Cch social media risk audit control october 29, 2013

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Welcome to Today’s Web Seminar!

October 29, 20132:00 PM ET

Sponsored by: Hosted by:

Moderator: Dan HoodEditor-in-Chief of Accounting Today

Dan Hood has been with the publication for over a decade, previously serving as managing editor. He has also served as a business editor for the New York DailyNews Express, and as a production editor for The Wall Street Journal Europe.

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Turning Information into Action

Introductions:

Jim Kaplan, CIA and CFE, AuditNet®

Internet for auditors pioneer who has been using social media to network with other professionals and build the oldest Internet community for professional auditors.

http://www.auditnet.org/

Risk Audit and Control in a Social Media World

SourceMedia, Inc. is pleased to be able to offer CPE for this web session. It is imperative that you adhere to the following instructions to obtain CPE credit:

1. To receive credit, you must be in attendance for a minimum of 50 minutes. AccountingToday is not responsible for late arrivals or connections issues.

2. There will be required polling questions asked periodically throughout the session, allof which you must answer. Please remember to click “Submit” after choosing your answer.

3. If you have completed the above, please allow up to five business days from date of today’s session, to receive an email from [email protected]. This email will contain instructions on how you can download and print your CPE Certificate.

Please note CPE Certificates will ONLY be sent to those attendees who stayed for at least 50 minutes and answered all required polling questions. Please email any certificate questions to [email protected].

SourceMedia Inc. is registered with the National Association of State Boards of Accountancy (NA SBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Nashville, TN, 37219-2417 or by visiting the web site: www.nasba.org.

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Risk Audit & Control in a Social Media World

Hosted by:Accounting Today

October 29, 2013


Social/professional networking

Risks associated with social media for networking

Auditor’s role in the social media life cycle.

Best practices for using social media.

Leveraging social media for professional networking and benefits

If we build it …

Closing and questions

Agenda

Risk Audit and Control in a Social Media WorldRisk Audit and Control in a Social Media World

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Social Networking Defined

What is a social network?

An online community of people with a common interest who use a Web site or other technologies to communicate with each other and shareinformation, resources, etc.: a business-oriented social network.

Important clarification – business oriented rather than personal

Need to understand the primary orientation of the Network to focus on professional relationships

Network Orientation Business Use

Business High

Mixed Medium

Mixed Limited

Mixed Medium



Social Media Defined

What is Social Media?

Web- and mobile-based technologies used to disseminate information

and solicit feedback on a real-time basis which are used to turn

communication into interactive dialogue among organizations,

communities, and individuals

A group of Internet-based applications that build on the ideological and

technological information of Web 2.0… allows for the creation and

exchange of user-generated content

Social media expedites conversation in contrast to traditional media,

which delivers content but doesn't allow readers/viewers/listeners to

participate in the creation or development of the content.

Example of social media include internet forums, weblogs, social blogs,

microblogging, wikis, social networks, podcasts


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Professional Networking in the Digital Age

Online networking sites have become increasingly popular. These

resources allow participants to quickly and easily expand their circle of

contacts, share information and keep abreast of industry trends.

Executives involved in hiring decisions also are finding these online

communities to be a valuable tool. According to a survey by

Accountemps®, nearly two-thirds (62 percent) of executives interviewed

said professional networking sites, such as LinkedIn, will prove useful in

the search for job candidates in the next few years. And one in three (35

percent) cited social networking sites such as Facebook as a recruiting

resource they plan to tap.



Why is it so popular?

Community - allows people to join together based on common interests and

values.

Transparent – when used properly it can project authenticity

Engaging – communication channel opening dialogues with many individuals

Borderless – the world is flattening and we are no longer restricted to

connecting with only those who are close

Creative – fosters innovation and expression

The Pew Research Center found that’s the “major reason” given by six of every

10 users of Facebook, Twitter or LinkedIn. And half of the people surveyed said

the ability to reconnect with old friends played a “significant role” in using

social networking.


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Polling Question #1


Social Media Options

LinkedIn

Facebook

Twitter

YouTube

Blogs

Discussion Forums

According to survey by CEO.com - Social media will become one of the

two most important forms of engagement with employees and

customers, second only to face to face interactions.


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Social Media Risks

Social media and cloud computing are top concerns – Internal audit executives and professionals recognize they must have superior knowledge and understanding of these areas and their inherent risks, and how their organizations are leveraging as well as controlling them, in order to perform their jobs at a high level and add value to the organizations they serve.

