The IIA Research Foundation: 30 Years, 1976-2006

In 1976, thirty years ago … the United States celebrated its bicentennial, Jimmy Carter defeated Gerald Ford for the U.S. presidency; the first laser printer was introduced by IBM, the first regularly scheduled commercial supersonic transport (SST) flights began; Viking 1 landed on Mars and beamed back photographs, the median household income was US $12,686 (current dollars), a first-class stamp cost 13 cents – and Microsoft celebrated its first anniversary. And in 1976, The IIA officially founded The Institute of Internal Auditors Research Foundation (then called The Foundation for Auditability Research and Education).

While research was a major objective of The IIA since its founding in 1941, the creation of FARE as a fully approved, tax-exempt corporation in the United States provided a better vehicle for inducing contributions for professional research and education. Today, The Institute of Internal Auditors Research Foundation serves as 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.

In reflecting on the 30-year history of The Foundation, I am reminded of how far we have come and of the opportunities ahead of us. The Foundation has consistently set the standard for professional achievement in the internal auditing profession. Among The Foundation's most memorable research projects were the Systems Auditability and Control Report (SAC), the Competency Framework for Internal Auditing (CFIA), and soon, the Common Body of Knowledge (CBOK), an ongoing research program that will broaden understanding of how internal auditing is practiced throughout the world.

I am pleased to recognize The IIA Research Foundation on its 30^th anniversary, and honored to serve as its 11^th president. I share pride in the accomplishments of The IIA Research Foundation over its 30-year history, and know it will continue “defining the future” for many years to come.

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

Congratulatory Messages

Traditional 30th anniversaries have a theme of Pearls. Celebrated as symbols of perfection and affluence, pearls are said to help one see oneself and improve one's self-worth. Appropriately enough, The Foundation is proud to have shared its “pearls of wisdom” over the years by sponsoring, disseminating, and promoting research and knowledge resources to enhance the development and effectiveness of the internal audit profession.

Overall, The Foundation's publication and research endeavors have been the most visible aspect of the organization's activities over the decades. Every IIA member has been exposed to the products of The IIARF. The Foundation's research program has been where the action is. As the objectives of the research program require, the publications have dealt with not only what is happening in internal auditing, but also what is likely to happen in the future. Because of this latter aspect, many of The Foundation’s publications have been on the cutting edge of auditing research. 

To accomplish its mission, the Foundation benefits from a winning combination of:

• Passionate Trustees led by enthusiastic and charismatic president — 11 presidents in 30 years with Roderick M. Winters, CIA (Microsoft Corporation) as the current president.
• Generous donors: fundraising in 1979 amounted to US $9,000, and reached US $356,106 in 2005
• Dedicated and first-class staff

In 2005, The IIA Research Foundation demonstrated maturity (37 projects completed, more than 20,000 copies of the top 25 titles  sold worldwide) but also confidence in elevating its potential to new horizons. With its 30^th anniversary, The IIA Research Foundation also embarks into a new adventure and mission as “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”.

By the end of 2006, The Foundation will release the first results of the new Common Body of Knowledge (CBOK) project, which on a three year cycle basis will:

• Develop a summary of the global practice of internal auditing,
• Provide insights on the practice of internal auditing, how it has changed and where it is going
• Provide information on the context in which internal auditing is practiced (the role within organizations, governance structures, regulation, etc.)
• Communicate data, analysis and report results to the various international committees and IIA business units

This unique project is operated under the auspices of The William G. Bishop III, CIA, Memorial Fund, a living tribute to our late, widely revered president, Bill Bishop. Time after time, Bill would use research results to energize the volunteer and staff components of The IIA to modify policy, guidance and examination parameters to serve the needs of practicing internal auditors

What a great way for The Foundation to mark its 30^th anniversary, leading the Internal Auditing profession into the next era.

Happy anniversary to the IIA Research Foundation!!!

Dominique Vincenti, CIA
IIARF Executive Director
Chief Advocacy Officer
The Institute of Internal Auditors

Bill believed that The Research Foundation serves as a beacon for the internal audit profession - highlighting challenges, opportunities, and solutions to keep the profession thriving.

I know that if he were with us, he would be a champion of this auspicious celebration of The Research Foundation's 30th anniversary. Congratulations!

Mary Bishop
Wife of former IIA President William G. Bishop III, CIA

Congratulations to The IIA’s Research Foundation trustees, advisors, research providers, and staff. It is a pleasure to reflect on your proud heritage of enhancing the profession of Internal Auditing as a result of your research.      

