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December 2003

President's Letter

Happy Thanksgiving to all internal auditors! I hope all of you and your families enjoy the holidays and have time to rest up for the sprint to year-end.

November was a very busy month for the Dallas IIA. On November 18, members, guests, professors and students all enjoyed an entertaining open house at the University of Texas at Dallas’ new School of Management. Fine food, enjoyable conversation, and eye-popping tours were had by all. If you missed the event, you'll have another opportunity to visit UTD with the IIA very soon (see below). On November 19 and 20, several hopeful CIA candidates sharpened their pencils, put down their heads, and passed (hopefully) the very final CIA exam to be offered in the current format. I'm keeping my fingers crossed for you all! And on November 20, many of us heard Randy O'Hare's commentary on the PCAOB Proposed Standard for internal controls over financial reporting - just in time to complete our comments on that exposure draft, which were due on November 21. An eventful month, indeed!

December promises to be just as busy! On December 2, we have scheduled a seminar on Small Audit Shops, presented by Joel Kramer, a most-entertaining gentleman from the MIS Training Institute. You don't want to miss Joel's energetic presentation style, and don't be put off by the title - there are lessons here for any auditor in any size audit shop. Our monthly meeting in December will be quite early in the month, December 9, to avoid conflicts with holiday vacations. We are venturing back to UTD for the luncheon and an outstanding line-up of presenters. Hope to see you all “up north.”

On November 20, the Dallas IIA Board of Governors met for their quarterly meeting and elected a couple of new Board members to complete the outstanding terms of departing members. Effective immediately, Sheri Durst and David Shackelford will be joining the Board of Governors. Sheri Durst is Director of Internal Audit at 7-Eleven, Inc. David is the Internal Audit Manager for Fossil, Inc. Sheri is replacing Al Davis whose term expires May 2006, and David is replacing Susan Sieker whose term expires May 2005. In September, the Board elected Lisa Choate to the Board, replacing Howard Johnson whose term expires May 2005. Lisa is the Director of Internal Audit at Southwest Airlines. Please join me in welcoming these new Board members.

Have a great Thanksgiving!

Terry Eaton
Chapter President

Presentation for the November Luncheon

At the November luncheon meeting, Randy O'Hare of PricewaterhouseCoopers made a presentation on the PCAOB Proposed Standard - Audit of Internal Control Over Financial Reporting. It was so well received, we are providing a link to the PWC website where you can find a copy of Randy's presentation. While there, you can also subscribe to PWC's Internal Audit Alerts, a monthly newsletter on industry updates, relevant articles, Thought Leadership, and more.

Next Meeting

Tuesday, December 9, 2003
University of Texas at Dallas Campus
School of Management

Map to UTD Campus:

Campus Map to School of Management Building:

When you register on line, you will be given the opportunity to download and print a parking permit to place on your dashboard and park in Lot M, adjacent to the School of Management (see Campus Map above).

11:15 to 12:15 - Registration and Lunch/Social Hour with Box Lunch from Jason's Deli
in various rooms within the School of Management

12:15 to 1:15 - Chapter Business Meeting and Presentation

Please note early start times this month

Computer Fraud

Cyber Crime and Digital Evidence
Supervisory Special Agent Michael S. Morris, FBI
Director – North Texas Regional Computer Forensics Laboratory

FBISupervisory Special Agent (SSA) Michael S. Morris will provide an overview of various Internet and cyber crimes occurring in the North Texas area; both “hacker” and “traditional” type crimes. After which, SSA Morris will provide an overview of a digital crime scene and the various issues surrounding digital evidence.

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

SSA 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 he has appeared in an 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. SSA Morris holds a Master’s Degree in Accounting Information Systems.

Pre-Meeting 10:15am - 11:15am

The State of the Regional Economy

Mine Yücel, Federal Reserve Bank

As you hit the malls following the huge turkey feast, you may ask yourself:

  • Is the regional recovery finally under way?

  • Which industries are growing and which are not?

  • Will high tech be back? What is the outlook for high tech?

  • How does Texas compare to other regions?

You can discover the answers to these questions, as well as many others at the pre-meeting presentation. Mine Yücel, Vice President and Senior Economist at the Federal Reserve Bank of Dallas, will provide an interesting commentary on the state of the regional economy. Mine will also get her crystal ball out and answer the age old question - What is the economic outlook for next year?

Mine Yücel has been with the Federal Reserve Bank since 1989. As an energy economist and head of the Bank's regional group, she analyzes the regional economy and energy markets on an ongoing basis and has published numerous articles on energy and regional growth.

