Institute of Internal Auditors

Celebrating Our Past...Inspiring the Future 75 Years of Advancing the Internal Audit Profession

Celebrating Our Past...

Inspiring the Future 75 Years of Advancing the Internal Audit Profession

ries around the globe and count more than 180,000 practitioners among its membership.Nor could they have fully grasped the challenges in this new era of modern internal auditing. Indeed, the idea

It began with humble expecta-

of a new association perhaps

tions but great ambitions. “The

competing with other profession-

goals we have before us are yet

al organizations was met with

to be fully defined . . . I envision

resistance even from internal au-

in days to come the full recogni-

ditors. But the foresight of those

tion of the office of internal au-

pioneers, legends in the profes-

ditors as one of the most vitally

sion, concluded that a new body

important in any corporation. . .

supporting internal audit simply

. If we fail, we shall at least have

“was needed.”

done all in our power to forward

In the 75 years since The

the cause of our profession.”

IIA was founded, internal

John B. Thurston penned those

auditing has evolved from the

words as 17 individuals came

mere function of accountancy

together on Sept. 23, 1941, at

to address the ever-changing

a small club in New York City to

complexities and risks of

discuss development of a profes-

corporate and government

sional association representing

organizations. The IIA continues

the interests of internal auditors.

to play a central role in this

In was a tumultuous time, with

adventure, defining the

the United States just entering

standards, the ethics, indeed the

World War II and U.S. President

practice of internal auditing. And

Franklin D. Roosevelt helping

through continuous education,

to guide the country, indeed the

in-depth research, professional

world, out of the Great Depres-

development, and globally

sion. As the world was quickly

recognized certifications, The IIA

evolving, so was the internal

is equipping the next generation

audit profession.

of practitioners to tackle the

Pioneers such as Thurston,

emerging risks and enhance

Victor Z. Brink, and Robert B.

internal auditors’ value as key

Milne understood the challeng-

assurance providers who deliver

es before them, but they likely

insight and foresight within their

never imagined how the nascent

organizations.

Institute of Internal Auditors would eventually reach into more than 170 countries and territo-

The Institute of Internal Auditors 247 Maitland Avenue Altamonte Springs, FL 32701-4201 www.theiia.org

Celebrating Our Past . . .

Inspiring the Future

Celebrating Our Past . . . Inspiring the Future 75 Years of Advancing the Internal Audit Profession

Assurance, Advice, and Insight

Celebrating Our Past . . . Inspiring the Future 75 Years of Advancing the Internal Audit Profession

THE INSTITUTE OF INTERNAL AUDITORS Copyright © 2016 by The Institute of Internal Auditors Inc. (IIA).

247 Maitland Avenue, Altamonte Springs, FL 32701-4201, USA. All rights reserved.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form by any means­—electronic, mechanical, photocopying, recording, or otherwise—without prior written permission of The IIA. Limit of Liability: The IIA publishes this document for informational and educational purposes and is not a substitute for legal or accounting advice. The IIA does not provide such advice and makes no warranty as to any legal or accounting results through its publication of this document. When legal or accounting issues arise, professional assistance should be sought and retained.

ISBN-13: 978-0-89413-968-0 21 20 19 18 17 16 1 2 3 4 5 6

247 Maitland Avenue Altamonte Springs, FL 32701-4201 www.theiia.org P U B L I C AT I O N C O M M I T T E E

Richard F. Chambers President and CEO Judy Burke Vice President, Governance Lillian McAnally Managing Editor The IIA Research Foundation Jon Peters Marketing Design Manager Lee Ann Campbell Senior Publications Editor The IIA Research Foundation Denny Beran Chairman, 75th Anniversary Task Force BOOK DEVELOPMENT

Bookhouse Group, Inc. www.bookhouse.net Editor Rob Levin Authors Martha Hohmann and Donna B. Brooks Copyeditor Bob Land Indexer Robert Saigh Cover and Book Design Rick Korab Archivist Renée Peyton

Contents

Foreword IX Sponsors X 75 Years of IIA Timeline XII CHAPTER ONE: 1941–1966 1

In the Footprints of Giants: The Early Years CHAPTER TWO: 1967–1991 19

Forging New Paths: The Defining Years CHAPTER THREE: 1992–2016 43

One Voice: The Institute of Today and Tomorrow Appendix 70 Index 80

Foreword

John B. Thurston opened the first meeting of The Institute of Internal Auditors with the phrase, “Modern internal auditing has been born,” thus setting a lofty standard for the fledgling organization. I am sure John and our other founders would be proud of our stewardship of the profession. Internal auditing has come a long way since 1941, with technological advancements, stakeholder recognition, and success in earning a voice in the boardroom.

Along the way, The IIA has met the many challenges in reaching the high standard set 75 years ago. Yet we can’t rest on our laurels.

To provide true value, all of us who proudly call ourselves internal auditors must understand our organizations, improve our skills, and serve as agents of change. During my term as chairman this year, I have traveled to more than 20 countries and have spoken to more than 25,000 individuals, encouraging each to “invest in yourself.” This dedication to professional growth manifests itself in many ways—attending a seminar to acquire new skills, taking a self-improvement course, learning about the company and the industry it serves, or studying for the Certified Internal Auditor (CIA) exam. We can’t stay relevant unless we continually expand our knowledge, reach outside of our comfort zones, and understand and embrace change.

The pace of change today makes it difficult to imagine internal auditing 75 years from now, or even five years from now. But one thing is certain—internal auditors will need to be nimble and shrewd to navigate a close-knit global network, shift focus to critical strategic and business risks, understand increased regulation, and work in a data-driven society. As we look toward the unlimited opportunities for the future, we should pause to look at how far we have come and acknowledge the accomplishments of visionary leaders who served our profession over the past seven and a half decades.

My sincere thanks to Denny Beran and the members of the 75th Anniversary Committee, both volunteers and staff, for the tremendous effort they expended in making our 75th anniversary celebration one that we will always remember and cherish. I also thank our book sponsors who saw the value of “celebrating our past . . . inspiring the future.”

Larry Harrington, CIA, QIAL, CRMA, CPA 2015–2016 Chairman, IIA Global Board of Directors

IX

Celebrating Our Past . . . Inspiring the Future 75 Years of Advancing the Internal Audit Profession This book about the history of The Institute of Internal Auditors would not have been possible without the support of the following sponsors:

X

1952

1944

The first chapter outside the U.S. was established in Toronto. Montreal followed in 1945.

Internal Auditor magazine was launched.

1950

1940

1942

75 Years of IIA The first chapter was formed in New York City, followed

by Detroit, Chicago, Los Angeles, and Philadelphia.

The IIA expands to Japan and Australia.

XII

1955

The Institute was officially established on November 17 and the first membership meeting was held on December 9.

Bradford Cadmus was hired as The Institute’s first managing director.

1948

Victor Z. Brink’s Internal Auditing: Its Nature and Function and Methods of Procedure was the first major book published about internal auditing.

1947

1941

The IIA expanded its network to London and Manila.

“Progress Through Sharing” became The Institute’s official motto.

1978

1972

1962 Archie McGhee replaced Bradford Cadmus as The Institute’s managing director.

John Harmon was appointed executive director and The IIA headquarters was moved to Florida.

The IIA adopted the Standards for the Professional Practice of Internal Auditing (Standards).

1970

The IIA grows to 78 chapters in 24 countries.

The Code of Ethics was adopted.

The First Certified Internal Auditor (CIA) exam was given to 654 candidates in 41 locations.

The First International Conference outside North America was held in London.

1976

The IIA Research Foundation was founded.

1974

1968

1966

1960

The first Global Internal Audit Common Body of Knowledge (CBOK) endeavored to provide IIA members with best practices within the profession and forecast trends on the horizon.

The First Leadership Conference was held in Orlando with 56 representatives from 45 chapters.

XIII

1996

1990

1986

1990

1980

Hans Spoel of Belgium was elected as the first chairman of the board from outside North America.

The Quality Assurance Review Service was established.

The first Global Forum (now called the Global Council) was held in Orlando, Florida.

Carman Lapointe of Canada was elected as the first female chairman of the board.

California became the first state to require all state and local government internal auditors to abide by the Standards set forth

by The Institute.

XIV

1999

The European Confederation of Institutes of Internal Auditing (ECIIA) was established.

1994

1982

The first Professional Practices Framework was launched.

2016

2010

2000

2010

The Certified Internal Auditor (CIA) exam was computer-automated.

2009

2002

The National Association of Financial Services Auditors merged with The IIA and a Financial Services Audit Group was added to The IIA’s growing specialty sections.

The International Professional Practices Framework (IPPF) was released.

The IIA reaches more than 180,000 members in more than 170 countries.

The IIA acquired the programs of the Board of Environmental, Health, and Safety Auditor Certifications (BEAC).

2015

2000

The IIA reaches 100,000 members.

The Audit Executive Center was developed to serve chief audit executives (CAEs).

XV

The IIA–UAE (United Arab Emirates) hosted the opening reception of the 2014 Global Council on the grounds of the Al Badia Golf Club in Dubai.

Pictured (from left to right) are: Abdulqader Obaid Ali, president of IIA– UAE; Abdulaziz Al Khoori, Abu Dhabi Accountability Authority; Paul Sobel, 2013–2014 IIA chairman of the board; Richard Chambers, IIA president and CEO; Kim Chambers; and Ali Al Muwaijei, IIA–UAE board member.

Letter from National Association of Cost Accountants (now Institute of Management Accountants) suggesting that internal auditing remain part of their organization.

CHAPT E R O N E : 1 9 4 1 – 19 6 6

In the Footprints of Giants: The Early Years “The goals we have before us are yet to be fully defined by you. I envision in days to come the full recognition of the office of internal auditor as one of the most vitally important in any corporation—that is, if we succeed in our goal. If we fail, we shall at least have done all in our power to forward the cause of our profession. With men of the character and standing of those composing our charter membership, I do

”

not see how we can fail.

