iia today first quarter 2013

13 HAS NEVER BEEN SO LUCKY

FOR

4 News from The IIA and the Internal Audit Profession

8 13 For 13: 13 Has Never Been So Lucky

143 Lines: Position Paper Endorses “Three Lines” Risk Approach

17 International Conference - Excellence: A Moving Target

TodayA M E S S A G E F R O M T H E I N S T I T U T E O F I N T E R N A L A U D I T O R S

1s t Quar t e r 2013

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OUR PRINCIPAL PARTNERS MAKE A DIFFERENCEThe IIA acknowledges the ongoing support from our Principal Partners, who help enhance the internal audit profession by sharing their resources and knowledge with our most valuable asset – our members. These partners actively serve as members and volunteers within The IIA, participate in the introduction of new guidance, develop world-class training, and show their commitment in many other ways in an effort to advance the internal audit profession.

The IIA encourages you to tap into the expertise of our Principal Partners in 2013!

130469 MKT-Q1 2013 IIA Today_FNL_CX.indd 2 4/1/13 10:07 AM

Dear IIA Member,

As chief officer of The IIA’s North American opera-

tions, I’m pleased to tell you about the many ways

that The IIA is working diligently to deliver in-

creased value to you — our No. 1 priority.

At IIA headquarters, our aim is to become an

indispensible resource to help you throughout your

career in internal auditing. We do this by delivering

high-quality guidance, training, networking opportunities, and services to help you

now and throughout your professional journey.

From the award-winning Internal Auditor magazine, to monthly Members-only

Webinars, to indispensible Practice Guides and numerous training and certification

offerings, your IIA membership provides you with an array of resources to help sup-

port your success. Read more about these and other benefits in this issue’s feature

story, “13 Has Never Been So Lucky,” on page 8.

As part of our commitment to improving your professional experience, The IIA

continually strives to enhance the image of internal auditing. We’ve embraced our

role as the profession’s leader and global voice, and we’re working diligently on your

behalf to ensure that regulators and legislators recognize the value that a quality

internal audit function brings to organizations.

Further demonstrating our commitment to your professional growth and to the ad-

vancement of the internal audit profession across all industries, The IIA has begun

developing an American Center for Government Auditing, a way to provide more

relevant information and cater to the specific needs of our members who work in

government. Look for more information on this initiative in the coming months.

Finally, I wish to commend you for the part you play in elevating the internal audit

profession. In 2012, The IIA saw record conference attendance, certification ap-

plications, e-learning participation, and membership retention rates — all indica-

tors that today’s practitioners are serious about demonstrating professionalism and

taking the internal audit profession to new heights. We thank you and look forward

to serving you and offering additional exciting membership benefits in the years to

come.

Sincerely,

Kevin Mayeux

Senior Vice President & Chief Officer, North American Operations

The Institute of Internal Auditors Inc., Global Headquarters

PUBLICATION DIRECTOR Carrie Summerlin

EDITOR Paula Michaels

STAFF EDITORS Lisa Krist

Maggie Dunn Sandra Johnson Shelli Browning

CONTRIBUTING EDITOR Christina Brune

ART DIRECTOR Jon Peters

GRAPhIC DESIGNERS Brandie Tate

Cathy Watanabe

PRODUCTION MANAGER Lori Shewack

IIA PRESIDENT AND CEO Richard F. Chambers,

CIA, CCSA, CGAP, CRMA

IIA ChAIRMAN OF ThE BOARD Philip D. Tarling, CIA, CRMA, CMIIA

IIA Today is a bimonthly publication pro-duced exclusively for members of The IIA. To learn more about this publication, please visit www.theiia.org/IIAToday . We welcome all comments, questions, and feedback. Please send your message to [email protected] and include your name and contact information.

The Institute of Internal Auditors 247 Maitland Ave. Altamonte Springs, FL 32701-4201 USA +1-407-937-1100 www.theiia.org

All contents copyright © The Institute of Internal Auditors (IIA) 2013.

Today

w w w. t h e i i a . o r g / 1s t Quar t e r 2013 / 3

Welcome message

130469 MKT-Q1 2013 IIA Today_FNL_CX.indd 3 4/1/13 10:08 AM

GLOBAL PULSE OF ThE PROFESSION — A PhENOMENAL RESPONSE

More than 1,700 internal audit leaders across the world participated in the Audit Executive Center’s Global Pulse of the Profession Survey, a semi-annual survey that identi-fies emerging trends for the internal audit profession. The spring survey included probing questions on ethics and independence.

