the institute of internal auditors · through leadership (atl).” ... volume 1, issue 10 page 8...

Volume 1, Issue 10

Visit us online at http://www.theiia.org/chapters/index.cfm?cid=106

Finally! The cold weather seems to have left us, and the warm weather has decided tostick around. Being a transplanted Northerner, I have my reservations about the Memphissummers where the heat is unbearable at times, but I’m welcoming it with open arms rightnow after what seems like an unusually cold winter. So go ahead and enjoy the warm air,the spring flowers, and all that Memphis has to offer this time of year. It’s beautiful outthere!

If you haven’t been keeping tabs on where we are in the chapter year, we only have onemeeting left! That’s right…ONE. And what better way to end the year than by bringing inthe US Secret Service. Special Agent Jeff Barker and Supervisory Special Agent DavidStutheit will speak to our Chapter about various fraud related topics at our May meetingscheduled for May 11th at the Racquet Club on Sanderlin, so please mark your calendarsnow!

Thank you to those members who attended our April luncheon. Matthew Thompson, BASSenior Manager from Grant Thornton, covered “IT Auditing 101 – What Every FinancialAuditor Should Know About IT Auditing”. This presentation covered IT terminology,IT risk assessments, the technology risk model, scope of a typical IT audit, and IT auditprocedures for the financial auditor.

Want to get more involved in your chapter? We are currently looking to fill the positionof Programs Committee Chairman. We also have opportunities for volunteers on allchapter committees, so don’t be shy, step on up and be a part of the team! Feel free tocontact either me or Nikki Brinkerhoff, incoming President, if you are interested involunteering. We look forward to hearing from you.

As always, please continue to use our newsletter and website asresources for our upcoming events. I look forward to seeing youat our May luncheon. Thank you again for your support of theChapter and of the profession.

Kind Regards,

Patti Buck-TorreyChapter President

PPPRESIDENTRESIDENTRESIDENT’’’SSS MMMESSAGEESSAGEESSAGE

Memphis Audit Chronicle—Monthly Update

The Instituteof InternalAuditors

Internal AuditAwareness Month

2

UpcomingTrainingOpportunities

3-7

Back to theBasics

8

CIA Information 9-10

You Should Know 11-12

Volunteers Needed 13

Word Find-Fraud 14

ChapterLeadership

15

I N S I D E T H I SI S S U E :

April 2010

Volume 1, Issue 10


Next month, May, is designated as International Internal Audit Awareness Month!

What is International Internal Audit Awareness Month? Building awareness—year round— isessential to elevating the image of the internal audit profession.

May, however, is the month designated to focus on internal audit awareness– building efforts allaround the world. IIA Chapters and institutes are invited to participate by elevating the professionthroughout the month of May.

Build Awareness in Your Workplace

Request that employees be given an awareness month message on their pay stubs (―Rest Assured: Consult Your Internal Auditor.)

Conduct a brainstorming session at your organization to identify additional ways to increase awareness.

Arrange to display and distribute materials at a popular place in your organization. Use the ―TREE (Transparency, Reliability, Ethics, Effectiveness) materials available free from The IIA.

Arrange a “lunch -n- learn” session and show The IIA‘s PowerPoint presentation, ―Your Audit Team.

Design International Internal Audit Awareness bulletin boards and display them around your organization.

Materials mentioned above can be found at http://www.theiia.org/theiia/about-the-profession/promoting-the-profession/awareness-month/

Volume 1, Issue 10


Upcoming Training Opportunities

IIA WebinarsThe following webinars will be offered by the IIA next month:

Audits of Service Providers Yield Significant RecoveriesThursday, May 6, 20101:00 - 3:00 p.m. ETUS $75 Member / US $105 Non-member2 NASBA CPE (Live event only)

Uncovering Vendor Fraud & TheftThursday, May 20, 20101:00 - 3:00 p.m. ETUS $75 Member / US $105 Non-member2 NASBA CPE (Live event only)

For additional information and registration details, see E-LearningTraining at www.theiia.org.

