PowerPoint Presentation

Mark Salamasick CIA, CISA, CRMA, CSP

Director of Center for Internal Auditing Excellence

The University of Texas at Dallas

For

Houston IIA Chapter

November 3, 2014

Where Will the Next Generation of Internal Auditors Come From?

The Fight for Talent!

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Mark Salamasick, CIA, CRMA, CISA, CSP

Director of Center for Internal Auditing, UTD 11 Yrs.

Adjunct Faculty, University of Texas at Dallas 18 years

SVP, Internet/Intranet Services, Bank of America 2 years

Director IT Audit, SVP, Internal Audit, Bank of America 18 years

Senior Consultant, Accenture 4 years

Instructor of Accounting and Information Systems, Central Michigan University 3 years

BS in BA and MBA Central Michigan University

Numerous IIA International Committees since 1990 currently on Learning Solutions and previously the Board of Trustees of the Research Foundation

Four books published by IIA International

Chartered and Past President of Two Toastmaster Clubs

Recruited hundreds of entry level auditors for twenty years and trained hundreds of college hires over eleven years

Enjoy running, road and mountain biking, traveling, speaking and financial investments

Agenda

Past

Present

Future

PAST

Where have internal auditors

come from in the past?

Quick

Survey

Where did you start your career?

Public Accounting

Industry

Government

Were you aware of the profession of Internal Audit at that time?

Quick

Survey

What job did you start with?

Internal Audit

External Audit

Tax

Something Else

Other companies

Universities

Public accounting firms

What do successful UTD IAEP

students look like and where

did they go?

IAEP gave me the tools I needed to start my career on the right path. The program is designed to build communication, risk assessment, and process design skills that are essential for any career decision.

Kunaal Sarna, Microsoft

The IAEP program at UT Dallas offers a variety a networking opportunities important for any career searching/planning including receiving offers for an internship and/or full-time position.

Michael Callahan, Lennox International

The IAEP program served as the foundation and gateway into a career that provides the fundamental knowledge of management, solid business practices and understanding of an organization in its entirety. I have leveraged that experience into other career fields and realized that a base knowledge of internal auditing is an invaluable tool set that is critical to the success of any project, any career.Cynthia Nguyen, UT Southwestern Medical Center

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PRESENT

Baseline - Profile Group

Positions

Size of Audit Groups

Size of IT Audit Groups

Openings

Is this Realistic?

Requirements Experience and Education (Audit Senior):

Bachelors degree in Accounting.

CISA designation required.

CPA or CIA preferred.

3+ years of audit experience (Big 4/public experience preferred).

2+ years of IT Internal Audit experience.

Prior experience in performing SOX-related audits.

Prior experience in the financial services industry.

Advance skills with the following Microsoft products: Excel, Word, Visio, PowerPoint, and Access.

Really?

Job Requirements (Audit Senior):

Bachelor's degree in Accounting or Finance, or similar business degree

Minimum of 5 years of auditing experience in public accounting and/or a corporate internal audit

In-depth knowledge of and experience applying audit principles, practices, and procedures

Strong knowledge of Generally Accepted Accounting Principles (GAAP) and Sarbanes-Oxley (SOX)

Ability to document, analyze and make improvement recommendations in processes and controls

Proficient in Microsoft Office Suite

Excellent verbal/written communication skills

Ability to multi-task and adapt to changing organizational and departmental needs

Ability to work collaboratively with all departments, management levels within the company, and external stakeholders

Relevant certification such as CPA, CIA or similar

Must be able to travel up to 30% of the time

Operations, JDE, Hyperion and ACL experience a plus

This is more like it!

Desired Skills and Experience

MUST HAVE:

Strong investigative and analytical ability required.

Excellent consultative and judgment skills, confidentiality, and interpersonal ability.

Must be able to communicate effectively with employees at all levels.

Must have the ability to negotiate and influence results without direct authority.

Thorough understanding of accounting principles and standards.

Bachelors Degree in Accounting, Finance, or related field required (Masters from an IAEP program preferred).

Minimum of 5 years healthcare auditing related experience.

Certified Public Accountant (CPA) or Certified Internal Auditor (CIA) required.

NICE TO HAVE:

ACL and/or IDEA experience preferred.

Have you looked here lately?

Chapter Job PostingsNRG Energy - Sr. Internal AuditorLocation:Houston, TexasDate Posted:October 22, 2014Date Ending:November 22, 2014Swift Energy Company Internal Auditor IILocation:Houston, TXDate Posted:October 14, 2014Date Ending:November 15, 2014Allegiance Bank Texas - Senior AuditorLocation:Houston, TXDate Posted:October 13, 2014Date Ending:November 12, 2014Harris County Auditor's Office - Audit ManagerLocation:Houston, TXDate Posted:October 13, 2014Date Ending:November 12, 2014Harris County Auditor's Office - Manager Construction/Contract AuditLocation:Houston, TXDate Posted:October 13, 2014Date Ending:November 12, 2014Harris County Auditor's Office - Senior AuditorLocation:Houston, TXDate Posted:October 13, 2014Date Ending:November 12, 2014

What is changing?

