The Institute of Internal Auditors, Inc.

 New York Chapter

Dear Colleague,

As internal auditors and financial managers, we are all aware of the importance of having a strong control environment. But just as critical are the skills needed to face the competition and flourish in an economic period of "right" sizing and cost containment. So, what does it take to succeed in today's corporate environment? Adding value. Keeping current. Managing change. Building relationships. Just to name a few.

To meet today's challenges, internal auditors and corporate management must also realize the synergistic benefits of working together. Our 25th Annual Audit Seminar's theme of "Partnering With Management" is intended to demonstrate how the role of internal auditing has grown to be dynamic and highly sensitive to management's concerns and business exposures and how the profession is increasingly responsive to helping corporate management achieve its strategic objectives.

The New York Chapter is proud to present an accomplished array of top-notch speakers, beginning with keynote speaker H. Carl McCall, New York State Comptroller, who will share his perspectives on fiscal management and control in today's ever changing environment. Three tracks will be offered covering management control, technology, and audit specializations. In response to member survey results received earlier in the Chapter year, we have lined up speakers to provide practical advice on diverse topics including implementing COSO as a Fraud Prevention Tool, Emerging Technologies: Opportunities and Challenges for Auditors, and Internet Security and Firewalls. Concurrent with the afternoon session, an Audit Director's Round Table will be held to discuss issues of concern to audit management.

In addition, to help you keep current on the latest products and services available, a wide selection of vendors will be on hand. The Seminar will be followed by a cocktail reception, sponsored by the vendors, and we invite everyone to come enjoy the opportunity to network and partner with management!

Sincerely
 

Paul Flora  Vice President  Professional Development

Ellen M. Isaacs  Chairperson  25th Annual Audit Seminar

 
Committee Members

Mary Mulvey, Vice Chairperson  Duane Dent  Michael Fucilli

Eduardo Icasiano  Diana Mercado  Rocco Peluso

 
 

GENERAL SESSION - FRIDAY, MARCH 20, 1998
 

KEYNOTE SPEAKER

H. Carl McCall, CPA, New York State Comptroller
Topic: Fiscal Management and Control in Diverse Organizations

H. Carl McCall was elected to his first full term as Comptroller of the State of New York in November 1994. As Chief Fiscal Officer of the State, he is responsible for governmental financial oversight and pension fund management. Comptroller McCall audits the spending practices of the State and public authorities, 1,600 cities, counties, towns and villages across New York State. As sole trustee of 880,000 member State and Local Retirement Systems, Mr. McCall is responsible for investing a $75 billion pension fund.

From 1985 to 1993, Mr. McCall served as Vice President of Citicorp/Citibank. From 1991 to 1993, he served as President of the New York City Board of Education. He has also served as an Ambassador to the United Nations, Commissioner of the Port Authority of New York and New Jersey, and as the Commissioner of the New York State Division of Human Rights.

Mr. McCall was educated at Dartmouth College, Andover Newton Theological School and the University of Edinburgh.
 

LUNCHEON SPEAKER

Arthur Mercante, Coordinator, Department of Parks & Recreation, Town of Hempstead
Topic: Achieving Success with Management

Come hear the "third man in the ring," for that historical night when Mohammed Ali fought Joe Frazier in Madison Square Garden, December 1971. Mr. Mercante will inspire us with his management principles for achieving success while delighting us with amusing anecdotes from his 131 championship fights from all over the world.

In addition to Mr. Mercante's twenty-five years of experience in public relations with the brewing industry, he has enjoyed an illustrious career in boxing and as an actor. As well as being a Golden Gloves finalist, Mr. Mercante refereed 114 championship matches. He has been a member of the Screen Actors Guild since 1960 and has appeared in numerous movies and television commercials including the classic," Requiem For A Heavyweight."
 
[Seminar Matrix ]

TRACK A - MANAGEMENT AND CONTROL
Thomas Pison, Ph.D., Managing Director, World Training Institute
Topic: Auditors as Consultants

What is the most challenging problem CEOs and auditors face when they must introduce changes in rules, policies or procedures for their organizations ? The various responses to this question reflect a common perception: resistance. The forms of resistance are equally varied and often described as passive, active or denial. Nearly two-thirds of all initiatives for change fail because resistance is not properly acknowledged or dealt with. This session will show you specific techniques for making change work in your organization ass well as offer you tactics for making resistance work FOR you.

