President Message

President Message

It’s a new chapter year and I’d like to give a big thank you to Stacy Wright for serving as our President for the last three years. Also, thank you to Jocelyn Harrison, Terra Luebbering, Joan Imhoff, Jon Halwes, Holly House, Kristie Schrimpf, and Tina Disney for serving as chapter officers and board members.

There have been some changes to the IIA’s certifications as of September 1, 2019. Those changes are as follows:

The waiting period to retake an unsuccessful exam will be shortened from 90 to 60 days for all programs.

The window to take all three parts of the Certified Internal Auditor (CIA) exam will now be three years instead of four. If you were enrolled in the CIA certification program prior to September 1, 2019, you will maintain the four-year window. Candidates enrolled on or after September 1, 2019, will have three years to complete the program.

Entrance into the Internal Audit Practitioner program will no longer include a six-month work experience requirement. The Internal Audit Practitioner program is for new and rotational auditors as they take their first step into internal auditing. This designation can be earned by completing the application and passing Part One of the CIA exam.

Our chapter has entered into an arrangement with Gleim that gives our chapter members up to a 20% discount on Gleim CIA Review materials and online CPE. You can access the discount through a link in the Members Only section of our Chapter website.

I am looking forward to serving the Central MO IIA as President this year. If you have any questions or concerns, please contact me at julie.zerr@centralbank.net.

Julie Zerr President

Inside This Issue

1 President Message

2 CAP Summary

2 Programs Summary & Upcoming Programs

3 Membership Update

4 July Program

5 August Program

6 September Program

8 2019 IIA International Conference

9 Industry Articles

IIA News & Chapter Report

VOLUME 29 ISSUE 1

September 2019

Central Missouri Chapter

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Cap Summary

There is a new structure for CAP this year. Our target for CAP is to reach the Gold (Platinum) status, which is 1,560 points. To reach the Bronze level (minimum target) we need 685 points, and to reach the Silver level status we need 1,060 points. Our Chapter has attained Ruby status, which means we have had 20 years of Gold achievement.

Programs Summary

Upcoming Programs

Date Topic CPE

Credit Location

October 23, 2019 2nd Annual Novak Leadership Speaker

Series - Leading with Trust by Stephen Covey

1.5 University of

Missouri

November 19, 2019 What is Your Type? – Personality Types

in the Workplace 2.0 HBCR

Month/Year Topic CPE Credit

July 2019 AGA/IIA Joint Event – Blockchain & Cryptocurrencies;

Mobile Banking Risks and the Future of Banking 4

August 2019 Using COSO to Help Manage in Uncertain Times 2

September 2019 Total Quality Auditing: How a Total Quality Mindset Can

Help Internal Audit Add Value 8

September 2019 Ethics, Cultures, Fraud and Corruption – The

Unanswered Questions 1.5

The following is the status of the Chapter Achievement Program (CAP) points for our chapter as of September 15, 2019:

Category Chapter Points

(to Date)

Chapter Health 0.00

Professionalism 0.00

Leadership Development 70.00

Service to Members 539.00

609.00

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June Program:

Recently Certified

July Program: Blockchain & Cryptocurrencies;

2019-2020 Board Members

President Julie Zerr Central Bank julie.zerr@centralbank.net

Vice President - Programs Jocelyn Harrison jocelyn.harrison.iia@gmail.com

Vice President - Membership Sonja Erickson University of Missouri ericksonso@umsystem.edu

Treasurer Bobbi Enslen Central Bank bobbi.enslen@centralbank.net

Secretary Vacant

Board Members Jon Halwes State Auditor's Office jehal@email.com

Stacy Wright University of Missouri clarkandstacy@hotmail.com

Kristine Schrimpf University of Missouri schrimpfkr@umsystem.edu

Webmaster Tina Disney State Auditor's Office Tina.Disney@auditor.mo.gov

Membership Update

Central MO IIA Membership Statistics

09/02/2019

Total Active Members 246

Membership Lapsed 3

Transferred Membership to different chapter 4

Transferred Membership from different chapter 7

Government Membership 193

New Members Added in Month 5

Upcoming IIA Webinars

October 15, 2019

Members-only Webinar: Enhancing Internal Audit Effectiveness Through the Core Principles

November 12, 2019

Members-only Webinar: Blockchain Technology: What Internal Auditors Should Know

Certifications

Congratulations to the following individuals who have earned certifications from the IIA in the last year!

