The Integrated Auditor: Becoming the Go-to Resource Your Company Needs APRIL 24, 2018

Transcription

1 The Integrated Auditor: Becoming the Go-to Resource Your Company Needs APRIL 24, 2018 Jeff Hemphill Partner and Central Region Leader, Risk Advisory Services Brian Kirkpatrick Managing Director, Risk Advisory Services Joseph Mauriello Director, Center for Internal Auditing Excellence, UT Dallas

2 CPE and Support CPE Participation Requirements To receive CPE credit for this webcast: You ll need to actively participate throughout the program. Be responsive to at least 75% of the polling questions. Please refer the CPE & Support Handout in the Handouts section for more information about group participation and CPE certificates. Q&A Submit all questions using the Q&A feature on the lower right corner of the screen. Presenters will review and answer questions submitted as time allows. *Please note that questions and answers submitted/provided via the Q&A feature are visible to all participants as well as the presenters. Technical Support If you should have technical issues, please contact LearnLive: Click on the Live Chat icon under the Support tab, OR call: Audio Audio will be streamed through your computer speakers. If you experience audio issues during today s presentation, please dial into the teleconference: , and use teleconference code: # 2

3 Jeff Hemphill Partner and Central Region Leader Risk Advisory Services PROFESSIONAL AFFILIATIONS Institute of Internal Auditors University of North Texas Accounting Department Advisory Board University of Texas at Dallas Internal Audit Advisory Board National Association of Corporate Directors Jeff Hemphill leads our Risk Advisory Services practice in the Central region. With more than 25 years of public accounting and industry experience, Jeff has delivered internal audit, compliance, and consulting solutions to Fortune 500 and middle market companies in numerous industries. Jeff joined BDO with Big Four experience, previously with KPMG and Deloitte. In addition, Jeff has experience developing and managing compliance programs with responsibility for North America, Europe and Asia. EDUCATION M.S. and B.S., Accounting, University of North Texas 3

4 Brian Kirkpatrick Managing Director Risk Advisory Services PROFESSIONAL AFFILIATIONS The Institute of Internal Auditors, Member and local Chapter Treasurer EDUCATION MBA, Baldwin-Wallace College B.S., Accounting, Penn State University, The Behrend College Six Sigma Green Belt, Villanova University Brian Kirkpatrick is a managing director in BDO s Risk Advisory Services practice. He has more than 18 years of experience in delivering internal audit, compliance, and consulting services and solutions to Fortune 500 and middle market companies. He has expertise in consulting and performing Internal Audit Services (including External Quality Assessment Reviews), Enterprise Risk Management (ERM), Sarbanes-Oxley (SOX) including SOX Readiness and Compliance Management Services, Finance and Performance Management and Business Risk Assessments. Brian s clients include a variety of middle market and Fortune 500 companies across a broad range of industries including healthcare, financial services, manufacturing & distribution, transportation, information technology (IT) services, energy and property management services. Prior to joining BDO, Brian was previously with a Big Four public accounting firm, providing internal audit services to various middle market and global diversified companies. 4

5 Joseph Mauriello Managing Director Risk Advisory Services Director Center for Internal Auditing Excellence at UT Dallas PROFESSIONAL AFFILIATIONS Institute of Internal Auditors ISACA Academic Advocate American Institute of Certified Public Accountants Texas Society of Certified Public Accountants Institute of Management Accountants Association of Certified Fraud Examiners EDUCATION MBA, The University of Texas at Dallas MS, Accounting, The University of Texas at Dallas BA, Lehigh University In addition to serving as a Managing Director in the Risk Advisory Services practice at BDO, Joseph Mauriello is the Director of the Center for Internal Auditing Excellence at the University of Texas at Dallas ( UTD ) where he is responsible for overseeing all aspects of the academic program. UTD is one of eight recognized centers of excellence in the world, as designated by the Institute of Internal Auditors, and is currently recognized as the largest graduate program in internal auditing. Currently, Joseph teaches core courses in the graduate program which include Internal Audit, Advanced Internal Audit, GRC, and IT Audit. Prior to UTD, Joseph has more than 13 years of management and supervisory experience in accounting and auditing in both public company and consulting environments. He has expertise performing business risk assessments, ERM projects, anti-fraud program development services, performance improvement strategy assessments, quality assessment reviews, and fraud investigations within the Risk Advisory umbrella, along with traditional internal audit co/outsourcing and SOX Compliance project management services. 5