Thomas Pison has been working as a consultant, trainer and university professor for over twenty years. He has organized and developed training programs for auditors in business and government agencies. Currently, Dr. Pison is Managing Director of the World Training Institute and also Adjunct Professor of Marketing Communications at the New York Institute of Technology. He has written numerous reviews and publications on topics in computer-based and multi-media training for managers.



A-1:
John J. McKeever, CFE, CQA, CPC, Director, COSO and Quality Assurance Programs, World Training Institute
Topic: Business Controls that Make Sense: COSO as a Fraud Prevention Tool

This presentation will demonstrate how you can help your clients implement better business controls. The presenter will demonstrate proven techniques, using the COSO Integrated Framework and control self-assessment concepts that can help your clients improve their own processes. Basic concepts of business controls, the control objectives and components of COSO and the foundation needed for an effective control self-assessment evaluation will be discussed.

John McKeever has supervised numerous audits in finance, operations and technology, and has trained thousands of auditors and managers while at the AT&T School of Business, the Institute of Internal Auditors and in private practice. Mr. McKeever is a graduate of Northeastern University where he received his degrees in Business Administration and Management. He has a graduate degree in Management from the Stevens Institute of Technology and a Certificate in Total Quality Management from . University of Phoenix. The Institute of Internal Auditors has awarded Mr. McKeever the designation of Distinguished Adjunct Faculty Member.
 

A-2:
Kathy Dhue, CIA, CISA, PHR, PMP, Internal Audit Director, AT&T
Topic: Partnering With Audit Committees

Ms. Dhue will speak about IIA recommendations, industry best practices, Audit Committee expectations, ways of working together and some realities. Bring your experiences? let's have some useful sharing!

Kathy Dhue is the Internal Audit Director at AT&T in Short Hills, New Jersey. She is on her third tour in AT&T's Internal Audit organization. Her two previous assignments were managing auditors covering all aspects of the business, financial, operational and EDP. Kathy's other "careers" in AT&T have been in information systems, human resources and as CF0. Kathy graduated from Elmhurst College and received her MBA from Rutgers. In addition to being a Certified Internal Auditor and a Certified Information Systems Auditor, she is also a Professional in Human Resources (PHR) and Project Management Professional (PMP).
A-3:
Thomas Pison, Ph.D., Managing Director, World Training Institute
Topic: Auditors as Consultants

What is the most challenging problem CEOs and auditors face when they must introduce changes in rules, policies or procedures for their organizations ? The various responses to this question reflect a common perception: resistance. The forms of resistance are equally varied and often described as passive, active or denial. Nearly two-thirds of all initiatives for change fail because resistance is not properly acknowledged or dealt with. This session will show you specific techniques for making change work in your organization ass well as offer you tactics for making resistance work FOR you.

Thomas Pison has been working as a consultant, trainer and university professor for over twenty years. He has organized and developed training programs for auditors in business and government agencies. Currently, Dr. Pison is Managing Director of the World Training Institute and also Adjunct Professor of Marketing Communications at the New York Institute of Technology. He has written numerous reviews and publications on topics in computer-based and multi-media training for managers.
 
[Seminar Matrix ]


 

TRACK B - TECHNOLOGY ISSUES

B-1:
J. T. Jacoby, Executive Vice President, Auditek Inc.
Topic: Electronic Commerce and Enterprise Security

Why are so many corporations behind the security curve and how can audit be effective in this environment? Learn how distributed computing transformed industry and helped fuel profit and weaken management controls. Now that client server technology and the Internet are here to stay, learn how the audit function must get involved in enterprise security.
 

J. T. Jacoby has been involved in the information technology industry since 1989. Currently, he * Executive Vice President of Auditek, Inc., as well as Technology Audit Software Corporation. In those capacities, Mr. Jacoby oversees technical audit and security review of large switching systems, telecommunications equipment, client server systems, wireless systems and design of software products. He is certified by Siemens, Northern Telecom and AT&T in switching and voice processing architectures. He has conducted numerous training classes on the technical elements of systems integrity and security for both data and voice systems and applications.
B-2:
David Hodgson, CPA, Partner, Price Waterhouse LLP
Topic: Emerging Technologies - Opportunities and Challenges for Auditors

Auditors are seeking to add more value and maximize the effectiveness of their resources. Many are choosing to align their auditing strategies to the organization's business objectives as a way of accomplishing these objectives. This session will provide you with leading edge, practical, real life case studies of audit strategies and technologies from major corporations. ML Hodgson will also cover topics such as business risk assessment, best practices in COSO implementation and innovative uses of technology. The emphasis will be on providing you with practical insights and ideas for aligning internal audit with management's strategic plan.
 