—John B. Thurston The Institute of Internal Auditors’ first president, from a paper delivered at the organizational meeting of The Institute, September 23, 1941

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

Chairmen of the First 25 Years

1949–50 James B. Parker

2

1941–42 John B. Thurston

1945–46 Curtis T. Atkisson

1950–51 Victor Z. Brink

1942–43 Robert B. Milne

1946–47 Arthur E. Hald

1951–52 Herbert C. M. Cobb

1943–44 William H. Garbade

1947–48 Earle H. Cunningham

1952–53 Charles J. Ghesquiere

1944–45 Alan Lauckner

1948–49 Arthur J. E. Child

1953–54 Raymond E. Noonan

In the Footprints of Giants: The Early Years

C

H

A

P

T

1941–1966

1

E

R

When John B. Thurston was tapped as The IIA’s first president (now chairman) in 1941, the internal auditor’s role in corporate America was little known and, frankly, endowed with only a modicum of respect. But Thurston and his successors fought to “forward the cause of our profession” and over the next 25 years saw their stature grow while their ranks grew domestically and internationally.

1953–54 William T. Hamilton

1958–59 William J. Lehmann

1954–55 Henry B. Davidson

1959–60 Wallace R. Gilchrist

1955–56 Frank W. Lennon

1960–61 Cornelius H. Nagle

1963–64 Donald E. Dooley

1956–57 Eugene F. Ratliff

1961–62 Cedric C. Slain

1964–65 F. Arnold Beale

1957–58 William R. Davies

1962–63 Robert D. Whisler

1965–66 Kenneth K. Kilgore

3

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

Part of the minutes from the organization meeting held at the Williams Club in New York City in 1941.

4

In the Footprints of Giants: The Early Years

C

H

A

P

T

1941–1966

“The Institute is the outgrowth of the belief of

1

E

R

internal auditors that an organization was needed in the structure of American business to develop the true professional status of internal auditing.”

—Robert B. Milne General Auditor, Columbia Engineering Corporation

The year was 1941, a time of turmoil and disorder as President Franklin Roosevelt was guiding the United States out of the greatest economic collapse the world had ever known, and war was waging in Europe and Asia. Emerging from the chaos of this era, however, was an organization focused on order, responsibility, accountability, and integrity. On September 23, 1941, three men with foresight and a passion for their profession—Victor Z. Brink, John B. Thurston, and Robert B. Milne—held an organizational meeting for The Institute of Internal Auditors at the Williams Club in New York City.

“Modern internal auditing has just been born,” said Thurston in his address at the organizational meeting. Up until this time, there was no professional identity for the internal audit profession apart from the accounting function.

Indeed, these men were visionaries who had their eyes on the future, and from these modest beginnings, The Institute of Internal Auditors has expanded its reach around the globe with more than 180,000 members in 170 countries.

Seventy-five years later, “We are standing on the shoulders of giants,” says Richard Chambers, The Institute’s president and CEO. “The organization, like any professional association, came from the humble origins of a group of volunteers who had a vision and an aspiration to build something that would serve this profession well into the future.”

Top right: Robert Milne served on the organizing committee and as The IIA’s second chairman in 1942–1943. Above: Victor Z. Brink was author of the first book about internal auditing and one of The IIA’s founding fathers.

Establishing a professional organization for internal auditors was the brainchild of Thurston, an internal auditor for the North American Company in New York. Thurston 5

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

Some of The IIA’s volunteer executive leadership gather for an informal meeting, most likely during the 1970s.

Internal Audit / External Thoughts

By Mike Gowell TeamMate began its long partnership with The IIA in 1996 as a small exhibitor at The IIA’s International Conference in Anaheim, California. I recall being in awe at the scope and scale of the conference and program, and I still clearly remember thinking, as an auditor and a technologist, that it would be mutually important to develop a strong partnership with The IIA. As a Principal Partner, TeamMate is committed to advancing the internal audit profession. TeamMate is a leading provider of technology solutions and CPE for internal auditors, and accordingly, we are well positioned to identify best practices in place at best-in-class internal audit departments around the world. Through surveys, interviews, focus groups, and consulting engagements, TeamMate gathers feedback from thousands of internal auditors on a yearly basis and distills this information into actionable thought leadership materials for the benefit of the global internal audit community. Every year, more than 6,000 internal auditors attend TeamMate lectures, seminars,

and webinars. TeamMate is also a proud contributor to Internal Auditor magazine and The IIA’s Audit Executive Center.

As I reflect on TeamMate’s 20-year relationship with The IIA, it is clear that the success and strength of our partnership cannot be defined by a single IIA event or initiative. The IIA has an unparalleled track record for purposeful innovation that truly advances the professional and lifts the tide for all who are associated with the internal audit profession, and TeamMate has benefited by participating in lockstep with The IIA on all initiatives.

Clearly technology is evolving at an ever-increasing pace, and it is of paramount importance for internal audit to successfully leverage technology to drive efficiencies into the audit process. As a leader in the field of audit technology, we see our partnership with The IIA evolving into an advisory role to The IIA and the profession.

We are proud to have been in partnership with The IIA for 20 years of its incredible 75-year voyage and look forward to continuing to grow our strategic partnership for the next 75 years.

MIKE GOWELL is Senior Vice President and General Manager of TeamMate, a business unit of Wolters Kluwer’s Tax and Accounting Division.

6

In the Footprints of Giants: The Early Years

C

H

A

P

T

1941–1966

1

E

R

had been thinking about such an organization when he and Milne, general auditor for the Columbia Engineering Corporation, were working together on a joint subcommittee of two other associations: the Edison Electric Institute and the American Gas Association. Milne said, “The Institute is the outgrowth of the belief of internal auditors that an organization was needed in the structure of American business to develop the true professional status of internal auditing.”

“We are standing on the shoulders of giants. The organization, like any professional

Victor Z. Brink, left, enjoys a moment with a colleague.

association, came from the

with the Controllers Institute and the American

humble origins of a group of

to Milne, wrote, “I believe I am not understating

Institute of Accountants. One colleague, in a letter

volunteers who had a vision and

general opinion when I say that we, as individuals,

an aspiration to build something

our time and money through various professional

that would serve this profession well into the future.”

are already burdened with too many demands upon affiliations to look with relish upon the appearance of still another accounting organization.”

However, in 1991, in an article published in

—Richard Chambers

Internal Auditor on The Institute’s 50th anniversary,

President and CEO, The Institute of Internal Auditors

Brink noted that Thurston and Milne “concluded that professional identification would be too difficult in the highly structured public utility accounting

The idea of a new association was met with some resistance from their internal auditing colleagues.

world, and that a new body focusing directly on internal auditing was needed.”

Some suggested forming, instead, a joint associ-

Brink entered the picture when his doctoral disser-

ation of internal auditors and comptrollers. Others

tation was published as a book, Internal Auditing:

suggested that internal auditors could already affiliate

Its Nature and Function and Methods of Procedure 7

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

Bradford R. Cadmus: Mr. Internal Auditor Bradford R. Cadmus, the first managing director of The Institute of Internal Auditors, served from 1947 to 1962. Often working from his home in Connecticut, frequently with his wife and daughter helping him, he managed every part of the inner workings of The Institute, from member relations to research and editing articles. He was known as a quiet but effective leader. “The contributions of Bradford Cadmus to The Institute and the total internal auditing profession as both the first managing director and as an individual cannot ever adequately be described,” said Victor Brink, a founding father of The Institute.

During Cadmus’s watch, The Institute published the Statement of Responsibilities of the Internal Auditor, which essentially defined the profession of internal auditing.

He also oversaw tremendous growth of The Institute during his 15 years as managing director.

During his tenure, The Institute grew from 1,322 members in 1947 to 5,182 members in 1962, and 50 chapters were formed during those 15 years.

He was an avid researcher, educator, and writer, having authored several books on internal auditing. When Cadmus retired, Cedric Slain, the chairman of The Institute at that time, remarked, “It is impossible to do justice to the tremendous contribution he has made to every phase of The Institute’s activities. . . . Possibly, the best way to express our thoughts is to say that all of us think of him as ‘Mr. Internal Auditor.’”

After Cadmus died in 1964, The Institute created an award in his honor. The Bradford R. Cadmus Memorial Award is The Institute’s highest award and is given to individuals who have made outstanding contributions to the profession of internal auditing. Cadmus was posthumously given the first award.

Cadmus “strove by example to dispel the stereotype that the words ‘internal auditor’ sometimes conjure up,” said Lawrence B. Sawyer, author of the first textbook on internal auditing and an avid leader of the profession.

8

(1941). This was the first major book ever written

that evening in New York, September 1941. At

about internal auditing. Thurston read Brink’s

the meeting, it was agreed that Thurston would

book and enlisted him to help form The Institute.

serve as the organizing director, and in a subse-

“We sought out other internal auditing people

quent meeting, bylaws were approved. Shortly

interested in starting a new professional associ-

after, The Institute officially came into being

ation,” wrote Brink in the Internal Auditor article.

when the certificate of incorporation was filed

The result was a charter group of 24, most of

on November 17, 1941. On December 9, The

whom attended the organizational meeting on

Institute of Internal Auditors held its first annual

In the Footprints of Giants: The Early Years

C

H

A

P

T

1941–1966

1

E

R

A copy of the remarks made by John Thurston during the organizational meeting of The IIA in September 1941 in New York City.

9

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

meeting with 11 members present, and Thurston

was established in 1944, followed by the Montreal

was elected president.

chapter in 1945. In 1948, The IIA’s global reach

“Since John B. Thurston had provided the

expanded to London and was quickly followed by a

dynamic leadership for the founding of The Institute,

chapter in Manila. The Institute had the beginnings

it was fitting that he should be the first IIA president,”

of a global organization.

wrote Brink in Internal Auditor. “His charismatic personality was combined with a great vision of

The Advent of Internal Auditor

what The Institute could be.”

Volunteers have always been the backbone of The

“Since the publication of our first issue in 1944, Internal Auditor

Institute, and that was certainly the case in the early years. Volunteers came together and formed the chapters, planned the conferences, and wrote and

magazine has evolved in both

edited publications for The Institute. In an article

format and content to meet the

provided a new setting for developing a needed liter-

changing and growing needs of

a rich flow of professional papers.” The first publi-

the internal audit profession.”

