investigative reporter in the Dallas/Ft. Worth Metroplex.

Brendan anchors NBC 5 Weekend Today on Saturdays at 5 and 9 a.m. and Sundays at 6 and 8 a.m. Brendan also anchors NBC 5 Midday on Saturdays at noon and Sundays at 11 a.m. Brendan joined NBC 5 in 1998 after working as a reporter in Louisiana, Alabama and New York.

Brendan is a Dallas native and a graduate of the University of North Texas. He has won investigative reporting awards from the Associated Press and an Edward R. Murrow regional award, also for best investigative reporting. He's also won awards for sports reporting and general excellence in reporting.

In addition to his professional career, Brendan is also committed to many civic and charitable organizations. He speaks frequently at schools and charitable events, and serves on the board of the Children's Brain Tumor Foundation. He is proud to have served as the 2003 Grand Marshall of the Dallas St. Patrick's Day Parade, and is involved in Dallas' Irish-American community.

Pre-Meeting 10:30am

Current Trends in Control Self-Assessment

Ruth Burton, CCSA, CISA -  Jefferson Wells

Come to this interactive session and let’s discuss what CSA is, what it looks like, and how it has changed in recent years. Ruth Burton will share her insights on how CSA has changed over the last few years, will discuss what Jefferson Wells is seeing in the marketplace and provide an opportunity for you to benchmark your organization with other CSA practitioners.

Ruth has approximately 11 years experience in Internal Audit, with the majority of that experience in the Financial Services Industry. In Financial Services, Ruth discovered a passion for Control Self-Assessment (CSA) and developing talent in others. She has approximately six years experience in conducting self-assessment workshops and has attended the CSA Conference sponsored by the IIA in four of the last five years.

At a former employer, Ruth developed a training curriculum for audit staff and coordinated training for approximately 50 auditors, including customizing materials for a facilitation class and co-leading the class with the external vendor. On an informal basis, Ruth has guided staff members through CSA through on-the-job training and mentoring on an as-needed basis.

Post-Meeting 1:30pm

Current Loss Prevention Trends

Loss Prevention Analysts Presentation

The analysts from JCPenney Loss Prevention will be presenting several examples of actual cases that were identified by reviewing the Loss Prevention Database. They will be walking through how each case was identified and explaining the most efficient and effective methods for reviewing the LP Database. The benefit of the presentation will be learning how to identify internal theft by using the Database and by spending a minimal amount of time reviewing the data.

Mike Holmberg started with JCPenney in 1984, in Dallas. Has been a Loss Prevention Manager (LPM) in several stores in the Dallas area. Was the District LPM for the Dallas district and was also the DLPM for the Outlet stores before being assigned to current position as Project Manager in charge of the Loss Prevention Analysts.

Vicky Zook has been with JCPenney for 26 years. Vicky was a LPM in the Indianapolis and Chicago markets before her current assignment as an LP Analyst.

Joe Zimmerman has been with JCPenney for 9 years. Joe was a LPM in several stores in the Minneapolis market before his current assignment as an LP Analyst.

John Charleston has been with JCPenney for 10 years. John was a LPM in several stores in the Seattle market before his current assignment as an LP Analyst.

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, October 17, 2003 or a $5 late fee will be charged. Those who register by the deadline and attend the Pre-Meeting will be able to pre-register for the luncheon from 10:00am until 10:25 am.

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

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

• 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. Our 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

2003 Dallas Chapter IIA Member Directory

Dallas Chapter IIA members with an e-mail address on file should have received an announcement regarding the 2003 Member Directory. If you are a Dallas IIA member and did not receive this announcement and would like information on the 2003 Directory information, please contact Melinda Lokey, Chapter Secretary at melinda.lokey@triadhospitals.com.

The member information contained in the Directory for the Dallas Chapter IIA (including the e-mail listing) is for use solely by IIA members in contacting one another. Use of the information is prohibited for commercial use or solicitation of products and services.

To serve those that may have job openings, there is an Employment Committee chaired by Fred Herman (fsjnherman@aol.com) that makes résumés available. The Advertising Committee, chaired by Kathryn Barton (bartonk@lonestarsteel.com), should be contacted for placement of advertisements in the newsletter and on the Web site. If you have any questions or do not wish your personal information to be included in future directories, please contact Chapter Secretary Melinda Lokey (melinda.lokey@triadhospitals.com).

