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Project Risk Management: Are You Asking, “What can go wrong?” Originally published
by Inside Sarbanes-Oxley
According to a study by The Standish Group International (a leading IT advisory firm) of 365 small, medium and large projects, 13.1 percent of all projects will be canceled before completion, 52.7 percent of all projects will cost 189 percent of their original estimates, and the average time overrun is 222 percent of the original estimate.
Even with all the advances in project management software, weekly status reporting and constant updating of issues logs, why is it that projects do not deliver what is expected, within budget and within the expected time frame?
Click here for the rest of the story!
This article was contributed by Protiviti KnowledgeLeader, an online service providing tools, templates, and other resources for internal audit and risk management. Free trials available at www.knowledgeleader.com.
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This month check out ACL Services Ltd. who provides Business Assurance solutions to financial executives and audit professionals worldwide. Combining market-leading software and professional services, ACL's proven solutions enable internal auditors to assure compliance, reduce risk, and minimize loss. ACL's global customer base includes 89 of the Fortune 100 and over half of the Global 500.
Remember! Clicking on sponsored ads and visiting their sites helps support AuditNet®. Business Advice Q&A History as Competitive Edge
author of How to Say it When You Don't Know What to Say: The Right Words For Difficult Times
Your firm’s history is a low-cost, high-impact marketing tool – a secret weapon that’s especially useful in hard times. Marian Calabro has seen this phenomenon at work in Fortune 500 companies, nonprofits, and family-owned businesses. She’s the president of CorporateHistory.net LLC, a custom publisher of history books and DVDs for clients such as The Pep Boys, Melwood Horticultural Training Center, Plattsburgh Airbase Redevelopment Corporation, and Annin & Company, America’s largest flag maker.
For the Q&A click here! Resume Tune-Ups Add Resume Writing to Your Strengths by Robbie Miller Kaplan
Get a Free Resume Analysis! Career Feature: The Resume Tune-Up.
Nationally recognized resume expert and author of How to Say it When You Don't Know What to Say: The Right Words For Difficult Times If you would like your resume to be considered for a tune-up, please e-mail it to Ms. Kaplan. You will be notified by e-mail if your resume is selected. You will need to make yourself available via e-mail to answer a few questions with a tight deadline. Ms. Kaplan will send a critique and suggestions to the individual selected and a summary Resume Tune-Up will appear in the monthly newsletter column. If selected you give AuditNet the right to display your resume for the column. AuditNet® What's New This Month? From the Editor!
Where in the World is Jim Kaplan?
Fraud Happens!
The theme of this month's newsletter is fraud as you can guess by the headline as well as the content. I have reviewed 3 books focused on the fraud theme including Extraordinary Circumstances by Cynthia Cooper, VP of Worldcom. There is also a video from her presentation at the Army Navy Club as well as link to TV segment interviewing fraudster Teri Lynn Norwood.
In conjunction with the Linkedin Professional Audit Information Networking (PAIN) Group established in December 2007 we added a mapping application that demonstrates where AuditNet users live and work. The PAIN group provides an opportunity to tap into a global network of auditors. To add yourself to the map click here. To join the PAIN group click here.
AuditNet Survey Results
Great information source. I am a one person audit shop and the resources really help.
AuditNet conducted a survey of users in January and the results are now in. Almost 90% of users come for the audit programs. 88% of the visitors are registered users or subscribers. 84% of visitors belong to the IIA, 35% belong to ISACA (more than one response was allowed). Regarding other subscription based sites 15% use KnowledgeLeader. More that 73% do not use any other subscription service. Additionally we asked users what they like about the site and how we could improve. The details of those responses are being analyzed and will be used to improve services to AuditNet users. Thanks to the more than 200 auditors who responded!
If I am tasked with an new audit, I like a starting point. By reviewing the audit programs online, I can see if I missed anything in my audit program and improve on my work by the knowledge shared.