—Anne Millage Editor-in-Chief, Internal Auditor

published in Internal Auditor, Brink said, “The Institute ature. Soon the annual meetings brought with them cation to emerge from The Institute was a 450-page volume titled Internal Auditing—A New Management Technique (1943). This volume was essentially a collection of papers presented at dinners, monthly meetings, and the 1942 annual conference. Then, in

10

By the end of the first year, membership in The

September 1944, only three years after its founding,

Institute blossomed to 104 members. More than 200

The Institute began to publish Internal Auditor,

people attended the first annual conference, which

a quarterly publication that would become the

was held November 8–10, 1942, at the Biltmore

primary means to communicate with The Institute’s

Hotel in New York. The conference boasted 11

members. Edward J. Barr, a public accountant from

speakers and cost only $10 to attend. Throughout

Detroit, volunteered as its first editor.

the 1940s, chapters were formed in cities throughout

The early issues of Internal Auditor mainly

the United States. The New York chapter was first,

consisted of association news along with names

followed by Detroit, Chicago, Los Angeles, and

of new members. There were a few articles but no

Philadelphia in 1943. In 1944, Cleveland and Dayton

photos or artwork. From the beginning, advertising

chapters signed on. In Canada, the Toronto chapter

was sold to offset the cost of publishing Internal

In the Footprints of Giants: The Early Years

C

H

A

P

T

1941–1966

1

E

R

The Institute’s publication, Ia, as it appears today.

The inaugural issue of The Internal Auditor. Then a quarterly publication, it was initially edited by Edward J. Barr, a Detroit accountant.

format and content to meet the changing and Auditor. However, in the first few issues, there were

growing needs of the internal audit profession,”

only four advertisements. It was noted in the 1945

says Anne Millage, editor-in-chief since 2005.

Yearbook of The Institute that advertising was at a

“Today we reach readers around the globe through

disappointing level, and in 1947, The Institute began

our print and digital editions, available in both

selling subscriptions to nonmembers. Over the

English and Spanish, our website InternalAuditor.

years, the publication has grown in size, circulation,

org, the Ia mobile app, and through social media.

and stature. Today, Internal Auditor is a full-color,

From cover stories on fraud and whistleblowers

bimonthly, award-winning magazine that reaches

to cybersecurity threats and big data, Internal

more than 100,000 subscribers.

Auditor remains the profession’s leading publi-

“Since the publication of our first issue in 1944,

cation on risk, governance, and control.”

Internal Auditor magazine has evolved in both 11

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

The Institute Hires a Managing Director

the organization’s structure. Personally, the job came at a good time for Cadmus who, under his

By 1947, The Institute experienced explosive

physician’s advice, needed to avoid the stress of

growth with more than 1,000 members and 19

working in New York City. This new job with The

chapters. To manage the growth, the need for

Institute paid him a yearly salary of $6,000—

hired help became apparent. An answering service

less than what he had been making at Standard

was enlisted to manage calls, two rooms were

Brands, but with more flexibility. Even though The

leased, and a clerk was hired to handle the mail.

Institute remained in an office on Liberty Street in

On February 1, 1947, Bradford Cadmus was hired

New York City, Cadmus primarily worked out of his

as The Institute’s first managing director. Cadmus,

farm in Connecticut, telecommuting long before

who began his career with Bell Laboratories and

the concept became popular.

then later worked as an assistant comptroller for

During his tenure, Cadmus developed the infra-

Standard Brands Inc., had the experience The

structure of The Institute, spearheading many of

Institute needed. Having served as secretary of

its research projects. He also traveled to as many

The Institute in 1944, he was already familiar with

chapters as possible, averaging 20 to 25 visits

Internal Audit / External Thoughts

events and activities, as a whole, that provides the ability to share knowledge and transform the profession. We are grateful to The IIA for providing this depth and breadth of opportunities that have proven to be beneficial at all levels of our organization, locally and globally.

Given Protiviti’s strong focus on internal audit, governance, and risk management, we are all ambassadors for The IIA, its mission, and its principles. We embrace the opportunity to serve as advocates for internal auditing. A strong association is vital to growing the stature and expanding the skillset of the internal audit profession. We value the tone and leadership shown by President and CEO Richard Chambers, as well as past leaders of The IIA, whose efforts paved the way for the success we enjoy today.

The internal audit profession is creating new and emerging opportunities at an unprecedented pace. The future is one we can all embrace. We appreciate the ability to partner with The IIA and participate in the expanding scope of internal audit activities, including IT, strategy, risk management, integration, and other areas. This is an exciting time to be an internal auditor, and we foresee an important role for Protiviti in supporting and advocating that activity going forward.

By Brian Christensen Protiviti has worked closely with The Institute of Internal Auditors since our firm was founded in May 2002. Our firm’s founding principals had long-standing relationships with The IIA prior to the formation of Protiviti, and those relationships have strengthened over time. Internal audit has always been a cornerstone of our business, and as a result, a healthy and mutually beneficial relationship with The IIA has been and continues to be integral to our organization’s development and success.

Over the years, we have seen the value of our relationship with The IIA at the local, national, and global levels, and our professionals serve as leaders, mentors, and advisers, helping to promote the advancement both of individual auditors and the profession. We are grateful for the opportunity to serve as a source of thought leadership and industry research for the organization.

Protiviti’s involvement in various IIA conferences and programs has enabled our professionals to learn from other practitioners and contribute to the profession in a manner that helps us provide better solutions and services to peers, practitioners, and potential clients. There isn’t one event that stands out in our mind, but rather it’s the volume of high-quality 12

BRIAN CHRISTENSEN is Executive Vice President of Global Internal Audit and Financial Advisory, Protiviti.

In the Footprints of Giants: The Early Years

C

H

A

P

T

1

E

1941–1966

R

each year. His duties included serving as an editor

auditor should be concerned with areas outside the

for Internal Auditor, although his name was never

financial arena. After much debate on the matter, a

listed as such. It was Cadmus who copyedited

compromise was achieved. The Statement would

and decided which articles went into each publi-

say that internal auditing would deal “primarily with

cation. He was also a prolific writer and published

accounting and financial matters, but it may also

several books, including Operational Auditing

properly deal with matters of an operating nature.”

Handbook—A Tool for Modern Auditors (1964).

“The Statement of Responsibilities Defining the Profession

shaped what we needed to do as

“Defining and protecting the broad, yet unique,

internal auditors.”

character of the internal auditing role has always been a problem—both as an individual internal auditor

—Denny Beran 2011–2012 IIA Chairman of the Board

and collectively to the outside world,” wrote Brink in Internal Auditor. “What is needed is something to

Progress Through Sharing

which all internal auditors can relate—something that is visible and creditable to all parties directly or

By the 1950s, the Great Depression and World War

indirectly involved.”

II were distant memories. A decade of progress

The Statement of Responsibilities of the Internal

and prosperity had begun. The Institute, now in its

Auditor published in 1947 by The Institute was one

second decade, continued to expand in the United

of the vehicles used to define the profession. The

States and globally. During this time, chapters

Statement came out of the Research Committee

were formed in cities such as Portland, Oregon;

of The Institute, and Brink was the chairman of

San Diego, California; and Birmingham, Alabama,

that committee. “The Statement of Responsibilities

to name a few. Chapters in Denmark, Finland,

shaped what we needed to do as internal auditors,”

Norway, Sweden, as well as Japan and Australia,

says Denny Beran, The Institute’s 2011–2012

also came aboard. In 1953, The Institute’s president,

chairman of the board.

Ray Noonan, chief auditor of the Reynolds Metal

The drafting of the Statement was not without

Company, introduced the theme for his year in office:

controversy. Committee members had to decide

Progress Through Sharing Internal Audit Knowledge.

whether the Statement would be detailed or broad

Unfortunately, Noonan died shortly after taking

in scope, and whether it would reflect current or

office. Noonan’s successor, William T. Hamilton,

ideal practice. However, the biggest controversy

campaigned for the official adoption of “Progress

came from the question of whether the internal

Through Sharing” as The Institute’s motto. At the 1955 13

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

annual conference, the motto was accepted and

As its first 25 years came to a close in 1966,

added to the official seal of The Institute. “I took this

The Institute had experienced remarkable growth

motto very seriously when I was in internal auditing,”

and interest in this global profession, expanding

says Beran. “We wanted to learn, grow, and develop

to 78 chapters in 24 countries around the world.

by sharing around the world what we knew. Think

This growth would not have been possible without

globally, but act locally.” The goal of The Institute was

the volunteers who tirelessly gave of their time to

to share knowledge about internal auditing and the

advance not only The Institute of Internal Auditors

profession around the world.

but also the profession of internal auditing. “This

The 1960s was a decade of transition for The

Institute was built by great leaders,” says Richard

Institute. Archie McGhee replaced Bradford Cadmus

Chambers. “They all contributed tremendous

as The Institute’s managing director; Cadmus

energy, tremendous vision, and made it what it is

retired after serving for 15 years, and stayed on as

today. We can’t take credit for the fact that we have

director of research and education until his passing

the size and scope and reach and influence that we

in 1964. Victor Brink, writing in Internal Auditor,

do today because we are just the recipients of the

said, “Cadmus was beloved by all and in my view

legacy of the people who built the foundations.”

contributed more to The Institute than any other single individual.”

Internal Audit / External Thoughts

By Bob Cuthbertson Since CaseWare Analytics’ inception, we have regularly participated in IIA events and support IIA publications, because of The IIA’s unique global recognition in the audit community, and for its work in advocacy, research, professional development, and certification. Internal auditors have become strong influencers in major decisions within their organizations, and The IIA has been terrific at representing internal auditors in establishing themselves as respected professionals.

In 2010, we committed to becoming a Principal Partner when our company’s strength and quality of resources allowed us to actively involve ourselves with The IIA. What makes the partnership unique between CaseWare Analytics and The IIA is our ability to provide software solutions that are developed by auditors for auditors, which support directly, or indirectly, many of the key initiatives of The IIA. In addition, advancements in our products have moved in parallel

with issues identified in surveys by The IIA and others, indicating that auditors want to improve their capabilities with data analytics.

As we have supported The IIA commercially and with volunteer resources, so too has The IIA provided a platform for us to increase our visibility with one of our core markets and enhance our credibility through our association with The IIA. Partnering with The IIA has been very positive. We enjoy sharing our ideas with the audit community through The IIA at conferences and webinar events. At venues like these we are able to hear directly from auditors and gain valuable insights that help us develop better, more enhanced user experiences with our tools.

