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IIA Audit News A newsletter for members of the Albany Chapter of the Institute of Internal Auditors
The 2013 Technology Conference is jointly sponsored by:
VOLUME 47 , I SSUE 5
JANUARY 2013
When: Thursday, January 31, 2013 Registration and Continental Breakfast: 7:30 AM – 8:00 AM Program: 8:00 AM – 12:00 PM Where: College of Nanoscale Science and Engineering 257 Fuller Road Albany, New York 12203
Register Online: http://www.cvent.com/events/isaca-iia-2013-january-technology-conference/event-summary-7fd0c55420c747f4a802ba7d8d2ee39f.aspx
Cost to attend: Before January 10th: · $35 for members of the following organizations: IIA, ISACA, AGA, ACFE, NYS Forum, ISSA, OWASP, and INFRAGUARD · $12 also for SUNY students · $45 for non-members After January 10th: · $45 for members of the following organizations: IIA, ISACA, AGA, ACFE, NYS Forum, ISSA, OWASP, and INFRAGUARD · $12 also for SUNY students · $55 for non-members CPEs: 4
2013 TECHNOLOGY CONFERENCE—JANUARY 31, 2013 Hosted jointly by the Albany IIA and Hudson Valley ISACA!
The New IT Audit Essentials
Improve your ability to discuss emerg-ing technical topics with your organiza-tion’s IT personnel, understand their concerns and effectively request infor-mation they can provide. Become a valuable member of an IT procurement or implementation project team. De-velop skills to grasp IT concepts quickly and attain insight to find the root cause of an issue. This course will give an up-dated overview of basic system infra-structure which includes networks, hardware, operating systems, databases, and applications which are the target of ever-changing threats from the shifting risks of the information age. The audit risks and challenges of cloud comput-ing, wireless networks, and mobile de-vices. Also, find ways to look for audit information in a non server based envi-ronment.
Speaker: Reg Harnish (CISM, CISSP, CISA, ITIL) is an entrepreneur, speaker, security specialist and the
Founder of GreyCastle Security. With nearly 15 years of security experience in Financial Services, Healthcare, Higher Education and other industries, Reg focuses on security solutions ranging from risk management, incident han-dling and regulatory compliance to net-work, application and physical security. Reg is a frequent speaker and has pre-sented at prominent events, including the NYS Cyber Security Conference, the Rochester Security Summit, the New York Bankers Association and Symantec Vision. Reg's successes have been fea-tured in several leading industry jour-nals, including Software Magazine, Com-p u t e r W or ld an d In f oW or ld .
Page 1 IIA Audit News
2013 Technology Conference 1
President’s Message 2
Annual Holiday Luncheon 3
Certification Winter Inventory Sale
4
Constructing Fraud 5
CAP Corner 6
Calendar 7
Inside this issue:
Page 2 Volume 47, Issue 5
Thank you!
PRESIDENT’S MESSAGE By Linda Giovannone, CIA, CGAP
Happy New Year! With a new year come new resolu-tions. Did you know that about 80 percent of us won’t achieve those resolutions? Do you know how the other 20 percent succeed? They break their resolutions down into attainable goals. If your resolution is enhancing your professional skills, the Albany Chapter of the IIA will make it easy for you to keep that resolution in 2013. One way is that we will be offering you specialized train-ing throughout the year. Get a good start on your reso-lution by considering the 2013 Technology Conference that we are jointly sponsoring with ISACA on 1/31/13. Please see the first page of this newsletter for event de-tails. A special thank you goes to Barbara Bowden, Jer-emy Dudley and Elizabeth Bogdanowicz, along with our ISACA partners for bringing us this program.
Another easy way to enhance your skills will be to obtain an IIA professional certification. To get started, on 2/14/2013, we’re hosting a Professional Certification Breakfast along with the local chapters of the AGA, ACFE and ISACA. There, you will learn about IIA cer-tifications including the Certified Internal Auditor (CIA), Certified Government Auditing Professional (CGAP), or the Certification in Risk Management As-surance (CRMA). Please seek out Mary Peck and David Robertson while you’re there for more information about these certifications. Please visit our website for more event details (http://www.theiia.org/chapters/index.cfm/view.news_detail/cid/87/newsid/2920).
I would like to take this opportunity to sincerely thank Melody Craft for her dedicated service to the Albany Chapter IIA.
Melody has served as the Chapter's News-letter Editor over the past eight years! She has continuously kept our member-ship apprised of all Chapter activities and news. Please join me in thanking Melody for contributing her time and talents to serving our membership and wishing her well in all future endeavors.
8 Years of Service
Thank you, Melody!
Fraud Conference Recap This year, the Fall Fraud Seminar saw a record turnout for this two-day event. As is customary, the speakers were exceptional and kept us captivated with their varied experiences. This included a full day with Don Rabon who showed us various ways to identify deception clues during interviews.