Pay by Phone or FAX AuditNet is now set up to accept credit card payments for subscriptions by phone or fax. If you are interested in this option click here! Writing for AuditNet? AuditNet Editorial Guidelines Based on the number of articles being contributed to AuditNet we have developed editorial guidelines for future submissions. If you are planning to write an article please review the guidelines before submission. We appreciate receiving material from the global audit community in the interest of sharing knowledge. We are also in the process of guidelines for book reviews and other material submitted for inclusion on AuditNet. Get Audit Related Books Free! Interested in developing your writing skills with having access to the latest audit and business related books? AuditNet is looking for auditors that would like to review books for the benefit of the audit community. This is an excellent way to build your professional publication library and provide a valuable service for AuditNet users. A list of available books will be provided on request. For the guidelines click here. New Benefits of Registration AuditNet receives many questions on what kind of audit related information is available on the Internet and where to find it. As a result of my research to find the answers to those questions I discover value added resources that are useful for auditors. In the past these resources would have been added to the AuditNet Links Page (aka KARL). To provide an incentive for auditors to register on AuditNet I will begin loading these links to a special page that is only available to registered users. AuditNet forges new relationships with professional associations and accounting sites to provide auditors with access to audit work programs. Professional Association Access to AuditNet Audit Programs. If you want your professional association (IIA, ISACA, ACFE, ACUA, ACUIA etc) to have transparent access to AuditNet audit programs and other content as a benefit of membership contact your professional association official and ask them to pursue this with AuditNet. Fraud News Feed Go to the AuditNet Fraud Resource Center and check out the fraud news feed to keep up to date with media reported fraud happenings. Audit Programs The audit programs section of AuditNet requires registration in order to access. New audit program contributions are available only to paid subscribers or on a one-for-one exchange basis. There are over 80,000 registered users. A multi-user subscription rate was added to the individual subscription program to the premium content. Organizations that need more than 2 staff members accessing the service will benefit from this new rate. There are new additions to the premium audit programs available as an alternative for those auditors that are unable to contribute material to AuditNet®. Site licenses are also available for organizations with more than 15 users. The best way to find all the resources on the site is by going to the Virtual Library or use the site search. IIA Technology Audit Guide Series Guide 9: Identity and Access Management Identity and access management (IAM) is a cross-functional process that helps organizations to manage who has access to what information over a period of time. This process is used to initiate, capture, record, and manage the user identities and related access permissions to the organization's proprietary information. Poor or loosely controlled IAM processes may lead to organizational regulatory noncompliance and an inability to determine whether company data is being misused. Each Global Technology Audit Guide (GTAG) will be written in straightforward business language to address timely issues related to information technology management, control, or security. GTAG will be a ready resource series for chief audit executives to use in the education of members of the board and audit committee, management, process owners, and others regarding technology-associated risks and recommended practices. Previous Guides:
AuditNet® Fraud Auditing CornerFraudster Profiles Looking for a great way to educate employees on how an ethical employee goes to the dark side, and the consequences of poor internal controls? Check out the following video from Gary Zeune's website
Teri Lyn Norwood - "My Life as a Thief"
Gary Zeune has the ONLY speaker's bureau in the country specializing in white-collar criminals — The Pros & The Cons. Mr. Zeune's speakers tell their stories of how and they committed their crimes. Their frauds range from $18,000 to $350 million. Speakers include CPAs, attorneys, and business people.
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Interview by Robbie Miller Kaplan 
, Robbie Miller Kaplan will select one
auditor resume each month and suggest ways to transform the resume
from passable to powerful. 
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U.S. senior Congressional aides are seldom seen or heard, but still they know everything that goes on in the nation's capital. So back when George Mitchell was a senator from Maine, they couldn't be ignored when they named him "the most respected member" of the Senate for six consecutive years.
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This article is from Fraud Magazine, the professional magazine
of the Association of Certified Fraud
Examiners
For the rest of the article from the latest ACFE Fraud Magazine click here.
ACFE FraudInfo Newsletter click here!
Cynthia Cooper Q&A on C-SPAN2
Cynthia Cooper was the internal auditor that blew up the $11 billion WorldCom fraud. CEO Bernie Ebbers is in prison for 25 years and Scott Sullivan cooperated and took a deal for 5 years in prison. Cooper discussed her book on the fraud on BookTV on C-SPAN2 on Sat. Most interesting part was the Q&A from audience members. Use it for teach staff and students and management that it's simply not worth getting caught. It's 75 minutes. Set your recorder or Click the WATCH button above her picture and it will stream from the web site
Extraordinary Circumstances: The Journey of a Corporate Whistleblower
Dan's Internal Audit Corner
How Aligned is IT and the Business in Your Organization?
