february 2013 iia chapter newsletter web viewincreasing focus on the quality assurance and...

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JANUARY 2013 | VOLUME 26 ISSUE 1 | INSIDE IIA 1 TABLE OF CONTENTS PRESIDENT’S MESSAGES . . .1 Featured Topic - 5 New Year’s Resolutions for Auditors ...............2 8 Priorities for 2013. . .3 Ethical Related Auditing 4 IIA Standards Update .4 International Conference 5 District CPE Event ...5 CPE Opportunities.......6 IIA Certification Focus. 9 PRESIDENT’S MESSAGE This is the first newsletter of the New Year and we wish all of you a safe, healthy and successful 2013. We hope that your 2013 resolutions include continuing to support the Fort Wayne Chapter of the Institute of Internal Auditors in an innovative and participative way!!! Our featured articles provide you with some INSIGHTS for 2013: Five New Year's Resolutions Every Internal Auditor Should Make for 2013, Highlights and insights from the from the IIA Chairman Richard Chambers, CIA, CGAP, CCSA, CRMA Eight priorities for 2013, Highlights form the IIA Tone at the TOP newsletter Ethical Related Auditing, A look at IIA Standards and Guidance 18 New and approved Revisions to the IIA Standards are now in effect as of January 2013 Update from the NOVEMBER 19 -20th District Conference Upcoming 2013 IIA International Conference - One World, One Profession, One Destination. July 14 – 17 in Orlando, Florida, USA. Our featured member is Gary Bandelier, Senior IT Auditor, Lincoln Financial Group. We will also continue to communicate training opportunities to assist you with CPE opportunities, announcements, and items of interest. While we have started a new year, we are in the middle of our chapter year. As always welcome your comments and contribution to this newsletter. Best Regards and Happy New Year! Eve-Lynn Clarke and Barry Weybright

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Page 1: February 2013 IIA Chapter Newsletter Web viewIncreasing focus on the Quality Assurance and Improvement Program requirements ... Adding more examples of what constitutes “functional

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TABLE OF CONTENTSPRESIDENT’S MESSAGES ..................1

Featured Topic - 5 New Year’s Resolutions for Auditors .............................................2

8 Priorities for 2013.................................3

Ethical Related Auditing..........................4

IIA Standards Update ...........................4

International Conference .......................5

District CPE Event ................................5

CPE Opportunities...................................6

IIA Certification Focus.............................9

Featured Member..................................11

Congrats/ Announcements & Jobs ......12

CAP Summary.......................................13

PRESIDENT’S MESSAGEThis is the first newsletter of the New Year and we wish all of you a safe, healthy and successful 2013. We hope that your 2013 resolutions include continuing to support the Fort Wayne Chapter of the Institute of Internal Auditors in an innovative and participative way!!!

Our featured articles provide you with some INSIGHTS for 2013:

Five New Year's Resolutions Every Internal Auditor Should Make for 2013, Highlights and insights from the from the IIA Chairman Richard Chambers, CIA, CGAP, CCSA, CRMA 

Eight priorities for 2013, Highlights form the IIA Tone at the TOP newsletter

Ethical Related Auditing, A look at IIA Standards and Guidance 18 New and approved Revisions to the IIA Standards are now in

effect as of January 2013 Update from the NOVEMBER 19 -20th District Conference Upcoming 2013 IIA International Conference - One World, One

Profession, One Destination. July 14 – 17 in Orlando, Florida, USA.

Our featured member is Gary Bandelier, Senior IT Auditor, Lincoln Financial Group.

We will also continue to communicate training opportunities to assist you with CPE opportunities, announcements, and items of interest. While we have started a new year, we are in the middle of our chapter year. As always welcome your comments and contribution to this newsletter.

Best Regards and Happy New Year!Eve-Lynn Clarke and Barry WeybrightCo-Presidents – Ft Wayne Chapter Institute of Internal Auditors

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FEATURED TOPIC: 5 NEW YEAR’S RESOLUTIONS EVERY AUDIOR SHOULD MAKE FOR 2013 – Highlights and interpretations from the blog of IIA Chairman Richard Chambers

The Chairman of IIA, Richard Chambers, CIA, CGAP, CCSA, CRMA captured in his recent blog , “Five New Year's Resolutions Every Internal Auditor Should Make for 2013”.

