benefits of an iia endowed program documents/benefits of...universities, thus enhancing the...

Copyright 2001, Institute of Internal Auditors-Research Foundation 1

Benefits of an IIA Endowed Program

The 2000-2001 Research Project

Conducted by the Dallas Chapter of the Institute of Internal Auditors

Research Project Committee:

Sharon Beard, Committee Co-Chair, CPA

Vanessa Dennis, Committee Co-Chair, CPA Stan Ellis, CPA, CFE

Tarazeta Huntley, CIA, CISA Mike Kennedy, CIA Steve Lantrip, CISA

Bob McCall, CIA, CISA

Copyright 2001, Institute of Internal Auditors-Research Foundation


TABLE OF CONTENTS

PageIntroduction ………………………………………………………………………….. 3 Executive Summary………………………………………………………………….. 4 What does it take to start an Endowment Program? A Historical Perspective…. 7 Benefits and Enhancements of An Endowment Program…………………………. 17 Appendix A, Comparing University Programs..…………………………………... 42 Appendix B, Survey Questions and Results…………………………………….…. 47 Appendix C, Bibliography……………………………………………………….…. 90 Appendix D, Research Committee Profiles………………………………………… 93

The Benefits of An Endowment Program

Institute of Internal Auditors Dallas Chapter

INTRODUCTION


The Institute of Internal Auditor’s Dallas Chapter Board of Governors approved The Benefits of An Endowment Program as the research topic for the 2000-2001 term. The primary objective of our paper is to communicate the benefits of the IIA endowment program at the University of North Texas (UNT). Knowing these benefits, other IIA chapters and local businesses may seek to partner together to form additional endowment programs. These programs provide additional educational resources for universities, thus enhancing the training, education, and employability of students, and provide the Internal Auditing profession with a valuable employment resource. Project Scope: The research was focused on three Dallas/Ft Worth public universities (University of North Texas, University of Texas at Arlington, and University of Texas at Dallas). In addition, local companies, alumni of the universities, and members of the Dallas and Ft. Worth chapters of the Institute of Internal Auditors and Information Systems Audit and Control Association (ISACA) for the North Texas Chapter were contacted. The report is divided into two major discussion areas, as follows: • History and Development of an endowment program • Benefits and Enhancements of an Endowment Program Research Methodology: Surveys were developed based on input from various University faculties, enhancements recommended from current IIA Dallas chapter members, and the research of the committee members. Six surveys were developed which targeted the following groups: company, students, alumni, Boards of Governors of the Dallas and Ft. Worth IIA chapters and ISACA, faculty, and university. The response rate for the various surveys was as follows:

Survey Number Sent Number Received Response Rate Company 11 7 64% Student 173 173 100% Alumni * 31 * Board 41 10** 24% Faculty 7 7 100% University 3 1 (UNT) 33% * -- See Alumni explanation below. ** -- Four BOG responses indicated they did not have enough

information to respond to the survey. All survey questions are included in Appendix B. The number of survey responses may vary per question since not all respondents answered all survey questions.



EXECUTIVE SUMMARY


What Does It Take To Start An Endowment? A Historical Perspective In the late 1980’s and early 1990’s, the Dallas and Ft. Worth IIA Chapters combined forces to raise $350,000 for an Endowed Professorship in Internal Auditing at the University of North Texas (UNT) in Denton, TX. The objective of the Endowment Program was to enhance the Department and the University by supporting the Internal Audit program at UNT. UNT was selected because of UNT’s involvement of the local IIA chapters, professorship commitment to the students, the strong enthusiasm and support of the university for such a program, and the strength of UNT’s accounting department. In 1988, UNT became the 3rd university selected by the IIA Research Foundation as an IIA Endorsed Internal Audit curriculum because UNT was seen as a university that was very committed to furthering Internal Audit programs. In 1993, an advisory board was established to give guidance to the UNT Endowment Program. The UNT IAAB decided to pursue to endow a professorship. The task of fund raising the needed $350,000 was not easy. This process took several years and a great deal of commitment from D/FW IIA Chapters and later the North Texas ISACA Chapter. Monies were received from D/FW IIA Chapters and North Texas ISACA Chapter, individual IIA members, local companies, the IIA Research Foundation, and other foundations. The process of endowing a professorship was a long process with challenges to overcome. The challenges included: obtaining funding, obtaining enthusiastic support of university faculty and administration, declining accounting student enrollment nationwide, and limiting selections of Internal Audit textbooks. UNT has been able to overcome these challenges to develop and maintain the UNT Endowment Program. When surveyed, UNT IAAB members indicated that the major accomplishments of the program included full funding for the endowment, which financially supports the University's Internal Audit program. Additional accomplishments include the community service project, professional auditors lecturing in Internal Auditing classes, internship program, and research programs. The major strengths included introducing students to the profession, involving chapter members, professionals, and the community with students and educators. Although establishing the Endowment program took time, effort and monies, the UNT IAAB members surveyed stated they would recommend other organizations implementing similar programs. Advice to other organizations would include: be prepared for the work required to raise funds, stay involved with the school selected, and have clear communication, so there is a clear agreement among all parties involved.



EXECUTIVE SUMMARY


The Benefits and Enhancements of an Endowment Program: BENEFITS According to the Endowed Professorship contract, “the purpose of the (UNT Endowment program) is to enhance the accounting department and university by supporting a professor with a national and/or international reputation in Internal Audit.” This program not only benefits the University of North Texas, but also the students, local companies, and the local IIA and the ISACA chapters. The benefits can be categorized into continued educational resources for the university, enhanced student training and education, and professional employment resource pool for companies. Educational resources are enhanced by stimulating academic research in internal auditing, reducing gaps between professors and practitioners, and continuous funding of the program. Student training and education is enhanced by increased awareness of the IIA profession, involvement by practitioners, community service projects, and student memberships in the local IIA Chapters. Professional employment resource pool is also enhanced by internships, participation in local IIA chapters, group of certified individuals, relationships with the community, graduates with on-the-job effectiveness, and reduction in training costs. The IIA Endowment program does not have written critical success factors; however, the factors used for an IIA Endorsed program would be similar for an endowment program for the purpose of enhancing the program. These factors include a strong commitment from faculty and university, support from local IIA chapters and companies, energetic student leadership, timely publicity, and performance standards. Evaluating a program on these factors will ensure program quality. ENHANCEMENTS TO AN ENDOWMENT PROGRAM We would like to share two major themes for enhancements of an endowed professorship in Internal Auditing. These major themes focus on communication and program criteria. Communication In order for UNT’s Endowed Program to grow, awareness needs to be further developed with the business community, IIA Chapter members, and potential students. The UNT IAAB and local IIA Chapters should be responsible for enhancing the sharing of information to the business community and chapter members. The university should be responsible for enhancing the marketing of the program to existing and potential students.



EXECUTIVE SUMMARY


Enhancements for Program Criteria With the declining trend in accounting student enrollment nationwide, accounting departments and curricula will be impacted. The reasons for this decline in enrollment include: "starting salaries are less for accounting majors, availability of more attractive career alternatives, willingness of students to choose more risky majors, lacking information about accounting, increasing opportunity costs of a masters education with the inception of 150 hour programs." (Accounting Education: Charting the Course Through a Perilous Future by Steve Albrecht and Robert Sack). The University of North Texas accounting enrollments also reflects this nationwide decline. Given the nationwide decline in accounting student enrollments and that internal audit programs are usually placed under Accounting Departments, EIAP schools should consider advancing the Internal Audit specialty to other programs. Then Internal Auditing programs will have a greater student base. Conclusion: The establishment of the UNT Endowment Program was an involved process that took considerable time and resources. This program has benefited local companies, students, the University of North Texas, the local IIA chapters, and the Dallas/Ft. Worth community. Improvements can be made to the Endowment in the areas of communication and enhancements to the program. We conclude from our research that the UNT Endowment Program was and is worthwhile and other chapters and universities should consider establishing their own endowment program.



WHAT DOES IT TAKE TO START AN ENDOWMENT? A HISTORICAL PERSPECTIVE

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Section Objective(s): This section is included to provide IIA membership and other interested parties information about how to start an endowment fund. Following is a historical perspective of the establishment of the Internal Auditing Endorsed and Endowed program at the University of North Texas (UNT). This information may facilitate the establishment of other university endowments by the IIA/IIA Chapters or other community organizations in the field of Internal Auditing or related fields. In this section, we provide the historical process for the establishment of an endowed professorship, which supports the Master of Science Degree of Accounting, with an Internal Audit Specialty (hereafter referred to as the Internal Audit program) at UNT. The research methodology included the following: Review of literature/documents, including but not limited to, Institute of Internal Auditing (IIA)

Publications, American Accounting Association publications, UNT Internal Audit Advisory Board documents, and the UNT Endowment Contract. Surveys of the D/FW IIA and North Texas ISACA Chapters’ Board Members. The purpose of the

survey was to ascertain the following: • From the Chapters, determine the chapters’ history of involvement in establishing an

Endowment and what the chapters’ expectations were in establishing an Endowment. • For those that are also UNT Internal Audit Advisory Board members, determine the

endowment program objectives and accomplishments. • Information regarding perceived strengths, recommendations for enhancements/changes, and

to what level the chapters’ is involved in the progression of the Endowment. Interviews of the following:

• Former and current members of the UNT Internal Audit Advisory Board • UNT Faculty and Administration for the College of Business Administration • Institute of Internal Auditors Research Foundation members

Literature Review and Background: The Dallas and Fort Worth IIA Chapters “embarked on a ‘Degree of Excellence’ Campaign to raise $350,000 for an Endowed Professorship in Internal Auditing at the University of North Texas (UNT) in Denton, TX” (IIA Today, “Texas Rewards UNT’s ‘Degree of Excellence’”, July/August 1992). The “purpose of the Professorship is to enhance the department and college by supporting a professor with a national and/or international reputation in internal audit (Dallas/Fort Worth Chapters of the Institute of Internal Auditors D/FW IIA Professorship in Internal Auditing – Memorandum of Understanding”, D/FW Chapters of IIA and UNT, March 1993). The funds are to continue to “benefit instruction and research in internal audit.” In order to obtain clarification of the initial vision and objectives of the program, current and former members of the UNT Internal Audit Advisory Board (UNT IAAB) were contacted. It is based on their input and review of UNT IAAB meeting minutes/notes, IIA articles, and other documentation related to the endowment that this history was developed.




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History of the Establishment of the UNT Professorship/Endowment: In 1987, the Dallas IIA Chapter decided to sponsor a local university’s Internal Audit Program. In order to determine which local university to sponsor, the Chapter requested proposals from five local universities. Three universities submitted proposals, which were reviewed based on the following criteria: • Level of involvement in the local chapter. • Level of professorship commitment to the students. • Strong enthusiasm and support of the professors and university administration for developing an

internal audit program. • Strength of the accounting departments on a state and national level. Based on the above criteria, the Dallas Chapter sponsored UNT that, in 1988, became the “3rd university selected by the IIA Research Foundation as an IIA-Endorsed internal audit curriculum” (IIA Today, “Texas Rewards UNT’s ‘Degree of Excellence,’” July/August 1992). Establishment of the UNT Internal Audit Advisory Board (UNT IAAB): In 1989, the Director of the UNT Internal Auditing program established an advisory board, the UNT IAAB, for the Internal Audit program comprised of 12 internal audit leaders, including D/FW Chapters’ Presidents. (“Internal Auditing: Master of Science Degree in Accounting” Campaign Brochure). The Board’s Bylaws were amended September 1997 to include the North Texas ISACA Chapter President and increased the number of audit leaders represented on the Board to 22 members, including the Chairman. The UNT IAAB was established to provide guidance and input in the development of the internal audit program (“Letter to Aaron Saylors,” Ray Clay, October 2, 1990) 1. To help the board assess the developmental needs of the program, the board used the IIA Endorsement programs’ essential and preferential criteria as discussed in the IIA’s Educator’s Handbook, dated January 2000. (See also the section entitled Benefits and Enhancements to an Endowment Program). The UNT IAAB also obtains a copy of the IIA Endorsed Internal Auditing Programs Annual Report, which UNT submits to the IIA Research Foundation each May (Debbie Townsend, 2001) In addition, the UNT IAAB also obtains verbal updates on the programs progress at semi-annual UNT IAAB board meetings. 1 The current Chairman of the UNT IAAB pointed out that the Board could only make recommendations related to the program, they could not enforce any recommendations. Decision to Endow UNT’s Internal Auditing Program: The Dallas Chapter pledged and paid over $52,000 between 1988 and 1991 to the Endorsed Internal Audit Program (EIAP) at UNT (“Letter to John Adams,” Bob Wygal, January 10, 1996). However, without continued funding and without a dedicated, IIA approved faculty member, the program would lose its endorsement status and be in jeopardy of being discontinued. The IIA’s Educator Handbook states:




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“When an EIAP school loses or reassigns one or more faculty members who are an integral part of the internal auditing program, its continued status as an EIAP school is not assured. If the school wishes to continue its designation as an EIAP school, it must submit a letter to the Academic Relations Committee (ARC) within six months of the faculty change…. The IIA ARC will review the program and new faculty member credentials… to determine if the endorsement will continue.”

So in 1991, the UNT IAAB reviewed the needs of the internal auditing program. They concluded that in order for the Internal Audit program to grow and survive, funding was required for such things as (“Internal Auditing: Master of Science Degree in Accounting” Campaign Brochure): • Faculty Support • Hiring of additional faculty • Research Projects • Conference attendance, presentations, and travel An endowment fund provides guaranteed long term funding and therefore prevents a University or College of Business Administration from discontinuing such a specialty program due to the lack of state funding. Furthermore, an ex-officio UNT IAAB, who was also the Chairman of the Fundraising Campaign to endow the UNT Internal Audit Program, said the guarantee of long term funding implies a guaranteed program. A guaranteed program would attract other quality Internal Audit professors if the current professor were to leave or be reassigned. Thus the Internal Audit specialty would “remain an integral part of (UNT’s) accounting program”(IIA Today, “Texas Rewards UNT’s ‘Degree of Excellence,’” July/August 1992). See also the Benefits and Enhancements to an Endowment Program section. Endowment of a Professorship versus a Chair: Based on the needs of the program, the UNT IAAB began discussions on endowing a Professorship and/or a Chair for the Internal Audit Program at UNT. The difference between endowing a Professorship and a Chair is the amount of money required to create the endowment (Dr. Raymond Clay, April 2001). An endowment of a Professorship requires a donation of $350,000 and for a Chair requires a donation of $1,000,000 (Dr. Raymond Clay, April 2001). The UNT IAAB determined they would initially endow a professorship. Fundraising Campaign: The process of endowing the professorship in internal audit at UNT was a long one (1993 to 1998) that required considerable commitment and planning. Questions were raised as to where and how the funds would be obtained. The timeline for the establishment of the endowment and the fundraising process are outlined below.




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Timeline of Events for the Establishment of the Endowment of a Professorship at UNT

D/FW Chapters sponsor

UNT's Internal Audit Program

UNT is 3rd IIA-Endorsed

Internal Audit Program

(EIAP).

UNT Internal Audit Advisory

Board established.

D/FW Chapters began pledge

campaign to endow

Professorship at UNT. 1987 1988 1989 1990-1991 1992

'88-'91Dallas Chapter paid $52,000 to fund EIAP

Endowed Professorship

(Contract signed in March) -

first at UNT.

IIA Community Service

Project (Audit of NFP Org.)

added to IA course.

UNT IAAB's Bylaws amended

to include North Texas ISACA

Chapter.

First Annual Endowment

withdrawl. New Accounting

Internship Program with

Student Credit.

UNT IAAB transitions from

fundraising to emphasis on

program curriculum

UNT Adds IA Course entitled

"Seminar in Internal Auditing"1993 1996 1997 1998 1999 Spr'2000

-------------Semi-Annual Audits of UNT's Accounting records--------------

Gaining support of the D/FW Chapters: The local IIA chapters enthusiastically supported the development of the UNT Internal Audit Program. The Dallas/Fort Worth Chapters of the Institute of Internal Auditors D/FW IIA Professorship in Internal Auditing contract was developed and signed in March 1993 solidifying the desire and intent of the D/FW Chapters to support an Internal Auditing program at UNT. The contract outlined the terms and conditions for establishing an endowment, including the donation requirement of $350,000, requirements for the investment of funds, and distribution of investment income (Dallas/Fort Worth Chapters of the Institute of Internal Auditors D/FW IIA Professorship in Internal Auditing, March 1993). The $350,000 would be invested and the income from the investments would grow the fund to endow a Chair. Planning and Execution of a Fundraising Campaign: The Chairman of the Fundraising Campaign stated that the D/FW Chapters sought leadership to give guidance and order to the fundraising campaign. Therefore, they hired a consultant with a fundraising background. The consultant acted as an Honorary Chair for the Fundraising Committee. His responsibilities included: • Preparing documentation and materials for presentations to applicable 3rd parties. • Attending and presenting at proposal meetings. • Identifying foundations from which to solicit funds and submitting corresponding applications.




