Springfield Audit Trails

Transcription

1 February 2015 Springfield Audit Trails Springfield Chapter (Since 1978) Platinum & First Gold Chapter President s Message Tracy Allen, CPA, CISA Chapter President Did you know the IIA is interested in what public auditors need and how to reach out and increase their membership among government auditors? The IIA developed a portion of their website to specifically address the needs of government auditors which they call the American Center for Government Auditing (ACGA). The Center was established in 2014 with the mission of advancing the professional practice of auditing in the public sector by advancing its value through timely and relevant thought leadership, communication, collaboration and education. The ACGA has 9,500 members and includes anyone fulfilling an audit capacity and working in local, state, or federal government, or any publicly-controlled or publiclyfunded agencies, enterprises, and other entities that deliver public programs, goods or services. The Director of the ACGA is Jim Pelletier, CIA, CGAP and he is assisted by an 8 member advisory committee from federal, state, county and city auditors who possess over 227 years of combined experience. In November the ACGA released its IPPF Guidance for the Public Sector which is intended to tailor guidance to the challenges that public sector auditors face. It is designed to provide public sector boards, audit committees, Chief Audit Executives, and audit staff with the tools they need to better understand the role of internal audit in a public controlled entity. An item of particular interest to me was the section on Assessing Organizational Governance which provides a step by step discussion of the process from Audit Plan to Communicating Outcomes and Results. The ACGA has also released articles on government waste, an IIA Research Foundation report on Public Sector Internal Auditing across the globe, doing more with less, and tools and techniques for Government Auditors. These resources and much more are available on the IIA website. Please go and check it out. The National Leadership and District Representatives have both stressed that the IIA wants to be more responsive to the needs of public sector auditors and wants your feedback. If you see something you like or if you think of something that would be helpful that you don t see, please tell them. The IIA belongs to all of us. Tracy Auditing a Modern Cyber Program Jay Wagner, CIA, CISA Chapter First Vice President On February 26, 2015, Protiviti s Brennan Warren and Randy Armknecht will teach a three hour course on Auditing a Modern Cyber Program. As BYOD, cloud services, and consumer devices push ever further into the enterprise, traditional approaches to assessing the perimeter are losing their value. Networks are no longer flat and linear and traditional strategies such as defense in depth are now turned inside out. A modern approach must be taken when auditing modern systems. Brennan leads Protiviti s Chicago Financial Services Internal Audit practice and has over 15 years experience. He is a Certified Information Systems Auditor (CISA), and Certified in Risk and Information Systems Control (CRISC). Randy leads Protiviti s Chicago Security & Privacy consulting practice providing of security services from governance program reviews to technical exploitation. He is an EnCase Certified Examiner (EnCE) and a Certified Information Systems Security Professional (CISSP). If you plan to attend, please register by close of business on Friday, February 20, 2015, by using our new address: springfield.iia@gmail.com. Auditing a Modern Cyber Program Speaker: Brennan Warren & Randy Armknecht Date: February 26, 12:00n 4:00p (lunch at noon) Place: Northfield Center CPE: 3 hours Cost: Members: $60 Non-Members: $75 Students $15 Register: Emily Durbin at springfield.iia@gmail.com by February 20 1

2 Springfield Chapter of the Institute of Internal Auditors PROGRAM SCHEDULE Date Speaker Program Hours CPE Members Non- Members 9/11/14 Nejolla Korris Pinocchio Effect, Linguistic Lie Detection, and Ethics 8:30 4:30 7 (Ethics 4 hours) $100 $125 $20 10/29/14 to 10/30/14 Various Annual SIAAB Fall Government Auditing Conference 8:30 4:30 14 (Gov t) $75 $75 11/20/14 Seminar at UIS Bill Jelen Power Excel with Mr. Excel 567 Excel Mysteries Solved 8:30 11:30 3 $60 $75 $25 December 2014 N/a 01/22/15 Rob Cameron, CPA 02/26/15 Brad Rachmiel and Randy Armknecht 03/26/15 Dr. Joan Pastor No Training Planned Enhancing Internal Audit s Effectiveness in the Organization A Look at the Proposed Enhancements to the Internal Professional Practices Framework Auditing a Modern Cyber Program Adding Value through Communication and Collaboration in Your Organization Joint Meeting with ISACA 04/23/15 John Hall Fraud Risk Management for Internal Auditors Joint Meeting with Central Illinois Chapter 12:30-4:30 4 $50 $75 $15 12:00-4:00 3 $60 $75 $15 8:00 4:30 7 $125 $150 $20 8:00 4:30 7 $125 $150 $20 5/28/15 TBD TBD 11:30-4:30 4 $60 $75 $15 Cancellations should be made at least 24 hours before the meeting to avoid a charge. Meetings will be held at the Northfield Center, unless noted differently (i.e., November 2014 at UIS). 2