The North American results were released at the 2013 General Audit Management Conference and a complimentary report is available at www.theiia.org/cae/news-releases. Global results will be released in April.

IIA AND ISACA PARTNER FOR GRC CONFERENCE This year’s Governance, Risk, and Control (GRC) Conference is a collaborative effort between The IIA and ISACA. The two organi-zations are uniting for the first time to assist both membership bases of internal audit and information systems professionals, as they look for solutions to today’s toughest chal-lenges in the governance, risk, and control arenas. This year’s conference will be held August 19–21, 2013 in Phoenix, Ariz.

2013:

TIME TO SEIZE

THE OPPORTUNITY

NORTH AMERIcAN REPORT – MARcH 2013

130483 CAE-2013 Pulse of the Profession Report.indd 1

3/11/13 5:17 PM

Download your copy at www.theiia.org/cae/news-releases

4 / I IA Today / w w w. t h e i i a . o r g

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JOINT WhITE PAPER DESCRIBES ATTRIBUTES OF EFFECTIvE INTER-NAL AUDITORS As the evolution of the internal audit function accelerates, the portfolio of skills and attributes that determine professional suc-cess transform. In this forward-thinking and timely white paper, IIA President and CEO Richard Chambers and Robert half International Senior Executive Director Paul McDonald outline the seven attributes of a highly effective internal auditor in today’s evolving business envi-ronment. visit the “Latest News” section on The IIA’s homepage, www.theiia.org, to download 7 Attributes of highly Effective Internal Auditors.

ThREE-PART CIA ExAM COMING SOON

Registration for the English three-part Certified Internal Auditor (CIA) exam opens in May, and the first exam will be offered in July. If you’re currently in the process of earning your CIA, explore your options for complet-ing the certification by using the Transition Planning Tool, available at www.theiia.org/goto/CIA2013.”

WhAT’S NEW ON AUDITChANNEL.Tv?■■ “Making Bold Career Choices.” Carolyn Saint, vice president of

Internal Audit at 7-Eleven Inc., discusses how to make the right career choices and encourages auditors to not be risk averse.

■■ “Rethink Your Approach to Technology” Norman Marks, a tech-nology evangelist, encourages internal auditors to refresh and rethink their approach to using technology to do their work.

■■ “5 Tips for Auditing the Marketing Function.” Peter Scott, coau-thor of The Marketing Strategy, published by The IIA Research Foundation, provides five tips for performing an audit of the mar-keting function. To read more on this subject, see Scott’s article, “On Unfamiliar Ground,” in the February 2013 issue of Internal Auditor (Ia) magazine.


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CRMA ON ThE MAPMore than 8,000 individuals worldwide have been granted the Certification in Risk Management Assurance (CRMA) through the Professional Experience Recognition (PER) process, and it is estimated that the number of certified individuals will exceed more than 10,000 by March 31, when the global PER period ends. Registration for the English exam begins in May, and the first exam will be offered in July.

NEW GUIDANCE SOON TO BE RELEASED: PRACTICE GUIDES AND ADvISORIES

The IIA’s Professional Issues and Public Sector commit-tees have been busy creating useful guidance documents for members who work in private- and public-sector organizations. Among those to be released under the International Professional Practices Framework (IPPF) strongly recommended guid-ance are Practice Advisory; Audit Sampling, Practice Advisory; Continuous Assurance, and Practice Guide; Auditing Anti-bribery and Anti-corrup-tion Programs. Though not part of the IPPF, a new Leading Practice document entitled Transparency of the Internal Audit Report in the Public Sector describes how public sector leaders have an opportunity to position themselves for potential changes to transparency arrangements within their own jurisdiction. Learn more and download at www.theiia.org/guidance.

ShOW OFF YOUR CERTIFICATIONS

The IIA has launched a new Certifi-cations eStore, featuring high-quality merchandise branded with the flag-ship Certified Internal Auditor (CIA)

logo, available exclusively to certified members. The store carries several items, such as travel tumblers, flash drives, and leather accessories, with the CIA and CRMA logos that can ship to any location worldwide. More items will be added in the coming months, and the selec-tion will be extended in 2013 to include The IIA’s specialty certifications. Visit

the Certification section of www.theiia.org and click “Certifica-tions eStore” to see what’s new.


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hOT BLOGS ON IAONLINECheck out these recent popular blog posts on IaOnline:

• “FiveThingsInternalAuditingHasTaught Me About Human Nature,” by Richard Chambers, Chambers on the Profession.