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In this process, the fundraising committee developed proposal packages, which included: • Proposal letter from the Campaign Chairman providing a history of the development of the program,

the importance of the program to the students, employers and the chapter, and requesting their monetary assistance.

• Letters from companies disclosing their monetary contributions to the program and why they felt the Internal Audit program is important.

• Letter from the State of Texas approving UNT’s Articles of Amendment. • Letter from the District Director of the Internal Revenue Service, which gives assurance that the

donation is tax deductible. • A copy of an article from the IIA Today entitled “Degree of Excellence Campaign in Phase 2” dated

January/February 1993. • Campaign brochure entitled Internal Auditing: Master of Science Degree in Accounting. The

brochure discusses why the Chapters decided to endow the UNT EIAP, benefits of the Internal Audit specialty degree including a discussion on the advantages to employers, and how the readers could help.

Obtaining the support of the Chapters’ local membership and the IIA Research Foundation: The D/FW Chapters/Membership and the UNT IAAB together contributed approximately $100,000 (IIA Educator, “$350,000 UNT Endowment Announced,” Summer 1997) to the establishment of the UNT Internal Auditing Endowment Program. These moneys were raised as follows: (IIA Today, “Texas Rewards UNT’s ‘Degree of Excellence,’” July/August 1992) • D/FW Chapters and individual member contributions collected over a 3-year period. • D/FW Chapters coordinated fundraising events and hosted seminars with UNT accounting faculty. The $100,000 in contributions from individual members only emphasized that the chapter membership fully supported the cause and were committed to giving back to the community and their profession. This strong level of commitment would be used as a tool in negotiations with D/FW area organizations, which contributed the remaining $250,000 (IIA Educator, “$350,000 UNT Endowment Announced”, Summer 1997) Soliciting Contributions from the Corporate Community and CPA Firms: The Fundraising Committee also solicited funding from the corporate community and CPA firms in the local D/FW Metroplex. Discussions with the Fundraising Chairman noted these key factors in gaining funding from various companies/firms: • Enthusiastic support and commitment of the IIA local chapters/membership as disclosed above under

Obtaining the support of the Chapters’ local membership and the IIA Research Foundation. • Support of a CEO, who served as an Executive Honorary Chairman on the fundraising committee and

who solicited contributions from other CEO’s. • Emphasis on the direct and indirect benefits of the program, both for the community and also

potential employers. (See also the section entitled “Benefits” section for additional information.)




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Providing educational resources for the University to develop an internal auditing program that enhances student training and education. Providing employers a professional internal auditing employment resource pool.

Applying for funding from foundations and obtaining funding from other chapters/professional organizations: Applications requesting funds were completed and submitted to approximately 43 not-for-profit foundations. The process of applying for foundation grants and other funds was tedious. The Campaign Chairman stated it was difficult to obtain funding from these resources since foundations are in the business of supporting and advancing social issues, not in the business of supporting business related issues. The fundraising committee was often referred back to corporations and professional organizations since the main benefactors of the endowment fund would be corporations. In addition, the D/FW Chapters asked the North Texas Chapter of ISACA to sponsor the program since information technology auditing is critical to the internal auditing profession. This collaboration only made sense. The Campaign Chairman stated, the ISACA members “made personal pledges and help(ed) to get corporate sponsors” (Email, Dated April 23, 2001). Challenges to Consider if Your Chapter is Considering Endowing an Internal Audit Program: The process of endowing a professorship is a long process that requires the enthusiastic support of all involved including strong commitment from the faculty and university administration and enthusiastic support from the sponsoring chapter(s) and the business community. Some things that create challenges include: Obtaining Funding: The biggest challenge to establishing an endowment is gaining the funding to meet the donation requirements. A fundraising campaign is time intensive and requires organization, planning and preparation. The planning and preparation will include preparing and distributing fundraising proposal packets/brochures, organizing fundraising events, and soliciting contributions from chapter(s) members/business community/other organizations. The Fundraising Chairman recommended chapters approach funding in two phases: 1) gain local chapter support and solicit as much funding as possible from the local chapters’ membership and 2) gain the support of the business community. Obtaining the enthusiastic support of university faculty and administration for developing an internal audit specialty: According to Albrecht and Sack’s book, Accounting Education: Charting the Course Through a Perilous Future (page 13):

“Accounting education is burdened with hierarchy within universities. Before curricula changes can be made, approval must often be given by departmental and college curriculum committees, university administrators, and even boards of regents. Traditional higher education… is slow to change by design…. Professional schools… are trapped by this bureaucracy even though they would like to change and be more relevant.”




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“Bottom line is that the internal auditing instructors must work harder in developing” (IIA Educator, “Year One of an EIAP Program,” Fall 2000) a meaningful program and courses. According to former and current members of the UNT IAAB, UNT’s faculty and administration have always been open and supportive of ideas or suggestions made to enhance or grow the program. The Fall 1999 IIA Educator’s article entitled “UNT’s Clay Named Educator of the Year,” states the Director of the UNT Internal Audit Program “has extensive involvement in internal audit academia and has used innovative teaching methods and programs to better prepare students as future internal auditors…. He is working in conjunction with members of the internal auditing profession in Dallas and Fort Worth areas….” If the program did not have his enthusiasm and spirit of cooperation, the program would be lost. Accounting student enrollment is on the decline: According to Albrecht and Sack’s, book, Accounting Education: Charting the Course through a Perilous Future (page 19), accounting degrees have decreased 20 percent nationwide from 1995 to 1999. Auditing student enrollment has the potential to suffer as well. For more information on this topic and for recommendations on how to potentially overcome this concern, see the “Benefits and Enhancements” sections of the paper. Limited selection of current internal auditing textbooks: In the IIA Educator of Fall 2000, the article entitled “Year One of an EIAP Program: An Experience to Share” discusses the challenge of a limited selection of internal auditing textbooks:

“Because few universities offer an internal auditing course, there is a thin market and a limited number of internal auditing texts published. Most authors naturally prefer to write texts for a broader market. Additionally, the IIA’s Standards and Code of Ethics are undergoing significant changes that will cause current texts to be significantly out of date. …. Another major problem with internal auditing texts relates to the emphasis on internal financial audits. Internal auditing is moving more to development and maintenance of controls, improving efficiency and effectiveness, and discovery of irregularities and fraud.”

Thus professors have to find ways to be creative in creating internal auditing curricula. UNT’s Internal Auditing Program Director has found ways to supplement his internal audit curricula, including: In the spring of 1996, he incorporated the IIA’s Community Service Project as a requirement for one

of his courses. The 2000/01 Dallas IIA Chapters’ Community Service Project Committee Chairman describes the project as follows:

“The IIA’s Community Service Project is an audit of a non-profit community service organization performed by graduate auditing students from the University of North Texas under the supervision and guidance of professional members of the IIA.”

The project is “very popular with participating students because it gives them a chance to try out their skills first-hand and start to develop soft skills for internal auditing that can’t be taught from textbooks” (IIA Educator, “UNT’s Clay Named IIA Educator of the Year”, Fall 2000).




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In the spring of 1998, UNT added a new accounting internship program that allows students to get some additional practical experience while also receiving credit toward their degree. (UNT IAAB Minutes, May 1997) “As a result of (the Director’s) collaboration with students and major corporations, more than 130 students have been placed in internal audit internships over the past 11 years” (IIA Educator, “UNT’s Clay Named IIA Educator of the Year”, Fall 2000).

In the spring of 2000, UNT added a course entitled “Seminars in Internal Auditing”. The course

curriculum was developed by UNT’s Internal Audit Program Director with help from the UNT IAAB (Memorandum to the UNT Advisory Board, June 8, 1999). The course includes “a number of practical internal audit topics presented by practicing internal auditors” (IIA Educator, “UNT’s Clay Named IIA Educator of the Year”, Fall 2000).

Comments on Selected Survey Results: Summary of Board Survey Responses: The six respondents to the Board Survey were all board members of the Dallas IIA Chapter with one identified as a board member for both the Dallas IIA Chapter and the North Texas ISACA Chapter. Questions/Responses Inception of the UNT Endowment Program 1. Was your chapter a founding organization? If yes, what was your chapter’s involvement? The chapter was the founding organization for the UNT Endowment Program. The chapter’s involvement included program initiation, fund raising, contract development, furnishing speakers and organizing an advisory group to monitor the program. The Dallas Chapter drove the process. 2. What was the process for selecting UNT for the endowment? Respondents indicated that applications were obtained from local schools with an interest. UNT submitted the winning proposal. The board wanted a local school with a good accounting program and an active faculty member. Some respondents’ (2) indicated the UNT Internal Auditing Program Director’s interaction/involvement with the local chapter and knowledge of the school played a role. 3. What was the process for obtaining funding? A campaign fund-raising consultant for charitable organizations provided initial guidance. Fund raising started with the local chapter and progressed to companies and foundations. Personal and corporate donations/sponsorships were solicited from Board members, employers of all IIA D/FW members and the North Texas ISACA Chapter members. Raffle tickets were also used for fundraising.




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4. What roadblocks were encountered when trying to establish the endowment? Three respondents indicated three roadblocks: getting a final commitment from the university, determining the monetary amount of the endowment, and the time/effort involved in fundraising. The remaining three respondents either did not know or were not involved in the process.

UNT Advisory Board Members 5. Are you also a UNT Advisory Board Member? 6. Number of years? All six respondents were also UNT Advisory Board Members. Respondents have been board members for an average of 2.25 years. Specific terms for each respondent ranged from 1-4 years. 7. As a member of the Advisory Board, what were your major objectives for the program? Respondents indicated that the major objectives for the endowment program were to provide meaningful education and experience opportunities for the students through the help of practitioners and to recruit new individuals to the profession. The Board has helped in the development and identification of core courses and skill set requirements, provided speakers for classes, provided assistance with the intern programs, up-to-date course material, on-going community service projects, and involved students in research. One respondent indicated that the objective was “to get the program on track for higher student production” however they were “not sure that we have done a very good job at this. Much of this is due to the push of Public Accounting by the faculty”. General 15. Major Objective for establishing the Endowment Program Respondents indicated that the endowment program gives the IIA the ability to give input in the educational program and to fulfill objectives mentioned earlier. In addition, the program benefits the internal audit profession by increasing student awareness, providing corporations with a steady supply of graduating students with enhanced auditing skills, and ultimately providing ongoing support and world class development of internal auditors. Conclusion 16. Would you recommend implementing a similar program to other organizations? Five of the respondents indicated that they would recommend implementing a similar program to other organizations stating that the benefits gained by local companies, students, community, and the profession are contributing factors.




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The remaining respondent indicated that it was dependent on the organization’s ability to commit resources (people and financial) to establish and maintain the program. The respondent further stated that it is not a short-term project. The organization and its members must be willing to stay involved for the long run. 17. What advice would you give another organization or chapter? Respondents’ advice is summarized as follows: Raising money is not easy. It takes dedicated individuals who have the support of their management and who are willing to see it through to the end. Stay involved with the school and the professor. Be sure that all parties are in agreement and have a clear understanding of the expectations. Conclusion: In summary, the D/FW IIA Chapters, together with the North Texas ISACA Chapter and the business community support the advancement and growth of the Internal Auditing profession through the Endowment of a Professorship in Internal Auditing at the University of North Texas (UNT) in Denton, TX”. The purpose of the endowment is to provide the necessary funding to support a professor with “a national and/or international reputation in internal audit” (Dallas/Fort Worth Chapters of the Institute of Internal Auditors D/FW IIA Professorship in Internal Auditing – Memorandum of Understanding”, D/FW Chapters of IIA and UNT, March 1993). By supporting a professorship of internal auditing, the endowment provides assurance of the program‘s existence where the lack of other funding which otherwise would have caused the termination of the program. The process for endowing a program requires the following: 1. Strong commitment from the faculty and university administration. 2. Enthusiastic support from the sponsoring chapter(s) and the business community. 3. Communication and publicity about the program 4. Performance metrics to monitor the growth of the program. Challenges to establishing an endowment include: 1. Obtaining funding 2. Obtaining the enthusiastic support of university faculty and administration for developing an internal

auditing program. 3. The decline of accounting student enrollment. 4. Limited selection of up to date internal auditing textbooks.



BENEFITS AND ENHANCEMENTS OF AN ENDOWMENT PROGRAM

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Section Objectives In this section, specific benefits of an endowment program will be discussed, as well as enhancements for an endowment program. Benefits and enhancements were explored based on the following three strategic objectives defined by the Research Committee:

♦ Provide additional educational resources for the Universities. ♦ Provide training and education of the student thus enhancing their employability. ♦ Provide the profession with a more valuable employment resource.

The research methodology included the following: Surveyed local D/FW Companies, Students, Alumni, Faculty, and the D/FW IIA and North Texas

ISACA Chapters’ Board Members. Reviewed literature/documents, including but not limited to, Institute of Internal Auditing (IIA)

Publications, American Accounting Association publications, UNT Internal Audit Advisory Board documents, and the UNT Endowment Contract. Interviews with the following:

• Former and current members of the UNT Internal Audit Advisory Board • UNT Faculty and Administration for the College of Business Administration • Institute of Internal Auditors Research Foundation members

Literature Review and Background

BENEFITS As previously stated, the purpose of the D/FW IIA Professorship (Endowment Program) is to enhance the accounting department and university by supporting a professor “with a national and/or international reputation in Internal Audit” (Dallas/Fort Worth Chapters of the Institute of Internal Auditors D/FW IIA Professorship in Internal Auditing – Memorandum of Understanding”, D/FW Chapters of IIA and UNT, March 1993). Upon establishing this program, local members of the business community acknowledged the importance of supporting worthwhile projects such as the Endowment and recognized the need to secure academic training in internal auditing. The business community recognizes that “most professionals generally have several common attributes (including): a common body of knowledge.., an experience requirement, a code of ethics, a professional association, accreditation credentials and formal academic preparation.” By supporting programs, like the IIA Endorsement Program, that accentuate these common attributes, companies become involved in securing academic training for potential employees (Robert Jeckerd, “Letter to Fellow Executive”, December 10, 1992).

The Endowment program affords universities and students the opportunity to bond and build relationships that students need to effectively evaluate their own potential success. By creating a strong bond between the Dallas/Ft. Worth IIA Chapters, the academic community and the business community- students are able to draw upon the professional experiences, beliefs and ethical commitments to enhance their own development. (Dr. Raymond Clay, Email dated December 14, 2000).




18

Benefits of the IIA Endowment Program can be categorized as follows:

Educational Resources for the Universities: The main benefit of the Professorship Endowment is the assurance it provides to the continuous funding of the internal audit program allowing it to remain “an integral part of (UNT’s) accounting program”(IIA Today, “Texas Rewards UNT’s ‘Degree of Excellence,’” July/August 1992). See also the Historical subsection entitled Decision to Endow UNT’s Internal Auditing Program. Additional benefits of educational resources provided through an endowment include: Extending the common body of knowledge of internal auditing. Bridging the gaps between professors and practitioners, as well as between textbook studies and

actual experience. Stimulating academic research in internal auditing.

Enhanced Student Training and Education: The “first-hand experiences for the students enrolled in the program to interact with internal audit professionals, attend IIA meetings, secure internship opportunities, and participate in the workings of the a professional organization” (Dr. Raymond Clay, Email dated December 14, 2000) is a direct benefit of the endowment program. This type of interaction only enhances the students’ training and education while also increasing the awareness about the internal audit profession and providing an opportunity to increase student members of the local Chapters. In addition, since internal auditing textbook resources are limited, internal audit professors have to be more creative in establishing an internal audit curriculum to provide meaningful experiences for their students (IIA Educator, “Year One of an EIAP Program”, Fall 2000). Because of the strong commitment of the local chapters to ensure the success of the endowment program, UNT has found the following ways to supplement internal auditing curricula: Enhanced classroom experience through the involvement of practitioners in the course entitled

“Seminars in Internal Auditing.” Students’ involvement in the Community Service Project where students, who are mentored by

practitioners, perform an audit of a not-for-profit organization. Greater opportunities for internships because of the strong commitment and support of the business

community. Internship opportunities, in turn, give the university an opportunity to market their success story to participating companies.