About the Speakers:Supervisory Special Agent David Stutheit has been with the U.S. Secret Service for approximately 18 years. Prior to joining the

U.S. Secret Service David was employed as a police officer with the City of Overland Park, KS. David started with the U.S. Secret

Service in the Kansas City Field Office before transferring to Washington, D.C. In Washington, D.C. Agent Stutheit worked in the

Financial Crimes Division of U.S. Secret Service headquarters, the Vice Presidential Protective Division and the U.S. Secret Service

Inspection Division. Agent Stutheit transferred to the Memphis Field Office in May of 2008 and currently serves as the field

supervisor.

Special Agent Jeff Barker has been with the U.S. Secret Service for over 8 years. Prior to joining the U.S. Secret Service, Jeff was

employed as a police officer with the City of Jackson, TN and as a Special Agent with the TN Department of Revenue. Jeff is one

of two Special Agents in the Memphis Field Office who is trained in the forensic examination of computers. Jeff has worked a

multitude of complex financial crimes cases and has performed numerous forensic examinations of computer hardware in the

furtherance of these investigations.

IIA Conferences

IIA International ConferenceDate: June 6-9, 2010

Location: Atlanta, GA, USA

Atlanta is the place to be in 2010!

The IIA is bringing a world-class conference to thespectacular Georgia World Congress Center and you willdefinitely want be part of the action.

Guaranteed to be the year’s largestgathering of internal auditingpractitioners, the 2010 InternationalConference will focus on “AuditingThrough Leadership (ATL).”For more information visit:www.theiia.org.

May IIA Chapter Meeting

Speaker: David Stutheit, United States Secret ServiceJeff Barker, United States Secret Service

Topic: Fraud - A Federal Law Enforcement Perspective of FraudDate: Tuesday, May 11, 2010Time: 11:00 am – 2:00 pmLocation: The Racquet Club on SanderlinRSVP: By May 6, 2010. Please contact Mark Farage at [email protected].

The United States Secret Service has primary jurisdiction to investigate threats against SecretService protects as well as financial crimes, which include counterfeiting of U.S. currency;

forgery or theft of U.S. Treasury checks, bonds or other securities; credit card fraud;telecommunications fraud; computer fraud, identify fraud and certain other crimes affectingfederally insured financial institutions. This session will focus on various fraud related topics.

Volume 1, Issue 10


Volume 1, Issue 10


Through a case study, the report shares how a leading distribution company set out to combat fraud byimplementing an “integrity program” to demonstrate an investment in security provisions, practices, andprocedures. Part of the program included completing a risk-ranking exercise where high-risk areas wereidentified and the company’s investigators began work on closing the gaps by monitoring and measuringthe corrective actions taken.

The report also emphasizes that an organization’s tone at the top is critical in any fraud deterrent program’ssuccess because the message of ethical transparency and desired attitudes flows from the top down.Additionally, a whistleblower hotline or some other anonymous method of reporting fraud suspicions, aswell as a policy that encourages people to report suspected cases, is a powerful tool in discovering — andfighting — fraud. In fact, a fraud study conducted by The Economist Intelligence Unit shows that morecompanies will be investing in anti-fraud measures, especially financial controls (52 to 57 percent) andmanagement controls (45 to 55 percent), to help combat fraud.

“Drying out Fraud,” published in the August 2005 issue of Internal Auditor magazine, further demonstratesthe importance of an ethical tone at the top and whistleblower hotline by giving a real-life example of howan anonymous tip alerts auditors to manager-level employee theft.

Organizations continue to fight rising fraud through strong ethics and fraud detection programs.

The average loss per company in the retail, wholesale, and distribution industries over the past three yearsequals US $3.3 million, or 41 percent of annual revenues, according to Kroll’s2008–2009 Global Fraud Report. Furthermore, the report shows that 86 percent of organizations havesuffered fraud loss over the past three years and 87 percent have experienced increased exposure to fraud.

Fraud Findings: Blowing the Whistle on Fraud

Volume 1, Issue 10


Hey You!!! Yeah You!!Are you interested in being the next CIA Recipient?

Below are some ways you can become our nextCertified Internal Auditor.