3 This Month in Chapter History 5 Years Ago (February 2010) Larry L. Stone, CISA, CCP, CRPC, served as the Chapter President. This month s meeting was hosted with the Central IIA Chapter and ISACA on Psychology for Ethics by Dr. Christopher Bauer, a licensed psychologist. 10 Years Ago (February 2005) Steve Kirk served as the Chapter President. This month s seminar was Legal Issues and Computer Security by Ben Wright, Attorney. David Boyd (Illinois Office of Internal Audit) won a $10 gift certificate to Sport Mart and Barbara Minton (Illinois Office of Internal Audit) won a football tin of Snickers. 15 Years Ago (February 2000) Rusti Cummings, CPA, CISA, served as the Chapter President. This month s seminar was the Bosses Luncheon at the Hilton. The luncheon speaker was Rick Larison of the Office of Statewide Performance Review, created by Executive Order #7, which was responsible for reviewing state programs. Dan Bedell won the attendance prize, a $15 gift certificate to Barnes & Noble. Ray Piiparinen, CIA, CPA, CISA, and Tina Neely, CIA, joined internal auditing at the Department of Children and Family Services. Barb Minton, CIA, CISA, CISSP, joined the Illinois State Police as an EDP auditor. Merlyn Hepperly, CIA, CPA, left the Comptroller s Office after 22 years to join internal audit at DCFS. Mary K. Fritz, CIA, left internal audit at the Department of Public Aid after 23 years to do federal cost reporting at the Department of Human Services. Phil Donaho of the Department of Natural Resources passed the CIA exam. 20 Years Ago (February 1995) Nancy Hilger, CPA, served as the Chapter President. This month s meeting was held at the Best Western Springfield East. The after-dinner speaker was Robert McCabe, Senior Vice President of Professional Resources International. Bob discussed Writing in an Internal Audit Environment and Outsourcing: Threat or an Opportunity. The Springfield Chapter achieved Gold status. Only 5 of 155 Chapters throughout the world were able to achieve this status. Not only were we the 1 st Gold chapter in our District, but also in our Region. Debra Miller won the attendance prize at the January meeting, a free dinner to a future meeting. The Chapter recognized membership anniversaries: Frank Phillips 25 years Ben Zemaitis 25 years Juanita Adams 10 years Debra Miller 10 years James Reid 10 years Edward Schofield 10 years Patricia Zak 10 years New members to the Chapter were: Jack Amoruso Department of Mental Health Froilan Casequin Depart. of Mental Health Herbert Dennis Depart. of Com & Com Affairs Ellen Jennings Department of Revenue Lisa Ludlum Student at Western Illinois Univ. Michael Mathias Supreme Court Daniel Olson Department of Mental Health Paul Reyes Department of Mental Health Abid Siddique Department of Mental Health 25 Years Ago (February 1990) Nita Wilson served as the Chapter President. This month s meeting was at the Sheraton Inn: Developing Audit Findings by Donald A. Drone, CPA, of the Illinois State Board of Education, and Conducting a Cash Management Audit by Bob Braasch with USA Financial Services Inc. The afterdinner presentation was Drugs in the Workplace by Dr. David Spencer, M.D. of the SIU. Frank Phillips, CPA, CIA, celebrated 20 years with the IIA. Frank works for the Illinois Auditor General. 30 Years Ago (February 1985) Sandra King, CIA, served as the Chapter President. This month s meeting was held at the Sheraton Inn and was College Student Night. The pre-meeting was titled Opportunities and Challenges in Internal Auditing by Dr. John Nosari, CPA, Accounting Professor, Sangamon State University. The afterdinner seminar Is There Life After Internal Auditing was by Dr. Thomas Guterridge, Dean, College of Business Administration at Southern Illinois University. Two individuals joined the Chapter: Mary Jo Behnke, a graduate of University of Illinois with a degree in Accountancy who was with the Department of Central Management Services, and Ed Schofield, CPA, with an MBA in Finance and Marketing from Rutgers University. Chapter membership was 62. 3