We envision our partnership with The IIA and its members over the next decade will serve to close the technology gap that exists today. We will continue to enhance our software solutions to support this initiative, while working closely with The IIA to anticipate member needs and do our part to enhance the value of IIA membership.

BOB CUTHBERTSON is Chief Operating Officer of CaseWare Analytics.

14

In the Footprints of Giants: The Early Years

C

H

A

P

T

1941–1966

1

E

R

Attendees enjoy a refreshment break during the 15th International Conference held in Chicago, Illinois, in 1956.

15

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

Partial registration list of attendees for the 17th Annual National Conference held in Detroit, Michigan, in 1958.

16

In the Footprints of Giants: The Early Years

C

H

A

P

T

1941–1966

1

E

R

The mugs may have been empty during this photo shoot, but the celebrants had much to cheer about as The IIA celebrated its 25th anniversary at the 1966 International Conference in Toronto.

17

In 1972, The IIA moved its headquarters from Wall Street in New York City to Winter Park, Florida, and hired John Harmon as the new executive vice president (CEO).

CHAPT E R T W O : 1 9 6 7 – 19 9 1

Forging New Paths: The Defining Years

“They have raised us from the hewers of wood and drawers of water to evaluators, counselors . . . to people who must be reckoned with, in both the public and

”

private scheme of things.

—Lawrence B. Sawyer The Father of Modern Internal Auditing

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

Chairmen of the Second 25 Years

20

1966–67 William S. Smith

1970–71 John A. Mosher

1974–75 Charles N. Inman

1967–68 O. Ruffin Crow Jr.

1971–72 Robert L. Richmond

1975–76 John D. Bradt

1968–69 William Berch Pitts

1972–73 John R. Ballard

1976–77 Stanley C. Gross

1969–70 Duane E. Wilson

1973–74 Howard L. Aikin

1977–78 James R. Kelly

Forging New Paths: The Defining Years

C

H

A

P

2 T

E

R

1967–1991

The chairmen of the second 25 years pioneered many milestones. It was an era marked with exponential membership growth, expansion of The Institute globally, and notable “firsts,” including the CIA exam, the first International Conference held outside North America, adoption of the Standards, and the establishment of The Research Foundation.

1978–79 W. James Harmeyer

1983–84 James A. Hooper

1979–80 Charles L. Brown

1984–85 Hugh L. Marsh

1980–81 David V. Dunbar

1985–86 William E. Swanson

1988–89 William J. Duane Jr.

1981–82 William E. Thompson

1986–87 John K. Watsen

1989–90 Herbert D. Miller

1982–83 Leon R. Radde

1987–88 Ronald L. Bell

1990–91 A. J. Hans Spoel

21

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

Larry Sawyer, known as the father of modern internal auditing, was instrumental to the formative years of The IIA. A man for all seasons—author, educator, speaker, actor, poet, and more—Sawyer’s role at The IIA was pivotal.

22

Forging New Paths: The Defining Years

C

H

A

P

2 T

E

R

1967–1991

“While having due regard for the limit of their

technical skills, they will promote the highest possible internal auditing standards to the end of advancing the interest of their company or organization.”

—The original Code of Ethics in its Interpretation of Principles

The next 25 years of The Institute of Internal Auditor’s existence was filled with milestones and quantum leaps. During these two and a half decades, internal auditors began to come into their own. Driving the progress of the profession, The Institute moved forward with its first Code of Ethics. With William S. Smith at the helm of the Professional Development Committee, the Code was developed and adopted in 1968 to outline the criteria for professional behavior of internal auditors around the world. It was revised in 1999 and remains a vital part of today’s International Professional Practices Framework (IPPF).

The original code in its Interpretation of Principles said, “While having due regard for the limit of their technical skills, they [sic. internal auditors] will promote the highest possible internal auditing standards to the end of advancing the interest of their company or organization.” The Code of Ethics was—and is—the bedrock of the profession. Internal auditors everywhere seek to uphold the highest professional standards and represent their profession with honesty and integrity.

Top right: Hugh Marsh, who worked for Alcoa, was the 1984–1985 chairman of the board. Below: John Harmon, executive vice president of The IIA, spearheaded the move to the Altamonte Springs, Florida, headquarters building.

Cultivating a Global Perspective The 1970s would prove to be the decade that helped cement the importance of the internal auditor’s role.

At the helm of The Institute was John Harmon, who assumed leadership in 1972. Harmon was not an internal auditor, but rather a professional association executive. His unique qualifications were ideal for steering the growth of the organization. During his tenure, education programs expanded fivefold, the staff increased from 12 to 57, publications and 23

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

Mort Dittenhofer wrote the first Government Auditing Standards (the Yellow Book) while on staff at the U.S. Government Accountability Office. He went on to become an educator, author, and strong advocate for the profession.

Internal Audit / External Thoughts

By Dan Zitting ACL has tracked alongside the evolution and expansion of The IIA over a period of many years, and ACL tightened its relationship with The IIA by becoming a Principal Partner in 2011. In 2014, ACL established similar partnerships with The IIA–U.K., IIA–Singapore, and IFACI in France.

Over our history together, ACL and The IIA have accomplished much in terms of advocating for the modernization of the profession and integrating bespoke technology into the world of internal audit. As early as the 1980s, ACL and The IIA together have delivered thought leadership guiding internal audit leaders toward the adoption of data analytics technology. Today, technology—and specifically data analytics technology—is no longer considered a nice-to-have capability for internal audit and related lines of defense. Instead, it’s become a must-have and today we are together advocating for adoption of broader audit management technology.

Our long-standing relationship makes it very difficult to isolate a single moment of The IIA’s positive impact on ACL, but a recent event comes first to mind—in July 2015, at The IIA’s International 24

Conference, which was held in ACL’s world headquarters city of Vancouver, Canada. ACL had the opportunity to showcase cloud-based technology to the more than 2,000 international attendees and took the rare opportunity to bring along its full product management, research and development, consulting, and back office operations teams. The opportunity to rub elbows with a large group of IIA members had a tremendous impact on the people who worked hard to create the software, and the event renewed our commitment to excellence for the internal audit profession.

Considering that The IIA and ACL share a number of common values, we envision the relationship blossoming over the next decade. We use different words to describe it, but we share in spirit the desire to make internal audit professionals the most sought-after people within their own organizations for the unique perspective they bring to the table. ACL will continue to develop the technology that enables this transformation and advocate for change via our deep, long-standing relationship with The IIA. DAN ZITTING is Chief Product Officer of ACL.

Forging New Paths: The Defining Years

C

H

A

P

2 T

E

R

1967–1991

research materials increased more than tenfold,

to provide IIA members an overview of current best

and an international governmental and public affairs

practices within the profession and forecast trends

program was established.

that may be on the horizon.

Harmon also oversaw The Institute’s move

CBOK was seen as an initial step in developing

from New York to Florida and the purchase of the

educational requirements for internal auditors. It

office building in Altamonte Springs, noting that “All

also served as the basis for the development of

professional organizations worth a hoot own their

a certification program. The first CBOK revealed

own office buildings.”

several broad areas of knowledge for internal

Harmon’s leadership during his six-year tenure

auditors, such as behavioral sciences, computer

was instrumental in laying the groundwork for the

systems, communications, accounting and finance,

many milestones that would follow in the profes-

the management process, systems and proce-

sion’s development. For a profession to advance,

dures, and more. Much was learned from that

knowledge sharing and identifying best practices

initial quest and helped build the framework for

are key. In 1972, the first Global Internal Audit

teaching, guidance setting, and testing (certifi-

Common Body of Knowledge (CBOK) endeavored

cation). CBOK also served to help The Institute continued on page 28

Executive committee members Charles Duly with Standard Telephone and Cable in London, England, and Charles Brown with JC Penney in New York, celebrate their birthdays together at the 1981 International Conference in Phoenix, Arizona.

25

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

The Genesis of the CIA Exam In 1974, inflation was spiraling out of control, gasoline prices skyrocketed as the energy crisis deepened, and Richard Nixon became the first U.S. president to resign from office. In the early days, the Certified Internal Auditor (CIA) pencil-andpaper exam included sections of multiple-choice and essay questions, and it took quite some time to find out the results. Today, it is computer-based and administrated across the globe.

Former chairman, Denny Beran, recollects when he took the exam early in his internal audit career. A staff auditor for JC Penney in Chicago, Beran learned that The Institute was offering an exam on August 15–16, 1974, to provide professional credentials for internal auditors. “I was extremely excited. It was a key step in us becoming a profession,” he says. “Of the other employees from JC Penney taking the exam, I was the least experienced.” But that didn’t change the fact that he knew the CIA credential was the path to a bright future. “It was always my intent that I was going to make a career in internal auditing.”

A great deal of study was required to make the grade on an examination of this caliber, and Beran began preparing by reading The Practice of Modern Internal Auditing by Lawrence B. Sawyer—twice. “And it wasn’t a short book!” he says. For two months, Beran’s typical day meant rising at 4:30 a.m. and studying, followed by a full workday, and then more study until midnight.

On the day to sit for the exam, he almost missed it. The subway train broke down, still a distance from the testing facility. When the train finally restarted and arrived in Chicago, he ran through the streets, sweat-drenched, relieved to have made it on time. “Thank goodness I was much younger in those days!” Beran reflects. Beran later received a letter informing him that he had passed all four parts of the exam.

As one who knows the value of the CIA designation, Beran is sold on the importance of the next generation of internal auditors receiving the certification. “My advice is for anyone who can sit for the exam to sit for it.”

Apparently plenty of people agree with his assessment. Beran adds proudly, “In July 2011, during our International Conference in Malaysia, I had the privilege of presenting Portia Negesi from South Africa with our 100,000th CIA certification. It was quite a milestone for our profession.

I really do not know who was more excited—her or me!”

26

Forging New Paths: The Defining Years

C

H

A

P

2 T

E

R

1967–1991

The first CIA examination was given in 1974 by proctors at 41 locations in the United States. Today, the computer-based test is administered in more than 800 testing facilities in 150 countries and translated into 18 languages. Currently, there are more than 130,000 CIA professionals.