I’d like to thank everyone who generously donated to the raffle with proceeds benefitting the Regional Food
Bank of Northeastern New York. Combined with dona-tions from each of the local chapters of the IIA, AGA and ACFE, we were able to gift $1,000 to the Regional Food Bank at a critical time of year. I would also like to thank Steve Hillerman, Albany IIA Chapter Board Mem-ber, along with our partners of the local chapters of the AGA and ACFE who put this exciting event together.
Page 3 IIA Audit News
PRESIDENT’S MESSAGE CONTINUED…
Holiday Luncheon Recap
On December 4, 2012, members of the New York Capi-tal Chapter of the Association of Government Account-ants, the Albany Chapter of the Association of Certified Fraud Examiners, the Albany Chapter of the Institute of Internal Auditors, and the Hudson Valley Chapter of ISACA gathered at Wolferts Roost for the annual Holi-day Luncheon. Almost 90 colleagues enjoyed a delicious lunch, exchanged holiday greetings and were motivated by our guest speaker. Dr. John Pelizza energized all in attendance by focusing on what is really important in their work and family lives by providing tips on personal
growth, wellness, and stress management. Hopefully, these principles helped create a joyful holiday season!
Thanks to the generous support of the charity raffle, and the four sponsoring organizations, a donation of $1,000 was made to Mercy House in Dr. Pelizza’s name.
HAPPY NEW YEAR!!
It’s always a pleasure to reconnect with colleagues and welcome new people at the Holiday Luncheon, which is jointly sponsored by the local chapters of the IIA, AGA, ACFE, and ISACA.
John Pelizza did a wonderful job of inspiring us to be ―Happy, Happy‖ during the upcoming year. Let’s give a special thanks to Karen Cronin, Joe Morrissey and Christina Lastowski of the IIA, and other committee members of the AGA, ACFE, and ISACA who made this event possible. And thank you to all of you who contributed to the fundraiser benefitting the Mercy
House. Due to your generosity, Mercy House received a $1,000 donation that day.
Please reach out to Barbara, Jeremy, Elizabeth, Mary, David, Steve, Karen, Joe, Christina, or any other Chap-ter volunteer if you are interested in joining our dedi-cated group. We welcome you to contact us directly if you have any ideas on how we can better serve you throughout this new year.
Happy New Year, Linda
UPDATE ON HOLIDAY LUNCHEON by Karen Cronin, CPC, CPC-P
Volume 47, Issue 5 Page 4
The following items are discounted and available for imme-diate delivery. These materials will be sold on a first come-first served basis, so don’t wait too long. If you would like any of these materials, please contact Mary Peck at [email protected]
CIA Study Materials The Next Order Date is 1/25/2013!
CERTIFICATION WINTER INVENTORY SALE
Inventory Item Sale
Price Normal
Price
CIA Model Exam - CD 30.00 35.00
CIA Model Exam - CD 30.00 35.00
CIA Model Exam - CD 30.00 35.00
CGAP Guide - 4th Ed 65.00 75.00
CGAP Guide - 4th Ed 65.00 75.00
Gleim 13 (v4.5) - Part 4 Book/CD/Audio 10.00 60.00
IIA CIA Learning System 2007 (Part 1
Book) 5.00 N/A
IIA CIA Learning System 2007 (Part 2
Book) 5.00 N/A
IIA CIA Learning System 2007 (Part 4
Book) 5.00 N/A
Related Links: CIA Exam – Get Started! https://na.theiia.org/certification/cia-certification/pages/cia-certification.aspx CIA Sample Example Questions: https://na.theiia.org/certification/cia-certification/pages/sample-exam-questions.aspx CIA Transition Plan: https://na.theiia.org/certification/cia-certification/pages/transition-plan-for-cia-candidates.aspx CIA Transition – Content Map: https://na.theiia.org/certification/Public%20Documents/CIA%20Four-part%20to%20Three-part%20Exam%20Content%20Map.pdf
Member Pricing: CIA Review Study Guide (16th Edition) and Test Prep Software - Price per part: $60.00 The IIA's CIA Model Exam (Book) $25.00
Also, if you would like to order any study materials for the specialty exams (CCSA, CGAP, or CFSA), we can include them on the Model Exam order. As a heads up, the IIA is currently offering an inventory close-out sale on the older version (3rd) of the CGAP Study Guide.
CGAP Study Guide (3rd Edition) and the CGAP Exam Study Questions (Book) $80.00
CGAP Study Guide (3rd Edition) and the CGAP Exam Study Questions (CD) $85.00
CGAP Exam Questions (Book) $39.00
CGAP Exam Questions (CD) $49.00
If you’d like to be included in the next Gleim or IIA orders, please email Mary Peck at [email protected].
Volume 47, Issue 5 Page 4
CONSTRUCTING FRAUD Source: http://www.theiia.org/intAuditor/fraud-findings/
Page 5 Page 5 IIA Audit News
Fraud expert Art Stewart responds to real-life fraud cases — ripped from the media headlines — by sharing tips aimed at helping internal auditors navigate the massive fraud universe and deter would-be fraudsters.
