Today

4 Updates from The IIA and the Internal Audit Profession

7 Make Your IIA Membership a Tailored Fit

10 April and May Training Opportunities from The IIA

14 Recruit-A-Colleague Program for You

IIA MEMBERSHIPA TAILORED FIT

A 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

Volume 1 / I s sue 2 / March 2010

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Dear Fellow Members,

Since coming to the helm of The IIA as president and CEO, I have felt an immense sense of pride and responsibility in leading an organization rich in history, diversity, and stat-ure. But it is also my many years of experience in this profession, and the time I have spent as an IIA volunteer leader, that have helped me understand the value and benefits of IIA membership.

I joined The IIA years ago because it provided a great source of networking, professional development, and access to IIA guidance and publications such as the award-winning Internal Auditor magazine. Even at that time, I considered my affiliation with The IIA a tremendous asset. But as I became more engaged with the organization, I realized that IIA membership meant more than these obvious benefits. By being an IIA member, I have:

■ Enhanced my leadership skills and expanded my network of colleagues by volunteering on national and international committees and boards.

■ Demonstrated my knowledge and expertise while enhancing my cred-ibility and marketability as a professional by obtaining IIA certifications.

■ Gained respect and recognition from my peers by sharing my professional experiences as an IIA speaker.

■ Shaped the future of the internal audit profession and how it’s practiced by contributing to The IIA’s Standards-setting process.

■ Helped develop and enhance world-class internal audit activities throughout the world by contributing to The IIA Research Foundation.

■ Enjoyed exchanging ideas and knowledge by participating in the close-knit community of my local chapter.

IIA membership has meant so much to me during my career as an internal auditor. The opportunities above are just a few of the ways you, too, can embrace your IIA membership experience. The possibilities are endless, and I challenge you in 2010 to make IIA membership mean more.

Sincerely,

Richard F. Chambers, CIA, CGAP, CCSA President and Chief Executive Officer The Institute of Internal Auditors

PUBLICATION DIRECTOR Melissa Calhoun

EDITOR Ross Schmadebeck

STAFF EDITORS Allison Cain Lisa Krist Joe White

CONTRIBUTING EDITORS Margo Baeta

ART DIRECTOR Jon Peters

PRODUCTION MANAGER Lori Shewack

IIA PRESIDENT AND CEO Richard F. Chambers, CIA, CCSA, CGAP

IIA CHAIRMAN OF THE BOARD Roderick M. Winters, CIA

IIA Today is a bimonthly publication pro-duced exclusive 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 IIAToday@theiia.org and include your name and contact information.

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

All contents copyright © The Institute of Internal Auditors (IIA) 2010.

Today

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WELCOME MESSAGE

IIA ADVOCATES FOR INTERNAL AUDITORS TO CONDUCT ANNUAL PCI DSS COMPLIANCE ASSESSMENTSAfter the Payment Card Industry Security Standards Council (PCI SSC) updated Data Security Stan-dards (DSS) in late 2008, MasterCard Worldwide issued a notification to its members in June 2009 that required “Level 1” and “Level 2” merchant validations of PCI DSS compliance to be completed by certified Quality Se-curity Assessors. These assessors are trained and credentialed by the PCI SSC, and internal auditors would not

have been able to participate in PSC DSS compliance validation because the certification program has not been available to internal auditors.

In response, The IIA emphasized in a September 2009 letter to Master-Card Worldwide the “independence, objectivity, competency and account-ability of internal auditors that well positions them to conduct PCI DSS annual compliance assessments.” As a result, MasterCard requested that the PCI DSS certify internal auditors so they may conduct the required PCI DSS annual assessments. Then in December 2009, MasterCard noti-fied its merchants that effective June 30, 2011, Level 1 merchants may use internal auditors who have obtained

PCI SSC-offered training and certifi-cation to conduct their annual onsite DSS compliance assessments since the PCI SSC now intends to offer their training accreditation to internal auditors in 2010.

“MasterCard’s announcement means that internal auditors now will have the opportunity to expand and docu-ment their knowledge of informa-tion security through the PCI SCC certification program,” says Richard Chambers, president and CEO of The IIA. “This will pave the way for merchants around the world to tap into the skills and experience of their internal auditors to assess compli-ance with the PCI standards that guide the credit card industry.”