27

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

continued from page 25

connect its members on a global basis to move

of The IIA Research Foundation ensures that the

forward with a common vision.

internal audit practitioner never needs to be in the dark about emerging trends or current issues.

“What we found was [the computer-based format] is a much

The Exam is Born

more secure environment. What

With a Statement of Responsibilities, a Code of

candidates really like about it is

laid the foundation and forged a path that helped

the flexibility of scheduling and the immediate results.”

Ethics, and the release of CBOK, The Institute had internal auditing to define itself. The Institute had momentum and built upon its early achievements to provide additional advancements for the profession.

—Cyndi Plamondon

In the early 1970s, William S. Smith laid the

Chief Officer, Global Operations, The IIA

groundwork for certifying internal auditors. His suggestion that a certification process could offer internal auditors monetary, professional, and psycho-

28

Years later, the 2006 and 2010 CBOK studies

logical rewards was initially met with resistance on the

emerged as the most comprehensive global

part of several IIA leaders. Undeterred, Smith pushed

perspective on the internal audit profession. The

ahead. When Smith died in 1973, the role of chairman

2015 CBOK study built upon this foundation to

of the Board of Regents, which oversaw the devel-

support the profession in staying relevant, vibrant,

opment of the exam, was assumed by past chairman

and visionary. With more than 25 titles covering

of the board Duane Wilson, who continued Smith’s

eight knowledge tracks—future, global perspective,

efforts. Indeed, the development of an exam was a

governance, management, risk, standards & certi-

monumental task, but belief in the possibilities led to

fication, talent, and technology—the CBOK studies

the first Certified Internal Auditor (CIA) exam being

are ongoing under the direction of The IIA Research

given to 654 candidates in 41 locations in August

Foundation. The 2015 CBOK also expanded

1974. Denny Beran, former chairman of the board,

the scope of the stakeholder study, which was

was among that first group to sit for the exam. It was

conducted in partnership with Protiviti, IIA North

an opportunity he was not about to miss. Since that

American chapters, and 23 institutes globally,

time, tens of thousands of internal auditors have taken

making it the most comprehensive study addressing

the exam at testing sites throughout the world. At the

the needs of stakeholders, including boards, audit

end of 2015, a total of 141,000 CIA designations had

committee chairmen, and the C-Suite. The work

been awarded since the program’s inception.

Forging New Paths: The Defining Years

C

H

A

P

2 T

E

R

1967–1991

Stan Gross was chairman of the board in 1976–1977 and appointed as president in 1981. Prior to joining The IIA, he worked for the Sherwin Williams Company in Cleveland, Ohio. In 1981, IIA Chairman William E. Thompson and Gross appeared on behalf of The IIA before the U.S. Senate regarding the Foreign Corrupt Practices Act.

29

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

1

2

3

4

The first Global Forum was held in Orlando, Florida, United States, in 1996. Held biannually, it was replaced with the Global Council in 2004 and has been held annually since then. It brings together the institute leaders from around the world and the global executive officers to discuss current issues and provide input for The IIA’s strategic initiatives.

1. Global Forum in Orlando, Florida, United States, 1996 2. Global Council in Beijing, China, 2015 3. Global Council in Lima, Peru, 2013 4. Global Council in Vienna, Austria, 2011 5. Global Council in New Delhi, India, 2012 5 30

Forging New Paths: The Defining Years

C

H

A

P

2 T

E

R

1967–1991

The CIA designation is now the most sought-

China was the last country to take the exam

after auditing credential in a global marketplace and

using a pencil-and-paper format. As of 2016, all

helps internal auditors offer more to their organiza-

testing in China is computer-based. The first CIA

tions. Testing that was once done with pencil and

exam offered there was in November 1998, and to

paper and took months for candidates to receive

date, 41,000 Chinese internal audit professionals

their results evolved into a computer-based format

have earned the CIA designation. China is second

in 2008. The exam is administered at more than

only to the United States in the number of CIAs.

800 testing facilities in 150 countries and has been translated into 18 languages.

The IIA also offers many specialty certifications —Certification in Control Self-Assessment (CCSA),

The new format offers a number of advan-

Certified Government Auditing Professional (CGAP),

tages. “What we found was it’s a much more

Certified Financial Services Auditor (CFSA), and

secure environment,” says Cyndi Plamondon, chief

the Certification in Risk Management Assurance

officer of global operations. “What candidates really

(CRMA)—and in 2015 introduced a qualification for

like about it is the flexibility of scheduling and the

new and experienced leaders, the Qualification in

immediate results.” Test takers can now sit for the

Internal Audit Leadership (QIAL). Also in 2015, The IIA

exam when they are ready, rather than having to sit

acquired the programs of the Board of Environmental,

during a twice-a-year window.

Health, and Safety Auditor Certifications (BEAC).

Internal Audit / External Thoughts

audit not just as an assurance function, but rather a function that consults with the business and adds value to its most critical strategic, financial, operational, and compliance needs. PwC’s ability to contribute to these standards has helped provide our clients comfort and established even greater credibility for our practice. The IIA’s Standards have facilitated a perspective that internal audit functions should seek the best resources possible, including those provided in a sourcing relationship, to achieve or surpass quality standards. The support included in this message has positively impacted PwC as a proponent of the profession.

Today’s risk environment has resulted in an expansive compliance landscape (regulatory and otherwise), impacting companies in all sectors. Internal audit can play a major part in helping organizations drive more effective risk management by integrating and aligning with the other lines of defense. PwC’s partnership with The IIA over the next decade includes plans for continued support for The IIA’s initiatives to help internal auditors achieve this alignment and further elevate the profession.

By Jason Pett PwC and its professionals have a long and wide-reaching history with The IIA. Both our legacy firms, Price Waterhouse and Coopers & Lybrand, had actively supported its people’s affiliation with The IIA for several decades and encouraged their pursuit of the CIA designation.

PwC partners have held IIA leadership roles at the chapter, national, and global levels, and our involvement also includes collaborating with The IIA on several prominent thought leadership series deliverables.

The IIA’s leadership in the professionalization of internal audit and PwC’s support of its efforts have resulted in a partnership that has given the profession a voice with policy makers on Capitol Hill, with COSO, and with other regulatory bodies.

Ultimately, the value for PwC and its clients is priceless in the form of enhanced visibility for internal audit functions with their stakeholders and the broader business community.

The IIA’s role in setting global standards for internal audit has helped build a foundation for the profession and establish internal

JASON PETT is Partner, US Internal Audit Services Leader of PwC.

31

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

32

Forging New Paths: The Defining Years

C

H

A

P

2 T

E

R

1967–1991

Bill Bishop: A Tireless Leader The late William G. Bishop III was a past president of The Institute of Internal Auditors whose contributions were countless. Bishop assumed leadership in 1992, and during his nearly 12 years at the helm, The Institute membership more than doubled—from 42,000 to more than 97,700, the staff increased from 70 to 110, the number of conferences and seminars delivered each year nearly tripled, the number of CIAs quadrupled, and The IIA grew as the global voice of the profession with more than 50 percent of the membership from outside North America.

As The IIA’s representative to COSO, Bishop played an integral role in developing the internal control and enterprise risk management frameworks. He frequently served on advisory boards, testified on behalf of the profession before regulatory and governmental agencies, and advocated around the globe on the importance of The Institute and internal auditing.

Basil Pflumm, former vice president of research and professional practices, recalls that Bishop was a wonderful colleague and an exceptional leader with whom he shared a great working relationship. “Bill understood New York financial markets. He had great relationships with people at the top,” says Pflumm. “He had that network, and he brought it with him.”

A visit to the global headquarters of The Institute in Altamonte Springs, Florida, reveals a building dedicated in honor of Bishop. He was admired and respected worldwide for his leadership during a significant period of change for the profession.

Researching Trends

and establishing an educational framework for auditors of the future, The Research Foundation

From the moment of its inception, The Institute

celebrates its 40th year in 2016.

has focused on providing members with best

Under the leadership of Bonnie Ulmer, vice

practices to enhance the application and raise

president of research, The Foundation publishes

the profile of internal auditing within the organi-

in-depth research, CBOK reports, books about

zational structure. To that end, The IIA Research

internal auditing, and e-books about topics of interest

Foundation was founded in March 1976. Focused

to the professional community. “We publish approxi-

on researching topics of interest to internal auditors

mately 15 new books each year,” says Ulmer.

33

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

Moving into the Limelight While The Institute was hard at work becoming the foremost advocate and source of information for the internal auditor, the importance of the work of the internal auditor was becoming widely recognized.

In the mid-1970s, corporate bribery of government officials abroad ran rampant, and by 1977, the U.S. Congress enacted legislation known as the Foreign Corrupt Practices Act (FCPA), which sought to change the way international business was conducted, Bob Richmond, 1971–1972 chairman of the board, served as IIA president from 1979 to 1981. He came to The IIA from B.F. Goodrich Co. in Cleveland, Ohio.

emphasizing internal controls as the first line of defense against illegal activity. Companies that perhaps had an internal audit activity but didn’t use it to its greatest capacity began to look at the internal auditor with new

“We’re always looking for that innovative,

appreciation. Most importantly, companies began to

cutting-edge topic that practitioners want more

see the internal auditor as an adviser who could help

information about,” says Ulmer. “What would place

improve processes and efficiency, see that appropriate

them in a position to become a trusted adviser within

risk management initiatives were in place, and elevate

their organizations? That’s what The Research

overall governance of their organization. Effectively,

Foundation is all about.”

the legislation upped the value of the internal audit

Additionally, The Foundation is active in providing

function globally.

educational materials and guidance to internal

When the FCPA underwent a revision in

auditors of the future. Internal Auditing: Assurance

1982, The Institute was invited to participate in

and Advisory Services is the most recent textbook

that process. The Senate’s revision added to the

available for educating future internal auditors. The

section on internal controls and said the purpose

authors are putting the finishing touches on the fourth

of internal control is to ensure accurate and fair

edition of this groundbreaking text, first published

record-keeping. Institute Chairman of the Board

in 2007 and now translated into Japanese, French,

William E. Thompson and Institute President

and Spanish.