Professional Employment Resource Pool: Through the business community maintaining ongoing relationships with the universities, and supporting the development of the internal audit academic program, the endowment of an internal auditing program creates an additional resource pool of employable internal auditors. According to the Internal Auditing – Masters of Science Degree in Accounting Campaign Brochure, “Advantages to Employers,” graduates of the internal audit endowment program are equipped with the necessary and basic internal auditing skills. Graduates come to the employer with immediate on-the-job effectiveness, awareness of the professional code of ethics, professional associations, and formal academic preparation. Graduates have business maturity and sensitivity and are aware of professional certifications.




19

In the Fall 1999 IIA Educator article entitled, “UNT’s Clay Named IIA Educator of the Year,” a Dallas IIA BOG member stated, “I know we have an annual crop of well-prepared novice internal auditors being introduced to the work force when they have been taught by (the Internal Audit Program Director).” And a direct benefit to the business community is a reduction in training costs. Critical Success Factors – Several critical success factors have been identified and associated with the IIA Endorsed Program – established at UNT in 1988. The Fall 2000, IIA Educator, “Critical Success Factors to Launching an Endorsed Internal Auditing Program” (pages 6-8) indicated the following critical success factors: ♦ A strong commitment from faculty and university administrators ♦ Enthusiastic support from the sponsoring chapter and business community ♦ Energetic student leadership ♦ Timely publicity ♦ Rigorous performance standards While the IIA Endowment Program does not have stand-alone critical success factors, the program can inherently be compared to critical success factors as defined in the Fall 2000 issue of the IIA Educator for the IIA Endorsed Internal Audit Program (EIAP). We believe that similar critical success factors are applicable to the Endowment Program and provide evidential support of the programs ability to meet it’s objectives and provide benefits to the profession, the local business and academia community.

ENHANCEMENTS TO AN ENDOWMENT PROGRAM The Institute of Internal Auditor’s Academic Relations Educator’s Handbook section entitled “Spirit of Cooperation with the IIA” (pages 6 and 7) states:

“Colleges and universities instituting (on-campus internal auditing programs) should do so with a spirit of sharing and cooperation. The EIAP school should be willing to consider input from The IIA and from other colleges and universities with similar programs, as well as share their experiences so that others may benefit from them. The EIAP schools should also be supportive of The IIA’s efforts and be concerned with internal auditing education as a whole, not just their particular program.” Furthermore, the program “should have significant support from the business community. This can be judged by financial and non-financial support received by the institution and department.”

It is in this spirit of cooperation that we share two major themes for providing ways to enhance an endowed professorship in internal auditing. The major themes that we will focus on are:

Enhancing Communication Enhancements of Program Criteria

Communication In order for UNT’s Endowed EIAP to grow, it is essential to develop an awareness of the program. This awareness is critical within the chapters sponsoring the organization, the business community, the University and among existing and potential students. Clear and continuous communication, of a programs goals/objectives, its achievements, and who it benefits and why, can enhance the growth and




20

image of the program and sponsoring organizations (The IIA At a Glance on the IIA Website Pressroom, “Texans Recognized as Exceptional IIA Volunteers,” June 30, 2000). Based on a “spirit of cooperation” and enthusiastic, committed long term support of the University and Chapters to the advancement of the endowed Internal Audit Professorship, we believe accountability for creating awareness and sharing information about the program is a shared responsibility between these parties (refer to diagram below). The University’s responsibility is to market the program to the existing and potential students, formally and informally. The UNT IAAB and local Chapters BOG are responsible for sharing information about the program to those who contributed to the fund and general chapter membership, since they are the benefactors of the endowment as potential employers. A review of a sample of IIA publications, the research committee found eight articles that specifically referenced UNT or the endorsed/endowed internal audit program at UNT. In addition, we also accessed the local IIA and the local ISACA chapter websites. Of the eight articles and review of the local IIA and ISACA websites, the following were noted (see also attachments A and B at the end of this section for a summary of the publications):

Publications that Reference/Mention:

Percent of these publications with a reference or mention of the Endowed IIA EIAP

UNT EIAP Only 20%UNT Endowed Professorship Only 10%Both 40%None 30%

In addition, review of a sample of four UNT publications for any reference or mention of the UNT endowment or EIAP noted the following:

UNT Dept. of Acct. Faculty / Administration

D/FW IIA & ISACA Chapters

New & Existing Students

Chapters’ Members & Contributors

UNT IAAB

Internships And/or hired

upon Graduation

Spirit of Cooperation and Communication:

Professor(s)/Chapter(s)

Interaction

Diagram: Communication Flow for IA Program




21

Publications that Reference/Mention:

Percent of these publications with a reference or mention of the Endowed IIA EIAP

UNT EIAP Only 0%UNT Endowed Professorship Only* 25%Both 25%None 50%* Professorship was listed as an Honor on the Academia Vita of the Internal Auditing Program Director.

Furthermore, the local IIA and ISACA websites did not contain a website link to UNT’s Department of Accounting.

Description

UNT Website

Dallas IIA Chapter

N. TX ISACA Chapter

UNT Website contains link to IIA/ISACA.

Yes

Local IIA/ISACA Chapter Websites include a link to UNT.

No No

Based on our review of the above, it is our opinion that overall communication of the program to the local/international IIA membership and/or the business community and students needs to be enhanced. Alternate Ways to Communicate the Program Include: Internship Programs Student IIA Membership or Student Affiliate Chapters CIA Designation

Internship Programs: The October 1998 Internal Auditor Magazine article entitled “How Businesses Profit from Internships” states:

“Participation in an internship program demonstrates the quality of the profession. The image of the internal audit profession is enhanced through increased communication between internal audit shops and students and faculty, resulting in more status and importance for the profession.”

The December 1993 Internal Auditor Magazine article entitled “Internal Auditing Internships” discusses the UNT internship program and its benefits to the student, university and the potential employer. One of the benefits of the program is the “opportunity to showcase (the university’s) ‘product’ to participating companies.” In turn, the “participating companies can showcase their employment opportunities.” Therefore internships “create a realistic and mutually beneficial learning experience” (Internal Auditor Magazine, December 1993) and “stimulate additional interest in internal auditing as a profession among the business and education community” (The IIA’s Academic Relations Manual, page 26).




22

“As a result of (UNT’s Internal Auditing Program Director’s) collaboration with students and major corporations, more than 130 students have been placed in internal audit internships over the past 11 years” (IIA Educator, “UNT’s Clay Named IIA Educator of the Year”, Fall 1999) Student Membership or Student IIA Affiliate Chapter: Increased student membership in the local IIA chapter(s) or through a student affiliate chapter “can provide more visibility for the program (and the profession) on campus and help to recruit students into the (internal auditing) program and assure its continuity” (IIA’s Academic Relations Educator’s Handbook). UNT students have attended local chapter meetings, back to school events, and student forums. Also, a number of students assisted in the registration process, monitoring sessions, and helping guide people to appropriate meeting rooms at the 1998 IIA International Conference (“UNT IAAB Minutes,” May 1997 and Dr. Raymond Clay, April 2000). CIA Designation: Internal Auditing professors are encouraged to obtain the Certified Internal Auditor designation. Through the professor’s example, students may place higher value on the Internal Audit profession due to the faculty interest in the area of Internal Auditing and their level of commitment to the profession. The IIA EIAP program states that “faculty interest in the area can be demonstrated (also) through active membership in The IIA and internal auditing experience…. (In addition, the IIA EIAP program asks) the EIAP coordinator (to) include… plans for promoting and encouraging students to take the CIA exam.” The value of an endowed EIAP and the Internal Audit profession is only enhanced when the “the value of the Certified Internal Auditor (CIA)… become(s) apparent” (The Institute of Internal Auditors Academic Relations Manual, page 58). Enhancements for Program Criteria: The decline in the Accounting student enrollment nationwide has caused some concern in the academic and professional environments. Facing declining enrollments, availability of funding for these programs is at risk. According to Steve Albrecht and Robert Sack’s book, Accounting Education: Charting the Course Through a Perilous Future (page 19), “accounting degrees have decreased 20 percent nationwide from 1995 to 1999.” North Texas universities have also experienced a downward trend for the same timeframe. Information from the “University of North Texas Fact Book” and “UTA College of Business Administration – Student Headcount” shows the decline in accounting graduates compared to other departments. As you can see, students are moving to more lucrative disciplines such as Information Systems.

UNT - Gen. Enrollment Trends (COBA)

(20.0)% 0.0% 20.0% 40.0% 60.0%

% Change from 1997 to 2000

OverallAll OtherInfo SysFinanceBus AdminAcctg

UTA - Gen. Enrollment Trends (COBA)

(50.0)% 0.0% 50.0% 100.0% 150.0%

% Change from 96-97 to 99-00

OverallAll OtherInfo SysFinanceBus AdminAcctg




23

Department UNT % of change

(1997 to 2000) UTA % of change

(1996-2000) Accounting -2.3% -25.5% Business Administration 3.1% -6.2% Finance 9.3% 24.5% Info System 54.1% 94.8% All Other 14.2% 3.2% Overall 14.7% 8.8%

University of North Texas total enrollment in Accounting has also dropped from 646 students in 1997 to 598 students in 2000. University of Texas at Arlington enrollment in Accounting has dropped from 498 students in 1997 to 411 students in 2000. In addition, internal audit student enrollment has also varied throughout the years (“Internal Audit Enrollment”, UNT Internal Audit Advisory Board Document and Dr. Raymond Clay, April 2001).

Since Internal Audit curricula is usually placed within Departments of Accounting, the decrease in accounting students may naturally impact the number of graduates interested in pursuing a career in Internal Audit. If no action is taken to change this trend the authors mention “we are destined to live with decreasing budgets, decreasing faculty positions, and possibly, elimination of our accounting program” (Accounting Education: Charting the Course through a Perilous Future by Steve Albrecht and Roberts Sack, page 2). The reason for the decline can be summarized by some key findings published in the American Accounting Education Series entitled Accounting Education: Charting the Course through a Perilous Future by Steve Albrecht and Roberts Sack (page 23). Some key findings of the report are as follows:

“There are a number of perceived reasons why the quantity and quality of students choosing to major in accounting have decreased, including:

(1) starting salaries for accounting majors are less than other business majors

05

101520253035404550

# of Students Enrolled

1990

1992

1994

1996

1998

2000

Year

UNT Internal Audit Student Enrollments

UNT InternalAudit StudentEnrollment




24

(2) students today have more attractive career alternatives than in the past (3) students today are more willing to choose risky majors than they were in the past (4) there is a lack of information and considerable misinformation about what accounting is and

what accountants do (5) the 150-hour rule has increased the opportunity costs to become a CPA and perspective

students perceive 150-hour programs as being too narrow and non-value-added.

“(Because there are still) customers for (accounting output), other disciplines, such as I/S, Finance and Strategy, are educating students who are assuming many of the positions previously filled by accounting students” (page 14).

Thus we recommend future endowed Internal Audit programs be incorporated into the curricula of the College of Business administration as a whole. We demonstrate this suggestion with a modified model taken from Accounting Education: Charting the Course through a Perilous Future (page 14). The model illustrates the supply and demand of accounting and auditing as accounting enrollment declines. By advancing the Internal Audit specialty to other programs, internal audit will have a greater student base, thus increasing the potential for growing the internal audit profession. In today’s business environment, business persons have to be more well rounded due to the:

“…emergence of additional competitors, the high demands of institutional investors, the global market place, and the need to make quick decisions… (This has) increased the level of uncertainty and complexity of the business world. Trying to get a competitive edge and use every possible avenue to increase profits, corporations have entered into highly complex transactions. This complexity and uncertainty has given rise to new types of professional services focusing on understanding risk. Although many people expect the demand for audit services to decrease because

I/S

Finance

Accounting

Strategy

Others

Our Capacity for Educating Accounting

and Auditing Students

Consulting

Audit

Tax

Entre-preneurs

.dot com

Supply Capacity Demand




25

an audit is a ‘commodity that adds little value’, this increase in risk may create an even higher demand for audit-type services in the future” (Accounting Education: Charting the Course through a Perilous Future by Steve Albrecht and Roberts page 8 and 9).

Since internal audit practice cover topics such as control self-assessment and risk analysis, it only makes sense to advance future internal auditing curricula to other departments within the Colleges of Business Administration.




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Attachment A: A Study of IIA Published Media in relation to the EIAP and Endowed Professorship:

Resource

Title

Date

Description

Is UNT’s Endowed

Professorship &/or EIAP

mentioned or referenced in the

article? IIA Endowed Professorship Fund, UNT

“Internal Auditing: Master of Science Degree in Accounting”

1991/ 1992

Endowment Fundraising Brochure (includes brief history of EIAP)

Both

IIA Today “Texas Rewards UNT’s ‘Degree of Excellence’”

July/ August 1992

Discusses the local chapter’s commitment to education and the fundraising campaign goals/phases.

Both

IIA Today Degree of Excellence Campaign in Phase Two

January/ February

1993

Discusses first corporation and others that followed to contribute to the endowment and the campaign’s goals.

Endowment Only

The Internal Auditor

“Internal Auditing Internships

December 1993

“An internship program linking JCPenney Company and interns at the University of North Texas benefits students, the company, and the university.

None

IIA Educator

“$350,000 UNT Endowment Announced”

Summer 1997

Announces the fully funded endowment and some of the program’s accomplishments and commitment to advancing internal audit curricula.

Both

The IIA website’s The IIA at a Glance

“IIA Cites Organizations for Commitment to Quality”

June 25, 1999

“The (IIA) bestowed its new Commitment to Quality Improvement Award to 43 elite organizations at its 58th International Conference…. (Based on) Professional Excellence.., Quality of Service.., Professional Outreach….” UNT is one of the 43 organizations.

None




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Attachment A Cont.: A Study of IIA Published Media in relation to the EIAP and Endowed Professorship:

Resource

Title

Date

Description

Is UNT’s Endowed

Professorship &/or EIAP

mentioned or referenced in the

article? The IIA website’s The IIA at a Glance

“North Texas Professor Named IIA’s ‘Educator of the Year’”

June 25, 1999

“IIA announce that Dr. Raymond Clay Jr. has been selected as recipient of the 1999 Leon R. Radde Award for “Educator of the Year”

EIAP only

IIA Educator

“UNT’s Clay Named IIA Educator of the Year”

Fall 1999 Discusses accomplishments of Dr. Clay, the Internal Audit Program Director and his dedication to advancing Internal Auditing education.

EIAP only

The IIA website’s The IIA at a Glance

“Texans Recognized as Exceptional IIA Volunteers”

June 30, 2000

Aaron Saylors, CIA, who is credited with enhancing the growth and image of the (D/FW) IIA Chapters and the Institute worldwide, is one of two persons presented with Exceptional Volunteer Citations.

Both: “He spearheaded

the chapter’s funding of a

professorship in the Endorsed Internal Audit Program at the University of

North Texas” D/FW IIA Chapters and North Texas ISACA Chapter

As of April 2001

General Search of the Website for references to or mention of the UNT Endowed Professorship or EIAP, link(s) to UNT

None. The Websites does not include a link to

UNT

Resource Mentioned or Referenced:

Number of Times Met

Criteria UNT’s EIAP Only 2 UNT’s Endowment Only 1 Both 4 None 3

Total Publications Reviewed 10




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Attachment B: A Study of the UNT’s Published Media

Resource

Title

Date

Description

Is UNT’s Endowed Professorship &/or EIAP mentioned or referenced

in the article? Brochure by UNT Department of Accounting, College of Business Administration

“The Importance of Internal Auditing”

Not listed Brochure promoting the “Professional Auditing Program”

Both

UNT Course Bulletins or Course Catalogs

As of April 2001

None

UNT Accounting Department Website, including the MSA Degree Requirements

As of April 2001

Professorship only (Listed as an Honor on the

Academia Vita of the Director of the Internal

Auditing Program).

Used the search function for the entire UNT website

Using variations of endowment, endorsement, professorship, internal auditing, searches for mention of Endowment or EIAP.

None *

Resource Mentioned or Referenced:

Number of Times Met

Criteria EIAP 0 Endowed Professorship 1 Both 1 None 2

Total Publications Reviewed 4




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*Using the UNT Website’s search feature, we were able to find the following: A link to The IIA (theiia.org) and ISACA (isaca.org) on the Accounting Resource Links web page. The Dallas IIA Chapter was listed as a Crown Eagle Contributor. Mention of the Internal Audit Specialty under the Master of Science Degree Requirement in

Accounting however there was no mention that it was endorsed or endowed. In the Accounting Monthly Update (1998-1999), references to IIA/ISACA meetings attended and/or

presentations made to the IIA, and also awards received from the IIA.




