1、Seize the Moment!,Betty McPhilimy, CIA, CPAAssistant Vice President for Auditing and ComplianceNorthwestern UniversityIIA Chairman of the Board, 2004-2005,IIA Chairman,Reflections Volunteer! If not you, then who?,ACUA and The IIA,IIA Standards GAIN QAR On-line training coursesSeminar leadersIIA comm
2、ittees & BOD,ACUA and The IIA,Additional opportunities:Higher Ed workshops, roundtables, seminars or forums held in conjunction with IIA events Marketing on the IIA website & catalogsProviding speakers to each others conferences on topical issues.,World Events,Corporate scandals,Scandalous activity,
3、Off-the-books loans Manipulated the market Bribed government officials Overstated cash flow Inflating capital expenses Anonymous letters Intending to mislead Boosted profits Obstruction of justice Hidden debt Overstating results Shredding documents,Above the Law,Greed,Lack of Ethics,Corporate Govern
4、ance Breakdown,Breakdown of Internal Controls,No Accountability,Incentive Compensation,Who wants to be in the news?,“Maintaining the right image everything for colleges” Houston Chronicle 9/10/05,Who wants to be in the news?,“Cleaning Our Own House defrauding the halls of academe”Article by: Mary-Jo
5、 KranacherFraudMagazine, 8/04,Who wants to be in the news?,“119 students who failed courses get group e-mail” USA Today 6/17/05,Who wants to be in the news?,“xxxs” Medical School Will Pay $4.3 Million to Settle Federal Lawsuit over Fraud in NIH Grant Chronicle of Higher Education, 6/23/05,Who wants
6、to be in the news?,“Why Cant Colleges Hold on to Their Data?” Chronicle of Higher Education 5/6/05,Who wants to be in the news?,“Allegations of fake research hit new high” The New York Times 7/9/05,World Events,New regulations,NYSE SEC PCAOBSarbanes-OxleyMore globally advocating IA, requiring compli
7、ance with The IIA Standards,Recent Events,Re-engaging on Controls,Sarbanes-Oxley is “all about controls” Who knows controls better than ,Compliance w/SOX,Whew! not something we have to worry about or is it?,Compliance w/SOX,“How Nonprofits are responding to the Sarbanes-Oxley Act”CASE, 8/04,Complian
8、ce w/SOX,“The Sarbanes-Oxley Act of 2002: Recommendations for Higher Education” NACUBO, 11/20/03“SEC Chairman Suggests Self-Regulation to Nonprofits” NACUBO 11/17/04,Compliance w/SOX,“Sarbanes-Oxley and College Accountability”The Chronicle of Higher Education 7/8/05,Compliance w/SOX,“States Propose
9、New Accountability Regulations for Nonprofit Groups” The Chronicle of Philanthropy, 8/19/05,Compliance w/SOX,“Sarbanes-Oxley for Dummies” is coming out in February “If it feels wrong, dont do it.”Publisher John Wiley & Sons in the WSJ 8/26/05,Mea culpa,Your presenter may have violated Copyright appr
10、oval!Your presenter may have violated Export Controls regulations!,Recent Events,Impact on Internal Auditing . rise in stature!,Impact on IA,“Now the demand for accountants and internal auditors needed to meet the new government regulations is so high ” The Wall Street Journal Jan. 18, 2005,Impact o
11、n IA,“Headhunters are hustling to meet deluge of demand for accountants and auditors” The Wall Street Journal Jan. 18, 2005,Impact on IA,Internal Auditors “are rock stars now. This is their day in the sun.” Bruce Nolop, CFO Pitney Bowes, Inc. CFO Journal, February 2004,Impact on IA,“Corporate Royalt
12、y, thats what you are ” Kayla J. Gillan, PCAOB March 2004,Impact on IA,Internal Auditors “are the white knights of business.” Vancouver Sun newspaperApril 2004,Impact on IA,“The auditor can be your friend” Cover story: SC Magazine, 6/05,Impact on IA,“Thanks, Enron: Auditors gain Clout on Campus” Chr
13、onicle of Higher Education 6/10/05,Impact on IA,Time Magazine“person of the year”,Actions not condoned,WorldCom CEO 25 yrs, CFO 5 yrsAdelphia . CEO 15 yrs, CFO 20 yrsRite Aid Corp CEO 8 yrsTyco CEO & CFO 25 yrsWestar Energy Co. CEO guilty on 39 counts 9/12/05 “looting the company”,Impact on IA,More
14、graduates in field,Impact on IA,“Internal Auditing has bumped electrical engineering as the hot field for new college grads” Greater Baton Rouge Business ReportMarch 29, 2005,Impact on IA,EIAP programs AL AZ CADC FL IDIL KYLA MAMIMONY OHPATNTX VA,Impact on IA,EIAP programs France- LebanonNetherlands
15、- NorwaySouth Africa- SwitzerlandThailand- United Kingdom,Impact on IA,Increased IIA membershipNow at 108,000!More than doubled in last 10 years,Impact on IA,More CIAs,Impact on IA,May 2004 exam: 9,439 candidatesMay 2005 exam: 13,143 candidates= now over 50,000 CIAs worldwide,IIA Opportunities,Incre