When I joined the staff in 1989, The Foundation was responding to a US $500,000 donation from the IBM Company to create what was to become the Systems Auditability and Control (SAC) report. A little over a year later, hundreds of copies were shipped to internal auditors around the world. This landmark document defined the profession in the world of information technology. Later it would be translated by affiliates into other languages including Japanese and French.

From then until now, The Foundation has completed remarkable research. Two factors illustrate this best.  First, the Competency Framework for Internal Auditing (CFIA) created a new understanding of internal auditing. This Australian-led research acquired input from affiliates around the world and created the first global understanding of the profession. This document would also provide the basis for a new definition of internal auditing and the related framework for standards and guidance.

The second aspect that stands out is how The Foundation permitted The IIA to successfully respond to new challenges such as: internal auditing outsourcing, defining internal auditing responses to the Treadway Commission recommendations to reduce fraud, and assisting internal auditors implement new legislative, regulatory, and listing exchange requirements. Clearly, The Foundation has been a primary means of defining the knowledge and skills that underlie the profession.

The IIA’s vision for this research organization included affording internal auditing professionals an opportunity to give back to the profession which had been very rewarding for its practitioners. The most obvious way is the opportunity to make donations that, for US citizens, are tax-deductible but donations are only the start. A succession of dedicated trustees, research advisors, and staff have consistently come together to hone the profession of Internal Auditing by improving governance, risk management, and control within organizations served by IIA members. These individuals have generously contributed time, treasure, and skills to their profession. 

Today and for the future, The Foundation is the source of best internal auditing practices for companies, governmental entities, firms, colleges, and universities.

Basil Pflumm, CIA
Retired IIA Vice President of Global Practices Center
Retired, IIARF Executive Director

Anniversaries are time to reflect on the past. The Foundation has been a great resource for internal audit practitioners and academics. On a personal note, I can remember the first time I read the Systems Auditability and Control report (SAC) in the mid-1970s. As a young IT auditor (we were known as EDP auditors at that time), it became my bible as the definitive source for systems auditing and controls. It exceeded everything else available on this subject and set the standard that we take for granted today. The Foundation has helped me during my professional career which why I try to give back to it as generously as I can. I want to congratulate The Research Foundation on its success over the past 30 years.

Thomas J. Warga, CIA
2005-06 IIA Chairman of the Board
Sr. Vice President and General Auditor
New York Life Insurance Company

The IIARF's dedication and commitment served as a classic example for me during my year as Chairman of the Board as a group that did "Seize the Moment" to take our profession to the next level.

I personally attribute much of my own involvement with The IIA due to two remarkable individuals that are closely aligned with the IIARF. The Chicago Chapter's beloved leader and the IIARF's stalwart Trustee, William C. Anderson, was a mentor who exemplified The IIA's motto "progress through sharing." The IIARF's Associate Trustee program was named in his honor, a fitting tribute for someone who tirelessly worked to enhance awareness of the Foundation at the local chapter level. And now, the William G. Bishop III, CIA, Memorial Fund is a fitting tribute to someone who put the profession "on the map." It was through his ground-breaking efforts that The IIA became a global organization so it is indeed fitting that this special fund is devoted to the study of internal auditing on a global basis. Bill tutored us all to be proud to be an internal auditor ... we should be equally proud to be supporters of The IIARF!

Betty McPhilimy, CIA
2004-2005 IIA Chairman of the Board
Assistant Vice President for Auditing & Compliance
Northwestern University

Thirty years ago this year ,and seven years before I joined The IIA, The IIARF was created on March 15,1976 and was called the "Foundation for Auditability Research and Education" (FARE), before changing its name in 1981 to what it is today - The Institute of Internal Auditors Research Foundation (IIARF).       

However, when The IIA was formed in 1941, research was one of the major initiatives. Victor Brink, CIA was appointed the first director of research in 1942. Therefore, it is quite apparent that our founders realized the value of research then as much as we do now. Research then was in its simplest form:

• What have the internal auditors done in the past?
• What are they doing now?
• What are they planning to do in the future?

From 1953-1975 there were 19 research reports issued by The IIA. This year as we celebrate the IIARF’s 30th anniversary we know that much of our success is because we have had the necessary research conducted on a global basis and as we proceed in these new and challenging times the research will help set our direction.

William L. Taylor
IIARF Trustee
1995-1996 IIA Chairman of the Board

As an IIA Research Foundation Trustee, I am very proud to be associated with an organization that provides global professional research and education on the ever changing internal audit profession. Over the years the Foundation has provided valuable information to ensure an internal auditor is well educated and has the most up to date research information about not only the internal audit profession but also related business areas that directly impact an auditor’s work. 

The Foundation is a shining example of The IIA’s mission of "Progress Through Sharing." I wish The Foundation many more years of great success. 

