Volume II, Issue I

2014LSUCIA Newsletter

In the CLASSROOMInside the Issue:

In the CLASSROOM | 3

Class Events: ................................. 3 · Kickoff Event ............................. 3 · Company Presentations ............. 4 · IIA Meeting ............................... 4 · Credible You Workshop ............ 4 · John Beard Presentation ............ 5 · Speaker Series: Oil & Gas .......... 5 · Interviews ................................. 6

Spring Cases Assigned .................. 6New GRC Course Status ............... 6

Student SPOTLIGHT | 7

Certification – 2013 Update .......... 7CIA Dinner .................................... 72014 Class Officers ....................... 7

ALUMNI on the Geaux | 8

Alumni Spotlight Alex Stephanouk ........................ 8 Student Spotlight Yalan Wang ............................... 8The Purposeful Audit .................... 8Globalization ................................ 8Soileau to join Honors College Advisory Board .. 9

SUMNERS Training Corner | 9

Book Review – The Black Swan ..... 9Spring Student CIA Exam Review .. 9Alumni Training ............................ 9

Special FEATURES | 10

30th Year ................................... 10MIS Super Strategies ................... 10IIA All-Star Conference ................ 10AHIA / LSUCIA Survey ................. 10Globalization – UP – LSU Case Competition ............................... 10CISA Initiative in 2015 ................. 10Marketing ................................... 10

2014 Graduate Assistants ........... 11

Update Your Information ............ 11

Upcoming Events for 2014:LSUCIA Alumni Conference | October 23 – 24

The LSU Center for Internal Auditing hosted its ninth annual Recruiter Reception and Kickoff Event on Saturday January 25, at the Business Education Complex (BEC). Due to the “snowy” weather conditions and school closures, the LSUCIA staff had to make minor updates to the schedule and location, but the events were still huge successes, thanks in large part to the flexibility of the students, practitioners, and staff. The changes will aid in positive updates for the events in future years to come.

Our events began with breakfast and networking in The Rotunda, followed by a welcome from Professor Lydia Lafleur in The Auditorium. Each practitioner introduced themselves to the students; stating their company, location, and relationship to the LSUCIA program. The students and practitioners then returned to The Rotunda for more networking. More than 200 people attended, including LSUCIA students and practitioners from 25 organizations. Students had the opportunity to interact with representatives from consulting firms, industry companies, and governmental agencies, from across the United States.

Throughout the day, students and practitioners participated in breakout discussions in classrooms on topics including résumé reviews, speed interviews, and practitioner mentoring. The Kickoff Event ended with closing remarks in The Auditorium by the LSUCIA staff. Afterwards, practitioners and students met at Mike Anderson’s for the Recruiter Reception. Informal networking continued as well as consumption of great Louisiana food, including jambalaya and an assortment of seafood.

The LSU Center for Internal Auditing would like to extend a thank you to the students and practitioners for participating in the 2014 LSUCIA Kickoff Events. We appreciate everyone’s ability to deal with the last-minute changes, and we look forward to improving the events in the future.

Students and practitioners gathering in the The Auditorium for a Welcome from Professor Lafleur and the LSUCIA Staff.

Kathryn Junge, BB&T, introducing herself to the group during the Welcome Session.

Students and practitioners enjoying boxed lunches in the classrooms while continuing to network.

Amanda Legrand, Marathon Oil, sharing her experiences about the program with students. From left to right: Ying Ji, Rebecca Werdine, Michaela Jones, Charlotte Carroll, Janai Griffin, and Brittany Chavers.

Laust Helmig, Goldman Sachs, discussing interviewing techniques with student Jenee’ Porter during the breakout sessions.

Past and present LSUCIA graduate assistants gathered in Virginia’s Courtyard at the BEC for a picture during the event. GAs include (from left to right, top to bottom) Diego Henriquez, Jingwen Wu (Deloitte – New York), Melissa Huseman (KPMG – Houston), Stephanie Howington (Nabors – Houston), Ana Mann (Deloitte – Boston), Allison Klotz, Mary Alfortish, Ramsey Minter, Annelise Mann, Yalan Wang, Alexa Benel, and Daniel Seghers.