• “HowSocialMediaIntelligenceCanGuide and Improve Performance,” by Norman Marks, Marks on Governance.

• “…SeemsWeJustGetStartedandBeforeYouKnowIt…,”byMikeJacka,From the Mind of Jacka

IIA OUTREACh TO ENhANCE ThE PROFESSION

In early 2013, IIA President and CEO Richard Chambers met with key legislators and regulators in Washington, D.C., as well as with stakeholder organizations in New York City in a continued effort to build awareness and enhance the global profile of, and demand for, the internal audit profession. Outreach to these critical stakeholder orga-nizations is aimed at building the credibility of The IIA as a global standard-setting body and seeking recognition of the critical role of

internal auditing to good governance, risk management, and control. In the months ahead, The IIA will work with the CPA Caucus to provide a training session for congressional staff members to help them better understand the internal audit profes-sion, and Chambers will meet with the members of the CPA Caucus in a briefing session on the profession.

IIA President and CEO Richard Chambers at the New York Stock Exchange with

Adam Stummer, NYSE Vice President of Compliance – Testing and Monitoring.


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13 key membership benefits for success in 2013.

FOR

Throughout history, the number 13 has been given a bad rap. Depending on how

superstitious you are, you may go to great lengths to avoid the notoriously unlucky

number. But The IIA has set out to change all that. In fact, this year we’ve ramped up

our commitment to supporting your professional success with 13 new and enhanced

membership benefits designed to help you advance your career and ensure a favor-

able outlook.


Feature story


1NEW — Report CPE for free. Beginning this year, IIA members will enjoy free continuing professional education (CPE) reporting — an an-nual savings of US $100 for Certified Internal Auditors, plus US $25 for each specialty certification held.

2Earn CPE without leaving your desk. IIA members can earn free CPE credits at home, in the office, or in the field by attending live Members-only Webinars and Guidance Briefings. It’s a convenient way to stay cur-rent on recent guidance releases and timely topics affecting the practice

of internal auditing. Register for a complimentary upcoming webinar on emerg-ing fraud risks, enterprise risk management, governance audits, ethics, internal audit and mobile security, or career development, to name a few.

3Take advantage of the Audit Career Center. With more than 10,000 unique visitors and 250 job postings per month, The IIA’s online job board is the perfect resource for planning your next career move. Whether you are seeking a rewarding new position or looking to hire

qualified talent, the Audit Career Center is the premier source for internal audit job opportunities. Not only can IIA members post their resumes for free, but the site features advice and resources on topics such as handling salary negotiations, writing effective resumes, and recruiting and retaining top talent.


Feature story


4Build Your Leadership Skills With Volunteer Opportunities. The IIA offers an array of local, re-gional, and global volunteer opportunities to enrich your career and help develop your leadership skills.

Serve on one of The IIA’s 19 committees or as a leader in your local chapter; become an IIA seminar

instructor; serve as a quality assess-ment team member; share your

knowledge as a guest speaker at IIA functions; volunteer

to plan activities for In-ternational Internal Audit Awareness Month (May); or guide the next generation of internal auditors through a mentoring program with your local chapter. Not only will volunteering give you

valuable leadership experi-ence, but you’ll also play a key

role in helping to shape the future of the internal audit profession.

5Enjoy Multimedia Internal Auditor Content. Join the more than 16,000 others who have downloaded Internal Audi-

tor’s free mobile app, Ia, to access the magazine as well as online-exclusive content such as regular blogs from industry experts, a daily news feed, and

articles, departments, and AuditChannel.tv videos that supplement the magazine’s content. To keep up-to-date with the latest internal audit and business news from around the world, social media-savvy members can follow Ia on Twitter @IaMag_IIA or the Facebook Fan Page, Internal Auditor Magazine.

6Connect With a Professional Global Network. With more than 180,000 members around the world, The IIA offers numerous ways for you to network and share knowledge with like-minded

professionals in your region and industry. By attending chapter meetings, participating on social media (such as LinkedIn, Facebook, or Twitter), viewing or posting Au-ditChannel.tv videos, or attending The IIA’s many impres-sive annual conferences, you can expand your professional network and learn from thought-leaders around the world.