- By Dan Swanson
The Holy Grail for IT has always been for IT to be closely “aligned” with the Business efforts. For years business has tried to get IT on board (focused on their business priorities) and IT has tried to get involved in business planning (aligning IT efforts with business priorities). At the end of the day, it really is an endless battle that requires the ongoing and regular involvement of all key participants.
Click here for the rest of the story and links to resources.
Have another great month
Dan
Also check out the latest IT and Information Security Titles Published by Taylor & Francis!
Have another great month.
Regards,
Dan
AuditNet® Conference & Training News
Want to announce your professional association conference to the global audit community? Send us conference name, date and URL details. (A reciprocal link to AuditNet is required). AuditNet supports co-marketing sponsorship agreements for conferences on a case by case basis.
| Compliance Week's 3rd Annual
Conference Mayflower Hotel in Washington, D.C., June 4-5, 2008
(Complete details click
here) I'LL BE THERE TOO, SO MAKE SURE YOU REGISTER USING THE
FOLLOWING
REGISTRATION FORM , WHICH INCLUDES A BUILT-IN DISCOUNT FOR
YOU AND YOUR TEAM, COURTESY AUDITNET!!! |
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Click for a recent (free) example of
EDPACS
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EDPACS Editorial Board (current membership)
EDPACS subscription page
______________________________________
Attention AuditNet Members
ComplianceWeek's 3rd Annual Conference is Coming Soon!
See You There!
We have negotiated an exclusive discount to Compliance
Week's 3rd Annual Conference, which takes place at The Mayflower Hotel in
Washington, D.C., June 4-5, 2008.
This exclusive peer-to-peer event features NUMEROUS risk and
audit sessions led by corporate officers including:
- PepsiCo General Auditor Robert Mac Kay
- Raytheon VP Internal Audit Larry Harrington
- Pitney Bowes VP ERM Cynthia Schmitt
- And others from Yahoo, HP, Starbucks, Merck, Prudential, Lockheed Martin
and more.
Keynotes will be delivered by officials from the
Securities and Exchange Commission and Department of Justice.
This conference include numerous small group
"conversations," in which you can compare and contrast your programs
with your peers:
- Pfizer Chief Compliance Officer Douglas Lankler will
lead a small-group discussion on your "early warning systems"
- Yahoo and HP's CCOs will lead a small-group conversation to
compare and contrast your compliance programs
- Pride International CCO Brady Long will lead a discussion on your
FCPA risk assessment challenges
- Intuit's ERM officer and BNSF's corporate audit leader will lead a
conversation on approaches to ERM
This event includes an extensive agenda on critical
issues related to risk management, FCPA compliance, compliance
program effectiveness, reliable financial reporting (including XBRL),
and more.
Details are at http://conference.complianceweek.com/
I'll be there as well and look forward to meeting
you face to face. Make sure you register using the
following
registration form, which includes a built-in discount for you
and your team, courtesy of AuditNet!!
(Vienna, VA., May 1, 2008) – AuditNet LLC (AuditNet), a leading Internet audit community and global resource for auditors today announced that it has entered into a strategic distribution agreement with Wolters Kluwer Tax and Accounting, a leading provider of information, services and software solutions serving tax, accounting and audit professionals worldwide under the CCH brand name, . Under this agreement approximately 2,000 audit programs maintained on the AuditNet Internet site will be available at no charge to CCH TeamMate (TeamMate) users in the powerful TeamMate TeamStore format.
For the complete press release click here!
Global Best Practice Papers
 PricewaterhouseCoopers helps you "Uncover the Gap" in process performance through Global Best Practices® complimentary benchmarking opportunity
How can you uncover the gap between your
organization's current performance and the suggested, more optimal way
to perform the process? Benchmarking can often help provide the answer.
|
Are Immaterial Amounts Ever Material????