Students and practitioners networking in The Rotunda. Russell Barbee, the U.S. Department of Homeland Security, reviewing résumés of three students from the graduate class. From left to right: Michelle Gallien, Whittney Haynes, and Eric Garcia.

Class Events:

Recruiting – Recruiter Night, Recruiter Reception, & Kickoff Event

3Center for Internal Auditing

Company Presentations Throughout the semester, students have heard from diverse companies who recruit from the LSUCIA program. Students attended company presentations in the evenings after classes. The format of these presentations was usually an hour lecture with Q&A in The Auditorium and then an hour of networking and a buffet-style dinner in The Rotunda. Practitioners provided information about their organizations, their roles in their companies, their internship programs, what they look for in candidates, and other related information. Several organizations also chose to focus on specific topics, including résumé reviews and mock interviews. The presentations gave the students and practitioners a chance to meet each other and network prior to résumé submission and interviewing.

LSUCIA would like to thank the following companies for their time, effort, and participation in company presentations this semester:

Blackbaud • Calpine • Chan • Crowe Horwarth

Deloitte • EY • Grant Thornton • Halliburton

HCA • KPMG • LyondellBassel • Nestle

P&N • PWC • Protiviti • Ryan • Vanguard

During the Grant Thornton presentation, students heard from (left to right) Claire Bourgeois, Nick Vellani, Brent Lapeze, and Matt Stewart.

EY representatives presenting to students (from left to right) Geoff Beatty, Greg Buller, Wei “Peter” Yang, and Stephanie Nunmaker.Students Attend

First Baton Rouge IIA Meeting More than 100 LSUCIA students joined the International Institute of Internal Auditors (IIA) as student members in 2014. On Tuesday, February 5, 30-plus current LSUCIA students attended the IIA Baton Rouge chapter’s February Lunch Meeting at Postlethwaite & Netterville. Students had the opportunity to network with local internal audit professionals and hear from David Yellott on the topic of “Understanding the Fraud Triangle.” David is an audit manager in Postlethwaite & Netterville’s Accounting and Assurance Services Group.

Sara Sonnier has been elected to the IIA Baton Rouge Board of Governors to represent the LSUCIA students in the chapter.

LSUCIA students at the IIA Baton Rouge chapter’s February Lunch Meeting at P&N.

Credible You Workshop On Friday, February 7, LSUCIA hosted “The Credible You” Interviewing Skills Workshop for LSUCIA students. The workshop, created and presented by Robert Blackburn, was designed to be highly interactive and communication intensive. During the four-hour session, students were able to evaluate their responses to interview questions and learn how to create a good impression.

Bob Blackburn has visited with LSUCIA students for the past 12 years to present about interviewing skills. Student evaluations of the session have always been outstanding.

Jordan Smith, an undergraduate student in the CIA program stated, “The Credible You workshop is a great way to improve your interviewing skills. I’d highly recommend it, especially if you don’t have much interviewing experience.”

The Credible You materials utilized during the workshop.

John Beard PresentationJohn Beard presented to the LSUCIA students March 20, on the topic of fraud cases. John has more than 40 years of professional experience, 35 of which are in the energy sector, primarily in internal auditing. He is the director of Internal Audit for Axip Energy Services LP. John is a graduate of LSU and holds both the CPA and CFE designations.

Speaker Series: Oil & Gas Presentation The LSUCIA program initiated a new speaker series this spring. These events are open to current students, potential students, and practitioners. The LSUCIA program has a history of including practitioner seminars in the course but decided to formalize the process. Our first presentation was Thursday, April 3, in The Auditorium of the BEC and featured Jonathan Bayhi. He is an alumnus of the program and practitioner at Protiviti. Jonathan led a presentation on “Auditing in the Oil and Gas Industry.” The presentation outlined the basics of the industry and business areas of an oil and gas company, worked through various examples, and looked at the audit items commonly encountered in the internal audit profession.

Bayhi used real life examples to show the risks involved with investing and drilling for oil.

Nicole O’Bryant, LSUCIA student, introducing and welcoming Bayhi.

Bayhi explained to the students the different classifications of oil and gas companies.