4 Eavesdropping with a Camera And Potted Plants Heather Kelly, Before you spill your deepest darkest secrets, or secret plans, look around you. Is there a gossipy potato chip bag or leafy green houseplant nearby picking up your conversation? Researchers at MIT, Microsoft, and Adobe have developed a way to turn regular objects into microphones. They have recreated audio from silent video recordings by analyzing the subtle movements of a leaf or empty can that are created by sound waves traveling through the air. We weren't sure at first that this was possible, since those vibrations are so subtle, so we took a loudspeaker and blasted some objects with sounds while filming them with a high-speed camera, and quickly realized that the signal was there, and that we could use our processing techniques to pick it up, said Michael Rubinstein of Microsoft Research, who worked on the project. The technique they came up with is based on video processing algorithms developed to analyze the tiniest movements in videos, much like a microscope. In one experiment, they played the notes to Mary Had a Little Lamb on a loud speaker near a potted plant and shot the video without audio to detect movements not visible to the naked eye. They then translated those movements into a sound file, which recreated the song. In another experiment, they picked up spoken words from an empty potato chip bag recorded through sound proof glass. They even used the popular app Shazam to correctly identify a recovered version of Queen s Under Pressure based on the movements of a pair of earbuds. The technology is in the concept phase but potential uses are fascinating. Detectives might use video cameras as an alternative to wiretaps or sound amplifiers. Investigators could mine soundless surveillance videos for a whole new layer of helpful information. The researchers are thinking bigger than just fighting crime. Maybe we could use this with telescopes to recover sounds across space, where sound cannot travel, Rubinstein said. Gender Loses Its Impact With the Young Sharon Jayson, People ages 34 and younger are a larger group than the Baby Boomers. Generation Y alone is estimated at million in the U.S., compared with 75 million Baby Boomers. Gender rules and traditional stereotypes are fading. From college housing to clothing, language and parenting, gender-neutral increasingly is the preferred position. A survey reveals that gender is less of a definer of identity today than it was for prior generations. Among the findings: More than two-thirds agree that gender does not define a person the way it once did. 60% think that gender lines have been blurred. 42% feel that gender roles today are confusing. You can be one thing one day and another next, the survey noted. In previous generations, there was no going back and forth. Now, there s incredible fluidity to everything. College campuses have been at the forefront, creating gender-neutral bathrooms and gender-neutral housing, which allows students to live with any roommate. This move began in response to a rise in activism in support of transgender students. As the oldest American Millennials begin their early years as parents, they are adopting this genderless approach. WhitePages.com, a provider of contact information, noted a rise in unisex names with an almost even split between males and females with the names such as Riley, Peyton, and Rowan. Boston s Museum of Fine Arts last month concluded an eight-month exhibition called Think Pink, noting that both sexes wore pink until the 1920s. Facebook allows users to display gender categories beyond male and female for their profiles. At an outdoor adventure program in Maryland, they specifically discussed how to be conscious of avoiding gendered pronouns. I ve met people within the gay community who tell people they want to be addressed as male or female on different days. It s the way they re feeling that day. I agree. I don t believe there is a hard line between genders. Richard Honack, a professor who focuses on generations at Northwestern University, says the approach favored by young people is due to the Internet. What we re seeing here is the Internet making people neutral. If I m playing a game with somebody in Africa or Europe, I don't know if they re male or female. Brian Etheridge, 16, of Oakland, N.J., uses many game platforms and changes the gender of the characters he creates. Personally, I like to mix it up. In one game I play, I m a girl. In another, I m a male. It just pops up in my mind when the character creation comes up. 4