- Protiviti 2012 Internal Audit Capabilities and Needs Survey

March 20, 2012

Social Media and Cloud Computing Top Internal Auditors' Technology Hot List, According to New Protiviti Research

The Biggest Social Media Risk: Not Paying Attention to Social Media according to major corporate executives



Social Media Risks

Prioritized concerns from a survey

conducted by Grant Thornton and FERF

1. Disclosure of proprietary information

2. Negative comments about the company

3. Exposure of personally identifiable

information

4. Fraud

5. Out of date information

As the use of social media continues to grow, so too does the risk of fraud involving social media.

- Social Media and its associated risk – Grant Thornton and FERF


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Social Media Risks and Controls

Risks

• Employees or non-employees creating a social media page representing your company without management/IT consent or approval

• Trade secrets or other business secrets being inadvertently or even deliberately shared

• Dissatisfied customers or disgruntled employees voicing their opinions freely

• Viruses, spyware and network vulnerabilities occurring due to the interactivity and open nature of social media architecture

Controls

• The extent to which social media will be officially sanctioned by the organization

• Who is allowed to use the social media sites

• How users gain approval to use the social media sites

• Standards/policy of social media use inside and outside of the workplace

• Brand monitoring and legal involvement

• How to report false pages



Internal Audit’s Role

Social media is now embedded in our personal and business culture and auditors need to know the what the risks and controls are, how to audit this new communication tool and also how to adapt it for use within the audit environment.

Jim Kaplan, AuditNet®

Internal audit’s role in social media may include the following:

• Understand how social media is being used within the organization

• Review social media policies

• Understand the potential risks of social media

• Conduct a social media risk assessment

• Ensure that controls are in place to address social media risks

Review and monitor compliance with implemented processes

Assess implemented controls

• Records retention issue

Internal audit should NOT be developing business processes that mitigate risk

• Why?


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Polling Question #2


Social Media Audit Objectives and Scope

Objective—The objective of the social media audit/assurance review is to

provide management with an independent assessment relating to the effectiveness of controls over the enterprise’s social media policies and processes.

Scope—The review will focus on governance, policies, procedures, training

and awareness functions related to social media. Specifically, it will address:

• Strategy and governance—policies and frameworks

• People—training and awareness

• Processes

• Technology

The selection of the social media projects and initiatives will be based on the risks introduced to the enterprise by these systems.


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Social Media Audit Program Sample Steps

• Social Media Audit Program — Should be a comprehensively written program to detect,

implement, and monitor compliance with the laws and regulations that impact the

various components of social media. It should provide written procedures to ensure

compliance.

• Identification of inappropriateness with social media channels and non-compliance

with the Social Media Policy — The company should clearly identify what is acceptable

and what is not acceptable, based on a risk assessment and the outlined rules and

specifications of the Social Media Audit Program.

• Prior examination/audit findings — If weaknesses were previously cited in the

company’s social media examination or audit that may impact the company’s social

media program, has management taken appropriate steps to institute corrective actions?

• Training program(s) — Training should be tailored to address all employees. Incident

response — A formal review should be made of all alleged and/or actual incidents and

how the company handled the incident.

• Internal audit and annual reports — Management should regularly report on its

responsiveness to cited weaknesses in the social media program.



Social Media Best Practices

1. Designate a social media champion in your department or firm to monitor and leverage networking capabilities

2. Integrate social media into audit projects and planning.

3. Respond within minutes or hours (not days) to any comments on social media about customer service. You need to track your firm or organization to do this

4. Tell a continual story through social media – there should be a trend and voice to your efforts.

5. Measure and Analyze everything. If you can’t measure it you can’t manage it.

6. Stay educated and connected to social media – the wave is here and you don’t want to get left behind when it hits your organization.


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Professionals and Social Networking

10 Reasons for auditors to use social networking tools

1. Network with other auditors for advice on issues

2. Get answers to audit technology questions and issues

3. Benchmark best practices

4. Share (reports, programs, issues)

5. Share methodologies

6. Foster one to one and one to many communications/discussions1

7. Research audit and technology issues using advanced search skills1

8. Establish a dialogue with your professional network1

9. Establish knowledge feeds1

10. Gain knowledge for risk, control and audit of social media

Auditors need to be plugged into social networks to stay current with professional issues and the latest tools and technologies!

Jim Kaplan1 core competency for digital literacy



The Best Social Media Apps for Auditors

The most powerful and comprehensive Audit Tool for Google Apps - Scan, control and secure all Sites, Docs, Groups, Calendars and Users giving you more security over the data that you own. If you have not installed this tool - you don't know what you're missing.

This easy to use report program can scan all sites, documents, email groups and calendars at your domain and show you exactly who has access to your information. For domain admins it is an essential Audit tool allowing you to show management and auditors exactly who has access to what.