Sonja Erickson Certified Internal Auditor Pamela Hopkins Certification in Risk Management Assurance Joshua Allen Certified Government Auditing Professional Charity Grotzinger Certified Government Auditing Professional Kent Dauderman Certified Government Auditing Professional Kimberly Spraggs Certified Government Auditing Professional Alex Prenger Certified Government Auditing Professional Annette Cash Certified Government Auditing Professional Kent Dauderman Certified Internal Auditor Scott Davis Certified Government Auditing Professional Susan Beeler Certified Government Auditing Professional

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AGA and IIA Joint Meeting Blockchain & Cryptocurrencies; Mobile Banking Risks and the Future of Banking

Presented by: Kevin Gray, Steve Bruce and Matt TollertonJuly 16, 2019 Article By: Ryan Bernard

Kevin Gray from Protiviti discussed the efficiencies and the risks with both blockchains and crypto-currencies. The primary take away from this presentation is that blockchains contain the future essential control points that are game changers for Proof of Work and Proof of Stake. Kevin`s explanation of blockchains lead into a quick overview of crypto-currencies unique set of code ledgers that enable the ability to transfer a monetary value through a secondary media.

Steve Bruce and Matt Tollerton from Central Bank discussed mobile banking and the attempts the banking industry has made to try and keep up technology. Steve noted that the era of checks and in store visits are a thing of the past. The largest influence to this was the National Tragedy of 911. The tragedy highlighted the problematic process of how checks were handled. Matt concluded the conference with how technology has led the way with solutions to the outdated banking world in the form of web-based products. Matt`s response to the technological footprint was described as always a step ahead. His warning to those leaders in technology was risk; directly related to fraud. Efforts of the banking industry work toward having a safe and reliable method of storing funds in an efficient productive way. But the user has to be aware of these risks as well. In closing “The Future belongs to those who prepare for it today”; (Malcolm X).

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August Program: Using COSO to Manage Risks in Uncertain Times

Presented by: Paul SobelAugust 8, 2019 Article By: Wendy Sullivan

COSO Chairman Sobel began by discussing the history and formation of the Committee of Sponsoring Organizations. Mr. Sobel discussed the internal control framework developed by COSO and noted that the framework is a widely used and recognized control framework. The enterprise risk management (ERM) framework developed by COSO was also discussed. Paul indicated there have been several discussions on the enhancement of the ERM framework. Several initiatives in the pipeline were highlighted, including but not limited to, assessment tools for risk, blockchain and the psychology of fraud. COSO is constantly working to improve the tools it supports. Internal auditors are encouraged to utilize the tools supported and developed by COSO to provide greater value to their organizations.

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September Program: Total Quality Auditing: How a Total Quality Mindset Can Help Internal Audit Add Value

Presented by: Amanda ‘Jo’ Erven September 12, 2019 Article By: Garry Kornrumpf

Amanda ‘Jo’ Erven, CPA, CIA, CFE, Founder and President, Audit. Consulting. Education, LLC provided auditing and ethics training. Ms. Erven’s training centered around her book, Total Quality Auditing (TQA), which had recently been approved for availability in the IIA bookstore. She provided attendees a workbook about best practices and questions for them to respond about their organization.

She also discussed how internal auditors should have an active role in the organization itself, complementing the traditional, required activities of audit. The speaker compared the traditional method with the automobile assembly practices of the 1950’s. Problems were caught by inspectors at the end of the cycle and some problems were not evident until a vehicle was returned for defective assembly. The auto industry evolved to empowering workers to stop the assembly in real time to fix problems in real time. Active internal auditing should focus on being proactive, instead of reactive.

Ms. Erven provided ethical situations and engaged the audience to provide responses via kahoot. She showed relevant video clips and engaged the participants into discussing the various topics. The training helped in highlighting areas in which a total quality mindset can help add real value.

