December 2002

Due to the Thanksgiving break and the earlier meeting date in December,
reservations are due this Friday, December 6th, at noon.

Thursday, December 12, 2002
CityPlace Conference Center

Looking Forward to the New Year -
Latest Profession Updates

The December meeting of the Dallas IIA has been designated as Bring Your CAE day. We will be discussing the recently enacted Sarbanes-Oxley Act and related changes necessary to existing corporate governance structures.

All CAE’s that sign up for and attend the meeting will receive 2 free tickets
to the Frisco Rough Riders game on May 13th

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

Latest Updates from the SEC on Sarbanes-Oxley and Current Investigations

Spencer C. Barasch, United States Securities and Exchange Commission

The financial issues affecting US companies in 2002 have been widely publicized and highly scrutinized. Audit groups both large and small have no doubt been effected by these events! As a result, the SEC has placed improving financial reporting at the top of its agenda and has issued numerous new rules and rule proposals this year. These changes include the creation of a new regulatory framework for the accounting profession and rulemaking to implement the requirements of the Sarbanes-Oxley Act.

Mr. Barasch will provide us with the SEC’s perspective on the recently enacted Sarbanes-Oxley Act and related corporate governance issues. In addition, he will give us an update on the focus of current investigations within the SEC.

Luncheon Speaker

Spencer C. Barasch has been employed with the United States Securities and Exchange Commission for the past 15 years. Mr. Barasch is currently the Associate District Administrator for the SEC’s Fort Worth District Office, where he heads-up the SEC’s enforcement program in four states - Texas, Oklahoma, Kansas and Arkansas. Previously, Mr. Barasch served as Assistant Director of Enforcement in the SEC’s Regional Office in Miami, Florida and as a Trial Attorney in its Fort Worth Office.

Under Mr. Barasch’s direction, the Fort Worth and Miami offices have filed numerous enforcement actions involving a myriad of securities law violations, including financial and accounting frauds, stock manipulations, insider trading violations, broker-dealer and investment adviser schemes, mutual fund abuses, and various Internet investment frauds. In a number of cases, Mr. Barasch has been appointed a Special Assistant U.S. Attorney or District Attorney to assist in criminal prosecutions. Currently, Mr. Barasch is leading confidential SEC investigations into the financial affairs of a number of Fortune 500 companies.

Mr. Barasch also is an Adjunct Professor at the Texas Wesleyan School of Law, where he teaches Securities Regulation.

Before joining the Commission, Mr. Barasch was Associate General Counsel to the Oklahoma Securities Commission. He obtained his B.A. from Duke University in 1980 and his J.D. from the University of Tulsa in 1984.

Pre-Meeting 10:30am

The Changing Corporate Governance Landscape

In recent months, we have witnessed more sweeping change in corporate governance requirements than at any time since the Great Depression. The loss of investor confidence and increased political and media attention, resulting from the actions of a few, have spawned more dialogue among directors, management, internal auditors, external auditors and other parties about governance issues than most of us can recall in our lifetimes. The new Sarbanes-Oxley Act of 2002 has placed tremendous new requirements on executive officers and their organizations. The NYSE and NASDAQ are also raising the bar for listed companies. Many questions are on the minds of directors, certifying executives, and other senior managers and auditors as they work together to facilitate compliance with new regulations and improve public awareness of and confidence in sound, ethical business practices.

Protiviti will explore some of the more frequently asked questions about the new corporate governance landscape, and specifically discuss what role the internal audit function can and should play in the new environment.

Pre-Meeting Speakers:

Scott Graham is a Managing Director in Protiviti's Dallas office. He is responsible for the firm's internal audit practice, including corporate governance services. He has over 17 years of experience in financial, operational and technology auditing and has served clients in California, Utah and Texas. Scott has significant experience with large, multinational companies in the manufacturing, technology, transportation and retail industries. He is a member of Protiviti's Corporate Governance Competency team focusing on helping companies respond to the Sarbanes-Oxley Act of 2002.

Jim DeLoach is a Managing Director with Protiviti's Houston office. He has provided advice and counsel to clients for over 31 years. He is Protiviti’s leader in the firm’s market offerings of enterprise-wide risk management and governance services. He is co-author of Managing Business Risk: An integrated approach, published by The Economist Intelligence Unit in 1995, and of several 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 risk management and governance 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.

Post-meeting 1:30pm

Looking Forward to the New Year

Panel discussion including Scott Graham and Jim DeLoach with Protiviti, Spencer Barasch from the SEC, as well as Corporate Audit Executives from several Dallas-based companies.

The focus of the panel discussions will highlight the changes that local companies have made in reaction to the Sarbanes-Oxley Act and then to plan for the expected changes to be made in the new year. Don’t miss this opportunity to discuss with your peers the many changes that are occurring in the local corporate landscape!