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Guidance and Publications



Adding Value for Audit

So how can auditors use social networking to add value to the audit function?

1. Networking with other auditors for advice on issues

2. Getting answers to technology questions

3. Fostering communication through discussions and

4. Benchmarking

5. Sharing (reports, programs, issues)

6. Sharing methodologies

7. Receiving knowledge feeds on training, conferences and other CPE

opportunities


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Leveraging Social Media for Audit

Network Contribute

Educate

Share Connect

Explore

Build

Research

TheMissing

Link is You


Polling Question #3

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Stay Connected

Auditing is an information-intensive,

complex profession. Many issues require

auditors to keep up to date on rules and

regulations, and auditing procedures can

be difficult to master.

Joining a social network facilitates your

ability to stay on top of news and trends,

to ask questions and receive answers and

to share knowledge with peers.



Share Knowledge

Many specializations of auditing require very

high levels of knowledge.

Joining a network allows you to find other

specialists in your field who can help you

learn more. Or if you are an expert at what

you do, joining a network gives you a

platform to become more recognized for

your own expertise.


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Solve Problems

Tracking down the answer to an auditing

question can take hours or even days using

standard methods of online and offline

research.

Joining a network hooks you up to a wide

range of colleagues, one of whom is likely to

have the answer you need or who can lead

you to the right person (within a few degrees

of separation), saving you time and money.



Facilitate Networking

Finding the time to do traditional

networking (meetings, lunches, phone

calls) can be difficult and requires

everyone to be available at the same

time.

In contrast, your online social network

can be accessed at any time. Matching

schedules becomes moot, as connecting

with people and getting information can

be done asynchronously.


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Leverage the Internet

Companies and individuals in today’s world

increasingly seek out leads, customers,

referrals and partners on a national and even

global basis. Business ventures can be

conducted “virtually” through online

connections.

Joining a social network opens the doors to this

new global world, offering opportunities to find

new business, new partners, or to collaborate

with others on projects.


Build Relationships

The old methods of persuasion marketing and

hard-sell advertising are shifting. People today

prefer to build relationships with the companies

they do business with.

Joining a social network gives you the capability

to form relationships with potential clients and

colleagues. Many large accounting and auditing

firms already recognize this and are establishing a

presence on social networks where they offer free

workshops and answer questions to demonstrate

their expertise and build trust.


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Synergy and Value

Social networking is already the accepted

form of connecting with others for the

‘Millennial’ generation of young auditors

entering the workforce. As social networks

become increasingly used by them, the stakes

will rise for those who continue to be

reluctant to join.

In other words, if you do not have a presence

on a social network, you will simply lose

ground to those who do.



What is Your Response to Social Networking?


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AuditNet® and Social Networking – or if we build it…

AuditNet® has engaged in social networking for almost 20 years.

Founded on the principle of establishing an online communication sharing network for auditors

Started sharing audit programs in 1995 and now have more than 2,000 audit program templates

Created a LinkedIn group that has over 7,500 members http://www.auditnet.org/PAIN.htm

Created a network of more than 125k professional auditors from 221 countries on 5 continents.

Web site average for 6 months since redesign – 131,000 visits with more than 1 million page views.

Use LinkedIn and Twitter for surveys on audit use of technology and best practices

Video based training and Training without Travel™ Webinars for ACL, IDEA, Excel for Auditors, Internal Audit Skills and Detecting and Preventing Fraud using Data Analytics



Q&A Session: Questions


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For more information …

http://www.auditnet.org

CCH Accounting Research Manager & Audit Resources

http://www.cchgroup.com/arm

Real-World Strategies for Effective Document Management 38

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SourceMedia, Inc. is pleased to be able to offer CPE for this web session. It is imperative that you adhere to the following instructions to obtain CPE credit:

1. To receive credit, you must be in attendance for a minimum of 50 minutes. AccountingToday is not responsible for late arrivals or connections issues.

2. There will be required polling questions asked periodically throughout the session, allof which you must answer. Please remember to click “Submit” after choosing your answer.

3. If you have completed the above, please allow up to five business days from date of today’s session, to receive an email from [email protected]. This email will contain instructions on how you can download and print your CPE Certificate.

Please note CPE Certificates will ONLY be sent to those attendees who stayed for at least 50 minutes and answered all required polling questions. Please email any certificate questions to [email protected].

SourceMedia Inc. is registered with the National Association of State Boards of Accountancy (NA SBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Nashville, TN, 37219-2417 or by visiting the web site: www.nasba.org.