30

Specific questions from each of the surveys were selected for analysis. The complete surveys can be reviewed in Appendix B. Comments on Selected Survey Results: Student surveys provided some insight into the perceived value and knowledge of the IIA and the Endowment Program. Feedback was obtained related to critical success factors including timely publication and strong commitment from the faculty and university administrators. A total of 171 Student survey responses were obtained and evaluated from the following schools:

• UNT, 56 responses or 32.7% • UTA, 72 responses or 42.1% • UTD, 43 responses or 25.2%

10. How many Auditing courses are offered at your university?

UNT currently offers five different courses with an internal audit emphasis (Appendix A). Most of the students surveyed were aware of the variety of courses offered. A total of 19 students, or 34%, were unsure of the number of audit courses offered. This can be interpreted as an overall lack of information or uncertainty as to the correct response. 12. How were you made aware of auditing courses at your university?” Overall, 83 students, or 48.53%, identified course bulletins as the medium used to generate awareness of auditing courses. For UNT, where the Endowment Program is established, students indicated a more even spread among course bulletins, university administrators and professors when compared to the other respondents.

0%5%

10%15%20%25%30%35%40%45%

Percent of Student

Responses

Number of Courses Offered

UNT Student Response % to Number of Audit Courses Offered




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13. Does your university have an internal auditing program endorsed by the Institute of Internal

Auditors? 14. Did you attend this university because it has an endorsed internal auditing program? For UNT, 13 out of 55 responses, or 24%, were aware UNT had an IIA endorsed program. Only one UNT student indicated they attended the university because it had an IIA endorsed program. In comparison:

• 8 UTA students out of 70, or 11% that were aware of the endorsed program. • 2 UTD students out of 39, or 5% that indicated an awareness of the endorsed program. However,

UTD does not have an IIA Endorsed Program. 16. Does your university have an internal auditing program financially endowed by the Institute of

Internal Auditors? For UNT, 11 students out of 55, or 20%, were aware UNT had an IIA endowment. None of the UNT students indicated they attended the university because of the endowment (see next question). 17. Did you attend this university because it has an endowment program in internal auditing? Fifty-five students attending UNT accounting or auditing courses completed the overall survey. However, only 20 students responded to this survey question. Of those who responded, the following responses were obtained:

Response Number of Response Yes 1 (UTD) No 6 Not Applicable 13

Given the low student response, consideration should be given to identifying ways to expand and enhance the student awareness level regarding the Endowment Program, so student are made aware of the benefits of an endowment program.

0

20

40

60

80

100

Number of Student

Responses

UNT UTA UTD Total

University

Course Bulletin

UniversityAdministrators

Professor




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The following student survey questions related to aspects of the programs offered at the 3 universities. 23. Have you completed any assignments that provide you with practical audit experience?

Students attending UNT appear to have a greater likelihood of completing assignments that provide practical audit experience, which is a defined benefit of the Endowment Program. However, of 53 UNT Students that are currently participating in various auditing courses, 26, or 49%, indicated they have completed assignments that provided practical auditing experience. 26. Do you feel the amount of internal auditing courses offered by your university is just enough, not enough, too many?

Response UNT UTA UTD Enough 40 (74%) 55 (80%) 20 (53%) Not Enough 13 (24%) 12 (17%) 18 (47%)

While the majority of students feel that the internal audit curriculum is sufficient, a number of students would like to have more courses available. An endorsement program should attempt to identify these needs and determine whether enhancements are warranted. 28. Has your instructor(s) encouraged you to pursue a career in Internal Auditing? Of the 164 respondents, 72, or 44%, indicated “Yes” their instructor(s) had encouraged them to pursue a career in internal auditing. An additional, 40 students, or 24%, indicated that they had received “some” encouragement from professors. The UNT student responses (shown below) rated higher than the total population, which may indicate that the Endowment Program objectives and benefits are being realized.

Response

Response Rate

Yes 28 (54%) No 10 (19%)

Some 14 (27%)

0

20

40

60

Number of Student

Responses

UNT UTA UTD

YesNo




33

29. Are you or have you been involved with any internal auditing internship programs?

Response UNT UTA UTD Yes 4 3 1 No 51 59 40

A surprisingly low number of students have taken advantage of the internal auditing internship program. We were unable to determine if this was due to a lack of information or lack of interest on the part of the student. Overall, both the Endowment and the Endorsement programs should seek out ways to provide students with the information necessary to make well-informed personal decisions regarding internship program participation and the benefits. 33. Did you feel the internship was beneficial? (if answered “Yes” to question 29) Students that participated in the internship program indicated their experience was positive. 35. What field do you plan on going into once you graduate? Ten UNT students out of 53, or 19%, indicated they plan on pursuing an Internal Auditing career once they graduate. This compares favorably to the total of all students, in which 18 out of 163, or 11%, plan to pursue Internal Auditing after graduation. This provides additional support for the benefits of the Endowment Program. The following student survey questions relate to the general Institution of Internal Auditing. 38. Are you aware of the Certified Internal Auditor (CIA) certification? Of the total student responses, 87.5% were aware of the CIA certification. UNT students were aligned with the overall totals, coming in with 87% affirmation. 39. a. Have you sat for any parts of the CIA exam? b. If no, do you plan on taking the CIA exam? One UNT student, out of 166 total respondents, indicated that they had sat for parts of the CIA exam. In addition, 18 out of 51 UNT student responses, or 35%, plan on taking the CIA exam compared to UTA and UTD respectively 17% (12) and 31% (12). 40. Does your university sponsor a review course for the CIA exam? A total of 130 responses out of 166, or 78%, were not sure whether their university offered a CIA exam review course. However, none of the universities included in this study sponsored CIA review courses. 41. Does your university belong to a local IIA Chapter? Only 7 out of 53 UNT students, or 13%, knew that the university belonged to a local IIA Chapter. In comparison to the total student response which indicated a 5% awareness level.




34

42. Are you a student member of your university’s local IIA Chapter? Of the 49 UNT students that responded to this question, four, or 8%, were members of the university’s local area IIA Chapter. 43. What activities have you participated in with the local IIA Chapter? Six students indicated that they were student members of the local IIA Chapter. Four of the 6 were UNT students. Students indicated they have participated in beneficial career enhancing activities including:

• IIA Luncheon Meetings • Student Forums • IIA Seminars

44. What do you like about the Internal Audit program at your school? Students were given the opportunity to highlight positive aspects of the Internal Audit programs at the different schools. A total of 26 students responded to the survey question. Students indicated the following:

• They enjoyed practical experiences that were incorporated into their course work. • They appreciated how their professors presented the information. • They were glad to be exposed to internal auditing and felt the courses pulled all accounting

course material together. • They thought the course work would help them on the CPA exam. • They learned more about career opportunities in accounting.

UNT students’ comments including practical experiences and the focus on group activities are aligned with the planned benefits of the UNT Endowment Program. Faculty Survey Results: COBA faculty members from UNT, UTA, and UTD were asked to complete the survey to obtain a sense of awareness and interest among the specific faculty members. Seven responses were received. 3. What curriculum are you currently teaching under? Out of 7 faculty members surveyed 4 were Accounting, 2 were Business Administration and 1 was General Business.




35

5. What does your prior work experience (non-professorship) include? Respondents indicated prior work experience in areas including:

Areas

Number of Responders

Accounting 2Internal Auditing 3Government 2Public Accounting 7Other 2

7. Are you a CIA? 8. Are you a member of the IIA? None of the faculty members responding to the survey are Certified Internal Auditors. In addition, only 4 of the 7 are members of The IIA. Consideration to increase membership among the professors may directly enhance the support for The IIA programs and professional certifications. 15. a. Does the university have a Student Affiliate Chapter of IIA?

b. If no, do you feel there is an interest to start one?

A Student Affiliate Chapter of The IIA is not present for any of the universities surveyed. Only 1 faculty member indicated an interest to start a Student Affiliate Chapter of The IIA. 16. Do you attend the monthly IIA meetings or luncheons of the local IIA Chapter? Four out of 7 faculty members, or 57%, indicated that they attend monthly meetings or luncheons of the local IIA Chapters. 17. Do your students attend the monthly IIA meetings or luncheons of the local IIA Chapters(s)? 18. Is this a requirement of the course curriculum? A total of 3 out of 4 faculty members, or 75%, responded yes regarding students attending between 1 and 2 meetings per year. In addition, 2 faculty members from UTD and UTA make attendance a course requirement. Alumni Survey Results: 20. Did your University have any of the following programs? 21. If available, indicate which programs you participated in.

Knowledge Participation IIA Endorsement 2 0 IIA Endowment 4 2 Internal Audit Internship 11 6




36

Of the 20 survey respondents, those indicating knowledge of the Endowment Program were all alumni of UNT, with the exception of one from UTD. Those participating in one or more of the programs were all alumni of UNT. 22. If you participated in a program, do you agree or disagree that the following contributed to your

participation? 23. Indicate which of the following influenced your decision to pursue a career in Internal Audit? Six of the 8 participating in the specific programs strongly agreed that “professor recommendation” contributed to their participation in the programs. For comparison, of all alumni, 11 of 20, or 55% strongly agreed or agreed that the professor influenced their decision further demonstrating potential benefits that can be derived from developing a solid relationship with university professors. 24. Indicate which of the following were helpful in obtaining an Internal Auditing position? 25. Do you feel your participation in the programs contributed to you obtaining a better position/salary? Of the survey responses, 52% of the question responses indicated that the above factors did not have an impact on their situation. For those with an impact, the weighted-average rating indicated that the endowment, endorsement, and internship programs had a greater impact on obtaining an Internal Audit position, while professional certifications had a greater impact on obtaining a better position/salary.

Company Survey Results: One of the key benefits of the Endowment Program, identified during the background research and board member surveys, was the ability to provide local companies with skilled graduates. One of several critical success factors is the ability to maintain enthusiastic support from the business community. Based on this, local companies were surveyed to assess the perceived benefits and level of support. Seven companies completed the survey.

Factors that H elped O btain a Position andFactors that H elped O btain a Better Position

0

2

4

6

Endow m ent Endorsem ent Internship C ertification

Factors

Ave

rage

Rat

ing

Factors HelpedO btain Position

Factors HelpedO btain BetterPosition




37

4. Does your company participate in an internship program with any of the local universities/colleges? One company out of the seven, or 14%, participated in an internship program with a local university/college. Texas Christian University (TCU) was the local university. 10. Does your company sponsor any of the local colleges/universities? One company out of the seven, or 14%, responded that they sponsored one of the local universities/colleges. UNT is the only local university that is sponsored by a company. 12. Our Internal Audit Department prefers to recruit from:

Number of Responses Program Description Strongly

Agree Agree Neither

Agree nor Disagree

Disagree Strongly Disagree

University/College with an IIA endowed program

1 1 4 1 0

University/College with an IIA endorsed program

0 2 4 1 0

Within the Company 2 4 0 1 0 Outside the Internal Audit Function

0 4 1 2 0

Most companies strongly agreed or agreed that they prefer to recruit from within the company for internal audit positions. A possible explanation may be the increasing tendency to create an audit staff with skills sets traditionally not associated with accountants and/or auditors. 14. What percentage of your new hires are recent college/university graduates? 85.7% of companies surveyed indicated that less than 10% of their new hires are recent college/university graduates. 17.a. Please rate on a scale of 1-5, 5 being “Most Important,” the following top 10 wish list of skill sets that your Audit Department would like to see in a newly hired university/college graduate. As indicated, behavior skills related to interpersonal and personal skills along with analytical skills, specifically problem solving analysis, were the top rated skills. These can all be enhanced by a student’s involvement in the Endowment Program.




38

17b. Ideally, if university graduates new hires fulfilled all of the characteristics on the wish list, what impact do you feel this would have? Companies indicated that if graduating new hires actually fulfilled all the above characteristics, the following impacts might be realized:

C o m p a n y S u r v e y : T o p T e n W ish L is t o f A u d it S k ills

0 .0

1 .0

2 .0

3 .0

4 .0

5 .0

6 .0

Interpersonal Skills

Problem Analysis & Solving

Personal Skills

Info. Technology Skills

Precision

Report Writing Skills

Research Skills

Risk Awareness

Work Paper Skills

Statistical Methods

S k ills

Ave

rage

Rat

ing

P o te n tia l C o m p a n y Im p a c t

2 7 .7 8 %

2 2 .2 2 %

1 6 .6 7 %

5 .5 6 %

2 7 .7 8 %

L o w e re d A u d it D e p a rtm e n t tra in in g co s ts

A llo w e d fo r e a rlie r A u d ito r In C h a rg e (A IC )a ss ig n m e n ts

S h o rte n e d th e n e w A u d ito r’s tra in in g tim e

L e sse n e d re lia n ce o n o th e r a u d ito rs

P ro v id e m o re va lu e a d d e d a u d its

Five Companies indicated lowered Audit Department Training Costs Five indicated earlier Auditor-In-Charge Assignments Four Indicated shortened new Auditor training time Three indicated lessened reliance on other auditors




39

18. Based on your department’s experience (on average) with university graduates from the following schools, how would you rate (on a scale of 1-5, 5 being best) the universities in preparing graduates to meet the characteristics in question #17a and b? UNT was identified by four of the seven companies with a weighted average score of 4.3. UTA and UT Dallas each came in with a weighted average of 3.5. Board Survey Results: 8. What would you say are the major accomplishments of the Advisory Board (since inception) and the

University as it relates to the endowment?

Accomplishments indicated include: • Full funding for the Professorship and the Community Affairs Project. • Involvement of practitioners, who are teaching five of thirteen class sessions. • Establishment of the student internship program.

9. For another organization or individual that is considering setting up an endowment, what advice

would you give them for establishing and maintaining such a program? Respondents reinforced the critical success factor emphasizing the need to stay involved with the program and to have a good understanding of what is involved in establishing and maintaining the program. Additional advice included establishing a solid agreement, determining the support to be provided by the university, measuring and maintaining tight control over fund disbursements. 11. In your opinion, have those exceptions (chapter’s expectations) been met? Half of the respondents indicated that the expectations had been met thus far. Others expressed the need for enhancements in areas of communication and student participation.

12. What are the greatest strengths of the endowment program?

• The program introduces students to the profession and allows them to experience a professional field that they may not have otherwise developed an awareness of.

• The program gets chapter members, practitioners and the community involved with students/educators to support student development and provide educational resources and support.

• Financial support for the University to promote the profession.

13. What would you add to or change about the endowment program? Respondents indicated they would change the level of university support and recognition. One suggestion was to enhance the existing program by increasing the number of internal audit classes included in the University’s curriculum. Another indicated that they would consider expanding the program to other endorsed universities.




40

14. Does the Board have any input in the development of the program? If yes, please explain. All respondents agreed that the Board does have some input. Respondents explained that the Board has been instrumental in bringing some of the innovations to the program and being a liaison with Dallas IIA Chapter. The Board reviews funding, curriculum, supports the internship program, and assists as practitioners. Survey Conclusion and Enhancements In addition to concluding on the specific benefits of an endowment program, we identified two common themes throughout each of the surveys- Communication and Program Development. Conclusions have been drawn based upon survey results and literature reviewed. We also developed enhancement considerations for communication and general program development. Conclusions Overall, we were able to determine that benefits, such as promoting the profession, providing the profession with valuable employment resources, enhanced training and education of the students, and providing additional educational resources for the Universities were demonstrated in some capacity for the Endowment Program. While students tend not to select their university based on the existence of an Endowment Program, 54.3% were made aware of auditing courses and the profession by professors or other university administrators. This demonstrates the direct impact well-informed professors and university administrators can have on promoting the Internal Audit programs for both endowed and endorsed programs. Alumni indicated minimal knowledge of the Endowment Program. However of those that indicated a minimal knowledge, most respondents believed the program was a contributing factor in obtaining an Internal Auditing position. Professional certification was indicated as the top factor for position/salary advancement. The Endowment Program and even more specifically, the associated professors should continue to promote professional certifications. Student survey results indicated a low level of interest and awareness in obtaining the Certified Internal Auditor (CIA) designation among students, a possible correlation may be the absence of CIA designations among the faculty surveyed. Students attending UNT did have a higher awareness level than others. Traditionally, Internal Audit programs have been embedded in the accounting curriculum and given the current downward enrollment trends nationwide, we believe that The IIA will have an increasingly difficult time meeting key objectives. The ability to provide the profession with valuable employment resources will become even more challenging given the existing compensation competition from other professions. Local companies were given a “top ten” wish list of skill sets for newly hired university/college graduates for the Audit Department, which coincided with and reinforced the focal points of the IIA Endowment Program. (The Top Ten Skills List form the surveys can be further supported by the listing of skills in Albrecht’s and Sack’s Accounting Education: Charting the Course through a Perilous Future, page 56).