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September Program: Ethics, Cultures, Fraud and Corruption – The Unanswered Questions

Presented by: Professor Houdini Fourie, Director School of Accounting, Nelson Mandela UniversitySeptember 13, 2019 Article By: Tansy Collier

Professor Fourie began his presentation with the quote, “Education is the most powerful weapon we can use to change the world” by Nelson Mandela. Fourie then educated us on their program at Nelson Mandela University and the topics of ethics, culture, fraud and corruption. Ethics was discussed mostly within the attributes of integrity, responsibility, trust, behavior, principle, relationship, choice, reliability, and morality. Fourie believes educators can have a large influence on integrity throughout the profession. Culture was addressed as “the collective mental programming of the mind which distinguishes the members of one group from another”. Culture affects behaviors and is one of the major influences of ethics. Fourie presented some very interesting statistics of economic crimes with fraud and corruption by country. Fourie’s view on these companies where scandals have occurred, is they tend to rely too heavily on their external audit firms. The external audit firms provide assurance and not a guarantee; however, they are still often blamed when a scandal occurs. Combined assurance is provided by the 1) board of directors, 2) audit committee, 3) external auditors, and 4) internal auditors. Fourie believes the internal auditors need to have improved competency with higher levels in fraud detection and investigation.

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IIA International Conference July 7-10, 2019

In July 2019, the Central MO IIA sent me as a representative to IIA's International Conference in Anaheim, CA. This event hosted more than 2,500 participants from more than 100 countries. Participants of this conference were privileged to hear powerful speakers and presenters talk about the latest developments in internal auditing, current issues and trends, global issues impacting the profession, and industry best practices in the internal audit profession. This was also a great opportunity to network with peers, pick up some information from the world's best internal audit vendors and learn more about how other countries approach their internal audit work. You can find information about next year's conference in Miami at the following link: https://ic.globaliia.org/Pages/about.aspx. Here are a few of the highlights from my trip:

Session on Challenges, Opportunities, and Path to Success: This leadership panel was presented by Theresa Grafenstine, Former Inspector General of the U.S. House of Representatives; Kiko Harvey, Inspector General United Nations - World Food Program; and Jenitha John, Chief Audit Executive FirstRand Bank. This was a really interesting session exploring the challenges women face and the opportunities and path these women took to become leaders in the internal audit field.

Session on How to Become a More Mindful and Emotionally Intelligent Leader: This session was presented by Jason Mefford and provided tips for a more mindful culture in work teams and to improve communication between team members.

Session on Managing the Hot Seat in Government Auditing: Michael Fucilli presented a very interesting session on how management's understanding of risk and controls in the public sector will help them restore trust and achieve their goals more effectively and efficiently and the role internal auditors play.

In addition to the educational sessions, the IIA really provided some amazing entertainment. I had the opportunity to network with some amazing people daily during the conference and at the beach party. I also enjoyed some delicious Southern California wine and cuisine. Finally, I got to spend an afternoon at Disneyland and experience the new Star Wars Park. I highly recommend going even if you do not enjoy Star Wars.

This was my first trip to California and I had a great time. Thank you, Central MO IIA for this once in a lifetime experience!!

Tina Disney

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Industry Article

6 Benefits of Volunteerism for Your Finance Team — and Your Business

There’s nothing like a good team-building exercise to increase trust and enhance collaboration in the workplace. Managers typically plan games, special meals or recreational sports to help build camaraderie among employees in their organization. But as fun as these activities are, many finance leaders seek more meaningful ways to engage and develop their staff — and create more positive benefits for the business as well.

One reason for this trend is the growing emphasis on corporate social responsibility programs, such as charitable giving or volunteer community service. For many businesses, philanthropy and volunteerism are now integral parts of their organizational culture as well as cornerstones of environmental, social and governance (ESG) initiatives. In a recent Robert Half Management Resources survey, 80% of finance leaders said that corporate social responsibility programs are important for their firms.

When well-organized and supported with appropriate resources, corporate social responsibility programs like volunteer community service can create significant benefits for companies and their employees. Here are six examples:

1. Bonding with colleagues

Planting trees alongside the company’s chief financial officer (CFO) or picking up roadside litter with the payroll director is a great way to break down silos and bring management and employees closer. Collaborating on a worthy cause is often a better way of really getting to know one another than making a minute or two of polite small talk during an all-company picnic or holiday party.