Beard presenting to the LSUCIA students.John Beard

Sara Sonnier, IIA Student Representative

4 LSU E. J. Ourso College of Business 5Center for Internal Auditing

Student SPOTLIGHTInternship Interviews On February 20 and 21, the LSUCIA program hosted sponsor interviews in the BEC and in Career Services, located in Patrick F. Taylor Hall. Additionally, on February 20, the LSUCIA program hosted its sponsor reception in The Rotunda of the BEC. Students and practitioners introduced themselves prior to interviews and followed up on any additional questions.

Twenty-one companies participated in this round of interviews. They were:

Calpine Corp.CHAN HealthcareCB&ICoca-Cola HellenicCrowe Horwath DeloitteEYFedEx

Goldman SachsGrant ThorntonHalliburton HCA KPMGMarathon Oil Nabors Nestle

P&NPWC ProtivitiTD Bank

Walmart

Through more than 300 interviews, 59 students were placed in summer internships during the weekend. The internship locations included Athens, Greece; Memphis, Tennessee; Atlanta; Houston; Dallas; Baton Rouge; St. Louis; New York City; Bentonville, Arkansas; McLean, Virginia; Lewiston, Maine; and Cherry Hill, New Jersey.

The second round of interviews started March 10, and the following companies participated:

Albemarle Corporation

Allianz Asset Management

Allianz Global Investors

AmeriGroup

BDO

Blackbaud

City of Baton Rouge Internal Auditing Division

Cleco

Kaiser Permanente

Kinder Morgan

Louisiana Department of Health and Hospitals – Internal Audit Section

Louisiana Department of Education

Louisiana State Employees’ Retirement System (LASERS)

LWCC

LyondellBasell Industries

Moss Adams LLP

Pearson

Poolcorp

Quanta Services

Qualcomm

Ryan, LLC

Transocean Offshore Deepwater Drilling Inc.

TSA

Unum

Vanguard

Through these interviews, more than 20 additional students were placed in internships. Internship locations included Baton Rouge; Charleston, South Carolina; Arlington, Virginia; Houston; Germany; and New York City.

The LSUCIA Staff expects to place more than 110 students in intern positions.

Students and practitioners networking during the sponsor reception.

Michael Van Wagener, Grant Thornton, talking with Annie An, undergraduate student, and Michelle Zavala-Cardona, graduate student, during the sponsor reception.

New GRC Course Status The university has officially approved the new Governance, Risk, and Controls (GRC) course, which LSUCIA will offer in fall 2014 and spring 2015. GRC are the topics most frequently included on board agendas and meetings of management. The course will include a study of the most prominent material in the area of GRC and will also include ERM.

The GRC course will be a high-level capstone course that will allow the LSUCIA program to be a leader in internal audit education. The course will be designed to address the most discussed current business issues and prepare students to be well-versed in GRC-ERM.

Spring Cases Assigned Throughout the semester, students participated in the following cases:College Copy Center • Teacher Evaluation AuditSnap-A-Control • Tenerife Audit • 7-11

Snap-a-Control: Harnesses for the fork lifts within the warehouse serve as a legal control. They are mandatory to comply with OSHA requirements.

Snap-a-Control: The “please no smoking” sign is an environmental control. It is in the building to ensure that individuals within the store are aware that smoking is prohibited.

2014 Class OfficersThe 2014 LSUCIA Class Officers are as follows:

CIA Dinner Each year students that have excelled in the program are invited to the LSUCIA dinner. The objective of the event is to encourage students to prepare for and pass the CIA Exam. This year, 30 selected students were invited to the dinner. The event was held Thursday, February 27, at Mike Anderson’s Seafood.

Sara Sonnier President (7:30 Class - Undergraduate)

Gabrielle Pugliese Vice President (7:30 Class - Undergraduate)

Kathryn Jenkins Vice President(7:30 Class - Undergraduate)

Nicole O-Bryant President (9:00 Class - Undergraduate)

Jordan SmithPresident (10:30 Class - Undergraduate)

Whittney HaynesPresident (1:30 Class - Graduate)

Robert TruelsonVice President (1:30 Class - Graduate)

Danielle StanleyVice President (1:30 Class - Graduate)

Ethan VeslingVice President (1:30 Class - Graduate)

Certification - 2013 Student Update To provide an update from the fall 2013 newsletter, below are the total number of students who passed parts of the CIA Exam or CISA Exam while in the LSUCIA program during 2013, as well as the names of those students who completed the certifications. The LSUCIA program is very proud of these students and their efforts to excel in their internal auditing career.