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, December 6, 2002 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 2002-2003 chapter year:

• January 16, 2003
• February 13, 2003
• March 20, 2003
• April 17, 2003
• May 13, 2003

We Now Accept Credit Cards - Online Only

The IIA Dallas Chapter, in conjunction with PayPal, will now accept payment online for the monthly luncheons. There is no change in the cost to you for the lunch. We accept VISA, MasterCard, Discover, American Express, or eCheck. Note that some corporate-issued cards are not accepted by PayPal. This service is only available online at the time the reservation is made. This can be used to pay for individual or group reservations. Follow the instructions on our website. If you properly cancel a reservation before the meeting, the Chapter will either return the funds to you or reserve you for the next meeting. Any questions, contact Lynn Allsup, Treasurer, 214-559-1630 or Lynn.Allsup@RepubLink.com.

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

Chapter Seminars

The chapter has some great seminars scheduled for the New Year:

• Successful Tips to Get Your Next Job will be held the morning of January 23, 2003 at CityPlace Conference Center.

• Spring 2003 CIA Review Course will be held in February 7-10, 2003 at the JCPenney Park Central Building.

• Academic Relations Committee Seminar will be held the morning of February 13, 2003.

• Fraud Detection and Prevention Techniques will be held the afternoon of March 20, 2003 at CityPlace Conference Center.

• Annual "Almost Free" Seminar will be held April 16, 2003. Dan Kneer of Arizona State University will present New Audit Technologies- Audit Smarter, Not Harder.

Visit http://dallasiia.org/Seminars.htm for all the details as they become available!

Chapter News

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 November, 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 December 13, 2002. 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."

Why aren't you certified?

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

CERTIFIED INTERNAL AUDITOR (CIA) - The premier certification:

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

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

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

CERTIFIED GOVERNMENT AUDITING PROFESSIONAL

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

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

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

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

MicroMash CIA study aid on sale!

You can study for the exam on your own PC, at your leisure, and let the savviest software ever guide you. You decide whether you study for the test in full or in part. This review method gives you total flexibility. For a demo of the software, checkout their website at http://www.micromash.net/AccountingReviews/CIA/cia_frame.htm.

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

Research Foundation

At the IIA 2002 International Conference in Washington, D.C., the Chattanooga Area Chapter was named as the first place winner of the Donald E. Ricketts Research Award. Their research paper was entitled Questions for Internal Auditors. The purpose of their research project was to identify practical ways that internal auditors can use questions to achieve specific audit objectives. The 15 page report provides practical suggestions for improving communication with clients through the development of effective questioning skills. If you would like a copy of the report, please send an email request to Dave Hallo at dhallo1@txu.com.

Member News

Please welcome our newest members:

Membership Updates

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

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

Bingo!

The Dallas Chapter Social Committee would like to invite you to participate in a Community Service “Social”. We will assist in a Christmas Bingo event to be held at a Dallas Senior Citizen’s Center (exact location to be communicated at a later date) on December 7, 2002 from 2 p.m. to 3 p.m. Volunteers will be aiding residents in playing the games, distributing hot cocoa and cookies, and visiting with the residents. We ask that volunteers bring prizes of $2-5 to distribute to bingo game winners. Please join us in spreading the joy of Christmas into the lives of these residents. If you are interested in joining in the festivities, please contact Cynthia Blease at 214-820-2575 or via e-mail at Cynthibl@baylorhealth.edu.

The Dallas IIA Research Committee Needs Your Help

How is the recent coverage regarding improper accounting practices and lack of controls affecting audit shops in the Dallas-Ft Worth area? What should you be considering, as an audit department, as a result of the Sarbanes-Oxley Act? What is next in the post Enron audit universe? How are these items going to impact the future role of Internal Auditing? These questions are the driving force around the Dallas Chapters 2002-03 research paper. The research committee is being led by Maurice LaVerdure and David Shackelford of Jefferson Wells International. They need assistance from you, the chapter membership, in helping them collect the information needed to develop the research paper. This is a first hand opportunity to find out what other Audit Shops are doing in relation to these issues and to help those in the profession identify potential changes they may face going forward.

If you are interested in helping out with the research paper, please contact Maurice LaVerdure (214-740-5504) or email at maurice_laverdure@jeffersonwells.com.

Career Opportunities

Are you currently in the job market either voluntarily or involuntarily? Let the Employment Committee help you. Send us your resume and we will include you in our resume database. We receive calls from recruiters and hiring managers for open positions and will forward your resume if there is a match. We get calls for staff to director levels, IT to finance, local to out of town. All inquiries will be handled confidentially. If you have any questions, we will have a table set up at the next chapter meeting, or give us a call or e-mail us. We look forward to helping you.

• Brad Bates (chair) 214-840-7364 bbates@deloitte.com
• Fred Herman 214-273-0877 fherman@dynacare.com
• Rene Scott 972-855-4371 rscott@komen.com

Internal Audit Department

Come grow with us! One of the Southwest region’s largest CPA and Consulting firms is looking to create an Internal Audit Practice. This newly created practice in the Dallas/Ft Worth area will provide the right candidate with an opportunity to establish and grow Internal Auditing within this prestigious firm.

We are seeking a candidate with significant corporate and/or Big 4 experience who has a demonstrated track record in growing an internal audit practice. Candidate must be a self-starter with demonstrated interpersonal, written, and presentation skills. CPA preferred and CIA required.

Please contact recruiter@weaverandtidwell.com for a confidential screening.

Visit www.weaverandtidwell.com