Bloomberg reports that the former CEO of Canada-based SNC Lavalin Group Inc., who retired during a corruption scandal earlier this year, has been arrested and charged with fraud, fraud conspiracy, and forgery. On March 26 — the day the former CEO retired — SNC-Lavalin said a probe found that more than half a million dollars in expenses related to hiring construction con-tractors had been booked incorrectly. The company also alleged the former CEO failed to comply with the com-pany’s code of ethics in approving some of the pay-ments.
Lessons Learned
Internationally, there are diverse legislative, regulatory, and policy regimes, and among Western countries, there is an increasing trend in government enforcement of anti-bribery and corruption policies. Substantial fines and penalties also are heightening concerns among mul-tinational corporations — well beyond those involved in engineering and construction like SNC-Lavalin. Adding to this is the increasing flow of capital funds into higher-risk countries and economies.
Many companies have or are moving toward strengthen-ing their compliance programs to mitigate the risk of business interruption and reputational damage arising from corruption and fraud scandals. Auditors, particu-larly those working within multinational corporations, need to stress the importance of planning and executing anti-fraud, corruption, and bribery-related audits as part of a top-down, bottom-up approach in a balanced com-
pliance program.
Internal auditors should focus on key business risk areas as well as the review and testing of particular internal controls (e.g., accounting) that often are used to record or disguise improper transactions and behavior, includ-ing:
Controls over funds. Unauthorized use of bank ac-counts, including signatories, management of bank mandate, off-balance-sheet accounts, and third-party access; inappropriate payments (e.g., controls over high-risk payment mechanisms and use of manual payments); and inappropriate use of cash, such as advances and petty cash. Procurement and payment. Unauthorized pur-chases, including purchase order approvals and three-way matching processes; inappropriate vendor management processes, such as vendor adoption, master file controls, and abuse of one-time vendor provisions; and high-risk transactions, particularly commissions. Sales and marketing. Inappropriate use of interme-diaries, including inadequate and incomplete due diligence, authorization, training, and contractual provisions; improper gifts and entertainment; and inappropriate donations and sponsorship. Cost accounting and accounting records. Abuse and lack of budgetary controls, including budget versus actual variance analysis and approval and ac-cess controls; misclassification, including chart of accounts and inappropriate general ledger journals; authorization, including segregation, high-risk ac-counts, and access controls; uncleared suspense ac-counts; and inappropriate intercompany transac-tions.
Don’t forget to report your
speaking hours to Joel Biederman!
jbiederman@ OSC.state.ny.us
Or Phone
(518) 486-3038
Volume 47, Issue 5 Page 6
CONSTRUCTING FRAUD CONTINUED...
This is by no means a complete list, and looking beyond the scope of what appears to be involved in the SNC-Lavalin case, an auditor also would need to examine con-tracting and tendering, receivables management, and technology controls.
Overall, anti-corruption and fraud compliance testing should be included in general internal audit work plans and in systems and controls audits, as well as be adapted
to the changing business operating environment. Be-cause of the complexity of international environments, laws, and business arrangements, outside expertise should be leveraged to help assess the risk environment, when necessary.
By Joe Morrissey, CGAP
The Chapter Achievement Program is designed to recognize activities that promote the strategic objectives of The IIA. This program provides mini-mum standards of performance for providing service to our Chapter mem-bers, providing service to the internal auditing profession and for adminis-tering the activities of the Chapter. The Program emphasizes the basic mis-sion of the Chapter, encourages Chapters to perform that mission, and provides Chapters with a means to evaluate their success in accomplishing that mission.
Targets
Bronze 685
Silver 1,060
Gold (Platinum) 1,560
Category Minimum for Bronze Albany Chapter Points
(to-date) Achieved as of
December 7, 2012
I. Service to Members 325 567 174%
II. Service to Profession 200 705 353%
III. Chapter Administration 160 175 109% Totals 685 1,447
Page 7
CALENDAR Save the Date!
IIA Audit News
SCHEDULE OF EVENTS 2012-2013
Albany Chapter – Institute of Internal Auditors
SEPTEMBER
September 19, 2012
Integrated Auditing
6 CPEs
OCTOBER
October 24, 2012
Difficult People? Not
Anymore! Transform Conflict into Collabo-
ration like Magic!
4 CPEs
NOVEMBER
November 19-20, 2012
Fraud Conference
7 or 14 CPEs
DECEMBER
December 4, 2012
Holiday Luncheon
No CPEs
JANUARY
January 31, 2013
Technology
Conference
4 CPEs
FEBRUARY
February 14, 2013
Certification Roundtable
No CPEs
MARCH
March 18-20, 2013
TCTC-2013
APRIL
April 2013
MAY
May 2013 HH
JUNE
June 2013
JULY
July 2013
AUGUST
August 2013