41

However, most companies tend to recruit from within the company as they continue to seek individuals with advanced skill sets due to the increasing demands for highly flexible employees that can work in matrix organizations. Our challenge is to do our part, through IIA supported programs like the Endowment, to produce graduates with enhanced skill sets and promote the increased worth for the local Dallas community. To accomplish this, a long-term commitment to constant communication and support must be realized from the D/FW IIA Chapters, North Texas ISACA Chapter, and local companies. Enhancement Considerations for Communication To increase student awareness of the Internal Auditing concentration within the Accounting Department, EIAP schools may consider posting information about its endorsed/endowed program on its website, as well as, publicize it in university course bulletins. In addition, given the decreasing trend in accounting enrollments nationwide, an increased awareness of the Internal Audit programs is warranted for other COBA departments, such as Information Systems, Finance, and others. Literature discussed earlier provides evidence that the capacity for producing marketable resources for auditing positions stretches across multiple COBA departments. On-campus support such as increased student IIA memberships/IIA Affiliate Chapters and program marketing campaigns across COBA departments will provide students with networking opportunities, in addition to increasing the awareness of the internal audit profession and certification. The D/FW IIA and ISACA Chapters of the IIA can strengthen the long-term support and involvement for the Endowment Program by increasing the awareness and communication of the program to chapters’ members, who represent local companies, therefore local employers. While several companies were involved in providing the initial funding, an on-going communication channel should be developed to encourage continual involvement with the program. Communication channels with non-member local companies can also be pursued to enlighten perspective employers as to the UNT talent pool for either student internships or full-time employment upon graduation. Enhancement Considerations for Program Development In light of the fact that nationwide enrollments in Accounting have been declining and that Internal Audit Programs are usually part of the Accounting departments, consideration may be appropriate to emphasizing Internal Audit within other COBA disciplines. Survey suggestions obtained from the BOG recommended an increase in the number of internal auditing courses. Closing Section Comments: The establishment of the UNT Endowment Program was an involved process that took considerable time and resources. This program has benefited local companies, students, the University of North Texas, the local IIA chapters, and the Dallas/Ft. Worth community. Improvements can be made to the Endowment in the areas of communication and enhancements to the program. We conclude from our research that the UNT Endowment Program was and is worthwhile and other chapters and universities should consider establishing their own endowment program.



APPENDIX A Comparing University Programs

42

Section Objectives: The objective for this section, comparing university programs, was to identify the various auditing curricula offered by the three universities (University of North Texas, University of Texas at Arlington, and the University of Texas at Dallas) in the study. We have also provided an overall comparison of the universities based on academics, cost, financial aid, admissions, student satisfaction, student body, and the U.S. News Online magazine article entitled 2001 College Rankings – College Comparison Worksheet. Our research methodology included reviewing the following for each of the three universities (UNT, UTA, and UTD): • University course catalogs • University class schedules • University Accounting Department web sites • U.S. News College Comparison Worksheet. Literature Review and Background: UNT offers an Internal Audit Specialty for the Masters of Science in Accounting. In addition to UNT’s Internal Auditing course, other graduate level auditing courses (Audit Investigative Process and EDP Control and Auditing) are required. UTA offers two undergraduate Internal Auditing courses. However, UTA does not offer a specialty in Internal Auditing at either the undergraduate or graduate level. UTD does not offer internal auditing courses. All three universities are public schools. UNT and UTA are comparable in size and the cost to attend the universities. UTD is a smaller university. UNT has more applicants per year at 7,414 compared to UTA with 2,514 and UTD with 2,280. UTD appears to be more selective and has higher average SAT/ACT scores than UNT or UTD. U.S. News considers all three schools diverse (see the Table 1 for the U.S. News: College Comparison Worksheet.) We have included tables that list the prerequisites for Internal Auditing courses (Table 2), other undergraduate audit courses (Table 4), and other graduate level audit courses (Table 4). These tables give the reader the perspective of the types of auditing courses offered, prerequisites needed for auditing courses, and how often audit courses are offered. They also describe the three universities and their audit course curricula in more detail. Conclusion: After reviewing the attached course listing, it appeared that UNT has a well-rounded program for Internal Auditing. UNT requires more overall prerequisites for their internal audit course and other auditing courses than UTA. UNT prerequisites include accounting, economics, information systems, business law, and mathematics. These prerequisites would give a student a broad perspective on various aspects of the business world. Using this knowledge as a basis for learning and class discussions, the students should be able to better understand more complex business scenarios and cases than students taking fewer prerequisites, thus enhancing their overall knowledge base.




43

U.S. News: College Comparison Worksheet University UNT UTA UTD Public/Private Public Public Public Founded 1890 1895 1969 Size 20,449 15,266 5,974 City/State Denton, TX Arlington, TX Richardson, TX Academics Student-to-faculty ratio 16/1 20/1 19/1 Full-time Faculty 89% 86% 82% Classes taught by TAs 0% 8% 10% Classes with under 20 students 19% 34% 50% Classes with 50+ students 22% 19% 15% Average graduation rate 37% 28% 42% Cost Public in-state tuition and fees $2,950 $2,670 $3,238 Public out-of-state tuition and fees $8,190 $7,854 $8,398 Room/Board $4,200 N/A $2,820 Financial Aid* Students receiving: Need-based grants

26%

29%

23%

Need-based self-help aid 31% 35% 8% Merit aid 18% 12% N/A Students whose need was fully met 24% 19% 85% Average financial aid package $5,145 $7,149 $2,111 Average need-based grant $2,449 $3,270 $1,218 Admissions Selectivity Selective Selective More Selective Acceptance rate 74% 97% 63% Number of applicants 7,414 2,514 2,280 Average high school GPA N/A N/A 3.59 SAT/ACT (25/75 percentile) 960-1200 930-1150 1070-1320 Student Satisfaction Freshman retention rate 71% 68% 75% Alumni giving rate 6% 3% 6% Student Body Diversity** Yes Yes Yes Fraternity members 6% 5% 6% Sorority members 4% 3% 3% Students living on campus 85% 84% 82% N/A indicates that the school did not provide data to U.S. News in a certain area, or that the data is not applicable to a particular school, such as in-state tuition for private schools. *All financial aid data is based on the total number of undergraduates who applied for aid. **A school is considered diverse if the minority population is greater than the national average of 17 percent.




44

UNT Internal Audit UTA Internal Audit UTD Internal Audit Number of Courses

1 2 None

Course Listing ACCT5450 Seminar in Internal Auditing (G) ACCT4331 Internal Auditing I (U) ACCT4332 Internal Auditing II (U)

N/A

When Offered Spring ACCT4331 – Spring ACCT4332 – Not offered in last 3 semesters

N/A

Auditing Prerequisite(s)

1 1 (for ACCT4332) N/A

Course Listing ACCT4400 Auditing Professional Responsibilities (U) ACCT4331 Internal Auditing I (U) N/A Accounting Prerequisite(s)

4 3 N/A

Course Listing ACCT4100 Accounting Systems (U) ACCT5020 Accumulation and Analysis of Accounting Data (G) ACCT5110 Accounting Analysis and Reports I (G) ACCT5120 Accounting Analysis and Reports II (G)

ACCT2301 Principles of Accounting I (U) ACCT2302 Principles of Accounting II (U) ACCT3303 Intro to Accounting Information Systems (U)

N/A

Other Prerequisite(s)

6 1 N/A

Course Listing ECON5000 Economic Concepts (G) MATH1100 College Algebra (U) MATH1190 Business Calculus (U) MSCI5010 Statistical Analysis (G) BCIS5090 Intro to Business Computers (G) BLAW5050 Legal, Regulatory, and Ethical Environment of Business (G)

BUSA2303 Intro to MIS and Data Processing (U) N/A

U – Undergraduate Course G – Graduate Course




45

UNT Graduate Audit Courses UTA Graduate Audit Courses UTD Graduate Audit Courses Number of Courses

4 3 2

Course Listing ACCT5410 Audit Investigative Process (G) ® ACCT5430 Auditing Special Problems (G) ACCT5440 EDP Control and Auditing (G) ® ACCT5470 Auditing Advanced Theory (G)

ACCT5316 Auditing Concepts and Practices (G) ACCT5318 Studies in Auditing (G) ACCT5332 Operational Auditing (G)

ACCT6334 Auditing (G) ACCT6336 Information Technology Auditing (G)

When Offered ACCT5410 – Fall ACCT5430 – Not Offered in last 3 semesters ACCT5440 – Fall ACCT5470 – Fall

ACCT5316 – Spring ACCT5318 – Fall ACCT5332 – Spring

ACCT6334 (same as ACCT3334) – Spring ACCT6636 – Spring


1 (for ACCT5410) 2 (for ACCT5430, 5440, and 5470)

1 (for ACCT5318) None

Course Listing ACCT4400 Auditing Professional Responsibilities (U) ACCT5410 Audit Investigative Process (G) (for ACCT5430, 5440, and 5470)

ACCT5316 Auditing Concepts and Practices (G) N/A

Accounting Prerequisite(s)

4 5 2

Course Listing ACCT4100 Accounting Systems (U) ACCT5020 Accumulation and Analysis of Accounting Data (G) ACCT5110 Accounting Analysis and Reports I (G) ACCT5120 Accounting Analysis and Reports II (G)

ACCT5301 Accounting Analysis I (G) ACCT5302 Accounting Analysis II (G) ACCT5311 Financial Accounting I (G) ACCT5312 Financial Accounting II (G) ACCT5315 Accounting Systems Analysis (G)

ACCT6305 Accounting for Managers (G) ACCT6330 Corporate Financial Reporting (G)


6 2 None

Course Listing MATH1100 College Algebra (U) MATH1190 Business Calculus (U) BCIS5090 Intro to Business Computers (G) ECON5000 Economic Concepts (G) MSCI5010 Statistical Analysis (G) BLAW5050 Legal, Regulatory, Ethical Environment Of Business (G)

MATH1315 College Algebra for Economics and Business Analysis (U) BUSA5301 Statistics (G)

N/A

U – Undergraduate Course G – Graduate Course ® – Required for Internal Audit Specialty




46

UNT Undergraduate Audit Courses UTA Undergraduate Audit Courses UTD Undergraduate Audit Courses Number of Courses 2 2 1 Course Listing ACCT4400 Auditing Professional Responsibilities

ACCT4410 Auditing Evidence ACCT4318 Auditing ACCT4338 Independent Auditing Responsibilities and Standards

ACCT3334 Operational Auditing

When Offered ACCT4400 – Fall, Spring, and Maymester ACCT4410 – Not offered in last 3 semesters

ACCT4318 – Fall and Spring ACCT4338 – Fall (1999)

Spring


1 (for ACCT4410) 1 (for ACCT4338) None

Course Listing ACCT4400 Auditing Professional Responsibilities ACCT4318 Auditing N/A Accounting Prerequisite(s)

5 5 2

Course Listing ACCT2020 Accounting Principles I ACCT2030 Accounting Principles II ACCT3110 Intermediate Accounting I ACCT3120 Intermediate Accounting II ACCT4100 Accounting Systems

ACCT2301 Principles of Accounting I ACCT2302 Principles of Accounting II ACCT3303 Intro to Accounting Information Systems ACCT3311 Financial Accounting I ACCT3312 Financial Accounting II

ACCT2302 Intro Cost Management ACCT4342 Accounting Information Systems


7 (for both) 1 (additional for ACCT4410)

3 None

Course Listing MATH1100 College Algebra MATH1190 Business Calculus BLAW3430 Basic Law BCIS2610 Intro to Business Computers BCIS3610 Basic Information Systems ECON1100 Principles of Microeconomics ECON1110 Principles of Macroeconomics MSCI3710 Business Statistical Analysis Using Spreadsheet (for ACCT4410)

MATH1315 College Algebra for Economics and Business Analysis BUSA2303 Intro to MIS and Data Processing BUSA3321 Business Statistics

N/A

NOTE: All courses are undergraduate.3



APPENDIX B Surveys and Results

47

Page Company Survey

48

Alumni Survey

56

Student Survey

67

Faculty Survey

77

University Survey

83

Board Survey

84

Note: The number of survey responses may vary per question since not all respondents answered all survey questions.




48

Company Survey: Introduction: i. Enter Company Name:

Response # of Responses # of Company Responses 7

Total 7 ii. Position/Title of person completing the survey:

Response # of Responses Senior Vice President 1Vice President 2General Auditor 1Audit Manager 1Manager 2

Total 7 1. What industry is your company in? (Check one that applies most.)

Response # of Responses Accounting/Legal/Consulting 0Manufacturing 1Agriculture 0Non-Bank Financial Services 0Banking 0Health Care 1Computer/Data Processing Services 1Real Estate/Construction 0Education 0Transportation 2Energy (oil & gas) 0Utilities 1Entrepreneurial 0Insurance 0Government/Not-For-Profit 0Wholesale or Retail 1Other 0

Total 7 2. What is the employee size of your company?

Response # of Responses Less than 9,999 110,000 to 19,999 020,000 to 29,999 0




49

30,000 to 39,999 240,000 to 49,999 050,000 to 59,999 060,000 to 69,999 070,000 to 79,999 080,000 to 89,999 090,000 to 99,999 0More than 100,000 4

Total 7 3. How many employees are in the internal audit department?

Response # of Responses Less than 10 111 to 20 021 to 30 431 to 40 041 to 50 051 to 60 061 to 70 071 to 80 081 to 90 191 to 100 1More than 100 0

Total 7 4. Does your company participate in an internship program with any of the local universities/colleges

(if no, go to question #7)? Response # of Responses Yes 1No 6

Total 7 5. Please indicate with which colleges/universities your company participates in the internship

programs? Response Yes No UNT 0 0UT Arlington 0 0UT Dallas 0 0Other: TCU 1 0

Total 1 0




50

6. How many students per year are in your Internal Audit internship program? Response # of Responses 0-2 13-5 06-8 09 or more 0

Total 1 7. Please indicate from which colleges/universities your company recruits?

Response Yes No UNT 2 4UT Arlington 0 5UT Dallas 0 5Within the Organization 6 0Other: 4 0

Total 12 14 8. Are your auditors members of the Institute of Internal Auditors (IIA)?

Response # of Responses Yes 7No 0

Total 7 9. What percentage of your Internal Auditors are CIA’s?

Response # of Responses Less than 10 111-20 221-30 231-40 041-50 151 or more 1

Total 7 10. Does your company sponsor any of the local colleges/universities (if no, go to question #12)?


Total 7 11. Which local colleges/universities does your company sponsor?

Response Yes No UNT 1 0UT Arlington 0 0UT Dallas 0 0




51

Other 0 0Total 1 0

12. Our Internal Audit Department prefers to recruit from:

5 4 3 2 1 Responses

Strongly

Agree

Agree

Neither Agree Nor Disagree

Disagree

Strongly Disagree

Avg College/University with an IIA Endowed Program

1 1 4 1 0 3.3

College/University with an IIA Endorsed Program

0 2 4 1 0 3.1

Private Colleges/Universities 0 1 5 1 0 3.0State/Public Colleges/Universities

0 2 4 1 0 3.1

Placement Agencies 1 3 2 1 0 3.6Outside the Internal Audit Function

0 4 1 2 0 3.3

Within the Company 2 4 0 1 0 4.0Local Colleges/Universities 0 3 3 1 0 3.3Out of State College/University 0 2 3 2 0 3.0Interns 0 2 4 1 0 3.1Other: Candidates with some experience

1 0 0 0 0 5.0

Other: Big Five 1 0 0 0 0 5.0Total 6 24 30 12 0 3.6

13. What is your hiring ratio of college/university graduates to internal audit candidates with 1-5 years

of experience? Response # of Responses Less than 10 411-20 221-30 031-40 041-50 051 or more 0

Total 6 14. What percentage of your new hires are recent college/university grads?