IIA RELEASES FLASH ALERT ON SEC DISCLOSURESIn response to new proxy disclosure rules issued by the U.S. Securities and Exchange Commission (SEC), The IIA Audit Executive Center has released a Flash Alert providing immediate guidance to chief audit executives about the impact of the new requirements effective February 28, 2010.

“As I have traveled and spoken with CAEs and participated in IIA round-tables over the past month, it has been clear that this is the number one topic on the minds of most CAEs of publicly traded companies,” says IIA president and CEO Richard Chambers . “The new proxy requirements will place greater pressure on boards to demonstrate their role in the oversight of risk management. And by extension, this presents both challenges and opportunities for CAEs and their internal audit teams.”

For complete details on the Flash Alert, including resources available from the SEC, visit www.theiia.org and click on “Latest News.”

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NEWS

50TH ANNIVERSARY OF CHICAGO CHAPTER ANNUAL EVENTThe IIA’s Chicago Chapter is proud to present its 50th Annual Seminar. The one-day event draws more than 1,000 internal audit professionals from the Chicago area and beyond to take part in three keynote sessions and four concurrent sessions, with 32 sessions to chose from covering eight tracks.

“Those joining us for our 50th Annual Seminar and celebration should ex-pect a full, interactive day of training provided by more than 30 of today’s premier internal audit and business

professionals,” says Chicago Chapter President Justin Naples.

“Everyone should be prepared to take away a wealth of new knowledge and best practices. In addition to the training opportunities, participants should use the networking opportuni-ties at both our early morning career fair, as well as our post-seminar 50th anniversary celebration.”

The IIA is proud to recognize the Chicago Chapter and its members for the continued support of the internal audit profession.

For more information about this highly popular annual event, please visit www.theiia.org/Chicago.

NEW IIA FELLOWSHIP PROGRAM LAUNCHEDThe IIA is excited to announce the first fellow as part of its new IIA Fellowship program. Derek Butler, manager, enterprise risk services for Deloitte & Touche LLP, started his six-month fellowship on February 9 and will contribute to The IIA’s Audit Executive Center.

Butler brings with him more than 15 years of internal audit, account-ing, and regulatory experience. He has worked closely with a number of internal audit groups primarily in the financial services, insurance, and healthcare industries. He has been a member of The IIA since 2003 and is currently an active member of the Baltimore Chapter.

“I hope to learn more about The IIA and how it helps support our local chapters and members while work-ing with the organization’s team of talented individuals to develop and enhance new products and services,” says Butler.

For more information about The IIA’s Fellowship Program, visit www.theiia.org/Careers.

Participate in The IIA International Standards for the Professional Practices of Internal Audit exposure draft. The exposure draft window closes on May 15, 2010. Visit www.theiia.org/Guidance for more information.

Complete the Global Internal Audit Survey available beginning March 15, 2010. The survey will be available until May 17, 2010, and is available in 22 languages. Visit www.theiia.org/Global-Survey to complete the survey.

DON’T FORGET TO…

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NEWS

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

FEATURE STORY

MAKE YOUR IIA MEMBERSHIP A TAILORED FITAs an IIA member, you already enjoy many of the benefits of being part

of The Institute of Internal Auditors. Maybe you look forward to receiving

Internal Auditor magazine and you used your member discount to register

for an IIA seminar or conference. That’s a smart move because those benefits

alone make your membership worth the cost, but did you know The IIA has

so much more to offer you? Could you be missing out on important advantages

and opportunities? Let’s make your IIA membership a tailored fit!

The IIA is not a “one-size-fits-all” organization. In fact, The IIA Membership Team works hard to help each individual advance their career with specific tools, training, and networking appropriate for them. They understand that while members appreciate the significance of being an integral part of a greater whole, individual needs must be met. So while the benefits are universal, their applications can be very personal.