7Enhance Your Performance With Authoritative Guidance. As an IIA member, you have access to every piece of guidance in The IIA’s Interna-tional Professional Practices Framework (IPPF),

an invaluable resource for new and experienced audit professionals alike. The IPPF includes the Definition of Internal Auditing, International Standards for the Profes-sional Practice of Internal Auditing (updated in 2013), Code of Ethics, Position Papers, Practice Advisories, and Practice Guides, which feature sample procedures, tools, and step-by-step approaches. New strongly recommended guid-ance scheduled for release this year addresses topics such as anti-corruption and bribery, maturity models, crisis management, continuous auditing, and management of IT audit. Coming soon in 2013, the IPPF also will include guidance specific to internal auditors operating in govern-ment and other public sector organizations.

8Receive the Benefit of Legislative Advocacy. As the profession’s recognized authority and global voice, The IIA works diligently on your behalf to broaden the business world’s understanding of

the value that a professional, appropriately structured, adequately resourced internal audit function brings to an organization. During the first few weeks of 2013, IIA President and CEO Richard Chambers met with key legislators and regulators in Washington, D.C., including more than a dozen House members and their staffers. The IIA’s advocacy strategy on Capitol Hill is aimed at build-ing recognition of The IIA as the voice of the profession among policy makers and becoming an important resource for legislators involved with developing legislation affect-ing organizational governance, risk, and control.

1 0 / I IA Today / w w w. t h e i i a . o r g

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9Save on Business Expenses. Take advantage of The IIA’s Partner Savings Program, and enjoy exclusive savings on professional and personal services provided by IIA partners such as GEICO,

Dell, Hertz, and others. Also, look out for seasonal promo-tions throughout the year.

10Enjoy Professional Development Savings. As an IIA member, you can save big on pro-fessional development with exclusive mem-ber rates, including 25 percent off all courses

at exciting new locations for a limited time. Not only will you see new courses and locations in 2013, but The IIA will unveil an entirely new professional development op-portunity: MOSAIC, an experience so unique it cannot be labeled as a conference, forum, seminar, symposium, or course. MOSAIC is a convergence of ideas, an industry-wide discussion of solutions to the biggest internal audit and risk management challenges in six diverse industries.

11Get Select Research Publications for Free. The IIA Research Foundation (IIARF) provides leading research through white papers, reports, and books focused solely on the internal audit

profession, offering insight, trends, and leading practices. Select complimentary downloads are available exclusively to members, including the upcoming report Anti-corrup-tion Law Compliance for Middle-market Companies, scheduled for release in May 2013.

12 Boost Your Earnings With an IIA Certifica-tion. According to The IIA’s 2012 Internal Audit Compensation Study, the median salary of auditors who hold their CIA designation

is as much as 40 percent higher than peers without the credential. And as an IIA member, you get discounted member pricing on Certified Internal Auditor (CIA) and specialty exam registration fees — a savings of up to US $150 for the three-part CIA exam. It’s a great time to attain a certification. The IIA’s certifications team just added enhancements to improve the document submis-sion process, in preparation for the new Certification in Risk Management Assurance exam and the three-part CIA exam, both of which will be offered in English this July (registration begins in May).

13Build Your Professional Library. The IIARF Bookstore offers special members-only rates — up to 85 percent off select books, training materials, certification preparation

materials, interactive programs, and more during seasonal sales. Look for the following upcoming releases: QA Manual; Internal Auditing: Assurance & Advisory Services, 3rd Edition Textbook; and COSO Internal Controls- Integrated Framework Update Guide. Also new in 2013, the Bookstore will begin offering major selections in a digital format.

In reality, luck has nothing to do with it. With these 13 membership

benefits, you can take control of your future and advance your profes-

sionalism and career success. For more information about The IIA’s 13

in ’13 membership benefits, visit www.theiia.org or contact IIA Customer

Relations at +1-407-937-1111 or [email protected].

w w w. t h e i i a . o r g / 1s t Quar t e r 2013 / 1 1

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Not only is The IIA the global leader in internal audit education, we’ve added five exciting new Seminar destinations to our existing lineup, making access to success that much easier. Stay ahead of the curve with skills all internal auditors need. Sign up and save today!

Save 25% off any courses offered in sunny Miami, Fla., April 8-11, 2013 when you register by March 31, 2013 using discount code NEWMIA25!

More than simple education, the benefits of continued career training through The IIA are limitless.

Top 5 Benefits of Continued Training

1. Recession proof your career—become a more valuable employee and expand your transferable career skills.

2. Professional credibility—become a leader people want to follow.3. Network with industry peers—make valuable connections in

your industry.4. Engage with the experts—learn from the best and most respected

professionals in the business.5. Gain insight—benefit from new approaches and best practices in

internal audit.