Passed Part 1 Passed Part 2 Passed Part 3 Passed Part 4 Completed CIA Completed CISA

18 16 11 5 10 2

Student Certification

1 Adam Averite CIA

2 Justin Avery CISA

3 Raymond Braselman CIA

4 Mary-Minor Butler CIA

5 Jennifer Campo CIA

6 Sarah Hebert-Lilley CIA

7 David Leinig CIA

8 Mai Tran CIA

9 Yalan Wang CIA, CISA

10 Xin “Zoe” Zhou CIA

11 Qin Zhou CIA

6 LSU E. J. Ourso College of Business 7Center for Internal Auditing

Mark your calendars: October 23–Friday, October 24, 2014 (Ole Miss home game weekend).

OCTOBER2014

ALUMNI on the GeauxAlumni Spotlight:

Alex Stephanouk Title: SVP, Chief Risk Officer and Internal Audit ExecutiveOrganization: Aflac Inc.City: Orlando, Fla.LSUCIA program Year: 1996Degree: MBACertifications: CIA, CRMA, CISAInternship sponsor: Lockheed MartinInitial full-time employer: Lockheed Martin

Brief Work History:

After graduating from LSU in 1996, I started my career in Corporate Audit with Lockheed Martin. I spent about two years there before a good friend talked me in to speaking with the public accounting firms about their internal audit practices. After interviews with a few firms, thanks to Dr. (Glenn) Sumners, I accepted a position with Arthur Andersen’s internal audit practice in Atlanta. I stayed at Arthur Andersen until the demise of the firm was clear in 2001, and left to be a manager in KPMG’s internal audit practice in Atlanta. My final position at KPMG was managing director, focused on the healthcare and consumer products markets. I was also the lead for KPMG’s Southeast Market’s Continuous Auditing and Monitoring strategy. I left KPMG in 2009, to join Aflac as the chief audit executive and was promoted to senior vice president in 2012, where I added chief risk officer to my duties.

Personal Information:

I met my wife at LSU, and we have been married for 15 years. We have three children, William (9), Catherine (7), and Natalie (3).

Thoughts About the Program:

Attending the LSUCIA program was the best career move I ever made. The program taught me critical thinking and networking skills that translate to all areas of business and those skills have been the key to my success. I teach those same lessons to my staff today. I’m grateful for the opportunities created by the LSUCIA program and enjoy returning to the program to give back to up and coming students.

Student Spotlight: Yalan WangCongratulations to Yalan Wang for passing the CRMA Exam. She had previously passed the CIA and CISA Exams and is working this spring to complete her forth certification (CFE) before she graduates. We would have to search the books to determine if any LSU student has ever had four certifications before their first day of work. Yalan plans to start her career in the Houston office of EY.

“We require all of our professionals to obtain a relevant certification prior to being promoted to manager. The certifications our professionals obtain help them to establish credibility with our clients and provide them with significant opportunities for upward mobility throughout their career at EY. We are excited that Yalan has taken the initiative to prove her knowledge and competence beyond just what is provided by her degree at LSU and encourage others to do the same. It shows the type of courage and leadership we look for in young professionals to help EY build a better working world.” – Geoff Beatty, EY

The Purposeful Audit – By Jonathan Bayhi Congratulations to alumnus Jonathan Bayhi for his article

“The Purposeful Audit,” published in the February 2014 issue of Internal Auditor. In the article, Jonathan wrote that “effective project management

is fundamental to delivering valuable internal audit engagements across the organization.” The article further discusses the Project Management Institution and the five processes of project management:

• Initiating Process• Planning Process• Executing Process• Monitoring and Controlling Process• Closing Process

To view the complete context of the article, please refer to pages 17 and 19 of the February 2014 issue of Internal Auditor.