Continued, page 8

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FEATURE STORY

170,000 IIA MEMBERS FROM AROUND THE WORLDIIA members are a diverse group of more than 170,000 profession-als from more than 165 different countries and territories. Members work in internal audit and various internal audit related fields such as: accounting, information technology audit, risk management, governance, internal control and security. They are equally male or female and can be students, young professionals, middle management, experienced CAEs, powerful CFOs and CEOs, and everything in-between. “Our members are an extraordinarily talented and educated group of professionals,” says Richard Cham-bers, president and CEO at The IIA. “They know that IIA membership is a valuable asset that gives them a competitive edge in the local and global workplace.”

MEMBER PUBLICATIONS AND THE IIA WEB SITELet’s take a look at some of the most popular benefits of IIA membership, starting with Internal Auditor maga-zine. This bimonthly “global perspec-tive on risk, control, and governance” is included for all North American members as a hard copy subscrip-tion, and is also available online at www.InternalAuditorOnline.org. This new site was launched in 2009 and features more than 300 articles, including Web-exclusive content from the magazine’s popular Fraud Findings, Ask the Experts, and Back to Basics departments. There are also daily news updates, blogs from internal audit leaders and industry-specific content.

Other important member publica-tions include online newsletters for the Specialty Industry Groups and

the new IIA Today. The IIA Today publication is delivered to North American members in both print and electronic formats. Its goal is to provide useful and timely in-formation on internal audit news, guidance, research and professional development from The IIA. These publications are available through the newly updated IIA Web site home page, www.theiia.org.

ADVOCACY AND RESEARCHThe IIA is the internal audit profes-sion’s global voice as its acknowl-edged leader, chief advocate, and respected resource. Advocacy is defined by The IIA as “instilling pride in the internal audit profession, encouraging change and building relationships with organizations and stakeholders that impact the profes-sion.” All members benefit from the promotion of internal auditing in their organizations and on a global scale. The IIA Research Founda-tion (IIARF) and IIARF Bookstore continue to provide valuable research tools, guides, and educational prod-ucts that provide members with in-sight into emerging issues and trends. Many of these materials are either available for free to members or at special members-only discounts.

TRAINING AND CERTIFICATIONThere are numerous opportunities for IIA members at all phases in their in-ternal audit and internal audit related careers to build a solid professional framework through training and certification at The IIA. Practitioners need to distinguish themselves and become irreplaceable in their organi-zations in order to succeed. The IIA

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

FEATURE STORY

provides training through seminars, conferences, on-site training, e-learn-ing, webinars, The IIA’s CIA Learning System™, and executive development. Members enjoy substantial discounts while earning continuing professional education (CPE) credits for designa-tions such as the Certified Internal Auditor® (CIA®).

Additionally, members should stay tuned for upcoming information about members-only Webinars and additional CPE opportunities avail-able in the coming months.

Larry Harrington, vice president, internal audit, Raytheon Company, is the incoming Sr. Vice Chair of The IIA’s North American Board and the Co-Chair of The IIA’s 2012 Boston International Conference Host Conference Committee. This long-time IIA member, volunteer, and educator will be a general session speaker at The IIA’s 2010 General Audit Management (GAM) confer-ence and will present a concurrent session at the The IIA’s 2010 Atlanta International Conference.

“You are responsible for your own education and your own career,” Har-rington advises. “Don’t rely on your company to invest in you. Your career should be your own investment. In

my experience, IIA membership is powerful and inexpensive relative to its benefits.”

NETWORKING AND VOLUNTEERINGMany IIA members consider net-working and volunteering to be their most rewarding benefit. They enjoy being part of a global organization that allows them to participate at many different levels. The IIA’s motto is “knowledge through sharing” and members thrive on the enrichment that member contacts allow them. Members can network through local, regional, national and international meetings, seminars, and confer-ences. They can also find networking resources on The IIA’s Web site. IIA volunteers have the opportunity to impact and promote the profession in a variety of ways. Future volunteers should check with their local chap-ters, institutes or on The IIA’s Web

site for ways to become involved. It is an excellent way to make a difference and help shape internal auditing. “The only way things will change is if people get involved to make that change happen,” says Harrington. “Your involvement can be as simple as your local chapter or as broad as the whole world.”