David Hodgson is Partner, Internal Audit Services with Price Waterhouse LLP. He has over twenty years of broad based experience in auditing and consulting, primarily focused on large multinational corporations. Mr. Hodgson was also the project partner on the Institute of Internal Auditors 1994 update to the Systems Audibility and Control (SAC) Report. He has a B.S. from Durham University, England, is a Certified Public Accountant licensed in New York, New Jersey and Massachusetts and is a Chartered Accountant in England and Wales. He is a member of the AICPA, the Association of Chartered Accountants in England and Wales, the Board of Research Advisors of the Institute of Internal Auditors and the British American Chamber of Commerce.
B-3:
William H. Murray, CISSP, Information Systems Security Consultant, Deloitte
& Touche LLP
Topic: Internet Security and Firewalls

This presentation is an introduction to the Internet for auditing professionals, describing the characteristics, applications and protocols of the network. Mr. Murray will explain the Internet's peculiar vulnerabilities and the attacks that exploit them. He will also discuss strategies, tactics and mechanisms for protecting traffic in the network, placing special emphasis on firewalls and strategies for using them.

Mr. Murray has more than thirty five years of experience in data processing and more than twenty years in computer security. During his more than twenty five years with IBM, his management responsibilities included development of access control programs, advising IBM customers on security. In 1987, he received the Fitzgerald Memorial Award for leadership in data security. In 1989, he received the Joseph J. Wasserman Award for contributions to security, audit and control. Bill is also a Certified Information System Security Professional.
 
[Seminar Matrix ]



TRACK C - AUDIT SPECIALIZATIONS

C-1:
John Mueck, Director, Sales Practice Unit, New York Stock Exchange
Topic: Auditing Securities Industry Sales Practices

The New York Stock Exchange is responsible for examining its entire member firms on an annual basis and for ensuring firms' compliance with Exchange and SEC rules. This discussion will primarily focus on the role of the Exchange's sales practice examination function, charged with ensuring that customers are not disadvantaged and that member firms have adequate supervision over its registered representatives. Mr. Mueck will discuss the examination process and its impact on our member organizations.

Mr. Mueck has been the Director of the Sales Practice Unit at the New York Stock Exchange for the past twelve years. He has worked on many of the largest sales practice cases referred to the Exchange's Enforcement Department. He has also worked on cases sent to the SEC and other regulators. Many of these cases involved excessive/unsuitable training, cold calling and lack of supervision. Mr. Mueck has also worked with the NASD as an Examiner and has worked as a Registered Representative.
C-2:
Anthony Dalessio, CPA, Director, Commercial Internal Audit Services, KPMG Peat Marwick LLP
Topic: A Value Added Approach to Internal Auditing

This session will provide an overview of best practices for internal audit services in order to enhance the value internal audit adds to the organization. The discussion will focus on a risk-based audit approach, combined with understanding core business processes and the risks present, the relationship between those risks and controls, and the analysis of key performance indicators for specific businesses and how those indicators add to the value of running an organization.

Mr. Dalessio's role in Commercial Internal Audit Services is to coordinate the delivery of KPMG's worldwide internal audit services for commercial enterprises. His responsibility for the implementation of KPMG audit policies requires him to track new auditing standards issued by professional and regulatory bodies. Mr. Dalessio has been involved in developing KPMG's audit approach known as "Business Management Process," and has had the lead role in training internal audit groups of KPMG's major clients. He also developed a KPMG audit tool on fraud. Mr. Dalessio serves as the North American representative of the steering committee of experts from the United Nations and the World Trade Organization, involved in developing internal audit educational programs. He is also a member of the advisory board to the City University of New York commissioned to develop a graduate program in internal auditing.
C-3:
James Hanlon, CPA, Director, Continuing Professional Education Programs, World Training Institute
Topic: Telecommunications for the Non-Technical Auditor
 
In his presentation, Jim Hanlon will explain in plain English what you need to know to audit your company's telecommunications and experience pay back in terms of cost reductions, customer satisfaction and process improvement. He will also share techniques for assessing your organization's risk in terms of security and service reliability.
Mr. Hanlon has been a practicing Certified Public Accountant for over twenty years. During his ten years as an Internal Audit Manager with AT&T, he directed numerous audit and consulting engagements resulting in over $300 million in cash recoveries for AT&T. Jim was also involved in business process reengineering, business unit risk assessments and internal control process implementation. He has counseled clients in quality standards implementations, including ISO 9000 applications. Mr. Hanlon also experienced two major corporate reorganizations at AT&T.
 
 
 
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