Jonathan passed the CIA and CFSA exams and received the Sawyer International Manuscript Award while he was a student in the LSUCIA program.

GlobalizationCongrats to our alumni who will be starting their careers in internal auditing across the globe!

j Coca Cola Hellenic Internship Joyce Vassiliou, CAE at Coca Cola

Hellenic in Athens Greece, has selected an intern from the LSUCIA program for the last six years. She has hired most of the interns for full-time positions. This year she selected David Leinig as the intern.

Coca Cola Hellenic audits its operations in 28 countries.

j Coca Cola Hellenic Full-Time Position Sarah Hebert-Lilley Coca Cola in Athens,

Greece

j CB&I Full-Time Position

George Idicula CB&I in Dubai

Spring Student CIA Exam Review

The LSUCIA program held its first CIA Exam review of the semester for current students Saturday, February 1, at the BEC. Forty-nine students attended the session, which covered Part I. LSUCIA held a second session Saturday, April 5 and Sunday, April 6. This session covered Part I and Part II.

Third Annual LSUCIA Alumni Training

The 2014 LSUCIA Shared Alumni Training Program will host its third annual LSUCIA Alumni Shared Training Program on Thursday, October 23 and Friday, October 24. This is also the weekend of the Ole Miss football game in Tiger Stadium. The event will take place at the Hilton Baton Rouge Capitol Center. Last year there were more than 60 alumni in attendance from more than 30 companies, and we hope to continue to expand this event. Please stay tuned for information on the logistics of the event and how to register. We hope to see you there!

Alex Stephanouk

Yalan Wang

Yalan Wang and Geoff Beatty,EY, during the LSUCIA Sponsor’s Reception

Jonathan Bayhi

David Leinig

Sarah Hebert-Lilley

George Idicula

Jared Soileau, assistant professor in the LSU Department of Accounting and the Center for Internal Auditing, has been invited to serve as a member of the Honors College Advisory Board. According to Honors College Dean Nancy Clark, the advisory board offers a valuable source of advice and guidance for the Honors College. The board is made up of respective faculty representatives who guide the college’s curricular development.

SUMNERS Training CornerBook Review

The Black Swan: The Impact of the Highly ImprobableBy Glenn Sumners

The Black Swan, by Nassim Nicholas Taleb, is an insightful and thought provoking book that is destined to become a classic in risk identification and assessment literature. The book is based on the difficulty of dealing with risks that have a very low frequency (probability) but a very high impact (consequence).

There are significant limitations of knowledge derived from observations, which is the foundation of many enterprise risk management processes. Our observations are limited and we do not know how much information there is in the past. How can we know properties of the infinite based on experiences of the finite? The author points out the difficulty of generalizing from available past information to potential future events. It is often misleading to build a general rule from observed facts. Most of our perceptions are based on our limited experiences rather than a broader population of events.

Perceptions based on experiences can be a disadvantage because we are not prepared for what we have not experienced. What we have not observed is typically more important than what we have observed. This coincides with our inability to predict outliers. Experience is significantly limited in the ability to predict and assess risk. Often, the more experience you have may actually increase the inability to predict risk. Experience is often over-valued since the future is becoming less predictable due to the rate and degree of change.

The author presents a brilliant analysis of the risk assessment process. This book is a must read for any internal auditor involved in risk assessment.

Jared Soileau

Jared Soileau Invited to Join Honors College Advisory Board

8 LSU E. J. Ourso College of Business 9Center for Internal Auditing

Special FEATURESLSUCIA Program Reaches Its 30th Year

Throughout the LSUCIA program’s 30 years in existence, we are pleased to have been able to reach the following milestones:

j 3,500 students have completed the program

x 2,300 students have been placed in internships

j 19 CIA Awards Recipients for the highest composite score internationally

j 5 Sawyer Award Recipients for the best manuscript

j 2 Barrett Award Recipients for doctoral dissertation proposals

j 1 Radde Award Recipients for educator of the year

j 1 Cadmus Award Recipient

j 1 Gold Medal Award Recipient for the highest score (practitioners and students)

