From the President's Study

Thank you for your interest in and support of The Institute of Internal Auditors Research Foundation (IIARF). I am The Foundation's new President, and have already begun to work with the volunteers and staff. Board of Trustees (BOT) and Board of Research and Education Advisors (BREA) in support of The Foundation's new Mission:

"The Institute of Internal Auditors Research Foundation is the integrated research and educational products arm of The IIA dedicated to facilitating the effective management of the internal audit guidance life cycle and developing global guidance resources."

Who are we and what do we do? The BOT establishes research priorities and matches available funding to research projects and programs, and directs fundraising initiatives. The BREA provides the internal auditing profession with the information needed to anticipate, and react to, important external and internal factors that could have an impact our profession.

Our new support structure includes a Staff Guidance Planning Committee (Staff GPC) and a Guidance Planning Oversight Group (Oversight Group). Both will focus on key global issues, identify gaps, and provide prioritization of issues to which to respond.

Together, our objectives as an organization are:

• Researching and providing timely insight into emerging issues and trends.
• Developing tools and materials to enhance the professionalism of practitioners and allow them to realize their full potential.
• Ensuring integration and alignment with relevant IIA activities to ensure a branded image and coherence in the guidance production life cycle.
• Re-assessing internal audit practice and refreshing the Common Body of Knowledge to ensure ongoing relevancy.
• Developing a sustainable funding model to maintain the continuation of our mission.
• Disseminating and integrating information from research and educational products into other areas of The IIA including global practices, educational programs, educational materials and knowledge assessment.

This graphic focuses on the priorities, product mix and delivery mechanism that we will use in our planning and delivery processes to ensure our results are linked to our objectives.

The remainder of this newsletter will introduce you to some of our recently issued and ongoing projects, and present compelling reasons for your continued financial support of The Foundation. I look forward to working with many of you over the coming year on and thanks in advance for your generous support.

Sincerely,
Research Foundation President
Roderick M. Winters, CIA
rodwin@microsoft.com

New Reports and Products

New RF Reports

Audit Committee Effectiveness – What Works Best, 3rd Edition

In this highly anticipated update, the authors share the "fully knowledgeable, but appropriately distanced" approach to implementing best audit practices that maximize an audit committee’s organizational impact. Read the overview for more on this must-have resource for every audit committee member.

Continuous Auditing: An Operational Model for Internal Auditors

This report covers continuous auditing concepts and addresses a wide range of topics, including definitions and concepts of continuous auditing, its application areas, data warehousing and data mining techniques, validation and training issues. Read more.

Factors Affecting Corporate Governance and Audit Committees in Selected Countries

This new research study reviews the major features of corporate governance and audit committees in France, Germany, the Netherlands, the United Kingdom, and the United States, and identifies the impact on corporate structures. Read more.

Sarbanes-Oxley Section 404 Work: Looking at the Benefits

This report identifies control improvements that have taken place as a direct result of Section 404 evaluations and identifies lessons learned that can improve the efficiency and effectiveness of control evaluations in the future. Read more.

New Educational Products  (Listed Chronologically)

• Internal Auditor Job Market 2004: A Comprehensive Review of Salaries, Staff Sizes, Director Statistics, and Attitudes CD-ROM (Feb. 2005)
• Auditing Security and Controls of Windows® 2000 and Windows® XP Professional (Mar. 2005)
• Auditing the Casino Floor: A Handbook for Auditing the Casino Cage, Table Games, and Slot Operations 2nd Edition (Mar. 2005)
• Global Technology Audit Guide: Information Technology Controls (Mar 2005)
• Auditing Security and Controls of Windows® Server 2000 and Windows® Server 2003 (May 2005)
• Quality Assessment Manual CD-ROM – French (May 2005)
• Auditing Security and Controls of Windows® Active Directory® and Group Policy Objects (June 2005)
• Auditing Security and Controls of Windows® Active Directory® Domains (June 2005)
• Global Technology Audit Guide - Change and Patch Management Controls: Critical for Organizational Success (July 2005)

Upcoming Reports and Educational Products

• CGAP Study Guide Update
• Proactively Detecting Occupational Fraud Using Computer Audit Reports Self-Study Course
• Monitoring Construction Activity: A Guide for Project Managers and Auditors
• Sustainable Development
• Control Models: A Practical Approach
• XBRL: Potential Issues and Opportunities for Internal Auditors

Updated Research Priorities Published

New priority topics for research have been published by The IIA Research Foundation. Enterprise risk management, corporate governance, the impact of Sarbanes-Oxley, quality assurance, information technology and fraud are research topics on the drawing board for The IIA Research Foundation. Interested researchers are invited to submit proposals on these and other research topics. Click here to find out how to submit a proposal (PDF file).

Common Body of Knowledge (CBOK) 2006

It has been just over a year since The Foundation established The William G. Bishop III, CIA, Memorial Fund in recognition of The IIA's former President, who passed unexpectedly in March 2004. Bill spent his professional life raising the level of proficiency and instilling in practitioners an understanding of the importance of the profession. He was an ardent supporter of internal audit research.

Contributions to The William G. Bishop III, CIA, Memorial Fund support research to identify the global Common Body of Knowledge (CBOK) 2006. These studies will set new standards for the profession Bill championed. As the internal auditor's role in achieving effective organizational governance becomes more fully developed, it is essential that best practices be codified and applied and that professional auditors update their skills and knowledge accordingly. The purpose of the CBOK is to develop a summary of the global practice of internal auditing as practiced around the world and provide insights on the practice of internal auditing, how it has changed, and where it is going.