You can also SAVE 25% when you register by June 30, 2013,

and use discount code NEWSEM25 for courses

offered in the following locations:

Indianapolis, IN ......... June 10–13

San Antonio, TX ....Sep. 30–Oct. 3

Anaheim, CA ..............Nov. 18–21

LEARN MORE AND REGISTER AT www.theiia.org/goto/SAVE25.

Indianapolis, IN

Anaheim, CA San Antonio, TX

Miami, FL

Philadelphia, PA

IIA SEMINARS Attend. Learn. Advance. Repeat.

SAVE 25% when you register for a course at one of our

5 EXCITING NEW LOCATIONS!

SEPTEMBER 23–24, 2013 HYATT REGENCY PHILADELPHIA AT PENN’S LANDING / PHILADELPHIA, PA, USA


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The IIA is pleased to offer MOSAIC: A Convergence of Ideas. New in 2013, MOSAIC will be

an experience like no other. In fact, MOSAIC is so unique we cannot label it a conference, a

forum, a seminar, a symposium, or a course. It is truly a MOSAIC experience.

MOSAIC brings together well-respected internal audit professionals from six very different industries. Each of the industries on which MOSAIC will focus has unique regulatory, governance, and risk management challenges, which to-date are not the focal point of any general inter-nal audit industry conference.

The objective for MOSAIC will be to generate industry-wide discussion and solutions to the biggest internal audit and risk management challenges in each of these select industries.

■■ Energy■■ Financial Services

(Financial Services/Banking/Real Estate)■■ Healthcare■■ Hospitality/Entertainment/Dining/

Food & Beverage■■ Pharmaceutical■■ Retail

MOSAIC will open each morning with a dynamic, stimulating general forum for all in attendance followed by industry-specific labs focused on finding solutions to the biggest internal audit challenges facing your industry.

Confirmed keynote speakers include:• Kevin Mayeux, CRMA, Chief Operating Officer and

General Counsel, The Institute of Internal Auditors • Sanjay Singh, CIA, CPA, CMA, Vice President,

Internal Audit, Starbucks Coffee Company• Carolyn D. Saint, CIA, Vice President, Internal Audit,

7-Eleven Inc.

Only internal audit professionals from the industries listed have been invited to MOSAIC, and participation is lim-ited. If you’re intrigued by being a thought-leader in your industry, you won’t want to miss MOSAIC. Learn more and register at www.theiia.org/goto/mosaic.

SEPTEMBER 23–24, 2013 HYATT REGENCY PHILADELPHIA AT PENN’S LANDING / PHILADELPHIA, PA, USA

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“ThREE LINES” RISK APPROAChPOSITION PAPER ENDORSES

“Boards of directors are feeling increased pressure to ef-fectively govern the organizations they oversee, to protect stakeholder interests and preserve shareholder value,” explains IIA President and CEO Richard Chambers. “Given the complexity of the current business risk land-scape, it’s imperative that directors and senior management ensure that their organizations have a comprehensive,

effective risk management strategy in place to address key strategic, financial, and operational risks.”

Without such a cohesive risk management strategy, “limited risk and control resources may not be deployed effectively and significant risks may not be identified or managed appropriately,” warns the paper.

The IIA has issued a position paper advocating the Three Lines of Defense Model, a cohesive

leading-practice approach to effective risk management that can be applied to organizations

of varying size and industry. The 10-page document addresses an escalating challenge in the

realm of risk management: providing a coordinated, systematic approach to risk management

and control by clarifying essential roles and duties of all players involved, from the board level

to operations personnel.


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The Three Lines of Defense Model clearly illustrates how three groups within an organization each play a distinct role in ensuring the organiza-tion’s risks are well managed:

1. The first line of defense is opera-tional management, which executes risk- and control-related procedures on a day-to-day basis.

2. The second line of defense varies from organization to organization and comprises specialty risk and compli-ance departments focused on areas such as security, quality, compliance, and fraud.

3. The third and final line of defense is internal audit, whose separation from management duties and direct functional reporting to the audit committee of the board of direc-tors make it a valuable independent resource directors can leverage to help them carry out their oversight responsibilities.

“Internal audit’s uniquely indepen-dent positioning within the organiza-tion enables it to provide objective insight and reliable assurance to senior management and the board on whether the organization’s key risks are being identified and addressed,”

explains Doug Anderson, project leader for the paper and global finance director for Dow Chemical Co. He notes that the Three Lines of Defense Model is consistent with The IIA’s previously published technical guidance on internal audit’s roles and responsibilities.