In Richard Chambers’ blog he proposed 5 simple resolutions for internal audit professionals to enhance their quality and performance. We have highlighted the key points by simply identifying them as problems and associate suggestions for your convenience in applying these concepts or making your own resolutions for 2013. See the link below for the entire article http://www.theiia.org/blogs/chambers/index.cfm/post/Five%20New%20Year's%20Resolutions%20Every%20Internal%20Auditor%20Should%20Make%20for%202013

1. Plan More and Audit Less 

Problem: The amount of time it takes to complete the average internal audit engagement including numerous audit steps and report writing process.

Suggestions: Better planning in early stages of the audit by developing a solid plan as your roadmap for the audit. Chambers suggested some keys to more effective planning included:

identify the key operating objectives; identify the key risks that will inhibit achievement of these objectives; assess the risks; determine the audit objectives based on the risk assessment; and document the audit steps necessary to test control effectiveness related to each objective.

2. Communicate for Impact

Problem: Length of audit reports and amount of information included in the report.

Suggestions: Consider the use of graphics and being more precise in communicating in an impactful way that results to encourage the reader to take action.

3. Empathize More and Gloat Less

Problem: Many times as auditors, we take pride in found deficiencies of areas audited and should try to understand the views our clients by putting on their shoes to see the situation a little differently. We may realize that our client desires the same effective and efficient environment, however, other circumstances prevent their ability to do so.

Suggestions: Demonstrate empathy or compassion during our audits by not diminishing the value of other professionals being audited.

4. Embrace Technology

Problem: In today’s environment we are doing more with so much less and we should recognize and acknowledge that we have limited resources.

Suggestions: As auditors, we should leverage technology to increase our productivity and add value to our organization. For example, using audit management systems, data mining and analytics tools.

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5. Enhance Industry/Business Knowledge

Problem: Sometimes our stakeholders are concerned that we as auditors don’t understand the business well enough to audit areas such as operations, business risks, and strategic risks.

Suggestions: To enhance our stakeholder’s confidence, we should become students of own organizations by acquiring the necessary knowledge and being more proficient in identifying risks and threats that impact our organization and industry. For example, joining industry associations, reading trade publications, Web-based research, and seeking out other resources to enhance our knowledge.

In addition, gain a better understanding of the issues facing our organizations by analyzing information released to regulators and investors (such as 10-K filings in the United States) and other publically available information.

We hope you have found this information to be of value for 2013. If you would like to share your resolutions for 2013, please let us know as we like hear your suggestions and perhaps post to the membership on LinkedIN.

FEATURED TOPIC: EIGHT PRIORITIES FOR 2013, Highlights from IIA’s Tone At the Top As we begin a new year. It is a good time to assess internal and external factors or risks (i.e., natural disasters, sluggish economy, emerging technology) that may have an impact on your organization. We thought it would be valuable to share a synopsis from the “Eight Priorities for 2013” from the recent December/ January IIA Tone at the Top newsletter. The newsletter cited 8 key risks and opportunities that audit professionals and organizations should keep on their radar.

1. Crisis Management – Recent disasters and breaches are a reminder that a robust Crisis Response Plan is a must; it must be tested and updated on periodically.

2. Fraud and Ethics – Sustaining a culture of ethics and integrity continues to be a priority (SEC) for organizations this includes monitoring fraud risk management effectiveness and establishing a whistle blower hotline.

3. Regulatory Compliance – Keeping up with Increased regulatory guidelines and changes by maintaining an inventory of applicable regulatory mandates.

4. Social Media – Organizations must establish clear social media strategies and policies, train employees on proper use, monitor social media activity and respond promptly to damaging comments.

5. Employee Talent Management – Organization must address acquiring and maintaining qualified staff to reduce the talent gap, particularly IT-related jobs.

6. Emerging Technologies – Obtain a firm understanding of the changing landscape, including concerns around data security and privacy threats. In addition, it is critical for senior management to have a role in ensuring IT supports and enable the organization.

7. Enterprise Risk Management – Today’s interconnected world demands a more holistic risk management approach addressing risk strategically, operationally and financially while including HR and IT. Internal audit should assist by enhancing its focus on providing organization wide assurance work for senior management, audit committee, and their board.