Congratulations to New CIA's, CCSA's and CGAP's

Dallas Chapter IIA members who passed the May 2003 certification examinations and met the rigorous requirements of the IIA’s Certification Program received their certificates at the Chapter’s September luncheon. In total, 29 designations for Certified Internal Auditor, Certification in Control Self-Assessment, and Certified Government Auditing Professional were earned by Dallas Chapter IIA members. Congratulations to the following chapter members:

New CIA's

Toyin Akisanmi, R. Kent Henderson, Michael Resch, Philip Baker, Steven Hunt, Robert Shipway, Piyavuth Bhutrakarn, Jennifer Isensee, Balraj Shori, H.L. Buffington, Barry Johnson, Shanna St. Martin, Francisco Cortez, Mark Johnston, Gregory Stone, Vanessa Dennis, Kristine Kuntzendorf, Cynthia Walker, John-Paul Font, Laurence Maguire, Gavin Wilson

New CCSAs

Ted Domitrovich, Ester Jayme, John-Paul Font, Barry Johnson, Jennifer Isensee, Debra Moore

New CGAP's:

Kimberlyee Chappell, R. Kent Henderson

Congratulations to New CIA's, CCSA's and CGAP's!

Dallas Chapter IIA is Recognized!

The Institute of Internal Auditors and the Board of Regents congratulates the Dallas Chapter IIA on winning an Honorable Mention in the 2003 Certification Challenge. The Dallas Chapter is recognized for outstanding commitment to the profession of internal auditing by encouraging certification within our chapter. By meeting our percentage growth target for member certified professionals, we have taken an honorable mention in this competition!

During October, IIA will be sending our reward - certification pins by Shane Inc. These pins will be presented during our upcoming chapter meetings as prize drawings or special giveaways. The IIA congratulates the Dallas Chapter and appreciates the Chapter for setting an excellent example for other IIA affiliates!

IIA Research Foundation

The Research Foundation has recently published the following reports:

• Privacy: Assessing the Risk - This report provides relevant information on the current state of privacy and data protection worldwide. General considerations and approaches to managing and evaluating privacy risk, included in this report, will allow business managers and auditors to identify and manage those risks. (Publication order # 467; IIA member price - $75).
• Proactively Detecting Occupational Fraud Using Computer Audit Reports - This report will assist auditors, fraud examiners and management in implementing data analysis routines for improved fraud prevention and detection. It provides a comprehensive checklist of data analysis reports that are associated with each type of fraud scheme. It also provides general guidance to help an audit team get started analyzing company data. (This report is free as a download from the IIA Web site; however, the Foundation does ask for a $40 tax-deductible contribution to The IIA Research Foundation. www.theiia.org/iia/index.cfm?doc_id=4248.)
• Internal Audit's Role in Corporate Governance: Sarbanes-Oxley Compliance - This research study illustrates in detail how some leading companies are capitalizing on the passage of the Sarbanes-Oxley Act to invest in meaningful improvements in the governance process. (Publication order # 473; IIA member price - $25.)

The two publications above with order numbers can be ordered online at - www.theiia.org/iia/index.cfm?act=form.bookstore, or by calling toll free 1-877-867-4957.

Sarbanes-Oxley Round Table Meetings

The past few years have presented many opportunities and challenges for the internal audit profession. For many of us Sarbanes-Oxley has impacted our audit plan. What does compliance with the Sarbanes-Oxley Act of 2002 specifically Section 404 mean? We are attempting to organize a group to meet monthly to discuss Sarbanes-Oxley; we are in the process of surveying the interest level, the dates and times have not been established. If you would be interested in discussing your company’s issues, progress, etc. and/or benchmark/sanity check against other companies on a monthly basis please contact Magdalena M. Kovats at magdalena.kovats@mckesson.com by Friday October 17, 2003.

Ethics Resource Repository Available

The IIA has created a repository of ethics resources to help auditors promote and assess corporate ethics  (http://www.theiia.org/iia/index.cfm?doc_id=4374). The repository includes Practice Advisories, reports, articles, books, surveys, various codes of ethics, and related Web sites. A discussion area is available where auditors can post general ethics questions.

IIA Student Chapter Started at University of Texas at Dallas

As part of the fall kickoff for the new Endorsed Internal Audit Program at UTD, a student chapter was formed and has an office in the new School of Management. The chapter is open to all students interested in internal audit. Although the new program is geared for the graduate students they also welcome all undergraduate students. Officers were elected and attended training related to creating a new chapter. They will also be attending upcoming Dallas Chapter IIA meetings. One of the requirements is that they join IIA International. If you are interested in assisting the student chapter in any way, please contact Roby Singh at 972-943-9291 or email at amarjit_singh@sbcglobal.net. The Dallas Chapter is sponsoring this new organization so they are looking for opportunities to work closely with the chapter.