Stanley C. Gross testified on July 23, 1981, before the Senate’s subcommittees on Securities and on International Financing and Monetary Policy of the Committee on Banking, Housing, and Urban Affairs.

Thompson made a 10-minute statement outlining

34

Forging New Paths: The Defining Years

C

H

A

P

2 T

E

R

1967–1991

IIA staff manager Richard White testified before the Treadway Commission in 1986.

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) was sponsored by five professional associations, one of which was The IIA.

35

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

The Institute’s position, expressing its support for the revisions that the proposed legislation provided.

Setting the Standards The Institute was growing in influence. Adding significantly to its value proposition was the development and adoption of the Standards for the Professional Practice of Internal Auditing (Standards) in 1978.

The Standards were the result of an arduous three-year process and represented a giant step forward for the profession of internal auditing, mostly because they provided the criteria against which the internal auditor’s performance could be judged.

They provided the framework in which auditors all over the world were expected to operate—and they Larry Sawyer wrote one of the earliest definitive publications on internal auditing.

did something more. Lawrence Sawyer said, “The

Internal Audit / External Thoughts

Many Crowe Horwath leaders have a key role in our relationship with The IIA, including serving in leadership roles in other capacities within The Institute. All of these leaders embrace the obligation to give back to the profession through volunteerism and leadership.

I envision Crowe Horwath strengthening its partnership with The IIA in the years to come by helping The IIA evolve its services to the membership as the profession evolves. In particular, I see Crowe Horwath providing deeper expertise in industries such as financial services, health care, and manufacturing; helping The IIA provide learning and knowledge sharing using more virtual methods; expanding its services on a global scale; and encouraging and attracting Millennials to the profession.

By Steven Strammello For more than 15 years, Crowe Horwath has been actively involved with The IIA and has served in a large number of leadership volunteer roles throughout that time. Crowe Horwath has also partnered with The IIA on research studies and contributed articles to publications, and its officers have spoken at numerous IIA events.

Perhaps the one initiative that impacted Crowe Horwath was our partnership with The IIA’s Research Foundation in conducting a study on internal audit’s role in third-party risk management. Since the report’s publication, many in the profession have referenced the study as enforcement of regulations has intensified, privacy expectations have increased, and enterprises have extended. As a result, the research helped position Crowe Horwath as a thought leader in the profession related to third-party risk management.

36

STEVEN STRAMMELLO is Managing Partner, Risk Consulting of Crowe Horwath LLP.

Forging New Paths: The Defining Years

C

H

A

P

2 T

E

R

1967–1991

Standards are a two-edged sword. Certainly, they

followed suit, including a number of countries

add unity, better quality, recognition, and credibility

around the world. As a result, the Standards are

to this new profession. At the same time, however,

often considered as a major factor in developing the

they will underscore the fact that internal auditors

profession outside North America.

are responsible for their own actions, that they may be called upon for greater accountability to their organizations and to society as a whole. And, more

“The concepts in the original

sobering, they may increase the liability of those

Standards are still relevant and

who fail to follow the Standards in their practice.”

Crafting these beacons of light and guidance

have stood the test of time.”

was not a pretty process. Sawyer recounts the

—Patty Miller

knowledge that the 12 auditors charged with devel-

2008–2009 IIA Chairman of the Board

oping the Standards were making history for their profession. He also noted the hours of labor, the heated exchanges, and the drudgery of going over

The review and development of the Standards

material again and again. In the end, though, they

is an ongoing process as revisions are issued and

knew they had done something good, something

new requirements set forth. Patty Miller, former

monumental for the profession.

IIA chairman of the board, currently chairs the

Roger N. Carolus, one of the architects of the

International Internal Audit Standards Board. “We

original Standards and chairman of the Standards

have about 25 professionals from around the world

Practice Subcommittee, said of his fellow stand-

on the standards board, and our job is to keep the

ards development committee members, “All of us

Standards fresh, relevant, and globally recognized.”

believed internal auditing is an art; consequently,

As with the original standards committee, those

internal auditors are artists. Like musicians with their

charged with crafting the revisions come from all

notes, painters with their colors, and writers with

areas of internal audit: manufacturing, government,

their arrangement of words, there are time-honored

education, and more. By taking into consideration

rules within which the artist has learned to excel. The

cultural and language differences and disparate

five general standards and 25 specific standards

legal guidelines, the board ensures that a principles-

represent the rules of our artistry.”

based group of standards emerge. The latest

The Standards that The IIA developed were immediately held in high esteem, and in 1982,

revision was released for exposure in February 2016, aiming for implementation in January 2017.

California became the first state to require all of the

“They continue to evolve,” Miller says, while

state and local government internal auditors to meet

they maintain the character of the original 1978

the Standards set forth by The Institute. Others

Standards. “The concepts in the original Standards 37

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

are still relevant and have stood the test of time.

be required to have an internal audit function

Our exposure contained changes to better demon-

and that the chief internal auditor should report

strate our alignment with the principles of the

directly to the CEO or a senior financial officer

profession and reflected the evolving nature of

who is not involved in preparing the company’s

internal audit services.”

financial documents.

Former Institute President William G. Bishop III was a representative to COSO. In November 2002,

A Vital Component

he wrote to the U.S. Securities and Exchange Commission (SEC), “The Institute of Internal

In 1985, the recommendations that came out of the

Auditors (IIA) is very interested in and supportive

report of the National Commission on Fraudulent

of the SEC’s efforts to improve disclosures and

Financial Reporting (the Treadway Commission)

financial reporting processes. The 80,000 internal

elevated internal auditing more than ever before.

auditors represented by The IIA routinely perform

“To me, this report opened the profession to new

independent assurance, risk management, and

ways of defining itself to be seen as an essential

consulting services for executive management

element of good governance,” says Basil Pflumm.

and directors in order to support disclosures

Still acknowledged as one of the profes-

and financial reports. We believe we are uniquely

sion’s game changers is the subsequent Internal

qualified to offer comments about the impact of

Control – Integrated Framework developed by

certain provisions of the proposed rule on the

the Committee of Sponsoring Organizations of

internal auditing profession.”

the Treadway Commission (COSO). The found-

The United States is not alone in establishing a

ing members of COSO include The Institute, the

measure of internal control systems. Canada has

American

the

the Criteria of Control Board (CoCo), South Africa

American Institute of Certified Public Accountants

has the King Report, and the United Kingdom

(AICPA), Financial Executives International (FEI), and

has its Cadbury Report. Corporate governance

the Institute of Management Accountants (IMA).

is a global issue in which internal auditors play a

Hugh L. Marsh, 1984–1985 IIA chairman of the board

key role. COSO’s work continues. Since the 2013

and a member of that original commission, said,

update, Internal Control – Integrated Framework

“Fraud is a significant and sensitive management

has been translated into eight languages.

Accounting

Association

(AAA),

concern. It undermines the integrity of corporate

With unprecedented global growth and the

financial reporting. The IIA fully supports the work of

support of the profession through legislation, The

this commission.”

Institute was poised to enter its next 25 years.

Two

important

conclusions

that

COSO

reached were that all public companies should 38

Forging New Paths: The Defining Years

C

H

A

P

2 T

E

R

1967–1991

The 1991–1992 Executive Committee was ushered in at the 50th International Conference in New York City. IIA membership, which was nearly 43,000, would almost double during the next decade.

39

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

1

2

3

4

Volunteers from Around the World 1. Giovanni Grossi, Italy 2. IIA Leadership Conference 3. Jacquie Wagner, Detroit 4. Bob McDonald, Australia, and Naohiro Mouri, Japan 5. Recipients of the North American Distinguished Audit Practitioners Award (from left to right): Glenn Sumners, Bill Taylor, Cynthia Cooper, Steve Goepfert, Ralph Purpur

5 40

Forging New Paths: The Defining Years

C

H

A

P

2 T

E

R

1967–1991

1

2

3

4

International Conference Speakers 1. Henry Kissinger (center) with Chuck Brown and Jim Harmeyer, New York, 1979 2. Cindy Soloman, Boston, 2012 3. Tom Peters, Orlando, 2013 4. Madeleine Albright, Orlando, 2013 5. Mervyn King, London, 2014

5 41

In January 2015, a growing IIA, with more than 230 employees, expanded into the Lake Mary, Florida, campus ten miles away, initially occupying one floor.

CHAPT E R T H R E E : 1 9 9 2 –2 0 1 6

One Voice: The Institute of Today and Tomorrow “The practitioners must be ‘state of the art’ in more than financial management.

They will often be asked to act with courage and challenge the prevailing ethos of the organization in which they serve. Their chief value to stakeholders in all sectors is their tireless search for truth, their ability to explain truth to people that matter, and their courage to tell the truth no matter the risk.

”

—Basil Pflumm Former Vice President, Research and Professional Practices, The IIA

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

Chairmen of the Third 25 Years

44

1991–92 Orville W. Mills Jr.

1995–96 William L. Taylor

1999–00 Howard J. Johnson

1992–93 John J. Flaherty

1996–97 Anthony J. Ridley

2000–01 Jacqueline K. Wagner

1993–94 Robert E. White

1997–98 Michael P. Fabrizius

2001–02 David A. Richards

1994–95 Carman Lapointe

1998–99 Jean-Pierre Garitte

2002–03 LeRoy E. Bookal

One Voice: The Institute of Today and Tomorrow

C

H

A

P

3

T

E

R

1992–2016

During the last 25 years, The IIA grew from 43,000 members to more than 180,000 members in 170 countries.

The global expansion brought new challenges as The IIA refocused its efforts to serve its diverse constituents.

2003–04 Robert N. McDonald

2008–09 Patricia K. Miller

2004–05 Betty L. McPhilimy

2009–10 Roderick M. Winters

2005–06 Thomas J. Warga

2010–11 Günther Meggeneder

2013–14 Paul J. Sobel

2006–07 Stephen D. Goepfert

2011–12 Denny Beran

2014–15 Anton van Wyk

2007–08 Gerald D. Cox

2012–13 Philip D. Tarling

2015–16 Lawrence J. Harrington

45

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

At the 2014 Leadership Conference, John Wszelaki, chairman of the North American Board, presents an award to Carolyn D. Saint, past North American Board chairman.

46

One Voice: The Institute of Today and Tomorrow

C

H

A

P

3

T

E

R

1992–2016

“We serve our members by representing them and advocating for them.”