8. Globalization and Geopolitical Risk – Globalization from outsourcing services and business expansion results in relying more upon vendor relationships. Organizations should proactively assess risk implications from these relationships on an ongoing basis. Experienced auditors can provide management insights by identifying and monitoring risks early during strategic initiatives.

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FEATURED TOPIC: ETHICAL RELATED AUDITING

I read a very interesting article by Russell A. Jackson, “The Wall of Deceit”, in the December 2012 Internal Auditor magazine. The article discussed how auditors can find themselves in a perilous position when management stonewalls their attempt to investigate possible ethics violations. After reading the article, we thought it would be important to review the IIA Standards and guidance regarding evaluating ethic programs.

The IIA Standard 2110.A1 requires that the internal audit activity evaluate the design, implementation, and effectiveness of the organization’s ethics-related objectives, programs, and activities. This Practice Guide provides guidance for evaluating program effectiveness and compliance; it includes a suggested audit approach, procedures, tools, and techniques.

Last year, the IIA issued a new Practice Guide on Evaluating Ethics-related Programs and Activities. This guidance is strongly recommended and the purpose is to put structure around this challenging area to audit. According to the IIA Practice Guide, a strong ethical climate and an organization’s ability to maintain an ethical culture is the foundation for good governance. It sets expectations for acceptable behaviors in conducting business within the organization and with external parties. The guidance also indicates that a robust ethics program includes effective board oversight, strong tone at the top, senior management involvement, organization-wide commitment, a customized code of conduct, timely follow-up and investigation of reported incidents, consistent disciplinary action for offenders, effective ethics training, communications, ongoing monitoring systems, and, where possible, an anonymous incident reporting system.

For more detailed information, please access this link: https://na.theiia.org/standards-guidance/recommended-guidance/practice-guides/Pages/Evaluating-Ethics-related-Programs-and-Activities-Practice-Guide.aspx

FEATURED TOPIC: APPROVED REVISIONS TO IIA STANDARDS ARE EFFECTIVE JANUARY 1, 2013

According to the IIA, a total of 18 revisions made and approved to the International Standards for the Professional Practice of Internal Auditing (Standards) are effective as of January 1, 2013. These revisions to the standard are mandatory and created to improve the internal auditing and the word wide professional practice. Below is a list of the key changes to the Standards from the IIA:

▪ Clarifying the responsibilities of internal auditors, the chief audit executive (CAE), and the internal audit activity for conforming to the Standards.

▪ Increasing focus on the Quality Assurance and Improvement Program requirements and clarifying ways in which conformance may be achieved.

▪ Clarifying the CAE's role in communicating unacceptable risk. ▪ Explicitly requiring timely adjustments to the internal audit plan. ▪ Ensuring the audit plan covers risks to achieving strategic objectives. ▪ Adding more examples of what constitutes “functional reporting to the board.” ▪ Adding the definitions of "overall opinion" and "engagement opinion" to the Glossary, as well as

changing the definition of "board."

Please see get your updated copy of the standards from the bookstore orat the following link http://www.theiia.org/bookstore/content/revisions-to-internal-audit-standards-approved-changes-to-take-effect-january-2013-1067.cfm

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FEATURED TOPIC: INTERNATIONAL CONFERENCE

This year’s IIA's 2013 International Conference theme is “One World, One Profession, One Destination.” The International Conference will be held July 14-17 in Orlando, Florida, USA. Keynote speakers include former Secretary of State Madeleine Albright, Tom Peters, author of In Search of Excellence and Diana Henriques, author of The Wizard of Lies: Bernie Madoff and the Death of Trust.

Please see the following link for more information. http://www.iia2013ic.orgPlease include our chapter’s name during their IC registration process and your chapter may win free accommodations during the 2013 Leadership Academy.

NEW District Meeting, A RECAP from Barry Weybright

The Central District held it’s first ever joint district meeting in Grand Rapids Michigan November 19-20.  The West Michigan IIA Chapter hosted the 2-day district wide CPE event. Attendees were able to listen to Raven Catlin of Raven Global Training train in detail on Risk Based Auditing and picked up new skills in risk assessment and aligning audit plans to the risk assessments.

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FWA IIA CPE CERTIFICATES

For questions about CPE certificates for FWA Chapter programs, please contact Albert Cotton and he can be reached at [email protected] or at (260) 455-2960.