16、ased advocacy to be recognized as the global voice for the internal audit profession,Increased advocacy,Monitoring legislationAppearing before state boards, governing bodiesFostering relationshipsDeveloping position papers,Increased advocacy,IIA Position Papers: IAs role in ERM IAs role in Sarbanes-
17、Oxley IAs role in expressing an opinion on internal control Resourcing the IA function,Resourcing the IA function,alternatives for IA servicepromoting IA activitiespartnering arrangementsoversight & responsibility,Resourcing the IA function,IIA believes IA functions housed within an org are most eff
18、ective ACUA believes only IA functions housed within an org are effective,IIA Opportunities,Strategic planning ValuesSWOTMission & VisionGap AnalysisStrategic Directives Measurable Performance Objectives,The IIA Vision,To be the global voice of the internal auditing profession: advocating its value,
19、 promoting best practice, and providing exceptional service to its members.,Strategic Plan Objectives,Advocacy Globalization Service to Members,IIA Opportunities,Speaking for the profession Responding to regulators: SEC, PCAOB, INTOSAI, GAO, AICPA, ISO, IFAC, OSC, NACD, FEI, COSO, ISACA, OCEG, CIO,
20、CICA, APEC ,IIA Opportunities,Advancing corporate governance,IIA Opportunities,Promoting ERM Risks Opportunities A framework,IIA Opportunities,The COSO ERM Framework,IIA Opportunities,Promoting ERM whos job is it anyway?,BoardManagementInternal Audit,IIA Opportunities,Promoting ERM roles for IA,Givi
21、ng assurance on process, how risks are evaluated, evaluating processEvaluating reporting of risksHelping ID & evaluate risksCoordinating ERM activitiesConsolidating reporting on risksMaintaining & developing frameworkChampioning establishment of ERM,IIA Opportunities,Technology Training Website GTAG
22、 series,IIA Opportunities,Advocating for ethics “It is easy to be ethical until it costs you something!” General Gordon Sullivan Former US Army Chief of Staff,CFO.COM Poll,Have you ever engaged in “aggressive accounting” practices to improve your companys reported financial results?,CFO.COM Poll,Hav
23、e you ever engaged in “aggressive accounting” practices to improve your companys reported financial results? - No: 61%Yes: 39%,Ethics in Higher Ed,“Lets Get Ethical” A new survey reveals how higher education is faring in the ethics and compliance arenaby: Tina Sheldon & W. Michael Hoffman NACUBO Bus
24、iness Officer, 2/05,IIA Opportunities,Extending global capacityMembershipTraining & Resources CertificationTranslations,IIA Opportunities,Furthering best practices in developing nationsGovernanceBest practices Quality auditingMarketing the profession,IIA Opportunities,Enhancing benefits of belonging
25、 IIA training, publications, products, services, research, guidance, networking,IIA Opportunities,Serving new needs of members,IIA Opportunities,Advancing IA as a career choiceHigh-level view of the organization and industryExposure to senior managementTransferable skills,Your Opportunities,Living u
26、p to the definition,Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organizations operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiven
27、ess of risk management, control, and governance processes.,Fostering ERM,Re-engaging on Internal Controls,Facilitating more effective corporate governance,Your Opportunities,Using the PPF,Your Opportunities,Adhering to The IIA Standards,Your Opportunities,Promoting Quality,Your Opportunities,Recomme
28、nding improvements management values what you have to say,Your Opportunities,Modeling professionalism,Seize the Moment!,Educating management and the board,Seize the Moment!,20 Questions Directors Should Ask About Internal Audit download at: www.TheIIA.ORG,Seize the Moment!,Educating management and t
29、he boardThe AICPA Audit Committee Toolkit: Not-For-Profit OrganizationsThe IIAs Audit Committee Effectiveness What Works Best 8/05,Seize the Moment!,Provide assurance,Tactical Advisor,Strategic Facilitator,Assurance Provider,Seize the Moment!,Advocate for strong controls be sure the basics are cover
30、ed,Seize the Moment!,Identify risksUse FrameworkFocus on Impact and Probability,Focus!,Target audit resources where risk is greatest!,Source: A Guide to the Use of Risk Management Within the Internal Audit Process, 2002 The IIA - Australia,Seize the Moment!,Promote ethics,Seize the Moment!,Tone at t
31、he top! Ethics officerCode of ethics Employee acknowledgementBackground checks,An Effective Ethics Program is ,Seize the Moment!,Training Controls Anonymous reporting mechanism Accountability Monitoring,An Effective Ethics Program is ,Seize the Moment!,Be heard by those at the top,Seize the Moment!, MAKE A DIFFERENCEThank you! www.theiia.orgb-mcphilimynorthwestern.edu,