Howard J. Johnson, CIA
1999-2000 IIA Chairman of the Board
Vice President, Internal Audit
Lowe's Companies, Inc.
IIARF Trustee

The primary outcome is education.  The IIA has been very good at maintaining the visibility of the profession at the university level and keeping academicians mindful of current issues as they apply to internal auditing by providing timely and relevant information about the roles and responsibilities of internal auditors.

Professional credibility is another key issue.  By taking a more scholarly approach to the profession, The IIA Research Foundation builds our credibility with management and with government entities.

Overall, I think we can be very proud of our profession, our fellow practitioners and the work they are doing within their organizations.  As long as we continue to stay on the forefront of issues that are important to our members and continually challenge ourselves to take it to the next level, the future of internal auditing looks very promising to me.

Dennis Beran, CIA
Sr. Vice President/Director of Audit, JCPenny Co.
IIARF Trustee

Congratulations on 30 outstanding years of serving the Internal Audit Profession. Your forward looking insights and products have preceded the needs, as well as, provided practical ongoing substance for sound execution and ever improving our relevance and value to the profession, boards, investors and companies we serve.

Kimberly Gavaletz, CIA
VP and Deputy, Global Sustainment
Lockheed Martin Aeronautics
IIARF Trustee

PricewaterhouseCoopers congratulates The IIA Research Foundation on 30 years of service to the internal audit profession.  We are honored to serve on the Board of Trustees of The Foundation and look forward to continuing to support its important mission. The work of The Foundation is consistently at the leading edge of the profession today thanks to the tireless efforts of The Foundation members and the supporting IIA staff.  We are particularly grateful for the opportunities we have had to author and co-author various research projects sponsored by The Foundation. We look forward to The Foundation's continued success!

PricewaterhouseCoopers LLP

Deloitte & Touche LLP congratulates The IIA's Research Foundation on its 30th anniversary. The research and educational resources that The Foundation has provided in its history have not only benefited each of us as individuals but also internal audit as a profession. Deloitte & Touche is pleased to have had the opportunity to contribute to this meaningful work, both through our involvement in individual research projects, and also by serving on The Research Foundation's Board of Trustees. We look forward to continuing this meaningful relationship and wish The Foundation much future success.

Deloitte & Touche LLP

As a Board of Research and Education Advisors member, I have watched The Foundation grow from an idea into an organization that reaches around the world, into all countries, helping professionals gain access to education, current and timely research and training. While I have served on the Board, I have seen The Foundation improve accessibility through use of technology, increase its globalization through the availability of materials in multiple languages, and availability through its continued focus on academic research and practitioner guidance.

We at KPMG are confident that The Foundation will rise to meet the future challenges as it has done since inception. Again, congratulations on all that you have achieved in those 30 years and we wish you every success in the many decades that are yet to come.

Sue Ulrey
Director Audit & Risk Advisory Services
KPMG LLP
Member, Board of Research and Education Advisors

Douglas E. Ziegenfuss
Member, Board of Research and Education Advisors
Professor and Chair, Department of Accounting
OldDominion University

Gareth Evans
Member, IIA United Kingdom and Ireland
Member, Board of Research and Education Advisors

Dr. Peter Hughes
Director, Internal Audit, Orange County, Calif.
Member, Board of Research and Education Advisors

Audrey A. Gramling, PhD, CIA, CPA
Associate Professor
Kennesaw State University
Coles College of Business

The Leadership Conference was upon us, and copies of CFIA needed to be distributed to the Chapter leaders. How best to do this? Basil Pflumm, IIARF Executive Director, said we needed cardboard suitcases. No, too heavy. I looked in the phone book, and contacted a local company to do printing on canvas bags.  We got the logo from The IIA marketing department, and the bags were ready in time for the conference. However, we overestimated the quantity needed, so had plenty left over for several years after that.  There are probably still some in a closet somewhere.

Wendy Acha
Certification Administrator
BEAC (Board of Environmental, Health & Safety Auditor Certifications)

Participate in The Foundation's 30th Anniversary Celebration

Pearls are celebrated as symbols of perfection and affluence and are said to help improve one’s self-worth. So it is appropriate that the pearl is the gemstone for the 30th Anniversary of The IIA Research Foundation. 

Since 1976, The Foundation has shared its "pearls of wisdom" with internal auditors and the business community at large, demonstrating constant readiness to perform research for The IIA and the profession. For 30 years, The Foundation has always managed to serve the internal auditing profession at the most appropriate points in time.