Earn FREE CPE’s with IIA Members-Only Webinars

The Institute of Internal Auditors (IIA) is offering members-only webinars free for IIA members. You will earn 1 CPE credit for each live event attended. 

Guidance Briefing: Three Lines of DefenseMarch 13, 20131:00–2:00 p.m. ETThe IIA’s Position Paper, The Three Lines of Defense in Effective Risk Management and Control, addresses how organizations can holistically mitigate risks in a business environment that is continuously growing in complexity. The paper is designed to provide guidance to organizations regardless of their size or the level of formality to their risk management approach. It discusses the uses for risk management frameworks, but more importantly, it highlights a critical component that most frameworks do not adequately address; how specific duties should be assigned and coordinated within the organization. By walking readers through the Three Lines of Defense model, the paper provides a straightforward and effective way to enhance communications on risk management and control by clarifying essential roles and duties.

Course Duration: 1 hourCPE Hours Available: 1

Delivery Format: Internet Group Live

YOU COULD BE ELIGIBLE TO WIN A KINDLE!Get involved…..Promote the IIA and the local chapter

YOU COULD BE ELIGIBLE TO WIN A KINDLE!!!!!

The success of the Fort Wayne IIA chapter is heavily dependent upon the involvement of its members. We would like to encourage you to get involved, whether its one hour a month or 4 hours. Below is a list of areas were the Leadership Team could use your valuable input or your help in promoting the chapter or increase membership.

Here are few example:

College Visits promoting the IIA and the profession Membership Building and Recruitment

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Write and submit Newsletter article, a job opening, or good news (Certification, exams)

Volunteer for a FWA IIA Leadership role (See vacancies below, Leadership Position Openings article)

Volunteer for Member of the month for the newsletter and submit responses to questions Invest in your future via the IIA /Junior Achievement partnership Attend a local, regional, or national meetings Join FWA IIA LinkedIN; submit and engage in quality meaningful discussions Recommend a engaging and informative speaker

Send an email and let us know how you would like to get involved or what you are doing to promote the IIA!! We will be giving away a KINDLE to a Fort Wayne IIA member in good standing.

LEADERSHIP POSITION OPENINGS

The FWA IIA chapter currently has two vacancies on the Leadership Team.

Vice-President of Programming Vacant Public Relations Chair Vacant

If anyone has an interest in any of the positions please contact Barry Weybright at [email protected] or Eve-Lynn Clarke at [email protected].

In addition, if you would like to volunteer your time to assist the Leadership Team and the chapter given the vacancies, we would appreciate your time. Please contact us to learn more.

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Prepare to Pass the CIA Exam - The IIA’s CIA Learning System

If you’ve made the decision to enhance your career by earning the Certified Internal Auditor® (CIA®) designation, we can help you achieve your goals with The IIA’s CIA Learning System™.

The IIA’s CIA Learning System is an interactive print and online self-study review program designed by CIA-certified industry experts to help you learn, review, and apply the key CIA content. This approach will help you build on foundational elements of internal auditing to master key concepts you need to know to pass the CIA exam. This four-part program includes:

Comprehensive print materials teaching the entire global CIA exam syllabus. Interactive online study tools: Pre- and post-tests to gauge your starting knowledge and advancements. Section quizzes to test your comprehension and retention. Flashcards and glossary. CIA practice exam to build confidence for the computer-based CIA exam.

For more information or to try a demo, visit www.LearnCIA.com/overview.Members save up to US $100! Order today and save!

CIA Exam Changes in 2013

The Institute of Internal Auditors (IIA) IIA Global Headquarters has announced impending changes to the Certified Internal Auditor® (CIA®) program scheduled for 2013. In response to findings from a Job Analysis Study (JAS) for the CIA program conducted in 2011, The Professional Certifications Board (PCB) and the Board of Directors of The IIA have approved two key changes to the program. The JAS determined that the body of knowledge related to the profession of internal auditing has changed since the last exam content update in 2004 and therefore needs to be adjusted to reflect those changes.

The first change will impact the exam structure, reducing the program from four to three exam parts. With the reduction in parts, The IIA will be eliminating the recognition credit provision previously applicable to Part 4 of the exam. The second change consists of a realignment of the exam content outline and question count for each part.

The new content and three-part exam structure are scheduled to be implemented by mid-2013. The IIA is currently working to finalize the transition process for those who are currently in the CIA program and do not complete the program prior to the implementation of the new structure.