TAILOR YOUR IIA MEMBERSHIPJust like no two IIA members are the same; their membership experience should reflect their individuality and unique experiences. Tailoring your IIA membership so that it fits your needs and expectations is the best way to fully benefit from all that The IIA has to offer you. Terri Freeman, internal audit director, The IIA, was a dedicated IIA member even before she joined IIA Global Headquarters as a staff member. Her thoughts sum up what the Membership Team strives to achieve for every member, whether they are an internal audit practitioner or internal audit-related professional. “Without the guidance provided from The IIA through Standards, publications, training, etc., I would not be able to do my job well,” says Freeman. “My IIA membership helps me be the best internal auditor I can be.”

Did You Know …In addition to the training provided by IIA headquarters, many of the local chapters provide their own professional development opportunities. In the 2008-2009 chapter year, IIA chapters offered a total of 9,541 CPE hours, with an average of 66.3 CPEs per chapter. Membership means more CPEs with access to more events in your local area.

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FEATURE STORY

APRI

L201

0 1 / WebinarAuditing Application SecurityVisit www.theiia.org/E-learning for details.

5, 7, 9, 12, 14, 16 / Virtual SeminarOperational Auditing (OA): An IntroductionThis online, instructor-led course reviews basic auditing and control concepts and helps you improve processes and position your organization to better achieve its objectives.

8 / Webinar Treading into International Waters: What Fraud Risks Lurk Beneath the Surface of Your Foreign AffiliatesVisit www.theiia.org/E-learning for details.

13 – 16 / Seminars San Francisco, CA, USAJoin your colleagues in San Francisco for our most popular courses including Beginning Auditor Tools and Techniques, Auditor-in-Charge Tools and Techniques, and more.

15 / Webinar Ethics in an Organization: Considerations for Internal Audit Visit www.theiia.org/E-learning for details.

19 – 21 / 12th Annual Gaming Conference Las Vegas, NV, USAThe Gaming Conference brings together auditors, compliance officers, regulators, and profes-sionals from land- and water-based gaming sectors who want to gain new perspectives, share best practices, and network with colleagues.

19 – 22 / Auditing JD Edwards (IIA/Deloitte) / Costa Mesa (Los Angeles), CA, USAIIA Members: Register by March 19 to save an additional 10% off already reduced member pricing. This seminar will help you acquire baseline knowledge of the JD Edwards modules and learn how to increase the effectiveness of financial and operational audits in a JD Edwards environment.

19, 21, 23, 26, 28, 30 / Virtual Seminar Value Added Business Controls: The Right Way to Manage RiskConcentrating on “real-world” knowledge and experience, this highly interactive online seminar will help you use controls to detect and prevent fraud, design cost-effective control systems, and analyze existing control systems.

26 – 29 / Introduction to Auditing SAP ERP(IIA/Deloitte) / Dallas, TX, USAIIA Members: Register by March 12 to save an additional 10% off already reduced member pricing. This course provides an essential knowledge base as well as hands-on training for auditors working in an SAP ERP environment.

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CALENDAR

3, 5, 7, 10, 12, 14 / Virtual Seminar Enterprise Risk Management (ERM): An IntroductionThrough case studies, group discussions, and practical exercises, you will improve your understanding of ERM and the COSO ERM Framework, while getting up-to-speed with current issues, challenges, and emerging practices regarding GRC processes.

MAY

20104 – 7 / Seminars

Chicago, IL, USAIIA Members: Register by March 23 to save an additional 10% off already reduced member pricing. You and your colleagues will benefit from course offerings including COSO-based Internal Auditing, Effective Writing for Auditors, Introduction to IT Auditing (IIA/Deloitte), and Operational Auditing: An Introduction Through Advanced.

6 / Webinar Audits for Service Providers Yield Significant ResultsVisit www.theiia.org/E-learning for details.

10 – 13 / Auditing Oracle Applications(IIA/Deloitte) / Boston, MA, USAIIA Members: Register by March 26 to save an additional 10% off already reduced member pricing. This seminar will help you identify ways to provide an effective and efficient audit in an Oracle applications environment as well as how to audit Oracle applications security.