The structure of the research efforts would produce a series of modular studies that will develop a living library of the continuing evolution of the practice of internal auditing. These results, added to the current information available, will provide an encyclopedic framework of research results available to research providers and The IIA entities responsible for providing guidance to practitioners. 

IIARF Author Named IIA Educator of the Year Award

Mark Salamasick, CIA, director of The IIA's  Endorsed Internal Audit Program (EIAP) at the University of Texas-Dallas (UTD), is The IIA's 2005 Leon R. Radde Educator of the Year.

The award was presented in Chicago to Salamasick in recognition of his significant contributions to the advancement of internal auditing through education in colleges and universities. As an IIA Research Foundation (IIARF) author, Salamasick has written several reports, books, and articles. He also served as the driving force behind a sizeable research project conducted by The IIARF which focused on information technology auditing.

Selection criteria will cover contributions to internal audit education through one or more of the following: research study, article on internal audit education, education research, chapter programs, curriculum/course development, teaching, or other educational contributions.

Sharmain Solomon Receives 2005 Esther R. Sawyer Award

University of Central England Business School (UCE) student Sharmain Solomon is the recipient of the 2005 Esther R. Sawyer Award scholarship. Solomon is slated to complete UCE’s masters program for audit, management, and consultancy in September. UCE is an IIA Endorsed Internal Auditing Program (EIAP).

The award is presented annually to the individual who submits the most compelling manuscript on the topic designated by the review committee relating to modern internal auditing. The Sawyer family funds the award through a generous contribution to The IIA Research Foundation. Both the student and the school receive a portion of the scholarship to assist them in furthering the profession. The award memorializes Esther Sawyer, the wife of Larry Sawyer, who has long been recognized as the "father of modern internal auditing

This year's topic was, “What is the Role of the Internal Audit Function in Establishing and Ensuring Effective Coordination among the Audit Committee of the Board of Directors, Executive Management, the Internal Auditors, and the External Auditors?” 

The Institute presented Solomon with the award and US $5,000 during The IIA's 2005 International Conference, held July 10–13, in Chicago. UCE will also receive a cash award to support its EIAP.

Donald E. Ricketts Chapter Research Awards Announced

The Dallas Chapter received First Place and the Chattanooga Chapter received Second Place in The IIA's 2005 Donald E. Ricketts Chapter Research Award competition. Their winning papers are " Quality Assessment Review Readiness," and "Situational Interviewing" respectively. They were recognized during The IIA's 2005 International Conference in Chicago.

In 1996, The Foundation named the award in the memory of Dr. Donald E. Ricketts – a longtime member of The IIA and The Research Foundation Board of Research Advisors. He had been the chairman of the Chapter Research and Doctoral Dissertation Committee since its inception. His leadership and support of the Chapter Research Program was instrumental in the ongoing success of the program.

Estate Planning: Where to Begin

A number of Research Foundation supporters have made charitable bequests to The Foundation through their wills, trusts, and estate planning. In addition to leaving a lasting legacy to the profession, these donors are given recognition as Heritage Circle donors.

Knowing where to begin is the most important part of estate planning. Naming The IIA Research Foundation in your will as a beneficiary is the most common type of large gift. Generally, gifts of cash, property, and/or investments are prearranged by means of a bequest, of which there are three types:

• A percentage bequest is a donation of your estate or of another asset. You might, for example, provide that upon your death, your house be sold and that each of your three children receive 30 percent and that The Foundation receive 10 percent of the net proceeds.
• Residual bequests occur when all or a portion of the remainder of your estate after specific and other bequests have been distributed. An example of this type of bequest might be everything that remains after all previous bequests have been satisfied. That remaining amount would be given to The Foundation.
• A gift of a specific dollar amount is appropriately named a specific bequest. These are most common because they are very straightforward. You may designate, for example, that $10,000 be donated to The Foundation.

We recommend that you consult with your attorney about the best way to use your will, trust, insurance policy, or other estate plan to support The IIA Research Foundation.

Contributions to The Foundation

Contributions and gifts to The IIA Research Foundation may be made in two categories: restricted and unrestricted. Restricted contributions are designated by the contributor and earmarked for a specific research or educational program. Unrestricted contributions are used by The Foundation to meet auditing research and education objectives as authorized by the Board of Trustees, such as:

• Funding research projects.
• Sponsoring forums and symposiums.
• Awarding research grants and doctoral dissertations.
• Assisting internal auditing educational programs in colleges and universities.

There are multiple levels of tax-deductible contributions available. Download a contribution form.

* Chairman's Circle contributors will receive recognition in all IIA Research Foundation publications.

** All contributions over $1,000 will enroll the contributor in the Master Key Program (see below).

Master Key Program

The Master Key Program enables audit groups to immediately obtain the most current reports hot-off-the-press and offers an opportunity to support internal auditing research worldwide. A corporate tax-deductible contribution of only US $1,000 will enroll your company in the Master Key Program and you will automatically receive all research reports from The Foundation for the entire year. For US $3,000 or above, you will receive all research reports, plus all educational products published by The IIA Research Foundation in the contribution year.

Click here for additional information about the Master Key Program.