IIA AUDIT CHANNEL.TV - VIDEO-SHARING SITE

The IIA has launched AuditChannel.tv, a new video-sharing site, addressing the specific needs of internal auditors and the business community. With video channels focused on areas such as fraud, governance, risk, technology, operations, compliance, and more. As an IIA member, you are invited to Register as a user at www.AuditChannel.tv or www.AuditChannel.tv/mobile (for mobile devices).

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FEATURED MEMBER

If you would like to nominate a member or be featured in the newsletter, please let us know by answering the following questions and submitting them to Eve-Lynn Clarke or Barry Weyright.

1. Tell us about yourself and audit/ financial career.I am married to a wonderful woman, have been blessed with 3 children and 6 beautiful and precious grandchildren. We enjoy pizza every Friday night as an extended family unit (kind of a bribe from me so I can see those grandkids minimally on a weekly basis).  Other than my birthplace (Bluffton), I’ve lived in Fort Wayne all my life and have resided in the same house for the past 33 + years.  I’ve worked a number of jobs in my career starting with being a teller at the old Fort Wayne National Bank while I also worked on getting my Accounting degree by going to school locally at IU on a full-time basis.  Prior to graduating, I accepted an opportunity to work at a trucking firm (Transport Motors Express “TMX”) in the accounting department as an accountant for about 1-½ years. I was laid off and a year later started my long and lustrous career at Lincoln Life.  I received a God-given opportunity to be trained as a DP programmer/developer in Lincoln’s Central Training Unit for about 7+ years.  For the next 9-1/2 years, I was an IT Audit Senior, which included performing security and control reviews, technical audits, data center audits, and application audits.  This job allowed me to perceive things/issues/improvements on a more global basis in lieu of a narrower viewpoint (tunnel vision as a developer).  When a new opportunity arose that offered leading edge technology, I jumped and landed a job as a domino/lotus notes developer.  I used my new found skillset to complete business/IT specifications and design documents, which I used to design, code and implement new knowledge-base, workflow and discussion databases.  After being outsourced to IBM and 5+ years thereafter, having my development job outsourced to India, I was fortunate enough to obtain a job as an IT Auditor/IT Audit Manager at Crowe Chizek (now known as Crowe Horwath).  My work at Crowe required me to travel between 65-75%, but I had many learning opportunities to work as an internal/external resource for SOX testing, SAS70 (now known as SOC1), PCI compliance, general security and control reviews, merging of policies/standards/procedures for 2 companies that just recently merged, as well as other compliance engagements.  I gained many different perspectives, which have become invaluable in performing my duties now at Lincoln.  My 2nd tour of duty at Lincoln as an IT Audit Senior has now totaled 6 years and has allowed me to work on a number of engagements involving audits of SDLC, applications, Information Security Policy Compliance, Data Centers and Disaster Recovery exercises to name a few.  I continue to look forward as being part of a team that is the eyes and ears of management - adding value where we can in making Lincoln a more controlled and secured environment.   For all my perceived or actual achievements in life, I give God the glory and all the credit.        

2. Why did you become a member of the IIA?I became a member of IIA because of the opportunities to network with peers and support the profession.  In addition, the Fort Wayne Chapter has provided a number of training opportunities covering a number of topics of interest to internal auditors.

3. What are some of your greatest successes or contributions?I would say number one is my grandchildren.  Each of them fondly call me “Papa” and I have a special place in my heart for each and every one of them.  Workwise, my greatest successes or contributions would have to be any recommendation that I or my team suggested associated with a finding/observation that management agrees to and actually implements - not because auditing requires it, but because it makes business sense and can better safeguard against future attacks, inadvertent mistakes, and/or inappropriate/unauthorized access/changes as well as can provide documented guidance/instruction to those that may need it in case key personnel are unavailable. 

GARY BANDELIER

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4.      Please share with the membership professional insights you may have or the name of a recent book you have read and recommend? “GAME PLAN for LIFE” by Joe Gibbs, former coach of Washington Redskins / current NASCAR owner – an excellent read for anyone who is searching for the meaning of life or have felt they know their purpose in life.