If you are among the many thousands of practitioners who have benefited from The Foundation's existence, you are invited to support The Foundation in its 30th year. For contributions of select amounts you will receive:

• A uniquely designed business card case - see sample above (US $30)
• A commemorative brick on The IIA's Pathway to Progress (US $300)
• A Gold Master Key Subscription (US $3,000)

Learn more about Pearl Anniversary benefits. (PDF, 40KB)

Get a contribution form. (PDF, 86KB)

Thank you for making The Foundation the world's leader in sponsoring, disseminating, and promoting research and educational resources in the areas of risk management, controls, governance processes and internal audit practices.

For further information, contact research@theiia.org.

30 Years of The IIA Research Foundation

An excerpt from Foundations for Unlimited Horizons – The Institute of Internal Auditors 1941-1976, by Victor Z. Brink, PhD, CIA, CPA:

The prospects for The Institute in the research area are very bright, indeed. The growing need for more and better knowledge, a competent central staff group, and reasonably promising sources of adequate financing combine to support the foregoing conclusion. It is believed also that a more active participation at the chapter level will substantially augment the research effort.

There will be a continuing necessity for being very alert to changing knowledge needs – for example , in the evolving field of electronic data processing – with related flexibility in the direction of research efforts. Care will also have to be exercised that the research effort is reasonably related to internal auditing practice as opposed to yielding to the temptation, as researchers sometimes do, that research becomes almost an end in itself.

There is every reason to believe that the research effort will be properly focused and that it will be in the forefront of The Institute's effort to effectively meet the challenge of the future.

Thirty years later, The IIA Research Foundation has met the challenge laid down by Brink. With more than 150 publications produced, The Foundation has consistently set the standard for professional achievement in the internal auditing profession. Some highlights of the past 30 years include:

Research Foundation Historical Timeline

Research Foundation Fundraising

Reseach Foundation Themes

• People build strong foundations
• Helping great ideas take flight
• Success begins with a strong foundation
• Your key to the future
• Defining the future

Research Foundation Presidents

• John D. Bradt, CIA
• James R. Kelly, CIA
• William C. Anderson (Anderson Associates) - 1981 to 1984
• Charles W. Gissel, CIA (Morton Thiokol) - 1984 to 1986
• James W. McGill, CIA (Chase Manhattan Bank) – 1986 to1991
• Willard E. Hick III, CIA (Massachusetts Mutual Life Insurance Company) – 1992 to1995
• William J. Duane, CIA (Rockchapel Associates) – 1996 to 1998 
• LeRoy E. Bookal, CIA (Texaco, Inc.) – 1998 to 2001
• Larry E. Rittenberg, CIA (University of Wisconsin) – 2001 to 2004
• Stephen A. Doherty, CIA (Automatic Data Processing) – 2004 to 2005
• Roderick M. Winters, CIA (Microsoft Corporation) – 2005 to Present

The Common Body of Knowledge

Carrying on a Legacy

The Institute of Internal Auditors Research Foundation (IIARF) is committed to understanding how the practice of internal auditing is carried out around the world and using this knowledge to provide guidance to our more than 115,000 members. Today, this effort is taking a monumental step forward.

The IIARF is performing an ongoing research program, entitled the Common Body of Knowledge  (CBOK), which will broaden our understanding of how internal auditing is practiced around the world. This comprehensive study will be updated every three years and will become a permanent program of The IIA Research Foundation.

The purpose of the Common Body of Knowledge (CBOK) is to:

• Develop a summary of the global practice of internal auditing.
• Provide insights on the practices of internal auditing, how it has changed and where it is going.
• Provide information on the context in which internal auditing is practiced (the role within organizations, governance structures, regulation, etc.).
• Allowing leaders to identify and anticipate change and align their organizations with best practices of internal auditing.
• Communicate data, analysis and report results to the various international committees and IIA business units.
• Assistance with guidance, standards, and examinations.

These goals will be achieved by:

• Designing and distributing a worldwide survey to internal auditors to capture information regarding their work.
• Creating modular research reports on topics that will produce a “living library” of information useful to internal audit practitioners.
• Engaging leading internal audit researchers to:
  • Develop critical insights into the data collected.
  • Draw implications that can be debated, refined and used as a basis to move the profession forward.

We anticipate the release of the survey in the fourth quarter of 2006. To learn more about CBOK, view the project phases, sign up to participate in the survey, or help fund CBOK, visit  www.theiia.org/CBOK.

William G. Bishop III, CIA, Memorial Fund

The IIA's dynamic past President William G. "Bill" Bishop III, CIA was an ardent supporter of internal audit research. Through his passion and professionalism, and in his role as president of The IIA, Bill elevated the stature and reputation of the internal audit profession as a whole. Bill redefined internal auditing and set the standards for the new practices framework and many other Institute initiatives

In 2004, The IIA Research Foundation (IIARF) initiated The William G. Bishop III, CIA, Memorial Fund to pay homage to Bill’s legacy and his contributions to advancing the internal audit profession.