She is currently president-elect of the United States Association of Energy Economics (USAEE), vice president of the Dallas Economists Club, and a member of the American Economic Association and the International Association of Energy Economics. She has served on the executive boards of the USAEE and the Dallas Chapter of Women in Technology International, Inc.

Before joining the Bank, she was an assistant professor of Economics at Louisiana State University. She has a B.S. and M.S. in Mathematics from Bogazici University in Istanbul, Turkey and a Ph.D. in Economics from Rice University in Houston, Texas.

Break Transition - 1:15pm to 1:30pm

Post-Meeting 1:30pm

Procurement Card Roundtable – “Controls, Risks and Audit Approaches”

Daryl Hinshaw, Army & Air Force Exchange Service
Jay Blanchard, Texas Instruments
Paula Price, JCPenney

The Procurement Card Roundtable will present information on payment options, policies and procedures, audit tools and resources, various audit tests, and fraud examples. The experienced team from JCPenney, AAFES and TI will provide educational “how-to” audit tools to ensure adequate controls for new or existing procurement card programs.

Daryl Hinshaw is an Audit Project Manager with the Army & Air Force Exchange Service in Dallas. He is designated as a Certified Internal Auditor (CIA), Certified Public Accountant (CPA), Certified Professional Environmental Auditor (CPEA), and Certified Government Financial Manager (CGFM). Daryl has recently been involved in several procurement card reviews and has worked with a number of federal investigative agencies on procurement card fraud cases.

Jay Blanchard received his Bachelor’s in Accounting and Management from the University of Texas and received his CPA designation in 1992. He began his professional career in public accounting with Coopers and Lybrand. Jay joined Texas Instruments as an internal auditor in 1995 and passed the Certified Information Systems Auditor (CISA) exam in 1996. As an auditor for TI, Jay spent much of his time evaluating the implementation of SAP as a replacement of their Legacy systems. In 2000, Jay became an audit manager for TI and is currently co-managing the audit department's effort to ensure TI will be able to demonstrate compliance with Sarbanes-Oxley legislation in 2004.

Paula Price graduated from the University of Colorado with a degree in Finance. Paula has worked for JCPenney for 18 years, 15 of which were in Internal Audit. During this time she worked in the Stores, Catalog and Insurance auditing group. Three years ago, Paula transferred to the Procurement Finance group. Among her current responsibilities, she is the Manager of the Purchasing Card program for JCPenney. Paula is also a member of the National Association of Purchasing Card Professionals. Her experience with p-cards has shown the importance of recognizing and balancing business needs and requirements with adequate controls.

This meeting is being held at University of Texas at Dallas School of Management

Map to UTD Campus:

Campus Map to School of Management Building:

When you register on line, you will be given the opportunity to download and print a parking permit to place on your dashboard and park in Lot M, adjacent to the School of Management (see Campus Map above).

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.


Tiffany Hendrix
Texas Instruments Inc.-Audit Services
Phone: 972-917-6976
Fax: 972-917-6958

SPECIAL Meeting / Luncheon Fees:

Dallas IIA Members: $16
Non-members: $21
IIA Member Students: Free (must register by deadline)
Non-member Student: $10
NO Walk-ins can be accepted this month.
Phone/Fax/E-Mail Fee: $2

Due to the circumstances of the lunch arrangements this month, if you are unable to attend please be sure to cancel your reservation. If the cancellation deadline has passed, please send a substitute. We will have to charge 'no-shows' for the cost of the lunch.

Reservations must be received by 5:00pm on Sunday, December 7, 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" 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, January 22
  • Thursday, February 19
  • Thursday, March 25
  • Thursday, April 22
  • Thursday, May 20

We Now Accept Credit Cards - Online Only

We accept most major Credit Cards

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

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.

Dr. SumnersGlenn 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.

Date: Thursday, January 15, 2004
Host Site: World Trade Center in Dallas
CPE Hours: 8 Hours
Time: 8:30am to 4 pm
Cost: $149
Registration: On-line at http://dallasiia.org/Semimar_Reserve2.htm
Contact: apalm6@jcpenney.com

Chapter News

IIA Research Foundation

The Research Foundation has recently published a report entitled Continuous Auditing: Potential for Internal Auditors. This comprehensive research report will help you:

  • Understand the value of continuous auditing;
  • Evaluate popular tools and techniques;
  • Utilize implementation guidance and strategies;
  • Assess relevant technologies; and
  • Find out how continuous auditing can benefit your organization's risk management process and system of internal control.