F Only one student has received the gold medal in 40 years

j 1 Hall of Distinction Award

j 1 Award designation

2014 Graduate Assistant

This year the LSUCIA program has eight graduate assistants that support the program:

Mary Alfortish, Masters of Accounting Student

Alexa Becnel, Masters of Accounting Student

Diego Henriquez, Accounting Student

Allison Klotz, Masters of Business Administration

Annelise Mann, Accounting Student

Ramsey Minter, Accounting Student

Daniel Seghers, Accounting Student

Yalan Wang, Masters of Business Administration

Update YOUR InformationPlease visit the LSUCIA website to keep us updated about you:

business.lsu.edu/LSUCIAAlumniUpdate

You can update your position, contact information, and more. We will provide career updates in later issues, so other alumni can keep up-to-date.

CISA/IT Audit Initiative

Recognizing the significant need for IT audit skills, LSUCIA is looking for opportunities to incorporate IT Audit into the existing courses and hopes to find opportunities to offer a full course related to IT Auditing in the near future or to add several modules to the existing courses.

Marketing

The LSUCIA staff will be working closely with Carlos Slawson, chair of the Department of Finance, and Dana Hart, the interim director of the LSU Flores MBA Program, to recruit more students for the 2015 LSUCIA class. Current LSUCIA students presented at an MBA information session this semester to promote the program.

The demand for LSUCIA students for internships increased in 2014, and the number is expected to increase again in 2015. Students with finance and MBA degrees are highly desired in internal auditing.

Case Studies Across the Atlantic

The University of Pretoria (South Africa) and the LSUCIA program are working on an initiative to create global teams comprised of students from both IAEP Center of Excellence Programs to complete assigned cases. The effort has several objectives, the first of which is to foster working on a global audit team and the use of available technologies to coordinate work. Additionally, we hope that this effort generates relationships that help increase interest in the opportunities for LSUCIA students to consider a semester exchange with the University of Pretoria. During the past decade we have enjoyed a remarkable relationship with the students and faculty at the University of Pretoria and hope to strengthen the exchange program in the years to come.

MIS Superstrategies

Eight LSUCIA students were selected to attend the MIS Superstrategies conference in Chicago. The conference was held Monday, April 28 through Thursday, May 1. The eight students are Eric Garcia, Lauren Dixon, Maribel Castro Aviles, Jordan Smith, Yuqing Lu, Michaela Jones, Alexa Becnel, and Annelise Mann.

Eric Garcia Lauren Dixon

Maribel Castro Aviles Jordan Smith

Yuqing Lu Michaela Jones

Alexa Becnel Annelise Mann

2014 AHIA/LSUCIA Survey

The 2014 Association of Healthcare Internal Auditor Survey of Chief Audit Executives in the Healthcare industry is being updated to meet the changing needs of the profession. As a result, the survey opened later than in prior years and went live in May. Results of the survey are currently planned to be provided in the fall issue of the electronic edition of New Perspectives and at the AHIA conference in Austin in September. If you are in the healthcare industry but not an AHIA member and would like to help assure your organization is contacted to participate, please send an invitation request to Jared Soileau at jareds@lsu.edu.

International Conference

Four LSUCIA students will be selected to attend the Internal Audit Education Partnership (IAEP) conference in Orlando, Fla. Students will depart Thursday, September 18, and return Sunday, September 21.

Philna Coetzee, Internal Auditing Program Coordinator at the University of Pretoria

Rudrik du Bruyn, Department of Auditing Senior Lecturer at the University of Pretoria

The Spring 2014 Graduate Assistants from left to right (bottom row) Ramsey Minter, Annelise Mann, Alexa Becnel, Daniel Seghers, (top row) Diego Henriquez, Yalan Wang, Allison Klotz, and Mary Alfortish.

10 LSU E. J. Ourso College of Business 11Center for Internal Auditing

Center for Internal AuditingE. J. Ourso College of Business · Louisiana State University

Business Education Complex, Suite 4063 · Baton Rouge, LA 70803 · USA

Phone: 225-578-6221

E-mail: lsucia@lsu.edu

Web: business.lsu.edu/cia

Facebook: LSU Center for Internal Auditing