Students are also welcome to attend meetings including guest speakers during the new course in Internal Audit. This past month, David Price and Lee Gramly from JCPenney spoke on business process design and its relationship to Internal Audit. Students read the book “The Goal” which Lee covered and made the bridge to internal audit and how it applied. David gave great examples related to his own experience in audit showing the need to develop functional expertise very quickly and how they identified significant savings through a better understanding of the business process. He also discussed the successful careers at JCPenney of many of the individuals who were once in audit at JCPenney.

The new Endorsed Internal Audit Program 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 are 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.

Help Needed

The Dallas Chapter is gearing up for the 2004 Regional Conference to be held September 12-15, 2004. Please mark these dates on your calendars and get ready for a first class conference right here in Dallas with the theme The Fine Art of Auditing.

In addition, we need volunteers. If you have a few hours and would like to get involved, please give Vickie Lyng or Al Bazis a call. We have many positions available and can find something for everyone.

Please visit http://iiadallas2004.org for more information..

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 September 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 October 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."

ACUA Update

The President’s Corner has been updated!
Seth Kornetsky’s message, Building on Success, Managing the Challenges, adeptly addresses the development of ACUA’s strategic objectives to build upon our successes and to proactively manage several of our challenges. It also provides an overview of our new committee structure. You can read the message at http://www.acua.org/organization/presmsg.cfm.

ACL Training Class Offered in December
Visit http://www.acua.org/events/aclinfo.cfm for information about our third ACL class. This class is offered at ACUA member only rates so make sure you follow the registration instructions to receive the significant member discount.

The Virtual Exhibit Center Provides Easy Access to Vendors
The Virtual Exhibit Center, http://www.acua.org/events/vec.cfm, allows for easy access to the companies and organizations that supported ACUA’s annual conference. This section will be updated soon with photos from the conference.

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.

Audit Managers and Seniors for Fortune 500

Fortune 500 client experiencing tremendous growth has career opportunities for Audit Managers and Seniors. Be a part of a company affording a career path in audit or corporate operations. Great work/life balance with nominal travel.

For immediate consideration please forward your resume to:

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

US-TX-Dallas-INTERNAL AUDITOR

www.accountingprincipals.com - Financial Staffing for the DFW Metroplex on a direct-hire, project consultant and contractual basis

IMMEDIATE DIRECT-HIRE NEED FOR DALLAS-BASED FORTUNE 500 MANUFACTURING COMPANY

• $55-65K- depending on experience
• 3+ years Internal Audit experience, Public Company background preferred
• CPA or CIA required
• Strong PC skills
• 50% travel required
• Bilingual English/ Spanish is a plus
• Great opportunity for candidate wanting to grow their Accounting career; Company promotes from within and wants upwardly mobile candidates

E-MAIL RESUME WITH SALARY HISTORY/REQUIREMENTS TO:

DALLAS - pamela.crocco@accountingprincipals.com
FORT WORTH - chelie.marton@accountingprincipals.com

Accounting Principals is the Financial Staffing Division of the MPS Group. The MPS Group (www.mpsgroup.com) is one of the world's largest providers of specialty staffing and business solutions in the disciplines of accounting and finance, e-business, engineering, executive search, healthcare, human capital automation, information technology, law, and work force management.

Contact Information

David Maxwell
david.maxwell@accountingprincipals.com
Accounting Principals
14911 Quorum Drive Suite 400
Dallas, TX 75254

Ph: 972.980.6560
Fax: 972.980.6826

Internal Auditor, Audit and Consulting Services,
Office of Corporate Operations

The selected candidate will participate in audit and consulting projects to help our National Center and Affiliate management evaluate and minimize business risks, strengthen internal controls, and take advantage of operating efficiencies.

Qualified candidates must have a Bachelors Degree in Accounting or Finance, and at least three (3) years experience in internal/external business audit consulting practices.

A CPA is preferred. Must also possess clear and effective written/oral communication skills and a demonstrated ability to interact with all levels of staff & volunteers in a consensus-driven environment. Travel (approximately 45% - 55%) is required.

Please forward a resume to aharesume@heart.org, and to learn more about the American Heart Association, please visit our website at www.americanheart.org.