Post on 20-Jan-2016
description
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Internal Auditing:One Professional’s Perspective
Russell D. Price, CPA, CIA, CISASr. Audit Manager
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Agenda
Introduction What is Internal Auditing? How to get started in Internal Auditing The IIA and You
Ask questions at any time … don’t be shy!Ask questions at any time … don’t be shy!
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Introduction – Russell Price
Current Assignment: Sr. Internal Audit Manager Intel experience: 7.5 years
– Sr. Audit Manager – IT / Corporate Finance– S-Ox §404 IT Program Manager– Prior roles: eAP Program Manger; PARIS Program Manager
Prior experience: 18 years– Big 4 Audit / IA / Business Consulting (Andersen, E&Y) – 6 years– Operations / Corporate / EMEA F&A (Tektronix) – 3 years– Operations Management / F&A (P&G, Frito-Lay) – 9 years
Education / Certifications:– BSChE – Oregon State University– MBA – Portland State University– CPA – Washington, Oregon (reciprocity in progress)– CIA (Certified Internal Auditor)– CISA (Certified Information System Auditor)
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What is Internal Auditing?
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The IIA’s Definition ofInternal Auditing
Internal auditing is: An independent, objective assurance and consulting activity designed to add value and improve an organization’s operations
It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
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Internal and External Audit
Internal Auditors Integral to organization Ongoing monitoring and
assessment Concerned with financial
and non-financial risks Detection / prevention of
fraud Future focus
External Auditors Independent of the
organization Annual opinion on
financial statements / internal controls
Concerned with financial risks
Historical focus
Different but Complementary RolesDifferent but Complementary Roles
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Cornerstones for Corporate Governance
Internal audit provides assurance to management and the audit committee that risks are understood and managed properly.
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Key Responsibilities ofInternal Auditors
Function as one of the cornerstones of good governance
Provide value-added services Evaluate the organizations risk management process
Recommend process and controls improvements
Perform consultative activities
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Impact of Enterprise Risk ApproachCash/Liquidity
IP
Policy Compliance
BOD Practices
Nat Disaster/Terrorism
Technology (Operational)
Supply Chain
Volume
Cost
Pricing
Product Roadmap
Brand
Market Intelligence
Competition
Human Capital
Acquisition Integration
F/R Compliance
Local Laws/Restrictions
Fraud/Other Misconduct
Succession Planning
Technology (Strategic)
Customer Satisfaction
Channel
Capacity Avail. & Utilization
Resources
Reputation
Product Liability
Anti-Trust Compliance
Tax Compliance
FCPA Compliance
Product Execution
Partnerships
Investment
Divestiture Mgmt
Restructuring
Valuations & Estimates
Foreign Currency
Customer Credit
Planning & Forecasting
EHS Compliance
Contract Compliance
Privacy Compliance
Market Concentration
Network & IT Infra (Strategic)
Inventory
Manuf. Cost & Affordability
Manuf. Start-up Cost
Network & IT (Operational)
Portfolio Management
Spending
None
Impact
Likelihood
Product Qual. Audit
Judged Demand Audit
Digital Home CE POP Audit
IMFT JV Audit
Demand Forecast Apps
Site Selection Process Audit
HHG Divestiture & Supply Agree. Audit Design Tool Apps
IT Governance
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The Profession of Internal Auditing
Allows for an expedient, high-level understanding of the organization and industry
Exposure to senior-level management Transferable skills/disciplines Networking opportunities Expanding profession Potential travel
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It’s A Great TimeTo Be An Internal Auditor
Growing Profession … thanks to SOX! Not Just for Accountants Good Starting Salary and Upside Potential Great Opportunities High Visibility
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Internal Audit Salaries - 2006
Average total base compensation
$177,515
$126,798
$97,041
$79,907
$54,196
$0 $40,000 $80,000 $120,000 $160,000 $200,000
CAE
Director
Manager
Senior
Staff
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Public Accounting Salaries - 2006
Average total base compensation
$195,000
$125,000
$95,000
$65,000
$45,000
$0 $40,000 $80,000 $120,000 $160,000 $200,000
Partner
Senior Mgr
Manager
Senior
Staff
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Attributes of aSuccessful Internal Auditor
Demonstrates Objectivity and Integrity Strong Analytical / Fundamental Auditing Skills
Creative, Inquisitive, Problem Solver Sound Business Acumen Good Negotiator / Influencer Active Listener, Exceptional Communicator Confident Intuitive
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How do I becomean Internal Auditor?
Take relevant courses in school Internships / entry-level programs Gain various types of experience
– Public accounting
– Private industry
– Government
Network at local Professional Associations (e.g. the IIA)
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The Institute ofInternal Auditors (IIA)
International Professional Association (www.theiia.org)
Established in 1941 Global Headquarters in Florida Over 125,000 members 165 countries and territories
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The IIA Vision
The IIA will be the global voice of the internal audit profession: Advocating its value, promoting best practices, and providing exceptional service to its members
The IIA’s Broad Objectives
Acceptance of the internal auditing profession
Increase internal auditing capacity Provide better services for our members
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Development ofStandards and Guidance
Internal Auditing Standards Board Exposure Draft Process Approval and Implementation Date Professional Issues Committee
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Certification Program
Certified Internal Auditor Certified Government Auditing Professional Certification in Control Self-Assessment Certified Financial Services Auditor
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IIA Membership
The IIA is an association of individual members
All members commit to follow the IIA Code of Ethics and International Standards for the Professional Practice of Internal Auditing
Members are served via local chapters or affiliates, or directly as members-at-large (where no chapter/affiliate exists)
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“What’s in it for Me?”
Professional Guidance Advocacy Training Networking* Certification* Specialty Programs Technology Publications Services* Local Contacts And more…
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Audit Career Center
Career Opportunities Online Resume Search Postings
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How Do I Join The IIA?
In Canada, the Caribbean, or the United States join The IIA directly.
Outside Canada, the Caribbean, or the United States join The IIA directly through an IIA affiliate in the local region