The model’s straightforward approach to coordinating risk management duties offers organizations a way to improve efficiency and effectiveness by minimizing coverage gaps and duplica-tion of effort. “Because risk manage-ment responsibilities increasingly are split across multiple departments and divisions, duties must be coordi-nated carefully to ensure that risk and control processes operate as intended,” observes Anderson. “Clear responsibili-ties must be defined so that various groups of risk and control professionals understand the boundaries of their responsibilities and how their positions fit into the organization’s overall risk and control structure.”

The IIA’s Position Paper, The Three Lines of Defense in Effective Risk Management and Control, speaks clearly to governing bodies and senior management, which The IIA identifies as parties who may be in the best

position to help ensure the model is well reflected in the organization’s risk management and control processes. As such, The IIA encourages members to share this paper with managers, board members, and other parties who may be interested in the approach and how it can help them achieve their risk management objectives.

Position papers are strongly recom-mended guidance under The IIA’s International Professional Practices Framework. A complimentary PDF can be downloaded from The IIA’s website, www.theiia.org/guidance.

KEY RECOMMENDED PRACTICES•Eachlineofdefenseshouldbesup-

ported by appropriate policies and role definitions.

•Thereshouldbeappropriatecoor-dination among the separate lines of defense.

•Linesofdefenseshouldnotbecombined or coordinated in a manner that compromises their effectiveness.

•Insituationswherefunctionsatdifferent lines are combined, the governing body should be advised

of the structure and its impact.•Fororganizationsthatlack an internal audit activity, management and/or the governing body should be required to explain and disclose to their stakeholders that they have considered how adequate assurance on the

effectivenessoftheorganization’sgovernance, risk management, and control structure will be obtained.

IIA Position Paper: THE THREE LINES OF DEFENSE IN EFFECTIVE RISK MANAGEMENT AND CONTROLJANUARY 2013

External audit

Regulator

Governing Body / Board / Audit Committee

The Three Lines of Defense Model

Senior Management

3rd Line of Defense

InternalAudit

1st Line of Defense

ManagementControls

InternalControl

Measures

2nd Line of DefenseFinancial Control

Security

Risk Management

Quality

Inspection

Compliance

Adapted from ECIIA/FERMA Guidance on the 8th EU Company Law Directive, article 41


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IIA MEMBER/STAFF NEWS

IIA Global Headquarters staffer Debbie Hoffman, CIA, CISA, CRMA, CBA, died Jan. 11, at the age of 58. In

her short 16 months with The IIA, Hoffman served as the staff liaison to the Global Ethics Committee and Ethics Officer at The IIA’s Global Headquarters in Altamonte Springs, Fla. “Those who were fortunate to work with Debbie as colleagues at The IIA respect her for her many talents and the way

she readily shared her skills and knowledge,” said Sally Dix, vice president of Standards and Guidance for The IIA. “We will surely miss her.”

J. Michael Peppers, CIA, CRMA, CPA, FACHE, chair-man of The IIA’s North American Board, was promoted

to chief audit executive for The University of Texas System in Austin in November 2012. Peppers’ 25-year career began in public ac-counting and has included serving as chief audit executive at major healthcare and higher education institutions. He previously served on The IIA’s International Internal

Audit Standards Board and has held a number of volun-teer leadership positions at the regional and chapter levels. Peppers currently serves on the University of Houston’s Department of Accountancy Advisory Board.

Christy Decker, CIA, CRMA, CPA, CFE, has been pro-moted to vice president of Internal Audit at Sharp Health-Care, where she most recently served as director and chief audit executive. Prior to joining Sharp, Decker gained corporate accounting experience with Copley Newspa-pers Inc., public accounting experience with KPMG, and banking experience with Wells Fargo. She currently volunteers as a regional district representative for The IIA and board member for The IIA’s San Diego Chapter.

ChAPTER NEWS

Detroit Chapter Celebrates its 70th Anniversary!

The Detroit Chapter marked its 70th anniversary on Jan. 27, 2013. In celebration, the February chapter meeting was a special event featuring exceptional speakers, honor-ing past chapter presidents, and highlighting 70 years of driving excellence in Detroit.