—Richard Chambers

President and CEO, The Institute of Internal Auditors

There likely isn’t an internal auditor anywhere who has not been met with blank expressions when sharing their job title with others. But what most people do not know is that the internal audit role is actually quite unique: a mix of sleuth, statistician, translator, and counselor. Internal auditors know their value, are passionate about their profession, and work hard to help others see their worth. That, says Chambers, is at the core of what The Institute does.

“I think it is important for us if we are going to have influence in the broader marketplace, if regulators and legislators and others are to fully understand our profession, then we have to be effective in telling the story about the profession: That’s who we are, that’s what we do. We serve our members by representing them and advocating for them,” Chambers explains.

The Institute saw rapid growth during the 1970s Top right: The 1996 ECIIA Conference in Amsterdam.

Below: Bob White presents the outgoing Chairman’s Award to Carman Lapointe in Paris in 1995.

and 1980s as internal audit became an integral part of the corporate and governmental landscape.

Legislation was passed across the globe that placed the auditor front and center of management and leadership. Internal auditors had truly come into their own as the trusted adviser.

The Five C’s Becoming a trusted adviser requires a mastery of certain character traits. The internal auditor is no longer a bean counter but rather an assurance provider, responsible for the oversight of all 47

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

The 2015–2016 Executive Committee meets at the new Lake Mary campus.

Internal Audit / External Thoughts

by Rob Kastenschmidt While RSM has long been a supporter of The IIA, we strengthened our commitment by becoming an IIA Principal Partner in 2015. In preparation for this shift, we had been working closely with The IIA for several years to identify areas in which RSM could make unique contributions to benefit the profession.

I strongly believe those efforts have led to increased training and networking opportunities for our professionals while benefiting The IIA’s members at large by providing access to unique RSM thought leadership and practical risk management guidance through our presentations at global, national, and local IIA events.

As the largest public accounting firm focused on the middle-market, we feel that RSM has a special responsibility to invest in the future of the profession and The IIA’s ability to support it. In addition to working with The IIA to provide thought leadership related to current topics of interest, RSM also helps IIA members—and our own employees—anticipate the skills required to address risks of the future and provide them with the tools necessary to be able to respond when the need arises.

For example, we have taken a lead role in developing The IIA’s Auditing Cybersecurity training program to help internal auditors of the future address one of the most prevalent business issues across all industries.

Over the next decade, I see the role of internal audit within companies gaining in prominence, as the risks most concerning to stakeholders continue to expand from traditional financial and operational risks into technology, reputational, and strategic-related risks. To meet this growing desire for the consideration of risk in business decision-making and corporate governance oversight, the internal audit profession will need to continue diversifying the skills of its professionals. I am confident that The IIA will maintain a leadership role in helping to shape the profession around the globe, both to increase the quality of service that internal audit stakeholders receive and to provide career development guidance to the increasingly ambitious and intelligent women and men who have chosen internal auditing as their profession.

With The IIA’s support and continual emphasis by those who are responsible for developing internal audit talent, we will prepare future internal auditors who can proactively educate stakeholders about business risks and risk management techniques, and who have the skills to assist in the monitoring or mitigation of risk, regardless of what part of an organization it may reside. At that point, we will have earned a permanent seat at the executive table and will become an indispensable adviser to organizations looking to optimize their opportunities today in balance with consideration of tomorrow’s risk.

ROB KASTENSCHMIDT is National Leader, Risk Advisory Services of RSM US LLP.

48

One Voice: The Institute of Today and Tomorrow

C

H

A

P

3

T

E

R

1992–2016

organizational areas. Character is of the utmost

needs of each of the stakeholders in an organi-

importance.

zation. Establishing a rapport with them makes the

“We need to be men and women of the utmost integrity,” says Sridhar Ramamoorti, professor of

communication much more effective, and importantly, the internal auditor must have courage.

internal audit. Chambers agrees. “If you are going to succeed in the internal audit profession, not only must you pursue excellence on an ongoing basis, you must also exemplify certain core characteristics.”

Anton van Wyk, the 2014–2015 chairman of the board, describes the character framework of the well-rounded internal auditor using the five C’s: competence, credibility, connectivity, communi-

“You can’t promise things if you aren’t competent enough to actually deliver.”

—Anton van Wyk 2014–2015 IIA Chairman of the Board

cation, and courage. “You can’t promise things if you aren’t competent enough to actually deliver,”

Van Wyk added courage to the list after serving

he says. Credibility stems from that competence

on a panel at the United Nations and hearing stories

and means that one has integrity. Connectivity

from other internal auditors about issues they

means the internal auditor must understand the

had faced. “If we don’t have the courage of the conviction of what we do, if we don’t carry out what we do, and if we stand back and allow ourselves to be railroaded into a corner by an autocratic stakeholder and don’t get our stories out there, we’ve missed the boat.”

With those core characteristics in hand, the internal audit profession is ever-changing and evolving. Chambers says it is on a journey. “In the beginning, we offered hindsight—a look into what had gone wrong and how we might improve it.

Internal auditors eventually began to offer insight, which provides stakeholders with an appreciation and understanding for why and how something happens,” he says. “Now, we’ve evolved into a profession that offers foresight: we think strategically and look forward, to anticipate the challenges

Anton van Wyk, 2014–2015 IIA chairman of the board.

and opportunities that lie ahead. We are the trusted 49

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

An Evolving Technology Landscape Changing technology is rapidly transforming the internal auditor’s world. On The Institute’s 50th anniversary, Belden Menkus penned an article about changing technology and referenced the “increased use of laptop microcomputers.” No longer relying on slide rules, calculators, and handwritten spreadsheets, internal auditors have access to a number of computer-assisted audit techniques and tools that have increased efficiency and effectiveness and broadened the view exponentially. The world of internal audit today is filled with databases, statistical analysis tools such as SAS, and general audit software. Data from around the globe is now immediately accessible and within a fingertip’s reach of the internal audit professional.

While marked advancements have taken place in the technology available to the internal auditor, an increase in disruptive technologies has also occurred, with cybersecurity becoming of the utmost importance to governments, companies, and internal auditors. A 2015 CBOK core report, Navigating Technology’s Top 10 Risks, lists cybersecurity at number one. The report says, “Cybersecurity is probably the most discussed IT topic among executives, internal auditors, audit committees, and the board of directors. Internal auditors can play an integral role in the organization to ensure that cybersecurity risks are addressed appropriately.”

That integral role led the U.S. Department of Commerce to reach out to The Institute for advice on protecting the critical infrastructure of the United States. The Critical Infrastructure Assurance partnership is an ongoing role for The Institute as it provides information on controls vital to U.S. safety and security. Additionally, The Institute was at the forefront of a COSO group conducting a series of private-sector events in major cities to focus on control and protection issues deemed essential to national survival. The Institute will continue to be a source of advice on managing risk related to emerging technologies.

advisers of senior executives who rely on us to

has been a catalyst for the profession on its journey

provide them with the understanding they need to

from providing hindsight to insight to foresight.”

make the right decisions, at the right time. The IIA

50

One Voice: The Institute of Today and Tomorrow

C

H

A

P

3

T

E

R

1992–2016

Hans Spoel, first IIA chairman of the board from outside North America, celebrated The IIA’s 50th anniversary at the 1991 International Conference in New York City.

51

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

Carman Lapointe served as The IIA’s first female chairman of the board in 1994–1995. From Canada, she went on to serve as auditor general of the World Bank and under-secretarygeneral for internal oversight at the United Nations Secretariat.

52

One Voice: The Institute of Today and Tomorrow

C

H

A

P

3

T

E

R

1992–2016

Major Failures Lead to Legislative Answers

had been shaken. The legislation proposed by U.S. congressmen Paul Sarbanes and Michael Oxley was designed to improve corporate governance

In the early part of the twenty-first century, antifraud

and accountability. All public companies in the

legislation had the opportunity to prove its worth,

United States must comply with Sarbanes-Oxley,

as did the internal auditor. In 2002, telecommunica-

thus adding to the important role the internal auditor

tions giant WorldCom was the source of the largest

plays in an organization’s governance. Additionally,

bankruptcy filing in U.S. history, following revela-

following the passage of Sarbanes-Oxley, the New

tions of improperly accounting for more than $3.8

York Stock Exchange (NYSE) and stock listing

billion in expenses. That filing followed the equally

exchanges throughout the world began to require

if not more notorious case of energy giant Enron,

internal auditing for publicly traded companies.

which willfully ignored warnings about accounting irregularities and misrepresented its earnings and equity value to the tune of billions of dollars.

New Leadership Breaks the Mold

“I recall the audience of over

With 50 years under its belt, The Institute was

1,400 being a sea of three-piece

landscape. In 1990, Hans Spoel of Belgium

suits and wing-tipped shoes, and

board from outside North America. This was a

even the 100 or so women in attendance dressed the part.”

—Carman Lapointe First Female Chairman of the Board, 1994–1995

growing and changing as quickly as the corporate assumed leadership as the first chairman of the significant achievement in giving The Institute a truly global face. “Globalization Through Partnership” was his theme in recognition of a growing need for global sharing of internal audit knowledge, which he promoted by traveling around the globe to represent The IIA. Spoel’s election emphasized The Institute’s

Cases such as these built the framework for

commitment to be a global organization. Before

more groundbreaking legislation: the U.S. Sarbanes-

Spoel’s chairmanship, The IIA had grown by consol-

Oxley Act of 2002. Sarbanes-Oxley thrust the

idating chapters and establishing national institutes

internal auditor into the spotlight once again as the

around the world, but many well-established insti-

gatekeeper to provide protections for shareholders

tutes around the world were not affiliated with The

and the general public from accounting errors and

IIA. Germany was an example, notes Spoel, who

fraudulent reporting. Clearly, investor confidence

set about helping The IIA and other institutes accept 53

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

Speaking Truth to Power In the best of worlds, the line is always open between the executive suite and the internal audit department. But when the truth becomes more than management wants to hear, internal auditors are faced with whether to find another outlet for their message.