Practice Like You Play

Melissa LeonardGleim Chapter Coordinator

This month's column can be summarized under the sports phrase, "Practice like you play." Coaches are always

telling athletes to approach practice as if it were a game. In the late 1990s, Roy Williams-the current UNC

basketball coach and winner of the 2009 NCAA Men's Basketball Championship-gave a speech in which he talked

about how one of his former players was drafted by the Chicago Bulls and was in awe at how hard Michael Jordan

practiced, including during preseason workouts. Apparently, Jordan did everything at 100% full speed, which is

probably why he's considered the greatest basketball player ever. How YOU practice with CIA questions carries

over much the same when it comes to your "game-time" exam performance.

Ted Griswold, the Incoming President for the North Central Florida IIA Chapter, suggested candidates study by

taking quizzes straight through without stopping and without distraction. Based on his own experience, he

mentioned the importance of not looking at the answer explanations until after all questions are answered. On the

actual exam, candidates won't get immediate feedback.

The Gleim CIA Review System forces you to commit to your answer choice before looking at answer

explanations; thus, you are preparing under true exam conditions. We have found that people who take

20-question quizzes, either in our CIA Test Prep software or CIA Gleim Online, have a much higher pass rate if

they simulate exam conditions as opposed to taking them at a coffee shop or in front of the TV where they could

easily be distracted. The reason for this is that, when exam time comes, you're not used to concentrating on

answering a large chunk of questions without having some sort of external stimulation (i.e., distraction).

Therefore, you should approach answering every CIA question as if you're taking the actual exam at

PearsonVue. Remember - practice like you play!

Remember, as a Memphis Chapter member, you will receive a 20% discount on the Gleim CIA Review materials.

Gleim has been helping CIA candidates pass the CIA Exam since its inception in 1980.

Contact Melissa at 800.874.5346, ext. 131 or [email protected] to take advantage of this offer or if you

have any questions.

Do you have feedback on what you have read or suggestions on future topics? Maybe you are studying for the

exam or have recently passed and want to share tactics you used. Email Gleim at [email protected] with

your comments.

Volume 1, Issue 10


CIA Study Materials

Your Memphis IIA Chapter has partnered with Gleim to ensure your success on theCIA exam! Working together, we will provide you the necessary study tools to preparefor the exam.As a member of the chapter, you are eligible for a 20% discount on Gleim's CIA Re-view materials and Online CPE courses. To take advantage of the reduced prices, pleasecontact our chapter representative, Melissa Leonard.Email: [email protected]

You Learn and the Chapter Earns

Your Memphis IIA Chapter has partnered with Gleim Publications to ensure your success on the CIA exam! Working together, wewill provide you the necessary study tools to prepare for this difficult exam.

Gleim provides an extensive self-study course for the CIA exam. Our most successful candidates use the Gleim CIA ReviewSystem with Gleim Online. This system combines Review Books, Test Prep software, Test Prep for Windows Mobile, audioreviews, Gleim Online and a Personal Counselor (a real live person!) to maximize your available study time. Because Gleimidentifies and focuses on your weak areas, you will not spend any more time preparing than is necessary to guarantee success. TheCMA Review System with Gleim Online GUARANTEES that you will pass each exam part the first time. We are here to save youtime and money.

To receive this special pricing, please visit: https://secure13.visi.com/elcstore2.com/mm5/merchant.mvc?Screen=CTGY&Store_Code=IIA_CIA_LearningSystem&Category_Code=7a3e56dbf4b75792017d682faf64ac07

Volume 1, Issue 10


Welcome to Our Newest Members!

Kristie Davis, AutozonePreston Frazer, AutozoneCorey Epps, Norwich UniversityNamita Dabas, The ServiceMaster Company

You Should Know

The IIA Research Foundation -Research Reports and Publications

The Foundation maintains a strong belief in research and in publishingreports that aid the practitioner as well as the profession. For 30 years,The IIA Research Foundation has committed to and supported theinternal audit profession. Our Foundation is the primary way The IIAdetermines the trends that shape our future through:

Publications published online and from The IIARF Bookstore

Results of comprehensive and in-depth research by industryexperts

Valuable reports on trends, best practices, and the issues of the day

Research Reports and Educational Products

Chronological list of research and educational products from TheIIA Research Foundation

The IIARF Bookstore

Research reports available from The IIARF Bookstore

Research reports for download

Research Symposiums and Forums

Upcoming Projects

Projects in Progress: Research reports and educational products inproduction status

Research Topics Awaiting Proposals: Submit a proposal onresearch topics of current interest

Bookstore Product Development: Submit a proposal to developproducts for The IIARF Bookstore

The research publications can be accessed by visiting the followingwebsite: http://www.theiia.org/research/research-reports/.