2. Skills acquisition

Untangling a human knot or breaking out of an escape room is a good way to refine soft skills in problem solving, communication and leadership. But wouldn’t it be much more rewarding for employees to boost those skills while laboring together on real-life issues and helping people in need? Your team can expand their abilities while building affordable homes in your local community, for example. Volunteerism also enhances your employees’ sense of empathy and customer service — and adds positivity to your company’s reputation in your community.

3. A sense of achievement

Jobs in accounting and finance are rewarding. So, too, are nonprofit projects. They also have a tangible and satisfying end goal, be it to collect a certain number of toys for children in need at the holidays or remove invasive plants from a nearby park.

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A shared accomplishment outside of day-to-day duties can really help to boost team morale. In the Robert Half Management Resources survey mentioned earlier in this post, 71% of CFOs said increased employee morale was a key benefit of corporate social responsibility programs, like volunteer community service.

4. Health benefits

Volunteerism can have a positive impact on a person's health and well-being. By volunteering, you and your employees can increase your activity levels if you opt for physical service projects like cleaning, building or planting. What’s more, when you help others, your brain releases endorphins that create a host of positive feelings, and these natural substances help you de-stress.

5. Recruitment and retention

An organization that embraces corporate social responsibility sends the message that it values compassion, citizenship, integrity and environmentalism — which is the type of company that many professionals today seek to be a part of. Corporate culture can be a make-or-break factor when people choose where to work — and whether they stick around for the long term.

6. Enhanced reputation

Many consumers consider a company’s philanthropic activities when deciding where to spend their money, as they feel better about supporting businesses that reflect their values and give back to the community. By publicizing your corporate social responsibility or ESG initiatives, you’re letting your current and future customers know just what your brand stands for.

Tips for setting up a volunteer program

A commitment to volunteerism at your company needs to be supported by appropriate focus and investment to be successful. Don’t simply chase trends or leave the effort to interns. Before signing your finance team up for the next fun run or beach cleanup you hear about, take the following suggestions into account:

Find suitable causes. Work on service projects that align with your company’s mission and core values. A great partnership, for example, would be between a supermarket chain and an organization that works to reduce food waste. For companies in just about any industry, volunteering at food banks or collecting school supplies for disadvantaged children are rarely the wrong choice.

Give time and money. A great way to double your impact is for the business to donate both labor and dollars to the causes you choose to support, such as through a corporate sponsorship of a philanthropic event. You could also give employees the option of contributing money in lieu of, or in addition to, their service.

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Offer flexibility. The biggest barrier to volunteerism success is finding enough time to devote to giving back. If you want your employees to have the chance to get involved, offer a choice of opportunities whenever possible. Also, make sure your team members know how much you would like to see them participate.

Make it a group effort. Volunteering is a worthwhile activity on its own. But to reap the most value from it, you’ll want to get your entire team involved. Holding service projects during workdays is one way to maximize participation. Also, consider giving your employees paid time off to do volunteer work. A recent Robert Half survey found that nearly half (49%) of U.S. businesses embrace this practice.

Think local. There are needs all over the world, to be sure. But to help drive employee involvement in your company’s volunteer program, consider aiming for projects that your team members can easily participate in, in person, and which make a difference in the local community.

While corporate social responsibility initiatives require time, effort and other resources to be successful, they are a worthwhile investment. They can generate many positives for your business — including a more-connected finance team that works better together. So, if important soft skills can be honed through helping others rather than paying for off-site corporate getaways, the question CFOs should be asking themselves is not “Why should our team volunteer?” but “Why on earth wouldn’t we?”

This article is provided courtesy of Robert Half Management Resources, the premier provider of senior-level accounting, finance and business systems professionals to supplement companies' project and interim staffing needs. The company has more than 140 locations worldwide and offers online job search services at www.roberthalfmr.com. Follow our blog at www.roberthalf.com/blog.

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Industry Article

Don’t Deflate Employees — Motivate Them With Constructive Criticism

Constructive criticism — tactful, thoughtful feedback that balances negative and positive comments — is a vital tool for motivating your finance and accounting team members to keep raising the bar on their performance. Millennial and Gen Z employees, in particular, crave such feedback from managers on a regular basis to help them make meaningful progress toward their career goals.