More than 175 members, guest and students heard from long-time mem-ber of the Detroit Chapter, Douglas J. Anderson, Vice Chairman of the IIA’s Professional Guidance Advisory Council and former chief audit execu-tive of Dow Chemi-cal Company, discussed how internal auditors can “earn our keep” and be considered a value-added resource to our stakeholders. J. Michael Peppers, Chairman of the North American Board of The IIA discussed the future of The IIA and initiatives to increase awareness and value of the profession. In appreciation, the Detroit Chapter made a donation to Junior Achievement in the names of both speakers to fund an IIA-Junior Achievement event to help local junior high & high school students learn the impor-

tance of personal budgets and finances.


local NeWs


Louisville Chapter Commemorates 65 Years

On Dec. 11, 2012, The IIA’s Louisville [Ky.] Chapter celebrated its 65th birthday with much fanfare, reminisc-ing, and of course cake! During the celebration, attend-ees reflected on the chapter’s history and recognized the fact that Louisville was one of The IIA’s first established chapters. Special guest retired Kentucky State Auditor Crit Luallen provided an executive’s perspective on the longevity and value of the internal audit profession.

“The anniversary celebra-tion was a great oppor-tunity to look back at how far the chapter has come, and take time to be excited about our bright future,” said eight-year member Michael Vin-cent, who serves as the chapter’s vice president. “It was also great to share

this occasion with a highly influential political figure who

shares the chapter’s passion for continuous improvement.”

Trinidad and Tobago Celebrates 25 Years

This year, The IIA’s Trinidad and Tobago Chapter commemorated its 25th anniversary with a free one-day seminar, a successful membership campaign, and an engaging gala. In preparation for its anniversary year, the chapter collaborated with IIA Global at the end of last year to launch a two-month membership drive beginning

Dec. 1, 2012. The drive concluded with a free one-day seminar entitled Key Updates for the Successful Auditor.

The event attracted more than 80 participants, 26 of whom were new members to The IIA. “We are very pleased with the response to our membership campaign, as we continue to uphold The IIA’s motto of ‘Progress Through Sharing’ and as we proudly celebrate our silver

anniversary,” said Chapter President Roger Ramdwar. “Our free one-day seminar and mem-bership offering are just two of the many initiatives planned for the chapter this year, as we focus our efforts on the development of the membership.”

Atlanta Chapter Awards University $50,000

The IIA’s Atlanta Chapter has awarded US $50,000 in grant funding to Kennesaw State University’s (KSU’s) School of Accountancy. The grant represents the chapter’s continued support of the University’s Internal Auditing Education Partnership (IAEP) program with The IIA and overall activities of Kennesaw State’s Internal Audit Charter.

“We are proud to continue our association with Kennesaw State as it develops programs that help students prepare for the internal audit profession,” said Chapter President John Fuchko III. “Our organization was able to do this because KSU demonstrates continued commitment to the Atlanta Chapter, the internal audit profession, and the IAEP, as evidenced by the implementation of a curriculum in its Master of Accounting program that reflects many of the elements of The IIA’s Global Model Internal Audit Curriculum.”

This is the second time the Atlanta Chapter has awarded funding to Kennesaw State’s School of Accountancy. In early 2012, the chapter matched a US $50,000 grant from the Internal Auditing Academic Advancement Fund for curriculum development.


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ExCELLENCE: A MOvING TARGET

Recognizing the technology trend is easy. Doing something about it — well, that’s a different story. “We’re living in a high-speed world where organizations are challenged with the incredibly difficult — if not impossi-ble —task of doing business 10 times faster and 10 times better,” says Tom

Peters, business management guru and author of more than a dozen best-sellers, including the famed In Search of Excellence. “It’s an age of science fiction and wild artificial intelligence accelerating at an incredible speed.”

A 35-year resident of Silicon Valley, eight-year partner at management consulting firm McKinsey & Co., and former Big 6 consultant, Peters has spent a lifetime pick-ing apart successful organizations and trying to figure out what makes them tick. He has been described as one of the most influential business thinkers of all time and is credited with single-handedly inventing the “management guru” industry.

Though he modestly stops short of claiming to possess any magical secrets to organizational success, Peters unequivo-

cally knows the meaning of high-quality professional services and understands what many of today’s success-ful companies are doing right. He offers a few tips and thought-provoking observations:

■■ GET SERIOUS ABOUT hIRING. “Most organizations are mediocre at hiring,” says Peters. “Hiring is as hard as learning to play the cello, and not many people take it quite that seriously.” He recommends diversity — and not the typical gen-der- and race-based diversity. Seek employees with incredibly different points of view, he says, and recruit young talent. “If you have an 11-person internal audit department, four people must be under the age of 30,” he asserts, adding that today’s kindergarteners have the technological know-how that their 35-year-old par-ents lack. “New times call for new types of talent, and curious young people must be at the front edge of the technology transformation.”