By Gary D. Zeune, CPA
WARNING: THIS ARTICLE MIGHT MAKE YOU UNEASY
According to the Association of Certified Fraud Examiners, the average organization loses six percent of revenue, or $9 per day per employee, to fraud, theft and abuse. Think about how many dollars in sales it takes to recoup that. So why don’t we realize the magnitude of these losses? Because they’re scattered all over the financial statements. For example, if you catch someone cheating on his or her expense report, you probably say, “Don’t do that again” and let the stolen money stay in T&E (the thief is your top sales person and it’s only a $58 ‘lunch’ that never happened). Inventory thefts end up in Cost of Goods Sold.
For the rest of the story click here!
Recovery Auditing: Reducing Profit Leaks
USE REPORTS TO
IDENTIFY MALFEASANCE
WHEN RECOVERY REVEALS FRAUD
by Richard Lanza, CPA/CITP
|
Recovery audits routinely uncover
instances of accidental double billings, overpayments,
and missed discounts. But at what point does a simple
mistake become a crime? Here we’ll examine several
examples, taken from recovery audits, which at first
glance didn’t seem blatant but actually were fraud. I
provide a list of report ideas that a fraud examiner
could execute in a data query/analysis program. These
are fictional
To read the rest of this article click here! |
Upcoming Webinars and Events
How to Reduce the Cash Leakage from Your Procure-to-Pay Function - May 5, and May 8, 2008
Cash Leakage Best Practice Seminars
How to Reduce the Cash Leakage from Your Procure-to-Pay Function: A Best Practice Approach Seminar
May 5, 2008 Philadelphia, PA
May 8, 2008 Online
For more information and registration click here!
Make sure you mention AuditNet when registering for the above
events! Audit Work Programs Corner
30 Day Trial to the Premium Section
Access to the free audit program section now requires registration. The following audit programs, ICQs, checklists or working papers were added this month. They are available on a 1 for 1 exchange for an original audit work program not currently in the inventory. If you unable to share audit programs then consider subscribing to the premium content which provides you with access free and premium content 24/7/365. Interested in previewing all the programs in the premium content section? Contribute an original audit work program not currently in the inventory and receive a 30 day trial subscription to the premium content. Contribute 5 programs and receive a one year trial subscription. (Offer only available for new programs submitted).
E-Book for
Subscribers to the Annual Audit Programs
- Financial Controls-Company financial control (Pharmacy) (May 2008)
- Financial Controls-Corporate performance management (Pharmacy) (May 2008)
- HRM-Benefits management (Pharmacy) (May 2008)
- HRM-Competency management (Pharmacy) (May 2008)
- HRM-Employee performance management (Pharmacy) (May 2008)
- HRM-Incentive compensation management (Pharmacy) (May 2008)
- HRM-Succession planning (Pharmacy) (May 2008)
- HRM-Talent acquisition and retention (Pharmacy) (May 2008)
- HRM-Workforce analytics (Pharmacy) (May 2008)
- HRM-Workforce management (Pharmacy) (May 2008)
Ask the Auditor
Each month I select one question submitted to Ask the Auditor and provide an answer using the same digital tools and techniques that I recommend to all auditors.
Q: Consideration of the probability of error, irregularity or noncompliance
I'm looking for guidance on how to assist my Internal Audit function to apply the IIA standard regarding "consideration of the probability of error, irregularity or noncompliance" (Standards 1220 and 2210) in the audit planning phase.
Under what circumstances is it appropriate and not appropriate to consider the probability of significant error?
Is it relevant only to financial based audit work and substantive testing of transactions/balances, or is it appropriate for all audit test work?
How has this standard been applied in practice?
A: (Thanks to Ferdinand Balfoort) I would suggest that the auditor should at all times consider the probable risk of any significant error, irregularity or non compliance in the planning phase.
During the planning phase you would design your systems descriptions and identify key controls and apparent weaknesses. Using your own assessments you would then develop your audit program or adjust any existing ones. Preferably all key controls and all weaknesses should be tested for, firstly to confirm the existence and operation of controls, and in the second case to measure the extent and impact of the weakness identified by substantive, preferably unbiased statistical sampling.
If you have a time or resource limitation you could conceivably drop off some items, which is where your assessment of materiality comes in, ie, which key controls or weaknesses pose the greatest risks in terms of a probable significant error.
This is relevant for all types of audits and reviews. For example, if in a pharmaceutical manufacturing scenario the internal control of regularly calibrating dosing meters breaks down, we could conceivably end up poisoning patients with off spec medicines. Although this may look like an operational or engineering maintenance issue, the reality is that any subsequent recalls, loss of brand value, risks of legal suits etc, would definitely affect the financial situation of the organization.