13 / Webinar Royalty Compliance: Licensing Reporting Risk AreasVisit www.theiia.org/E-learning for details.

17, 19, 21, 24, 26, 28 / Virtual Seminar Operational Auditing (OA): AdvancedIf you have more than three years of OA experience, you will benefit from this online, instructor-led, hands-on event that shares real-world techniques that can improve the controls in your organization.

20 / Webinar Uncovering Vendor Fraud and Theft Visit www.theiia.org/E-learning for details.

24 – 27 / Seminars Orlando, FL, USA IIA Members: Register by April 9 to save an additional 10% off already reduced member pricing.One of most popular seminar destinations features nine courses including our popular Tools and Techniques, CSA, and COSO classes and a new offering on Assessing Your Organization’s Risk Management Process.

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CALENDAR

YOU’VE GOT QUESTIONS… HERE’S WHERE TO FIND THE ANSWERS!

IIA members face new and

ongoing challenges in 2010 as

a result of the many changes

in both the business world

and the internal audit pro-

fession. Questions being

heard around the world

about how to meet these

challenges include:

■ How will The IIA’s newly issued International Professional Practices Framework (IPPF) impact my internal audit function?

■ Our board members are asking more questions about risk. Does my internal audit function have answers to those questions?

■ With information technology getting increasingly complex, how do we know that we’re appropri-ately considering key IT risks as part of our audit plan?

■ Difficult times increase the risk of fraud. Are we doing enough to prevent and detect fraud?

■ With all of these changes, do our internal audit practices align with The IIA’s quality assurance standards?

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FEATURE STORY

You can find all of the answers to these and other ques-tions in one convenient source: the recently released Internal Auditing: Assurance & Consulting Services, 2nd Edition. This premier international textbook, published by The IIA Research Foundation, answers the questions being asked by internal auditors worldwide.

HERE ARE JUST A FEW EXAMPLES:CHAPTER 2 Includes the IPPF, providing insights on both

the mandatory and strongly recommended guidance.

CHAPTER 4 Includes risk management, ranging from the role and expectations of the board to the different roles internal auditing should and should not play relative to risk management.

CHAPTER 7 Covers IT governance, risk management, and control policies and procedures needed to effectively mitigate IT risks.

CHAPTER 8 Discusses the fraud prevention and detection practices that are outlined in Managing the Business Risk of Fraud: a Practical Guide, which was co-developed by The IIA, AICPA, and ACFE.

CHAPTER 9 Describes the necessary procedures an internal audit function must perform to ensure an appropriate level of quality and outlines how to demonstrate that quality.

All this and more in a single textbook! As a valued IIA member, you save US $30 off the retail price of Internal Auditing: Assurance & Consulting Services, 2nd Edition. Visit www.theiia.org/Bookstore to purchase your copy today!

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FEATURE STORY

RECRUIT YOUR COLLEAGUES… REWARD YOURSELF!The IIA is proud to have so many members that are truly passionate and dedicated to their profession. Each day, IIA members are getting more involved with their local chapters and with The IIA, all with one common goal; to advance the profession of internal auditing.

In 2009, The IIA announced one more way for our members to get involved in growing the profes-sion and The IIA: the Recruit-A-Colleague program. Much of The IIA’s phenomenal growth over the years is attributable to members, such as you, through word-of-mouth and peer-to-peer networking. The

Recruit-A-Colleague program is designed to recognize members who truly advocate IIA membership at the highest level; inviting their peers and colleagues to join.

The Recruit-A-Colleague program is a year-long initiative, with quarterly recognition. For each new member you successfully recruit, you will be entered into a quarterly drawing to win valuable prizes from The IIA, such as complimentary conference or seminar registration, IIARF Book-store bundles, e-learning opportuni-ties, and much more. If you recruit 10 or more new members within the program year (October 1 through

September 30), your next IIA Membership renewal is FREE!

We’ve developed a recruitment kit with the tools and resources includ-ing tips for successful recruiting, a complete listing of membership benefits, application forms, sample e-mail templates to send to your colleagues, and more.

Visit www.theiia.org/Recruit to learn more about this exciting program and Recruit-A-Colleague today!

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