Response # of Responses Less than 10 611-20 021-30 131-40 0




52

41-50 051 or more 0

Total 7 15. The following factors have an impact on our decision in hiring Internal Auditors:

5 4 3 2 1 Responses

Strongly

Agree

Agree


Disagree

Strongly Disagree

Avg Bachelor’s Degree 5 2 0 0 0 4.7Master’s Degree 2 5 0 0 0 4.3Doctorate Degree 0 0 5 2 0 2.7Certified Internal Auditor (CIA) Designation

3 3 1 0 0 4.3

Internal Audit Experience 5 1 1 0 0 4.6Business Operations Experience 2 5 0 0 0 4.3IIA Chapter Involvement 1 0 6 0 0 3.3

Total 18 16 13 2 0 4.0 16. List other experiences, certifications, qualities not listed in #15 that would impact the decision to hire

an internal audit candidate: Response # of Responses Management Information Systems Experience 1CPA 3CMA 1CFE 1Big Five 1

Total 7 17. a. Please rate on a scale of 1-5, 5 being the “Most Important,” the following top 10 wish list of skill

sets that your Audit Department would like to have of a newly hired college/university graduate: Responses Most 4 3 2 Least Avg Technical Skills: Information Technology 3 4 0 0 0 4.4Reporting Skills (database systems, spreadsheets)

3 1 3 0 0 4.0

Work Paper Skills (structuring & use of tick marks)

0 2 2 1 2 2.6

Relevant Statistical Methods Application 0 0 5 1 1 2.6Awareness of theories of risk and organization control

1 4 1 1 0 3.7

Analytical Skills: Problem analysis, structuring, & solving 4 3 0 0 0 4.6Research Skills (finding, accessing, and 2 4 0 1 0 4.0




53

assessing data & judging information is sufficient/supportive of opinions) Precision (concise, clear, accurate) 3 3 1 0 0 4.3Behavioral Skills: Personal Skills (objective, inquisitive, flexible, directed, confident, etc.)

5 1 1 0 0 4.6

Interpersonal Skills (team player, communication skills, people skills, etc.)

6 1 0 0 0 4.9

Total 11 2 1 0 0 4.0 17. b. Ideally, if university graduate new hires fulfilled all of the characteristics in your department’s

wish list, you feel these would have (please check all that apply): Response # of Responses Lowered Audit Department training costs 5Shortened the new Auditor’s training time 4Lessened reliance on other auditors 3Allowed for earlier Auditor-In-Charge (AIC) assignments 5Other: Value Added Audits 1

Total 18 18. Based on your department’s experience (on average) with university graduates from the following

schools, how would you rate (on a scale of 1-5, 5 being best) the universities in preparing graduates to meet the characteristics in questions #17a and 17b? Responses

Best at

Meeting

4

3

2

Needs Improvement

to Meet

Other

Avg UNT 1 3 0 0 0 1-doesn’t hire from 4.3UT Arlington 1 0 3 0 0 1-doesn’t hire from 3.5UT Dallas 0 2 2 0 0 1-doesn’t hire from 3.5

Total 2 5 5 2 0 3.8 19. - 22.

Response for on a scale of 1-5

5 4 3 2 1

Responses

Strongly

Agree

Agree


Disagree

Strongly Disagree

Avg. 19. My company encour-ages Internal Auditors to acquire a CIA certification.

5 1 1 0 0 4.6

20. Internal Auditors are given pay incentives to achieve this certification.

1 0 2 1 3 2.3

21. Certification has some impact on Internal Audit

1 2 1 0 3 2.7




54

promotions 22. Internal Auditors with Internal Audit experience are paid more.

2 2 3 0 0 3.9

Total 9 5 7 1 6 3.4 23. On average, what percent of your auditors were hired directly out of the following

universities/colleges in the last 5 years: UNT UT Arlington UT Dallas Responses

% All Hires From

% Those hired that were also interns

% All Hires From


% All Hires From


0 to 10% 6 5 7 6 7 5 11 to 20% 1 0 0 0 0 0 21 to 30% 0 0 0 0 0 0 31 to 40% 0 0 0 0 0 0 41 to 50% 0 0 0 0 0 0 51+ % 0 0 0 0 0 0

Total 7 5 7 6 7 5 Other: (specify) Big Five Texas LSU Responses

% All Hires From


% All Hires From


% All Hires From


0 to 10% 0 0 1 1 0 1 11 to 20% 0 0 0 0 1 0 21 to 30% 0 0 0 0 0 0 31 to 40% 0 0 0 0 0 0 41 to 50% 0 0 0 0 0 0 51+ % 1 1 0 0 0 0

Total 1 1 1 1 1 1 24. What is the “mid point” (or average) of the salary range for Internal Auditors at your company

based on the following factors? Less Than 2 Years

Experience 2 to 5 Years Experience

5 or More Years Experience

Responses

With Certifi-cation

Without Certifi-cation

With Certifi-cation


With Certifi-cation


$30,000 or less 0 0 0 0 0 0 $30,001-40,000 3 3 0 0 0 0 $40,001-50,000 4 4 3 3 0 1 $50,001-75,000 0 0 4 4 4 4




55

$75,001-100,000 0 0 0 0 3 0 $100,000 or more 0 0 0 0 0 0

Total 7 7 7 7 7 5 25. What would you recommend for improving college/university curriculum for the benefit of preparing

college/university graduates for the work environment? Response # of Responses Heavy emphasis on soft skills (i.e., interpersonal communications) and appreciation and practical knowledge of using technology to perform exception analysis work. Laos, a “thinking out of the box” (i.e., consulting) course would be beneficial.

1

UNT does great job of hosting practitioners to teach subjects, and providing practical audit experiences at non-profit agencies.

1

Providing more credit for internship. Our company is in the process of looking at utilizing interns in Audit.

1

Soft skills, i.e. Writing reports, memos, and presentation skills such as interviewing /presenting

1

Total 4




56

Alumni Survey: 1. Enter Name or Control Number* (8 characters of your choice)

Response # of Responses # of respondents 20

2. Company Name

Response American Airlines Bank One Baylor Health System Citigroup (formerly Associates) City of Denton Commercial Metals EDS Ericson Federal Deposit Insurance Group Fidelity Investments JCPenney Co. Nokia ST Microelectronics The Regence Group TXU Business Services University of North Texas System

3. IIA Chapter Affiliation:

Response # of Responses Dallas 16Fort Worth (Waco) 1Ark-La-Tex 0Austin 0El Paso 0Houston 0San Antonio 0Not affiliated with any chapter (Go to #4) 1

Total 18 4. Your involvement in the chapter selected in #3:

Response # of Responses Member 12Committee Member 3Committee Chair 3Officer 0Board Member 0




57

Past President 0Not a Member of the IIA 2

Total 20 5. Are you currently employed as an Internal Auditor?

Response # of Responses Yes 19

Average Years: 6 Mode: 4 Range:

1-3 years 6 4-8 years 9 9-10 years 2 10+ years 2

No 1Total 20

6. Were you ever employed as an Internal Auditor?

Response # of Responses Yes - (5 years) 1No 0

Total 1 7. Are you seeking employment or plan to seek employment as an Internal Auditor?


Total 0 8. Indicate certification obtained or certification exams passed: (select all that apply)

Response

Number of Responses

Passed part/all Certified Internal Auditor Exam 5Certified Internal Auditor Exam Achieved 6Passed part/all Certified Public Accountant Exam 2Certified Public Accountant Achieved 6Passed part/all Certified Information Systems Auditor Exam 0Certified Information Systems Auditor Achieved 4Passed part/all CFA Exam 0CFA Achieved 0Passed part/all CCSA Exam 0CCSA Achieved 0Passed part/all Certified Management Accountant Exam 1Certified Management Accountant Achieved 0




58

Other: CGFM CGFO CCM

1 1 1

Total 27 9. Did you take a certification review courses?

Response # of Responses University Sponsored 1Company Sponsored 2Professional Organization 6IIA Chapter Sponsored 4Other 1Not Applicable 6

Total 20 10. Did you receive an award on a test for certification?

Response # of Responses Yes – (William Smith Award for the CIA) 1No 19

Total 20 11. Your organization’s industry (check on that applies most):

Response # of Responses Accounting/Legal/Consulting 0Manufacturing 2Agriculture 0Non-Bank Financial Services 1Banking 2Not-For-Profit 0Computer/Data Processing Services 1Real Estate/Construction 0Education 1Transportation 1Energy (oil & gas) 0Utilities 1Entrepreneurial 0Insurance 0Government 2Wholesale or Retail 5Health Care 3Other: Financial Telecommunications

1 1

Total 21




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12. Your job classification: Response # of Responses Accountant 0Information Technology 0Auditor 19Legal 0Marketing 0Finance/Risk/Treasury 1Operations 0Other 0

Total 20 13. Your job position:

Response # of Responses Staff 11Supervisor 3Middle Management 4Senior Management 1Executive Management 0Other: Specialist 1

Total 20 14. Number of employees in your organization:

Response # of Responses Less than 50 051 to 250 1251 to 500 0501 to 1,000 01,001 to 5,000 55,001 to 10,000 2More than 10,000 12

Total 20 15. How do you view Internal Audit?

Response # of Responses A stepping stone into another career path 11Long-term career path 7Other: Both 2

Total 20




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16. Number of auditors in your organization: Response

# of Responses

Less than 5 56 to 15 216 to 35 436 to 100 6101 to 200 1More than 200 2

Total 20 17. Indicate the year and GPA for each of the applicable levels of education:

Response # of Responses Undergraduate: Average GPA of Respondents 3.4 20Graduate: Average GPA of Respondents 3.5 12Doctorate: Average GPA of Respondents 0

Total 32 18. Which University did you graduate from? Also indicate your degree classification and major area of

study: Response

Total # of Responses

# of Responses

UNT 10 Accounting (U) – 6 Accounting (G) – 1

UT Arlington 4 Accounting (U) – 2UT Dallas 4 Accounting (U) – 4

19. Are you currently pursuing another degree? If yes, please indicate the University and degree.

Response # of Responses UNT – Masters 1

Total 1 20. Did your University have any of the following programs? (If no, skip to question #23)

UNT UTA UTD Responses Yes No Yes No Yes No IIA Endorsement 2 1 0 2 0 0IIA Endowment 3 2 0 2 1 4Internships 11 6 0 3 0 3

Total 16 9 0 7 1 7




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21. If available, indicate which programs you participated in: (If you answered “No” to each, skip to question #23) UNT UTA UTD Responses Yes No Yes No Yes No IIA Endorsement 0 2 0 0 0 1IIA Endowment 2 3 0 0 0 1Internships 6 3 0 0 0 1

Total 8 8 0 0 0 3 22. If you participated in a program in #21, do you agree or disagree that the following contributed to

your participation? Responses

Strongly

Agree

Agree


Disagree

Strongly Disagree

University Publication 0 2 2 2 0Professional Organization Publication

0 2 3 1 0

Professor Recommendation

6 3 1 0 0

Specified by Degree Program

2 1 3 0 1

Personal Research 2 0 1 0 0Other 0 0 0 0 0

Total 10 8 10 3 1 23. Indicate which of the following influenced your decision to pursue a career in Internal Audit? (If you

answered “No” to questions 20 &21, select “Did not apply” where appropriate.) Responses

Did Not

Apply

Strongly Agree

Agree

Neither Agree Nor

Disagree

Disagree

Strongly Disagree

Endowment 13 0 1 2 1 0Endorsement 13 0 1 3 0 0Internship 11 3 2 1 0 0Professor 3 5 6 2 0 2Other University Activities

4 1 5 3 4 0

Professional Organizations

4 0 7 4 2 0

Personal Interest 1 10 7 1 0 0Other: Past experience with internal auditors

0 1 0 0 0 0

Other: Flexible Hours 0 1 0 0 0 0Other: Beta Alpha Psi 0 0 1 0 0 0




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Other: Already worked for JCPenney

0 1 0 0 0 0

Other: Forensic Accounting Interest

0 1 0 0 0 0

Other: Internship Mentor

0 1 0 0 0 0

Other: Prior Supervisor 0 0 1 0 0 0Total 49 24 31 16 7 2

24. Indicate which of the following were helpful in obtaining an Internal Auditing position?

Responses

Did Not

Apply

Strongly Agree

Agree

Neither Agree Nor

Disagree

Disagree

Strongly Disagree

Endowment 13 0 2 1 0 0Endorsement 13 0 3 1 0 0Internship 11 6 1 1 0 0Professor 6 4 3 3 0 2Other Activities 5 2 4 3 3 1Professional Organization 5 2 4 5 0 2Personal Interest 3 9 6 0 0 0Other: Prior Experience 2 1 0 0 0 0

Total 58 24 23 14 3 5 25. Do you feel your participation in the programs contributed to you obtaining a better position/salary?

Responses

Did Not

Apply

Strongly Agree

Agree

Neither Agree Nor

Disagree

Disagree

Strongly Disagree

Endowment 14 0 0 4 0 0Endorsement 12 0 0 4 1 0Internship 11 3 2 2 1 0Professional Certification

3 4 8 2 1 0

Other: Student Member of IIA

2 1 0 0 0 0

Other 2 0 0 0 0 0Total 44 8 10 12 3 0




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26. How would you overall rate the following programs: Responses

Did Not

Apply

Very Satisfied

Satisfied

Neither Satisfied Nor Dis-satisfied

Dis-satisfied

Strongly

Dis-satisified

Endowment 13 0 2 2 0 0Endorsement 13 1 2 1 0 0Internship 11 6 1 1 0 0Professor Effectiveness 1 10 5 1 1 0Other: If professor effective means teaching ability and knowledge then

2 1 0 0 0 0

Other 2 0 0 0 0 0Total 42 18 10 5 1 0

27. Does your company offer education reimbursement?


Total 19 28. Does your company pay for your training and professional certifications?


Total 20 29. Do you agree that your overall educational experience adequately prepared you for your career in

Internal Audit? Responses

Strongly

Agree

Agree


Disagree

Strongly Disagree

Undergraduate 3 11 4 2 0Graduate 7 4 0 2 0Doctorate 1 0 0 0 0

Total 11 15 4 4 0 30. What university courses, programs or activities provided you with the best tools to prepare you for

your career in Internal Audit? Response # of Responses Intermediate & advanced accounting and audit courses because these are the basics in accounting and audit fundamentals.

1

Internal audit, Accounting theory, Business policy - These courses are the 1




64

ones that gave me the tools to think beyond the box. They go beyond the mechanics and provide the best basis for decision making. Internal Audit courses in Graduate School 1Dr. Clay's courses on Internal Audit and Audit Evidence 1Internal Audit Class - provided tools to be a good internal auditor. Technical writing class

1

Internal Audit graduate class and undergraduate audit classes 1Being a finance major, I was not able to participate in audit classes because they were for Accounting majors only. (Yes I did inquire and even tried to take the IA class for no credit!!!) The hands on experience that I gained from my internship is what best prepared me for my career in IA. Also, I would really love to see an audit program similar to LSU's in the area because audit is not JUST FOR accounting majors!!!

1

Course on Accounting Control Systems. We reviewed basic accounting cycles such as receivables, payables, treasury, etc. Learned flowcharting and the use of this tool to identify control procedures and control design weaknesses.

1

Practical experience gained through case studies in the graduate level Internal Auditing class.

1

CPA Exam - this exam tied all the courses taken in school together to form a cohesive understanding of accounting practices and theory.

1

Use of computer statistic programs (SAS) 1Audit Classes - Gave more real world applications than other Accounting Classes

1

English and Computer related courses. Both classes teach a skill set that I use every day in my job.

1

Business and accounting, strategic planning - overall business knowledge 1Audit Evidence in Graduate School gave "hands on" experience in conducting an actual audit.

1

Total 15 31. a. Would you recommend the audit course or programs to aspiring students?

Response # of Responses Yes UNT 8 UT Arlington 4 UT Dallas 4

16

No 0Total 16

31. b. Explain. Response # of Responses Basic accounting & audit knowledge is need before on the job experience. Businesses move to quickly to learn everything from a job.

1

Great instructor (Dr. Clay), and a solid education that can lead to many opportunities.

1




65

Give you a early look at the internal audit process, workpapers, etc. 1For those students who want to pursue a job in internal audit should take the graduate internal class. Not only is the class helpful, but the class audit project was worthwhile.

1

If UNT had a program that was open to students with all different backgrounds, I think there would be a lot more participation in the audit program!!!

1

I'm not sure what this question means. I did not take an Internal Auditing course but I was required to take Auditing. The basic Auditing course was really designed for public accounting. It was pretty intuitive and seemed too basic to me. The main focus of the course seemed to be preparation for the CPA exam (standards). There was more that could have been gained from the course such as sampling, audit evidence, etc. More hands on meaningful discussion instead of reviewing in an afternoon.

1

It is good for both accounting types and those that want to go into management because it teaches how to control a business.