6 Today s Learning Objectives At the conclusion of this course, participants will be able to: Describe the challenges facing the internal audit profession related to obtaining and retaining quality auditors Describe convergence of compliance, financial, IT, governance and fraud risks and how the internal audit profession is responding to this convergence Discuss the unique skill sets and traits of an integrated auditor 6

7 Defining the Integrated Auditor 7

8 Defining the Integrated Auditor What does it mean to be an Integrated Auditor? Varying definitions / understandings Financial Statement assurance view (Sarbanes-Oxley) IIA Guidance (July 2012) more global approach, holistic Process Assurance and IT Audit combined Challenge of executing integrated audits 8

9 Defining the Integrated Auditor An Evolving Model for the Integrated Auditor Brought about by evolutions in. Corporate governance Multi-generational workforce Technological advancement Professional landscape 9

10 Defining the Integrated Auditor Impact of the New Model What does it mean going forward? Effectiveness Efficiency Automation Talent requirements Sourcing 10

11 Demands of the Profession 11

12 Demands of the Profession Current Challenges Changing nature of Core Internal Audit Enterprise risk management Assurance Knowledge IT landscape 12

13 Demands of the Profession Emerging Challenges Audit never sleeps. Artificial Intelligence Data Analytics Robotics Block chain Machine learning Cybersecurity 13

14 Demands of the Profession Required Change of Course The profession is demanding a new vision for the integrated auditor Business Acumen Technology Risk Subject matter expertise (industry, topical) Soft skills 14

15 The New Model 15

16 The New Model Responding to Change In order to realize the benefits of the new model Address Corporate strategy Recruit with purpose Review staffing model Re-evaluate Audit s value proposition for the company Develop partnerships (internal and external) 16

17 The New Model Talent Management Obtaining, Developing, and Retaining. In-source Model Co-source Model Out-source Model Continuous learning as an investment Balancing growth, opportunity, and retention 17

18 The New Model Sourcing Building a collaborative approach based upon. Balance of skills and experience Understanding resource requirements with automation Appreciation of risk management Proactive versus reactive Maturity of the Internal Audit Function 18

19 Fostering the Future 19

20 Fostering the Future Importance of Obtaining Talent Increased demand for Internal Audit professionals Decreased supply for Internal Audit professionals Cost / Benefit Refreshing skill sets through acquisition Fear of Skill Deterioration / Obsolescence 20

21 Fostering the Future Preparing the Next Generation State of Academia The IIA s Approach through its IAEP Program The University of Texas at Dallas Model Aspiring Internal Audit / IT Audit / Data Analytics Students Challenges 21

22 Fostering the Future Professional Development The Art of Staying Current The hallmark of any profession continuous learning Skill building soft and technical Embrace the changing technological landscape Embrace generational differences in the workforce Trust in the principles of the profession 22

23 Concluding Thoughts 23

24 Concluding Thoughts The New Integrated Auditor A new brand of risk management professional. Unification of soft skills, business acumen, and technology The Great Facilitator Relationship driven controls strategist Continuous learner Continuous educator / facilitator 24

25 Concluding Thoughts Internal Audit Transformation The rise of the machines..not entirely Redefined value proposition Balancing technical know-how and business acumen Identifying the appropriate sourcing model Automating effectively and efficiently Attracting and retaining talented professionals 25

26 Concluding Thoughts Future Supply and Demand Scarcity continues to befuddle the labor market. Demand will continue to increase significantly Shortage of qualified professionals demand will continue Winners will be those with staffing/recruiting strategy and long term outlook Losers will be those who recruit randomly 26

27 Questions Jeff Hemphill Brian Kirkpatrick Joseph Mauriello

28 Coming Soon Please watch your for invitations! May 15, 2018 Global Risk Landscape Report Please watch your for an invite to download in mid-may June 26, 2018 Course 3 of 2018 Webinar Series From scandals to serious setbacks: how a poor company culture can impact the bottom line 3 PM ET / 2 PM CST Please watch your for an invite to register in late May 28

29 Conclusion Thank you for participating! Certificate Availability If you participated the entire time and responded to at least 75% of the polling questions, you may click the Participation tab to access the print certificate button. Exit Please exit the interface by clicking the red X in the upper-righthand corner of your screen. 29