In addition, the process of continuous auditing can help you and your organization increase investor confidence, respond to Sarbanes-Oxley, work with complex IT systems, and improve corporate governance. It is in paperback form and totals 109 pages. It can be ordered online at  – http://www.theiia.org/iia/index.cfm?act=form.bookstore, or calling toll free 1-877-867-4957. (Publication order # 475; IIA member price – $75; nonmember price - $90).

Internal Audit Events at the University of Texas at Dallas

UTDUTD had a number of events in November that were a big success due to the Dallas Chapter's assistance. We hosted an open house reception to kickoff the program with the Chapter members on November 18. The program included food, drinks, drawing for prizes, a tour of the new School of Management, and a short program to introduce the internal audit program. We would especially like to thank Amberly Ruble and Pamela Krakosky for assisting with the event. On November 20, a panel of current and ex-auditors served on a panel to describe their experiences in Internal Audit. This program was open to students of all majors to inform them that Internal Auditors come from many different backgrounds.

Guest speakers this past month included Courtenay Thompson on “What Auditors and Executive Mangers Need to Know about Fraud.” We also spent a Saturday reviewing for the CIA exam as the students made the final push to pass the November exam. The class is also completing the fieldwork and audit report with the UTD Internal Audit group.

The Dallas Chapter IIA meeting will be hosted at UTD on December 9 with assistance provided by the student chapter. The meeting will be in a little different format that will allow for additional networking for members. At 11:15 a.m., an hour will be designated for lunch and social time that will be held in various rooms within the School of Management. The Chapter business meeting and presentation will follow.

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 learn current 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.

If you have ideas for additional activities during 2004 or would like to provide assistance, please contact Mark at 972-883-4729.

New Dallas IIA Members

The Dallas IIA added 34 new members in the months of August and September. As the chapter grows, so do the opportunities for networking and the sharing of knowledge. Please welcome the following new chapter members:

August New Members
Terry Hartzog
Laura Merrick
Stacy Padgett
JB Burns 
Ammie Hauck
Raj Chellappan
Wendy Jones
Matt Martin
Daniel Franco
Jeff Corritori|
Jay Joseph
David Jarnagin
September New Members
Henry Davis
Gregoire Demory 
Rick Singer 
Nancy Reagan 
Bharath Raju
Mark Neumann 
Jim Wommack
Aric Briggle
David Bonski
Joe Fronzaglio
Kesha Hamilton
Scott French
Nancy Mills
Justin Noble
Sharon Lahr
Alyssa Martin
Julia Bristor
Debra Stich
Marsha Glass
Nicole Magart
Stephanie Foote
Mandy Thiebaud

Help Needed

The Fine Art of Auditing, September 12-15, 2004The 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 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 15, 2003. 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.

American Health and Life/CitiFinancial, a member of Citigroup, has a rewarding opportunity in our Ft. Worth location. We offer one of the best compensation & benefits programs in the industry!

Senior Auditor - Requisition number #AHL-03-56782


This senior level QA position is responsible for ensuring AHL manages enterprise risks and controls through the CitiGroup directed Self Assessment program. One will need to become knowledgeable about each business unit's functions and provide on-going training and guidance in helping managers fully implement a robust self-assessment program. This program should fulfill the requirements of CitiGroup's MSA and Operational Risk policies, which in turn provides support for compliance with laws and regulations requiring control self assessment such as FDICIA and Sarbanes - Oxley. Establishing yet effective MIS collection and reporting processes and systems at business unit level will be necessary to produce the MIS needed for analysis and reporting to AHL and CitiFinancial management. Validating that MSAs are appropriate for the risks in a business unit and are properly tested will need to be established in an on-going audit plan.


BA/BS in Accounting, Business, or Finance. 7 - 10 years + background in audit and/or risk and control evaluation and analysis through public accounting or internal audit; industry experience in insurance or financial institutions a big plus. Excellent verbal and written communication skills are needed as this position will routinely meet with business leaders and senior level managers, as well as business unit coordinators. Will provide reports for monthly risk management meetings. Will need to act as liaison to CitiFinancial. Must be proficient in use of MS Office applications - Word, Excel, Access, Power Point.


Apply online at our website: www.careers.citifinancial.com.

Requisition number #AHL-03-56782
Fax: 1-888-717-9685 (Indicate requisition number)
Email: Resumes@citigroup.com

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P. O. Box 261747, Plano, TX 75026-1747

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