1

It's a great way to experience a different side of accounting. 1It was a required class 1

Total 9 32. What programs (if any) could the University have offered to better prepare you for your career in

Internal Audit? Response # of Responses International accounting 1Being a finance major, I was not able to participate in audit classes because they were for Accounting majors only. (Yes I did inquire and even tried to take the IA class for no credit) The hands on experience that I gained from my internship is what best prepared me for my career in IA. Also, I would really love to see an audit program similar to LSU's in the area because audit is not just for accounting majors. If UNT had a program that was open to students with all different backgrounds, I think there would be a lot more participation in the audit program.

1

More practical audit sampling/results analysis. 1I believe the University offered the things that would have better prepared me but I also believe these classes were typically associated/offered with the Masters programs. The Masters program allowed specialization in Internal Audit for example. If I had it to do over again, I would have liked anything related to audit technique/procedure: Control Models, advanced flowcharting, workpaper documentation, sampling methodologies and application, use of tools such as ACL, how to write an audit program (audit objective, risk methodology).

1

A formal internship program accompanied with course credit. 1CAATS and Data Access classes 1




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Internships 2Internal Audit Course / Degree Plan 1Operational auditing (internal - not external) 1Internal audit classes, System Control classes, 2ACL software training--really wasn't available at the time, but is an integral part of my work today.

1

Total 13




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Student Survey: 1. Enter Name or Control Number:

Response # of Responses # of respondents 171

Total 171 2. What university are you attending?

Response # of Responses UNT 56, or 32.7 percentUT Arlington 72, or 42.1 percentUT Dallas 43, or 25.2 percentOther 0

Total 171 3. What degree are you seeking?

Response UNT UT Arlington UT Dallas Undergraduate 15 30 16Graduate 39 38 20Ph.D. 0 0 1Other: for CPE’s or to fulfill CPA Exam requirements

2 4 4

Total 56 72 41 4. What is your major?

Response # of Responses Accounting 154Finance 1Information Systems 3General Business 3Other 5

Total 166 5. What is your minor? (leave blank if N/A)

Response # of Responses Accounting 16Finance 3Other: Business Law, Computer Science, Info Systems & Economics 13

Total 32 6. You are a:

Response # of Responses Freshman 0Sophomore 0




68

Junior 9, or 5.3 percentSenior 69, or 40.8 percentGraduate 86, or 50.9 percentOther 5, or 3.0 percent

Total 167 7. What year do you plan on graduating?

Response # of Responses 2001 972002 512003 112004 2Other 9

Total 170 8. What is your GPA?

Response # of Responses Less than 1 01 to 2 02 to 3 303 to 4 138

Total 168 9. Does your university offer auditing courses?

Response # of Responses Yes 168No - (UTD Graduate – Accounting) 1

Total 169 10. How many auditing courses are offered at your university?

Response UNT UT Arlington UT Dallas 0 0 0 01 to 2 5 11 133 to 4 25 17 105 or more 7 14 3Not Sure 19 29 14

Total 56 71 40 11. Please list the titles of audit courses offered at your university?

Response # of Responses See Appendix A for courses offered. 0

12. How were you made aware of auditing courses at your university?

Response UNT UT Arlington UT Dallas Course Bulletin 25 35 23 Advisor/Academic Program Coordinator 28 27 12




69

Instructor 2 5 0 High School Recruiter 0 0 0 College Recruiter 0 0 0 Other, included, but not limited to:

Internet Students Degree Requirements Self Interest School Catalog

1 5 5

Total 56 72 40 13. Does your university have an internal auditing program endorsed by the Institute of Internal

Auditors? Response UNT UT Arlington UT Dallas Yes 13 8 2No 0 3 3Not Sure 42 59 34

Total 55 70 39 14. Did you attend this university because it has an endorsed internal auditing program?

Response # of Responses Yes - UNT 1No 62Not applicable 15

Total 78 15. This question was dropped from the survey. See note at the end of the Student Survey. 16. Does your university have an internal auditing program financially endowed by the Institute of

Internal Auditors? Response UNT UT Arlington UT Dallas Yes 11 3 0No 0 3 3Not Sure 44 62 31

Total 55 68 34 17. Did you attend this university because it had an endowment program in internal auditing?

Response # of Responses Yes 1 (UTD)No 6Not applicable 13

Total 20 18. This question was dropped from the survey. See note at the end of the Student Survey.




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19. How many auditing courses are you required to take? Response # of Responses 0 81 812 273 114 55 1

Total 133 20. Which of the above auditing course have you taken or are currently enrolled?

Response # of Responses Courses 200

Total 200 21. This question was dropped from the survey. See note at the end of the Student Survey. 22. What has been the primary focus of the auditing courses you have taken or are currently enrolled?

Response # of Responses External Auditing 68Internal Auditing 157Both 1

Total 226 23. Have you completed any assignments that provide you with practical audit experience?

Response UNT UT Arlington UT Dallas Yes 26 11 17No 27 58 23

Total 53 69 40 24. This question was dropped from the survey. See note at the end of the Student Survey. 25. How many total auditing courses do you plan on taking?

Response UNT UT Arlington UT Dallas 0 2 0 11 to 2 32 56 352 to 3 0 0 03 to 4 19 14 55 or more 2 2 0

Total 55 72 41




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26. Do you feel the amount of internal auditing courses offered by your university is: Response UNT UT Arlington UT Dallas Just enough 40 55 20Not Enough 13 12 18Too many 1 2 0

Total 54 69 38 27. What else in the field of auditing do you feel the university should offer to help you prepare for your

career? Response # of Responses Practical experience 11I/S auditing 5CPA Exam 5Internships 4Fraud 3More Internal Audit focus 3More audit classes 3Report writing 2Ethics class 1Not-for-profit accounting course 1Government auditing 1Undergraduate evidence class 1Better counseling on future career goals 1Case studies 1Bring in Big 5 and major corp. internal & external auditors to speak on real world experiences rather than just text

1

Introduce audit software 1Pension audits 1Industry specific 1Expanded practice 1Tax classes 1

Total 48 28. Has your instructor(s) encouraged you to pursue a career in internal auditing?

Response UNT UT Arlington UT Dallas Yes 28 30 14No 9 12 11Some 17 30 14

Total 54 72 39 29. Are you or have you been involved with any internal auditing internship programs?


Total 55 62 41




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30. What companies did you work for in the internship program? Response # of Responses BELO 0The Associates 1Fisk & Robinson 2FWISD 1US General Accounting Office 1

Total 5 31. When were you involved with the internship program(s)?

Response # of Responses Summer 2000 3Spring 2001 2Sept 1999 – Jan. 2000 1

Total 6 32. How did you hear about the specific company’s internship programs?

Response UNT UT Arlington UT Dallas Own Initiative 2 1 1Company Initiative 0 1 0University Initiative 2 1 0IIA 0 0 0Professor 1 1 1Other 0 2 1

Total 5 6 3 33. Did you feel the internship was beneficial?


Total 11 34. In either case, please explain your answer to #33.

Response # of Responses Learned a lot 3Experience & exposure 1Experience 1See what operational auditing is like 1Apply knowledge 1Didn’t belong in auditing 1

Total 8




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35. What field do you plan on going into once you graduate? Response UNT UT Arlington UT Dallas Internal Auditing 10 4 4External Auditing 8 27 3Accounting 28 34 28Finance 1 2 3Other, includes but is not limited to:

Academics, Accounting Information Systems, Business Owner, Consulting, Fraud exam, Information Technology, Tax, Unsure

6 3 2

Total 53 70 40 36. Which of the following reflects your career preference?

Response UNT UTA UTD Public Accounting Firm 28 45 17Government/Not-For-Profit 3 3 5Private Industry 19 23 16Other 3 1 2

Total 53 72 40 37. What is your location preference?

Response # of Responses Dallas Metroplex 122Texas (other than Dallas) 16Other states besides Texas 18Outside of U.S. 7

Total 163 38. Are you aware of the Certified Internal Auditor (CIA) certification?


Total 55 70 41 39. a. Have you sat for any parts of the CIA exam?


Total 166




74

39. b. If no, do you plan on taking the CIA exam? Response UNT UT Arlington UT Dallas Yes 18 12 12No 33 57 25Maybe 0 0 2

Total 51 69 39 40. Does your university sponsor a review course for the CIA exam?

Response # of Responses Yes 4No 32Do Not Know 130

Total 166 41. Does your university belong to a local IIA Chapter?

Response # of Responses Yes 9No 5Do Not Know 148

Total 162 42. Are you a student member of your university’s local IIA Chapter?


Total 145 43. What activities have you done with the local IIA chapter? (Leave blank if N/A.)

Response # of Responses Attended luncheon meeting 6Taken several courses offered by the IIA 1Attended Student Forum 3Attended seminar 1

Total 11 44. What do you like about the Internal Audit program at your school?

Response # of Responses Exposure to Internal Auditing 1Get more knowledge about auditing 2My instructor gives it life 1You get some practical experiences through group projects 2Allow me to know more about the career opportunities in accounting 1Can be useful for CPA exam 2Different 1




75

Everything 1Group work 1Our instructor will read in auditing 1Professor 3Pulls all accounting courses together. Glue 1Real life experience 1That it is offered 1The amount of detail covered 1The awareness level of security in such a high tech environment. 1The non for profit audit 1Would be an asset 1

Total 23 45. What would you improve about the Internal Audit program at your school?

Response

Number of Responses

Look at one actual firm 1Should reflect the auditing practice 1More awareness 1I think internal audit should be introduced to students earlier so that they know that that career is an option & will have time to prepare for it. I didn't know anything about Internal Auditing even though I was an accounting major until I was a graduate

1

Get a book that I can understand 1Awareness by student 1Separate class for internal vs. external 1Advertise more 1Have the professor explain & teach - they make us learn everything on our own.

1

More exposure 1More familiarity 1More info. Have not heard much about it. 1Offer more courses & add more teachers 1Practical experiences 1Specific Audit area, such as e-commerce 1

Total 15 46. Would you recommend the Internal Auditing courses/program to others?


Total 32 40 24




76

Reasons for “No” responses included:

No explanations provided.

Don’t know about program. Never taken internal auditing course. Not familiar with Internal Auditing course/program. Not qualified to recommend.

Not interested in Internal Auditing.

Note: Student survey questions 15, 18, 21 and 24 were excluded from the survey due to inconsistent survey responses. Each of these questions were formatted for the respondent to indicate their answer based on a scale of 1 to 5, with 5 being the best. A review of the scaled 1 to 5 responses for questions 21 and 24, along with the typed comments indicated 64% of the comments were opposite the corresponding rating given. Thus all questions with the same rating format were dropped from the survey due to the high error rate seen for questions 21 and 24.




77

Faculty Survey: 1. Enter Name or Control Number

Response # of Responses 7

Total 7 Total Responses 2. What university are you currently a professor for:

Response # of Responses UNT 3SMU 0UT-Arlington 2UTD 2Other 0

Total 7 3. What curriculum are you currently teaching under?

Response # of Responses School of Accounting 4School of Auditing 0School of Finance 0School of General Business 1Col. of Business Admin. 2

Total 7 4. How many students are in your audit class?

Qty Range # of Responses 9 120-30 480 2

Total 7 5. What does your prior work experience (non-professorship) include?

Response # of Responses Accounting 1Finance 0Internal Auditing 3Government 2Public Accounting 7Tax 0Outsourced Internal Audit 0Transportation 1




78

Manufacturing 0Consulting w/m Pub. Acct. 1

Total 14 6. If you had internal audit experience, how many years were you in the profession?

Response # of Reponses 1-5 26-10 011-20 121-30 031 + 0

Total 3 7. Are you a CIA?

Responses # of Reponses Yes 0No 7

Total 7 8. Are you a member of the IIA?


Total 7 9. What is your teaching schedule at the university?

Response # of Responses Full time 5Part time 2

Total 7 10. If you are part-time, what is your current profession?

Response # of Responses Accounting 0Finance 0Internal Auditing 0Government 0Public Accounting 0Tax 0Outsourced Internal Audit 0Manufacturing 0Transportation 0Consultant 0Other – Financial Services 1




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Other – Semi-retired 1N/A 0

Total 2 11. Do you teach any auditing classes?


Total 6 12. If yes to #11, please list the classes you teach which discuss internal auditing:

Response # of Responses Refer to Appendix A

Total 13. Please indicate the title of the resource material(s) and/or course requirements used in #12 above:

Response # of Responses Textbooks 6Case study 7CIA review 1Video 5Computer assignments 4Study aids 1Seminars 0IIA meetings 2Other 2

Total 28 14. What is the primary focus of the auditing courses you teach?

Response # of Responses Practical 2Strategical 1External 3Theoretical 1Operational 0Internal 0Practical/Theoretical 4Strategical/Operational 3External/Internal 3

Total 17




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15. a. Does the university have a Student Affiliate Chapter of IIA? Response # of Responses Yes 0No 7

Total 7 b. If No to 15a, do you feel there is an interest to start one?

Response # of Responses Yes 1 No 4

Total 5 16. Do you attend the monthly IIA meetings or luncheons of the local IIA Chapter?


Total 7If yes, how many times per year? Response # of Reponses 2-3 24-6 2

Total 4 17. Do your students attend the monthly IIA meetings or luncheons of the local IIA Chapter?


Total 4If yes, how many times per year? Response # of Responses 1-2 3

Total 3 18. Is this a requirement of the course curriculum?


Total 7If yes, describe: Attend luncheon 1Course requirement 1

Total 2




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19. Has the local IIA chapter provided speakers during the most recently completed semester? Response # of Responses Yes 2No 4Not sure 1

Total 7If yes, how many? 4

Total 4If yes, percent related to Internal Auditing?

100%

Total 100%

20. Has the local chapter assisted in placing student interns during the most recently completed semester or in jobs upon graduation? Response # of Responses Yes 1No 3Don’t know 1Probably 1

Total 6If yes, how many? 3

Total 3 21. Please describe any significant changes in your internal auditing courses or programs within the last

academic year. Response

Number of Responses

Updates with emerging technology along with student assignments of e-sac from IIA.

6

Dropped operational auditing from degree requirement 1See Professor R Clay 3

Total 10

22. What would you like to do, but do not have the support or resources for? Response

Number of Responses

Have lots of external resources including Big 5. Have worked extensively in using various IIA materials.

1

Offer another graduate course 1This cannot be answered in one line of a survey form 1Needs are too numerous to list 1

Total 4




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23. What roadblocks have you encountered in adding to the Internal Audit program? Response

Number of Responses

Enrollments are up this year, but previously this was an issue. 1We do not have enough audit faculty to expand our offerings 1General lack of interest in "auditing" by majority of faculty. Auditing is not a hot research factor, at least is not perceived to be. And we have in general a research-oriented faculty.

1

None 1Funds to hire qualified faculty to have a good program

Total 4 24. Have IIA members participated in the development of student IIA programs or internal auditing

courses? Response # of Responses Yes 3No 1

Total 4 25. If Yes to #24, was that participation beneficial to the university and the student body?


Total 3 If yes, please explain?

Expansion of course 1Total 1

26. Do you have qualities or characteristics that are unique to your curriculum?


Total 6

If yes, please specify. Response # of Responses Being an IT Audit Course. 1High focus on information management and especially as it relates to the Telecom industry.

1

Ability for persons to gain a specialized knowledge base for internal and external auditing

1

Exceptional historical CPA exam pass rates 1Total 4




83

University Survey: Please refer to information provided in Appendix A regarding the three different universities.




84

Board Survey: i. Name:

Response # of Responses # of Responses 6

Total 6 ii. Chapter:

Response # of Responses Dallas IIA Chapter 6Fort Worth IIA Chapter 0North Texas ISACA Chapter 1Other 0

Total 7 Inception of the UNT Endowment Program 1. Was your chapter a founding organization? If yes, what was your chapter’s involvement? (i.e.

initiation, fundraising, and contract development) Response # of Responses Yes 5No No Response 1Comments: The chapter was the founding organization for the UNT Endowment Program. The chapter’s involvement was with all functions from program initiation, fund raising, contract development, furnished speakers, and organized an advisory group to monitor the program. The Dallas Chapter drove the entire process.

Total 6 2. What was the process for selecting UNT for the endowment?

Response # of Responses A local School with a good accounting program and faculty member who was active with the chapter.

5

Wasn't involved in this process. 1Total 6

3. What was the process for obtaining funding?

Response # of Responses A campaign fund-raising consultant for charitable organizations provided initial guidance. Fund raising started with local chapter and progressed to companies and foundations. Personal and corporate donations/sponsorships were solicited from Board members, employers of all IIA chapter members, IIA Dallas members, Ft.

6




85

Worth ISACA and raffle tickets. 4. What roadblocks did you encounter?