5 From the Editor Our Chapter has changed its address and we are now using a Gmail account. To register for the seminar, please Chapter Secretary Emily Durbin at springfield.iia@gmail.com. In a few short months we will begin searching for committee chairs and board members. If you are interested in helping the chapter in any position, please tell any chapter officer: President Tracy Allen, First Vice President Jay Wagner, Second Vice President Nikki Doukas, Secretary Emily Durbin, Treasurers Paula Sorensen and Joelle Egger, or Former Chapter President Amy Lyons who is on the Nominating Committee. Thanks to Chapter Treasurer Paula Sorensen for keeping the Chapter finances straight, paying bills, following up on outstanding accounts, preparing tax forms, and preparing monthly financial statements. This is a big job and Paula does an outstanding job of it! SOCIAL SECURITY Social Security benefits depend on many factors, such as lifetime earnings and years worked, and must be calculated for each individual by the Social Security Administration. For each year you wait to receive social security benefits after age 62 you will receive eight percent more in benefits per year. Check with Social Security for your particular situation. Over the years we have all learned things from our experiences and from other people. It may be interesting to compile such valuable lessons from our chapter members (I can keep your name anonymous if you would like). I will begin with a few things that have resonated with me: No man will make a great leader who wants to do it all himself, or get all the credit for doing it (Andrew Carnegie). CHAPTER OFFICIALS OFFICERS PRESIDENT Tracy Allen, CPA, CISA AllenTK@mail.ioc.state.il.us Administration (CAPologist) Amy Lyons Audit Amy DeWeese, CPA Nominating Tracy Allen, CPA, CISA Amy Lyons FIRST VICE PRESIDENT H. Jay Wagner, CIA, CISA HWagner@atg. state.il.us Programs & Seminars H. Jay Wagner, CIA, CISA Continuing Education Tracy Allen, CPA, CISA Seminar Registration Emily Durbin, CIA, CGAP SECOND VICE PRESIDENT Nikki Doukas, CPA Nikki.Doukas@Illinois.gov Academic Relations Carol Jessup, Ph.D, CPA, CFE Membership Debbie Abbott, CIA Associate Trustee/Tech. Larry L. Stone, CISA, CCP, CRPC Certifications Program Nikki Doukas, CPA SECRETARY Emily Durbin, CIA, CGAP Emily.Durbin@illinois.gov Directory, Distribution & Emily Durbin, CIA, CGAP Public Relations Newsletter M. Ameen Dada, CGFM Photographer Cary Franks, MS MIS Webmaster H. Jay Wagner, CIA, CISA TREASURERS Paula Sorensen Paula.Sorensen@illinois.gov Joelle Egger JEgger@illinoiscourts.gov Awards Joelle Egger Historian Seeking Volunteer GOVERNORS Term Expiring: 2015 Cary Franks, MS MIS Deanna J. Marvin, CIA, CGAP, CISA Bill Sampias, CISA, CFSA Larry L. Stone, CISA, CCP, CRP Doug Tinch, CIA, CPA, CISA, CISSP Stephen D. Kirk, CIA, CGAP Lesslie D. Morgan, CIA, CPA, CGFM, CISA Barbara Ringler, CPA Rusti Cummings, CPA M. Ameen Dada, CGFM PAST PRESIDENT Denise Behl, CIA Amy Lyons The Board of Governors consists of all Officers, Governors, and the past two Presidents. 5

6 Buzzwords Few People Really Like Dennis McCafferty, Baseline (provided by Cary Franks) Forward-Thinking Are there companies out there that plan to stay stuck in the past? Pick Your Brain There's no need to get all Hannibal Lecter on the mental imagery! Instead, ask someone to share their thoughts. Leverage Leveraging something sounds like heavy lifting, but using it comes across as very doable. Circle Back If we re talking about returning to a topic using a geographic reference, wouldn t following a straight line get you there quicker? Think Outside the Box What professional isn t sick of this hypothetical box? How about thinking in a creative, unorthodox or innovative way? At the End of the Day When colleagues incessantly say this when they mean ultimately, you really do wish your workday would come to an end. Where Did This Audit Go Wrong? Mike Jacka, Internal Auditor Online One reason why so many audits/projects fail is not from a lack of control over the details; rather, it is because those involved lose sight of the objective of the project. If a postmortem had been done, it would recognize that the problem was not in the individual audit processes, but in the fact that the auditor/ management lost sight of what the audit was trying to achieve (objectives). Don t forget that the purpose of an audit is to make things better rather than put down the auditee. TOP GLOBAL RISKS 1. Extreme weather events, natural catastrophes, water crises, and failure of climate-change adaptation. 2. Fiscal crises, unemployment, underemployment, and energy price shock. 3. Spread of infectious diseases, biodiversity loss, and ecosystem collapse. 4. Interstate conflict, failure of national governance, state collapse/crisis, and weapons of mass destruction. 5. Data fraud/theft, cyber attacks, and critical information infrastructure breakdown. Springfield Chapter The Institute of Internal Auditors P.O. Box 205 Springfield, IL