The Fund is underwriting development of CBOK which will set a new standard for the profession Bill championed. After all, 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.

Contribute to The William G. Bishop III, CIA, Memorial Fund
Support development of the Common Body of Knowledge.

Levels of Giving

Diamond: US $10,000 and up

Donation includes:

• Recognition on large plaque in IIA lobby
• Recognition in Internal Auditor magazine with logo (if applicable)
• Brick in front of IIA Headquarters

Ruby: US $1,000–US $4,999

Donation includes:

• Recognition in Internal Auditor magazine, name only
• Brick in front of IIA Headquarters

Emerald: US $5,000–US $9,999

Donation includes:

• Recognition on small plaque in IIA lobby
• Recognition in Internal Auditor magazine, name only
• Brick in front of IIA Headquarters

Friend: US $500–US $999

Donation includes:

• Brick in front of IIA Headquarters

To donate, visit www.theiia.org/Research

Recently Published Projects

Research Reports

XBRL: Potential Opportunities and Issues for Internal Auditors

Glen L. Gray, PhD, CPA with XML/XBRL Tutorial by Clinton E. White, Jr.

XBRL (eXtensible Business Reporting Language) is a global standard for sharing business information. XBRL provides major benefits in the preparation, analysis and communication of business information, all at a reduced cost. XBRL provides standardized controls that can result in improved efficiency and effectiveness of the audits.  As such, it is important that internal auditors be proactive and stay ahead of the curve on XBRL.

This report, prepared by a member of the XBRL International Consortium:

• Introduces XBRL.
• Discusses its benefits and uses.
• Includes hands-on XML/XBRL tutorials.
• Summarizes what it all means for internal audit.

Educational Products

Construction Audit Guide: Overview, Monitoring, and Auditing

Denise Cicchella, CIA, CFE

Whether building a new office, improving real estate portfolios, or refurbishing and modernizing existing property, construction projects can present significant risks for an organization. Construction projects offer fertile ground for fraud and mismanagement. Auditors are best qualified and placed in the organization to assist in establishing construction controls and in appraising progress to mitigate project risks. Ongoing audits can provide senior executives with relevant and timely governance issues as they occur.

This handbook provides a framework to make sure you address the risks for your projects. It includes the ABC’s of a successful construction project, coverage of construction basics, understanding the world of contractors, and when and how to audit the project. It will provide you with:

• Testing, reporting, and staffing strategies.
• Help in identifying different areas of risks and how to mitigate them.
• Knowledge of which documents to ask for and when to ask for them.
• Means to determine hidden costs and avoid paying for work not bargained for. 

Survey Risk Management and Mapping Process- Design, Implementation, and Evaluation

Translated by IFACI (IIA France)

Certified Government Auditing Professional Examination Study Guide, Third Edition

James K. Kincaid, CGAP, CFSA; William J. Sampias, CISA, CFSA; Contributing Editor Albert J. Marcella Jr. Ph.D., CISA, CFSA

The purpose of this study guide is to help you prepare to pass the Certified Government Auditing Professional (CGAP) Examination. The guide provides a general overview of the topics that will be covered in the exam. However, it is critical that you perform additional study in areas where your experience or background dictates the need for additional review. A list of reference materials is included to provide additional resources to supplement your study. 

Academic Research

The IIA Research Foundation also provides sponsorship to academic scholars conducting research in internal auditing.

For a list of products coming soon, click here.

Research Projects in Progress

The Foundation is currently sponsoring research in the following internal audit subject areas:

Internal Audit Role During Mergers & Acquisitions: The European Union Experience
Nikolaos Dounis, B.Sc., M.Sc.

Taking It to the Next Level: Sarbanes-Oxley and COSO ERM
James Roth, PhD, CIA, CCSA; Donald Espersen, CIA; Daniel Swanson, CMA, CISA, CISSP, CAP

Behavioral Aspects of Internal Auditing
Mortimer Dittenhofer, PhD, CIA; Sridhar Ramamoorti, PhD, CIA, CFSA; Sowmya Anand, PhD

The Internal Audit Function’s Corporate Governance Relationships
William L. Felix, Jr., PhD, CPA; Audrey A. Gramling, PhD, CIA, CPA; Mario J. Maletta, PhD

Read details about these reports today. http://www.theiia.org/?doc_id= 248

Contributions to The Foundation

Contributions and gifts to The IIA Research Foundation 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 US $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.