Response # of Responses Fundraising took a lot of time and effort. 1Getting some final commitment from the university, what the dollar amount was going to be and getting the money.

1

Struggles getting the school to allocate funds to the proper endowment.

1

Don’t know 2No Response 1

Total 6 UNT Advisory Board Members 5. Are you also a UNT Advisory Board Member?


Total 6 6. How long have you served as UNT Advisory Board Member? (years)

Response # of Responses Years:

• 1-2 years • 3-4 years

3 3

Total 6 7. As a member, what were your major objectives for the Endowment Program?

Response # of Responses To provide meaningful education and experience opportunities for the students through help from practitioners by helping teach the course, intern programs, up to date course material, ongoing community service projects involving the students, and involving the students in research.

2

Assist Dr. Clay with course and advise him of needed skills etc by IA departments.

1

Provide for the profession a means of recruiting new individuals to the workforce.

2

Total 5




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8. What would you say are the major accomplishments? Response # of Responses Practitioners are now teaching 5 sessions of the class ( which is 13 sessions ), the community service project is very successful, interns are provided, and the research is beginning to take shape although it needs to be expanded.

1

Not sure how much was done by the Advisory Board versus the Dallas Chapter, but moving it from an "Endorsed Program" to "Endowed Professorship".

1

Full funding for the professorship and the community affairs project, which is a joint effort between students and the chapter each year.

1

Major accomplishment was the funding. Related to the accomplishments of the program, the program has not gained students and has not achieved the status that you would hope for with the level of funding that has been achieved.

1

No Response 2Total 6

9. What advice would you give for maintaining a program?

Response # of Responses Be involved with the university and be sure you have a good up-front understanding what is all involved in setting up the program and maintaining the program. Have to have a solid agreement, so rules don't change while the endowment is established.

2

I really am not qualified to answer this question. 1To determine the support to be provided by the university going forward, how to measure, and how to stay involved.

1

Spend for more up front meeting with all schools. I might also encourage them to maintain tighter control over spending to maintain what they do with the money. At this point in time the Chapter has less influence on what it can do with the funding.

1


General 10. What were the chapter's expectations for the program?

Response # of Responses See 7 above 1To establish a program at UNT very similar to the program at LSU. 2More students interested in a career in internal audit and better prepared (skills) for the profession.

2

To better serve student members, and chapter organizations for staffing.

1

Total 6




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11. Have those expectations been met? If no, please explain why? Response # of Responses Yes 3No 2No Response 1Comments: The chapter needs to bring members up-to-date where this program stands (including internships). As part of that, the chapter needs to decide if expectations were accomplished. Student growth may not be present.

Total 6 12. What are the greatest strengthens of the program?

Response # of Responses It takes practitioners to really drive the things that we are trying to do and we are achieving that and hopefully will get better now that fund raising is over and we can focus more attention on fine tuning the education program.

1

I think it is something the chapter can be proud of because it was a major accomplishment. I think it got members involved. It also introduced students to a different field of study that they may not have given much thought about before the program.

1

Enthusiastic faculty and adequate funding. 1Internal auditing internships. 1Community Involvement. 1Financial. Also, support of people from the chapter to teach and assist with classes has been great.

1

Total 6 13. What would you add or change about the program?

Response # of Responses More classes in internal audit subjects added to the curriculum. 1My understanding is that it is being scaled back and becoming part of the Accounting program at UNT rather than a separate concentration. With that it is becoming an elective within the Accounting concentration.

1

University support and recognition. 1Dallas has a number of other Universities that either have internal audit endorsed programs (UTA) or have strong Accounting programs that are growing.

1





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14. Does the Board have any input in the development of the program? If yes, please explain: Response # of Responses Yes 6No 0Comments: The board has been instrumental in bringing some of the innovations and being a liaison with the Dallas IIA chapter to get the help to get the job done.

1

The Board has an advisory committee. 1Limited input, but Advisory Board members are in many cases members of the Board.

1

Consultant role. 1The Board reviews funding, curriculum, and encourages intern program.

1

The board itself has helped in making presentations to the internal audit class and some minor input to the class itself. The board has not had any impact at the higher level of actually looking at course offerings and expanding the like.

1

Total 6 15. What do you see as the main objective for establishing the program?

Response # of Responses The endowment gives us the ability to have more say in the education program and to do the things discussed in 7 and 8.

1

Benefits the internal audit profession. Early on it lets students know there is another auditing profession vs. Big 5. Corporate America benefits because graduating students understand what internal audit is about and if hired in that role can become productive much faster.

1

Increased interest in a profession in internal audit by students. 1To provide funding and input to the Internal Audit focus we seek. 1Ongoing support of internal audit as profession and alternative for students.

1

To provide for a world-class development of internal auditors and supply companies with students trained to meet their needs going forward.

1

Total 6 Conclusion 16. Would you recommend implementing a program? Why or Why not?

Response # of Responses Yes 5No 0No Response 1Comments: It gives the audit community an opportunity to have an impact on the

1




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education of internal audit students and expand and improve the profession at a grass roots level. I don't think this can be a yes or no question. The answer depends on the organization. Do they think they have the resources to it - time, people, and financial resources to get the endowment established. Also this is not a short-term project, the organization and its members must be willing to stay involved for the long run. I think within our Chapter initially there was a lot of excitement, but as the process drew out and getting all the money needed, excitement was lost and so was involvement.

1

I have been impressed with the number of students participating and the quality of the students. This program does increase interest and provide more auditors to businesses.

1

It offers great opportunities to the students to gain knowledge and interest in the internal auditing profession.

1

For the benefits to the local companies, students, and community. 1I would recommend implementing such a program I would give them the money with the condition they live up to certain expectations.

1

Total 6 17. What advice would you give another organization or chapter?

Response # of Responses Be prepared for the work – raising the money is not easy. It takes dedicated individuals who have the support of their management and who are willing to see it out to the end.

1

Do it! Don't give up. It takes a long time to raise the money. Stay involved with the school and the professor.

1

See above comments on support from the school. 1Be sure you get what you want prior to giving them the money. 1

Total 4



APPENDIX C Bibliography

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Academic Relations Manual. Altamonte Springs: The Institute of Internal Auditors. January 2000. Albrecht, W. Steve, and Robert J. Sack. Accounting Education: Charting the Course through a Perilous

Future. Sarasota: American Accounting Association, 2000. Anzaldua, Ric, et al. Fact Book 2000-2001. Denton: Office of University Planning. 16-18, 115. Bazis, Al, and John Frenzel. Memorandum to UNT Advisory Board. 8 June 1999. Beran, Dennis K., Everlyn Brown, and Raymond J. Clay Jr. “Internal Auditing Internships.” Internal

Auditor (December 1993): 63-65. Clay, Raymond. E-mail to Vanessa Dennis, 14 December 2000. Clay, Raymond. Letter to Aaron Saylors, 2 October 1990. Clay, Raymond. Various Personal Interviews. January through April 2001. College of Business Administration – Student Headcount. Arlington: University of Texas at Arlington.

2001. Competency Framework for Internal Auditing -- CFIA, Competency: Best Practices and Competent

Practitioners. Altamonte Springs: IIA Research Foundation, as of April 2001. (reprinted with permission on JCPenney Internal Audit website).

Coppenger, W. J. (District Director of the Internal Revenue Service). Letter to A. M. Willis, 5 December

1972. Crumbley, D. Larry, and Glenn E. Summers. “How Businesses Profit from Internships.” Internal

Auditor (October 1998): 55-58. Dallas/Fort Worth Chapters of the Institute of Internal Auditors D/FW IIA Professorship in Internal Audit

– Memorandum of Understanding. Dallas and Fort Worth Chapters of the Institute of Internal Auditors and University of North Texas, March 1993.

“Degree of Excellence Campaign in Phase Two.” IIA Today January/February 1993. Degree of Excellence Campaign Institute of Internal Auditors (pledge card). Dallas: Institute of Internal

Auditors, 1992. Educator’s Handbook. Altamonte Springs: The Institute of Internal Auditors. January 2000. Henry, Linvol G., and Eldon C. Lewis. “Year One of an EIAP Program: An Experience to Share.” IIA

Educator Fall 2000. 10-11, 15. "IIA Cites Organizations for Commitment to Quality." IIA website's The IIA at a Glance, June 1999.




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Importance of Internal Auditing. Denton: University of North Texas, Accounting Programs Office,

2000. Internal Auditing: Master of Science Degree in Accounting. Institute of Internal Auditors Endowed

Professorship Fund – University of North Texas, 1992. Jackson, J. Letter to University of North Texas (in care of Richard Rafes), 11 October 1988. Jeckerd, Robert. Letter to Fellow Executives, 10 December 1992. Massey, Ray Nell, editor. Accounting Monthly Update. Denton: University of North Texas Accounting

Department. November 1998, January 1999, April 1999, and September 1999 Masters of Science in Accounting: General Information for Graduate Students. Denton: Department of

Accounting at University of North Texas, November 1999. "North Texas Professor Named IIA's 'Educator of the Year'". IIA website's The IIA at a Glance, June

1999. Pannell, Nancy. Various Personal Interviews. April 2001. Reding, Kurt F., Alison Blackmore, and Stacy Boyd. “Critical Success Factors to Launching an Endorsed

Internal Auditing Program.” IIA Educator Fall 2000. 6-7. Taylor, Martin. Various Personal Interviews. January through April 2001. "Texans Recognized as Exceptional IIA Volunteers," IIA website's The IIA at a Glance. June 2000. “Texas Rewards UNT’s ‘Degree of Excellence.’” IIA Today July/August 1992. 7. “$350,000 UNT Endowment Announced.” IIA Educator Summer 1997. 1. Townsend, Debbie. Various Personal Interviews. February through March 2001. University of North Texas. Graduate Catalog. Denton: Office of Public Affairs and Information

Services, 2000-2001. University of North Texas. Undergraduate Catalog. Denton: Office of Public Affairs and Information

Services, 2000-2001. University of Texas at Arlington. Graduate Catalog. Arlington: Publications Department of the

University of Texas at Arlington, 1999-2001. University of Texas at Arlington. Undergraduate Catalog. Arlington: Publications Department of the

University of Texas at Arlington, 2000-2002.




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University of Texas at Dallas. Graduate Catalog. Dallas: Information Resources, 2000-2001. University of Texas at Dallas. Undergraduate Catalog. Dallas: Information Resources, 2000-2001. UNT Internal Audit Advisory Board. Bylaws Terms and Memberships. November 1992 (amended

September 1997). UNT Professorship Advisory Board. “Meeting Notes.” Dallas/Ft. Worth, Bi-annual: March 2000;

March and September 1998; March , May,and September 1997; April 1996; March 1994; March and October 1993.

“UNT’s Clay Named IIA Educator of the Year.” IIA Educator Fall 1999: 1, 13. www.DallasIIA.org, Dallas Chapter of the Institute of Internal Auditing web site, as of April 2001. www.ISACA.org, Information System Audit and Control Association Foundation web site, as of April

2001. www.ISACANTX.org, North Texas chapter of the Information System Audit and Control Association

Foundation, as of April 2001. www.theIIA.org, Institute of Internal Auditing web site, as of April 2001. www.usnews.com/usnews/edu/college/corank.htm. U.S. News online--2001 College Rankings web site,

as of April 2001. www.UNT.edu, University of North Texas web site, as of April 2001. www.UTA.edu, University of Texas at Arlington web site, as of April 2001. www.UTD.edu, University of Texas at Dallas web site, as of April 2001. Wygal, Robert. E-mail to Sharon Beard, 23 April 2001. Wygal, Robert. Letter to John Adams, Chairman of the Board and CEO of Texas Commerce Bank. 10

January 1996. Wygal, Robert. Various Personal Interviews. April 2001.



APPENDIX D Research Committee Profiles

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Sharon Beard, CPA – This is Sharon’s first year to serve on the Research Committee and first time to Co-Chair the committee. Sharon is a Project Manager in JCPenney’s Internal Audit Department focusing on Catalog, Logistics, Internet, and Furniture. She has a total of 6.5 years of audit experience, which further includes Store Operational/Compliance auditing for the Northeastern United States and Real Estate/Construction auditing. Sharon has a BS degree in Accounting and Business Administration from The College of Charleston in Charleston, SC. In addition to her work on the Research Committee, Sharon also served as Co-Chair of the 1999/2000 Reservations Committee. Vanessa Dennis, CPA – This is Vanessa’s first year to serve on the Research Committee and first time to Co-Chair the committee. Vanessa is a Project Manager in JCPenney’s Internal Audit Department focusing on Catalog, Logistics, Internet, and Furniture. Vanessa’s audit experience also includes Store Operational/Compliance auditing for the Southwestern United States, Merchandising and Support Services auditing, and specialization in Non-resale Purchasing, Furniture, and Logistics auditing. Vanessa has a BA degree in Business Administration with a concentration in Accounting from Texas Tech University and an MS degree in Accounting with a concentration in Auditing from the University of North Texas. Lori Cannafax – Lori provided administrative assistance for the Research Committee and is thus honorary member of the Research Committee. Lori currently works as a Senior Administrative Support at the JCPenney Company Home Office in the Internal Audit Department. Lori has a total of 6 years experience in supporting Catalog, Logistics, Internet Auditing, Business Process Review Team, Real Estate/Construction Auditing, Store/Field Auditing, and Human Resources and Administration Auditing. Prior to her current position, Lori had over 26 years experience in various divisions of the Company, which includes Catalog Distribution Center, Accounting Center, Retail Store, and Women’s Merchandising. In addition to her work on the Research Committee, Lori also served as Co-Chair of the 1999/2000 Reservations Committee. Stan Ellis, CPA, CFE – This is Stan’s first year on the Research Committee. Currently, he is the Assistant Audit Manager for Texas Lottery Commission, Charitable Bingo Division, Dallas Regional Office. Prior to his employment with the Texas Lottery Commission, Stan was employed with Daryl Flood Warehouse & Movers Inc. (Transportation Industry) as an Accounting Manager Trainee and Gambia Produce Marketing Board (a multi domestic import/export corporation in The Gambia, West Africa) as an Internal Auditor. Stan earned his BBA degree in Accounting from the University of Texas at Arlington. Tarazeta Huntley, CIA, CISA – This is Tarazeta's second year on the Research Committee and membership in the Chapter. Currently, she is a Program Director for Citigroup with audit planning responsibilities for portions of the North America Consumer Lending Group for the Audit and Risk Review Unit. Prior to her existing two years in Audit, Tarazeta worked for The Associates (which was recently acquired by Citigroup) for seven years with a background in management and process design for a centralized servicing operation. Tarazeta earned her BS degree in Accounting from The University of Texas at Arlington. In addition to her work on the Research Committee, Tarazeta is also a committee member of the IIA Academic Relations Committee and the Community Service Committee. Mike Kennedy, CIA – This is Mike’s first year as a member of the Research Committee. Mike is Senior Project Manager in JCPenney’s Internal Audit Department focusing on Catalog, Logistics, Internet, and



APPENDIX D Research Committee Profiles

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Furniture. Prior to his current position, Mike had over 20 years experience in various assignments in JCPenney Catalog. Mike earned his BA degree in Economics from Queens College, C.U.N.Y. and MS in Management and Administrative Sciences from the University of Texas at Dallas. In addition to his work on the Research Committee, Mike is co-chair of the Dallas Chapter IIA CIA Certification Committee. Steve Lantrip, CISA – Steve has been a member of the Research Committee since 1995. He has over twenty-five years of diversified audit experience. Currently, he is a Senior Auditor for the Army Air Force Exchange Service and performs worldwide audits, with particular focus on advanced information technology (IT) audits. He develops and instructs non-IT auditors on IT basics. Prior to that, Steve assisted in originating the IT audit function at Zale Corp. Steve has his BBA degree from The University of Texas at Austin. He helped start the North Texas Chapter of the EDPAA, which is now the Information Systems Audit and Control Association and is a current member of The Institute of Internal Auditors. Bob McCall, CIA, CISA – This is Bob’s second year on the Research Committee. Bob is Dallas IIA Chapter’s webmaster and he programmed our surveys on the Dallas IIA Website. He is currently a Senior Project Manager in JCPenney’s Internal Audit Department in Clearwater, Florida. Bob began his career with JCPenney in Store Merchandise Management. Within Auditing, he has worked in several areas such as Store/Field Auditing, Merchandising Auditing, Training & Development, Store Systems Auditing, and Store Systems Implementation. Bob transferred to Clearwater, Florida in May 2000 to audit JCPenney’s subsidiary, Eckerd Drugs. Bob has a BA in Communications from Temple University in Philadelphia.

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