■■ TAKE CARE OF YOUR EMPLOYEES. Once you’ve assembled a dream team of talent, you’ve got to keep them happy, because your organization is only as good as its talent. “If you want to serve your

You don’t have to be a brain surgeon — or a computer program-

mer — to know that technology is changing the way the world

does business. It’s accelerating communications, igniting part-

nerships around the globe, heightening cyber security risks, and

in some cases putting people out of work. A job that once took

dozens of workers months to complete now can be done almost

instantly by a single employee using targeted software.

TOM PETERS


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customers incredibly well, first you must serve your employees well,” says Peters, who likens grooming an organization’s employees to investing in the personal growth of a profes-sional football player for the sake of the team.

■■ BE hELPFUL. It seems simple enough, but Peters observes that internal audit has a reputation for being the “gotcha gang,” finding errors and reporting them. “Every internal audit depart-ment has an equally important role to be helpful to its internal clients,” he argues. “Be a business partner and consultant.”

■■ MAKE EThICS A PRIORITY. Of course it’s easy to say when you’re speaking theoretically, but do you really have the courage to stay true to your morals if it means losing your job or not being able to work in the indus-try again? “Integrity comes first,” says Peters, adding that he’s well aware of the consequences of whistle-blowing, “way before holding onto your job, even if you have three kids that you’re trying to put through college.”

Peters will share additional pearls of wisdom in his upcoming general session presentation at The IIA’s International Conference July 14-17 in Orlando, Fla. His provocative and engaging presenta-tion, Re-imagine: Business Excellence in a Disruptive Age, is sure to challenge the status quo and infuse you with a fresh perspective on what it takes to achieve excellence in today’s high-speed business world. Visit www.iia2013ic.org to learn more about the conference program and to register.

TOP REASONS TO ATTEND ThE 2013 INTERNATIONAL CONFERENCE here’s why more than 3,000 delegates from over 100 countries will be convening in Orlando.

1. Get social with our impressive roster of keynote speakers and then hear them in person, including:

•Co-authorofIn Search of Excellence: Lessons From America’s Best-Run Companies, Tom Peters (@tom_peters).

•Award-winningauthorofThe Wizard of Lies: Bernie Madoff and the Death of Trust, Diana Henriques (@dianabhenriques).

•Technologyfuturist,author,andconsultant Scott klososky (@sklososky).

2.Don’tmissthechanceofalifetimetomeetformerU.S.Secretary of State Madeleine k. Albright during a book signing following her keynote session, “In Conversation with Madeleine Albright.”

3. Get connected during networking events and the Conference App.

4. A vast selection of 77 concurrent sessions in 11 tracks and complimentarypre-conferenceworkshopsontoday’smostrelevant topics – with an opportunity to earn 18+ CPE.

5. A Spanish-language track throughout the conference.

6. Wellness options including stretch, massage, and screening stations; food and beverage choices; a “step by step” challenge that will culminate in a $10,000 donation to Susan G. komen For the Cure; and a “clean and green” partnership with Clean the World.

7. An affordable room rate of $169 at the largest Marriott in the world and the official conference hotel, the Orlando World Center Marriott Resort and Conference Center.

8. A hands-on exhibit hall featuring a record-number of products and service providers, positioned to help you succeed.

9. An unforgettable, fun-filled, Florida-themed welcome reception and gala event.

10. Early registration pricing through April 30 saving IIA members up to $400 – with group discounts available.

Early registration rates expire April 30. Learn more and register at www.iia2013ic.org and follow @IIAIC.


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July 14–17, 20132013 International ConferenceOrlando, FL, USA

August 19–21, 20132013 Governance, Risk, and Control Conference (IIA/ISACA)Phoenix, AZ, USA

September 23–24, 2013MOSAIC: A Convergence of Ideas Philadelphia, PA, USA

September 29–October 2, 20132013 Canadian National ConferenceWinnipeg, MB, Canada

September 29–October 2, 20132013 Central Regional ConferenceColumbus, OH, USA

October 14–16, 20132013 All Star ConferenceNew Orleans, LA, USA

November 3–6, 20132013 Midwestern Regional ConferenceMinneapolis, MN, USA

IIA CONFERENCE SChEDULEIIA Members: Register early for IIA Conferences and save! Call +1-407-937-1111 to ask about group discounts. www.theiia.org/Conferences


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