Public Accounting

Public Corporations

Government

Private Firms, Private Equity, and IPOs

Increased demand

More retiring

More control-related positions

More rotational strategies in audit groups

More demand in other parts of company

Higher level IT knowledge

Decreased supply

Public accounting

Universities

Other organizations

Full employment

What is the Population of Schools Teaching Internal Audit?

82 US Schools out of 460 AACSB Accredited Universities

32 US Schools part of IAEP program

Limited interest among Universities to start new programs

Many programs are struggling

IAEP programs

Orlando, September 2014

2011 Orlando IAEP Conference

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Three types of programs

Centers

Comprehensive

Foundation

Centers for Internal Auditing Excellence

The University of Texas at Dallas

Louisiana State University

University of Houston

University of Pretoria

Erasmus University Rotterdam

University van Amsterdam

What have I noticed about Students?

They dont know where they want to work

They dont know what they want to do

They dont understand career alternatives in risk management

They dont all come in with the same backgrounds and perspectives

They are eager to learn

Why New Programs Wont Be Created

Lack of a Champion

Many barriers in starting new internal audit programs

Marketing internal audit to students is difficult

Some false starts in new academic programs

Even current programs in internal audit will have difficulty staying at least status quo

Potentially some schools teaching internal audit

FUTURE

Options for future staffing

Maintain current staff

Decrease staffing when auditors leave

Recruit from other companies

Recruit individuals in career transition

Hire internal audit students from Universities

Hire students from Universities

Co-sourcing/outsourcing will increase

Future Demand/Supply of Internal Auditors

Demand for internal auditors and risk management professionals will continue to increase significantly

Winners will be those with staffing/recruiting strategy and long term outlook

Losers will be those who recruit randomly

Other areas of the organization

http://www.independentaudit.com/broaden-internal-audit-skills/

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Understand why people leave!

Dont like my boss

Travel

Career advancement

Promotion

Salary/Benefits

No room for advancement

Create Pipeline of Talent

Student volunteers(Unpaid)

Students want experience

Good way to test and gain experience

Paid formal internships

Full time while going to school

Winning the war for talent:

Actions steps

Differentiate yourself

What are Internal Audit students looking for in an employer?

Survey Says

Opportunities for Growth and Advancement-19

Work/Life Balance-14

Competitive Salary/Benefits-13

Good Corporate Culture-12

Flexibility - 11

Diversity in Work-7

Constantly Learning/Training-3

Challenging Work-3

Recognition/Feel Wanted - 3

Great Leadership-2

Good Travel - 2

Highly Technical Environment - 2

Does the Board think Highly of Audit - 2

Southwest Airlines

Student Chapter Event

Southwest Airlines

Student Chapter Event

Continually network

Visit a campus

Speak to a class

How to attract students?

Advocate the Profession in many ways

Faculty/Staff

Sense of Community (IIA/ISACA/ACFE

Student Chapter)

Cross discipline approach

Lots of large events

Create lots of disciples

Scholarships

Advocate for Academic

Relations and the Profession of Internal Audit

Denny Beran

How can YOU help?

Advocate the Profession

Invest in the Future

Money

Time

Talent

Treasures

Why You All Need To Help!

MARK BEGINS AGAIN AND WRAPS UP

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Lack of new talent entering internal audit

Shortage of internal auditors will get significantly worse

Need to advocate the profession in many ways

Very few new classes and programs

Everyone in this room can help!

The Future Internal Auditors

Dallas IIA Super Conference October 24, 2014

Getting started

Building relationship with faculty

Advocate the profession

Mentor students

Mentor those in career transition

Class Presentations

Student Groups

Be an advocate for the profession in many ways

https://www.youtube.com/watch?v=Zi1L-0wC7wA

https://na.theiia.org/about-us/about-ia/Pages/Academic-Relations.aspx

Questions and Comments?Email: Mark.Salamasick@utdallas.eduOffice Phone: (972) 883-4729Cell Phone: (972) 768-3016Office: University of Texas at Dallas Jindal School of Management-4.218 800 West Campbell Road, SM 41 Richardson, TX. 75083-0688 Website: jindal.utdallas.edu/iaep

For Additional Resources

https://na.theiia.org/about-us/about-ia/Pages/Academic-Relations.aspx

https://www.youtube.com/watch?v=Zi1L-0wC7wA

http://jindal.utdallas.edu/centers-of-excellence/center-for-internal-auditing-excellence/

https://www.utdallasiia.com/