Effectively delivering constructive criticism is easier said than done, however. Managers must walk the fine line of accentuating the positive while helping employees understand how to address shortcomings. The task isn’t made any easier by the fact that workers respond differently to feedback.

You’ll likely find most professionals take such criticism in stride. Some may have hurt feelings, and some may even be angry to receive critiques of their work or on-the-job behavior. Here are seven ways to make constructive criticism work for you and become part of your organizational culture. Also included are suggestions for working with staff members who strongly dislike being critiqued:

1. Set up feedback meetings in advance Catching employees off guard with criticism is sure to put them on the defensive. So, schedule feedback meetings with ample notice, letting workers know this will be a time to discuss their performance. That way, they have a chance to prepare and present any concerns of their own about their job progress.

2. Be mindful of your timing Is your accounting staff racing to hit year-end deadlines? Is your accounting manager preparing for a difficult meeting? These are among the worst times to offer comments on how they’re handling their job. Check your team’s workload and schedule before calling them into a feedback meeting.

3. Get specific Generalizations such as, “Your customer service skills are falling short,” will come across as vague to your employees and could invite excuses and protests. Prepare for the meeting by

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compiling a list of examples of their strengths and weaknesses in action. Then, follow up with suggestions for how workers can specifically improve and achieve better results.

4. Offer big-picture context Too often, busy professionals get so wrapped up in their own tasks that they don’t fully understand their contributions to the organization as a whole. Let your employees know what impact their work has on the company.

5. Implement a call to action that includes autonomy Wrap up each meeting with questions that invite workers to take charge of improving their performance. For example: “Let’s set up a plan to address these issues. What do you think your first step should be?” By putting employees behind the wheel and asking them to steer their careers in the direction they want, you’re more likely to see positive action and results.

6. Keep meetings short and focused For some employees, you may have a whole laundry list of areas where you’d like to see improvement. But with each item you tick off your list, you’ll drive up their stress levels, increasing the possibility that they’ll become overwhelmed and brush off all your criticism. So, decide which one or two areas are most important and focus on those until they are resolved.

7. Make it a routine Schedule a follow-up session to assess progress. What concrete steps and goals should the employee have completed by the time you meet? Also, emphasize that constructive criticism isn’t a one-off event, but an ongoing process. Over time, that will help to make it part of your organizational culture.

Handling adverse responses to constructive criticism There are many reasons workers don’t respond well to constructive criticism. For example, they might be insecure or fearful of losing their jobs. Some workers might be accustomed to only receiving praise, while others may have been berated by a bad boss in a previous role. And others may be unable to leave their ego at the door, so they can see clearly how they might perform better.

Managers can’t possibly know everything going on inside employees’ heads, but they can take extra caution when delivering feedback. Here are some tips:

Stick to the facts. Attempts to sugarcoat criticism might come off as condescending or insincere. Kindly but firmly state an irrefutable fact, such as, “The figures on this account reconciliation are off.” Then, suggest solutions that the employee can apply to prevent this issue from happening again.

Be patient. Avoid accusations and make it clear that you’re invested in helping your team members improve their performance so they can achieve their career goals. Eventually, the walls should begin to come down, even for workers who tend to put their defenses way up.

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Ask for feedback on you. Turn the tables by providing staff members a chance to offer you constructive criticism, from time to time. That will give you insight into not only how you are perceived as a leader, but also what your employees consider to be the ideal way to deliver critiques on performance.

Constructive criticism is an integral part of today’s workplace and, when offered appropriately, can help everyone in the organization to improve. Take care when delivering this feedback, though, since you want to engage and motivate your employees, not deflate them. Also, always offer praise to your workers when it is due. Your employees will be more open to hearing about their weaknesses when you are quick to highlight their strengths and achievements.

This article is provided courtesy of Robert Half Management Resources, the premier provider of senior-level accounting, finance and business systems professionals to supplement companies' project and interim staffing needs. The company has more than 135 locations worldwide and offers online job search services at www.roberthalfmr.com. Follow our blog at www.roberthalf.com/blog.