5.      Tell us something most do not know about you?I have written prose/poetry/stories sharing them with family members primarily featuring our family vacations, special/sad occasions (children reaching the age of maturity, graduations, weddings, anniversaries, loss of a pet), sporting events (son’s little league baseball season – game by game recap of each team member’s positive accomplishments) and other miscellaneous events.

CONGRATULATIONS AND ANNOUNCEMENTS

Congratulations to our members who have received new certifications or achievements: No new achievements

Lisa Dunkleberger - We regret to inform you of the recent passing of Lisa Dunkleberger in January 2013. Lisa was a member of the Fort Wayne Chapter IIA and a former employee of Lincoln Financial Group.

FORT WAYNE IIA CHAPTER WEB SITE

We are excited to announce that our new website using SharePoint is now available. The Fort Wayne Chapter website is managed Michael Krouse. Visit the site at: https://chapters.theiia.org/fort-wayne/Pages/

 ARE YOU CONNECTED TO FWA IIA CHAPTER VIA LINKED IN?

Join us on LinkedIn to continue good dialogue and check out our latest programming. Check us out on www.LinkedIn.com! Search groups for “Fort Wayne Chapter of Institute of Internal Auditors” and request to join the discussion!

LinkedIn is managed by Barry Weybright and Eve-Lynn Clarke.

JOB POSTINGS

Recent posting were published to the Chapter by recruiter Donna Richardson in a variety of audit roles. Interested individuals should contact Donna at [email protected].

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We welcome communicating employment opportunities to our membership. Please send your submissions to Barry Weybright at [email protected] or to Eve-Lynn Clarke at [email protected].

CHAPTER ACHIEVEMENT UPDATE (CAP)

The Chapter Achievement Program (CAP) is designed by the Institute of Internal Auditors to recognize activities that promote the strategic objectives of The IIA. This program provides minimum standards of performance, emphasizes the basic mission of the Chapter, encourages Chapters to perform that mission, and provides Chapters with a means to evaluate their success in accomplishing that mission

Additional CAP InformationA chapter must earn the minimum CAP points in each of the three service categories (Service to Members, Service to the Profession, and Chapter Administration) participate in the CAP program. Once the chapter has met or exceeded the minimum CAP Requirements in the three categories, the chapter will have reached the BRONZE performance level. A chapter can advance to SILVER or GOLD levels by accumulating the points noted below - made up of any combination of CAP points from the three service levels (while also meeting the minimums above). For the 2012-2013 Chapter year, we are currently progressing towards our third Platinum year, sitting at 1,132 CAP points.

▪BRONZE - 685 CAP Points▪SILVER - 1,060 CAP Points▪GOLD - 1,560 CAP Points 

PLATINUM - This is a special level created to recognize chapters that attain GOLD status for 10 of 11 consecutive years. The chapter will continue to be recognized as platinum level each year thereafter it the chapter achieves the Gold CAP level for 10 of 11 consecutive years.

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Goal Current 0

200400600800

1000120014001600

685 685

1060

1560CAP Point Count

Bronze Silver Gold

375

72

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2011 – 2013 OFFICERS

Co-President Eve-Lynn Clarke (260) 403-0875 [email protected] Co-President Barry Weybright (260) 446-1634

[email protected] Vice-President Vacant2nd Vice-President Scott Brown [email protected] Albert Cotton (260) 455-2960 [email protected] Treasurer Ben Fowls (260) 455-4945 [email protected]

2012 – 2013 BOARD OF GOVERNORS

Amy Dougal, CIA (260) 455-1861 [email protected] Brooke Gardner (260) 455-6991 [email protected] Horden, CIA (260) 455-3411 [email protected] Moore, CIA [email protected] Tracy Neumeier, CIA (260) 427-1119 [email protected] Sorenson (574) 214-8618 [email protected]

2012 – 2013 COMMITTEE CHAIRS

Academic Relations ChairChris Walda (260) 373-7049 [email protected] Public Relations Chair Vacant Certification Chair Brittney Heckman, CIA (260) 455-6509 [email protected] Membership Chair Dan Hines

[email protected] Web Site Chair Michael Krouse (260) 436-6205

[email protected]

WE WANT TO HEAR FROM YOU!

We are always looking for content for this newsletter and welcome articles, news items, kudos, recent certifications, passing exams, employment opportunities or other items of interest to our membership. Please send your submissions to Barry Weybright at [email protected] or to Eve-Lynn Clarke at [email protected].