Another example is in the financial sector. Testing an internal control to ensure that private banking client files are complete and secure may seem like a very mundane exercise until you realize that those files are the key evidence to prove that Anti Money Laundering regulations have been complied with, in terms of doing a proper due diligence on any new private banking clients.
More discussion on this question can be found at LinkedIn Answers for auditing by clicking
here.
For those auditors who have not seen the power of using a networking group, I recommend a visit to LinkedIn
If you have a question for Ask the Auditor click here!
Looking to Earn Some Extra $$?
AuditNet is interested in developing a series of SOx or industry related audit programs for organizations. If anyone is interested in writing audit programs, ICQs, questionnaires, or control matrices on a work for hire basis please contact me. If you may know of anyone who would be interested in this as well please pass along my contact information.
AuditNet Construction Corner News
Management and Audit of Acquisition of Landed Property
[Vacant Land or Buildings]
By Gursharan Singh
Acquisition of landed property either as vacant land or completed buildings compatible with the needs of the buyer can also be transacted by individuals as well as private and public sector entities. This article will give emphasis to audit of acquisition of landed property but not to disposal of any existing landed property. However the aspects that are listed and explained are also substantially applicable to disposal of landed property as the owner would have initially gone through the process of acquisition before it can be disposed off. These aspects may not be taken into account by Government and their agencies that generally have their own procedures that may take into account other ‘considerations’ in acquisitions or disposal of landed properties.
For the rest of the story click here!
AuditNet Sarbanes-Oxley News
Low Cost SOX Compliance Readiness Tool
Exclusively for AuditNet
Looking for a low cost ($100) solution for SOX compliance? The Compliance Readiness Tool™ allows organization’s to evaluate the effectiveness of their information technology environment and controls in relation to section 404 of SOX and the Committee of Sponsoring Organizations (COSO) internal control framework.
For more information click here!
There are plenty of articles in the news on the topic of Sarbanes Oxley. Here is a link to a site that does the research and provides you with links to all the relevant stories.
AuditNet Career Center
Auditors Looking for Jobs!
Companies Looking for Auditors!
The Matching Service for Auditors!
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If your company has any audit job vacancies that you are looking to fill, have your HR people contact AuditNet® to post the job and search for candidates.
This is just another benefit of using AuditNet® as your one stop shop for all your audit and career resources.
AuditNet® Book Reviews
AuditNet® Software Compliance Audit Corner
|
Click here for a special offer and late-breaking software compliance news!
Monograph on Software Compliance Auditing: Looking for a Career Change? Registered users can read the complete monograph by clicking here! Registered AuditNet users can send for 20 free software compliance articles. Login to your account and click on the link to receive the articles by email. Also the following articles should interest you! Microsoft has started a program recently in UK that has wide reaching implications for smaller and medium sized organizations, that auditors need to be aware of to minimize risk. More details can be seen by clicking here! |
Your Secret Weapon in the War on Fraud
White-Collar Crime Fighter brings you expert strategies and actionable advice from the most prominent experts in the fraud-fighting business. Each month you’ll learn about the latest frauds, scams and schemes... and the newest and most effective fraud-fighting tools, techniques and technologies you can put to work immediately to protect your organization.
Click here for the latest e-newsletter and subscription details.
The AuditNet® Audit Bookstore Corner
Looking for books on auditing related topics? We suggest using the AuditNet® bookstore. The bookstore focuses on Internal Audit but includes other related subjects as well. AuditNet® uses Amazon to power the bookstore so each purchase you make through this link helps support AuditNet®.
How to Say It When You Don't Know What to Say The Right Words for Difficult Times
By Robbie Miller Kaplan
As auditors we constantly interact with diverse stakeholders such as colleagues, managers, employees and others. Frequently we encounter people dealing with challenging and difficult times that may or may not be related to work. Our reaction to these situations is conveyed in our behavior both nonverbal and verbal.
For the rest of the review click here.
AuditNet® Vendor News
Check here for the latest news from our AuditNet® sponsors!
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Exceeding Expectations for Internal Auditors
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