Volume 1, Issue 10


You Should Know Continued

Career Opportunities

Are you in the market for a job? The following job openings have beenposted on the Memphis IIA Chapter Website.

1. Internal Audit position at Sedgwick CMS2. Internal Audit position requested by Vaco3. Chief Financial Officer position

To apply for the jobs, go to the Career Search on the Memphis Chapterwebsite (http://www.theiia.org/chapters/index.cfm/view.message/cid/106).

Note: We post jobs for Memphis Chapter member organizations for free.Outside agencies can post for a small fee. Please contact Ashanti Johnson([email protected]) for additional details.

IIA Chapter Achievement Program (CAP)

Thank You!

Because of your extraordinary efforts, the Memphis Chapter hasachieved enough CAP points to reach Gold status! As of April 19,2010, the total CAP points earned was 1,869.

The following are some activities you can perform to help us increasethe already spectacular total:

Promote the profession by attending events at colleges/universities Speak to students about internal audit Submit or publish articles for Internal Auditor Magazine Submit or publish articles for other publications Participate in the Junior Achievement Program (classroom v

olunteer, JA in a day, or JA fundraiser) Write exam questions for IIA certifications (CIA, CCSA, CFSA,

or CGAP) Participate in an IIA-sponsored Quality Review Team Complete an IIA-approved Chapter Research Project

If you have completed any of these activities, please tell us about it!Complete a CAP Form (http://www.theiia.org/chapters/memlib/106/CAP_Form.doc) and submit to Cassidy Cunningham([email protected]).

Volume 1, Issue 10


Programs Committee Chairperson &Committee Member Volunteers are needed!

Are you interested in serving as a committee member for the Memphis Chapter IIA? If so, thechapter has one open position for the Program Committee Chairperson and two open positions forCommittee Members. Please contact Patti-Buck Torrey @ [email protected].

Volume 1, Issue 10


Word List

Blowing the Whistle on Fraud

Word Find

Protection

Security

Suspects

Tips

Whistleblower

Alerts

Anonymous

Antifraud

Company Hotline

Disclose

Ethical

Fraudsters

Intuition

Investigation

Legal

Volume 1, Issue 10


2009-2010 Memphis Chapter Leadership

President Patti Buck-Torrey, Sr. Auditor, FedEx Services [email protected]

Vice President Nikki Brinkerhoff, Compliance Manager/VP, Morgan Keegan &Company

[email protected]

Secretary Cassidy Cunningham, Associate Auditor, FedEx Services [email protected]

Treasurer Shonda Summers, Lead Auditor, City of Memphis [email protected]

Officers:

Committees:Programs Amanda Brown, Sr. Auditor, FedEx Services (Chairperson)

Joseda Cook, Sr. Auditor, FedEx ServicesMark Farage, Sr. Auditor, FedEx ServicesJonathan Brame, Associate Auditor, FedEx ServicesDana Coleman, Associate Auditor, FedEx Services

[email protected]

Membership Jordan Ramsey, Auditor, FedEx ServicesCassidy Cunningham, Associate Auditor, FedEx Services

[email protected]

Certification Doris Myles, Internal Audit Mgr, Verso Paper Corporation [email protected]

AcademicRelations

Terry Hardaway, Associate Auditor, FedEx Services (Chairperson)Mateta Brooks, Auditor, FedEx ServicesChristi Heacox, Auditor, FedEx ServicesMike Slater, Associate Director - Internal Audit, U of Memphis

[email protected]

Newsletter Shameie Haynes, Auditor, FedEx Services (Chairperson)Kathrine Bonanno, Sr. Auditor, FedEx ServicesJoseda Cook, Sr. Auditor, FedEx ServicesRon Pierotti, Associate Auditor, FedEx Services

[email protected]

Website Ashanti Johnson, Auditor, FedEx ServicesChris Funke, Deputy IT Audit Manager, First Horizon National

Corporation

[email protected]

the institute of internal auditors · through leadership (atl).” ... volume 1, issue 10 page 8...

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