Truth reinforced with courage is what fueled whistleblowers Cynthia Cooper of WorldCom, Coleen Rowley of the Federal Bureau of Investigation (FBI), and Sherron Watkins of Enron to speak out. The women were named Time magazine’s Persons of the Year for 2002—a monumental first for internal auditors, who were applauded for doing their jobs and doing them well. Time’s editors said that the trio was honored “for believing—really believing—that the truth is one thing that must not be moved off the books, and for stepping in to make sure that it wasn’t. They were people who did right just by doing their jobs rightly—which means ferociously, with eyes open and with the bravery the rest of us always hope we have and may never know if we do.”

Cooper said that she was simply doing her job when she alerted WorldCom’s board to $3.8 billion in accounting irregularities. “There are times when internal auditors will face ethical dilemmas and be called upon to speak truth to power,” she says. “If we prepare ourselves before we come to the crossroads of an ethical dilemma, we will be more likely to stop, step back, think it through, and make the right choices.”

Cooper shares with college students interested in the internal audit profession that auditors must be “intentional about defining strong ethical values and finding the courage to live by our values. If we practice finding our courage in small matters each day, it is more likely to be there for us when we need it the most. In the end, life is about choices. The challenge for each of us is to choose well.”

a partnership. “The fact that I am a European and

election of Carman Lapointe as the first female

was fluent in German helped the negotiations,”

chairman of the board for the 1994–1995 term.

says Spoel. “A further important binding element

Lapointe’s service was significant for her and other

was both sides’ strong belief in the Standards for

women in the profession. “Being the first was an

the Professional Practice of Internal Auditing. Once

honor and a privilege,” she says.

Germany was committed, Austria and Switzerland followed naturally.”

54

Lapointe, who began her career as an internal auditor in Canada in 1981 and recently retired as

The 1990s were also significant as The Institute

under-secretary-general at the United Nations,

saw the shattering of the glass ceiling with the

says she learned a lot about what was then

One Voice: The Institute of Today and Tomorrow

C

H

A

P

3

T

E

R

1992–2016

1

2

3

4

The International Conference is held each year and draws as many as 2,500 delegates from more than 90 countries.

1. Sydney, Australia, 1985 2. Orlando, Florida, United States, 2013 3. Kuala Lumpur, Malaysia, 2011 4. London, England, 1988 5. Atlanta, Georgia, United States, 2010

5 55

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

In the spirit of advocacy for the internal audit profession, The IIA’s Audit Executive Center and Patton Boggs hosted a training session for CAEs in Washington, DC. The session provided attendees with a look into the lobbying processes and advocacy efforts. From left to right: (Front row) Allen Cooper, Kathy Anderson, Gina Eubanks, Barb Bergmeier. (Back row) Glenn Benisek, George Lewis, Timothy Tripp, James Tompkins.

56

One Voice: The Institute of Today and Tomorrow

C

H

A

P

3

T

E

R

1992–2016

a male-dominated profession and uses what she learned to encourage other female internal

The IPPF mandatory guidance includes new core principles—that the internal auditor must:

auditors. “The first IIA International Conference

•

Demonstrate integrity

I ever attended was held in San Francisco in the

•

Demonstrate competence and due

early 1980s,” she says. “I recall the audience of over 1,400 being a sea of three-piece suits and

professional care •

wing-tipped shoes, and even the 100 or so women in attendance dressed the part. Now we see very

influence (independent) •

qualified women leading the internal audit shops of major organizations very successfully. Women in

•

Be appropriately positioned and adequately resourced

•

do this throughout my career, and it has been one of the most rewarding aspects for me.”

Align with the strategies, objectives, and risks of the organization

the profession need to mentor and support other women trying to advance more actively. I’ve tried to

Be objective and free from undue

Demonstrate quality and continuous improvement

•

Communicate effectively

Since the breakthroughs of Spoel and Lapointe,

•

Provide risk-based assurance

The IIA’s leadership has continued to reflect the

•

Be insightful, proactive, and

global and diverse nature of its membership. With Angela Witzany from Austria nominated as the 2016–2017 chairman of the board, The IIA will have its 13th chairman from outside the United States.

future-focused •

Promote organizational improvement

Also mandatory are the Standards, the Code of Ethics, and the Definition of Internal Auditing.

Importantly, the IPPF recognizes the cultural and legal differences of their global framework

A New Framework

but establishes basic guidance to which internal auditors must adhere fully. The IPPF is translated

As the practice of internal auditing has continued

into 38 languages and dialects.

to evolve, the Standards have evolved along

The 2015 revision also added a new mission of

with it. In 2006, the board of directors of The

internal auditing, which is “to enhance and protect

Institute established an international task force to

organizational value by providing risk-based and

review the existing guidance. The result was the

objective assurance, advice, and insight.”

International Professional Practices Framework

Through its advocacy program, The IIA partners

(IPPF), which was released in 2009 and revised

with a number of organizations around the world to

in 2011 and 2015.

increase awareness of the value of internal auditing and recognition of the International Standards for the Professional Practice of Internal Auditing.

57

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

New CIAs are recognized at The Institute in Bahrain, 1999.

These include, but are not limited to, the International

(LSU). Glenn Sumners, director for the Center for

Federation of Accountants (IFAC), International

Internal Auditing at LSU, was the originator of that

Organization

Institutions

pilot program, which has grown exponentially. “Our

(INTOSAI), Organisation for Economic Co-operation

first class was about 17 students,” he says. “Our

and Development (OECD), International Integrated

current class is 123.”

of

Supreme

Audit

Reporting Council (IIRC), and the World Bank.

The program, as one of 43 such academic programs worldwide, encompasses a number of different academic disciplines, reflecting the

Building the Future

changing face of internal auditing. And the approach is a holistic, behavioral program. “We focus not

58

The Institute also took mentoring to a new level

only on academic intelligence, but behavioral intelli-

with its academic focus. Prior to The Institute’s 50th

gence, ethical intelligence,” he says.

anniversary, the initiative to have an internal audit

Investing in the future generations of internal

program in the university system resulted in a pilot

auditors is a major role that The Institute plays

program developed at Louisiana State University

through its academic relations program and funding

One Voice: The Institute of Today and Tomorrow

C

H

A

P

3

T

E

R

1992–2016

of Internal Auditing Education Partnerships (IAEP)

Organizations must consider what the emerging

in colleges and universities around the world.

trends are and how they can best address the

Contributions allow professors and students to

trends from within or outside the organization. As a

access the resources available through The Institute

result, internal audit can be delivered in a number of

to advance the profession worldwide and help to

different ways, allowing organizations to draw from

produce internal audit-ready graduates.

a specific skillset as needed.

Insourcing, cosourcing, and outsourcing are all methods of delivery of the internal audit function,

New Ways of Doing Business

and each has pros and cons. “When I was first in internal auditing in the 1970s, auditing was almost

Learning from those who have gone before us can

exclusively performed by employees within the

be invaluable as the internal auditor’s role and stature

organization,” says Patty Miller. Today, she explains,

adapt rapidly to the shifting global landscape. “This

the majority of internal auditing is cosourced to gain

is not a profession that stands still for one moment.

specialist knowledge when needed. “Access to

The evolving risk landscape is changing expecta-

additional resources and specialists has enhanced

tions and the demand for what we deliver as internal

our quality and responsiveness and helped elevate

audit,” says van Wyk.

our profession.”

Internal Audit / External Thoughts

strides to accelerate our involvement with The Institute. In turn, this has bolstered significantly the internal audit and risk advisory practice area within Grant Thornton. We value and appreciate The IIA for setting the tone in providing the Standards and Code of Ethics by which the profession can measure its value. We value our relationship with The IIA as a Principal Partner, and most importantly enjoy the in-kind support we provide through our people volunteering time and resources to help enable advancing the internal audit profession.

As The IIA celebrates its diamond anniversary, Grant Thornton is honored to launch a published research project with The Research Foundation at the 2016 General Audit Management Conference. We are excited about the future and look forward to forging a stronger partnership with The IIA to reshape the profession and ensure it stays relevant.

by Warren Stippich Happy 75th Anniversary, IIA! We are proud to be a Principal Partner! Grant Thornton has repeatedly seen the value of building our relationship with The IIA. Over the years, our organization has actively participated in many of The IIA’s initiatives, such as national and local conferences, webcasts, training programs, research, and thought leadership development.

Grant Thornton leaders have volunteered countless hours participating on committees, boards, and projects at both the local and global levels. The most current research project was a partnership with The Research Foundation, demonstrating the importance of data analytics to internal audit and outlining a four-step framework to help internal auditors. The collaboration with The Institute and internal audit leaders across the country has helped us strengthen our relationship. We are pleased to be a contributor to the evolution of the great profession of internal auditing, which The IIA accelerates.

As a professional services firm with a practice area dedicated to internal audit, Grant Thornton continually makes

WARREN STIPPICH is Partner, National Governance, Risk and Compliance Practice Leader, Global Co-Leader of Grant Thornton, LLP.

59

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

The Global Council: Moving the Profession Forward In December 1996, at the urging of then Chairman of the Board Tony Ridley, The Institute invited members from institutes around the globe to participate in the first Global Forum (now called the Global Council). Held in Orlando, Florida, more than 130 registrants from 53 countries attended this inaugural event. This first meeting had three goals: • To enhance the development of the worldwide profession of internal auditing • To design a strong and cohesive professional organization • To share experiences and knowledge of the current professional practices Today, the Global Council is an annual event held at a different venue around the world, where representatives from each of the more than 100 institutes and associated organizations are invited to discuss ways to move the profession and The Institute forward. “I always call it the crème de la crème of The IIA coming together,” says Sylvia Gonner, IIA’s vice president of global relations.

“Top leaders of all our institutes, our executive committee, and our senior staff meet to discuss strategies and emerging issues.”

Various strategic topics are debated and feedback is given. “All the feedback is collected so that we can come back with, ‘Here is what our institutes are thinking . . . What are some of the challenges, suggestions, and ideas related to this particular topic?’” says Gonner. The sessions provide valuable input for committees, task forces, and staff working on strategic initiatives.

60

Also instrumental in elevating the profession is

all over the globe. “It’s a profession supported and

The Institute staff. Although volunteers have been

shaped by the professional staff,” says Pflumm.

the driving force in advancing internal auditing, the

“As the profession continues to define and redefine

people at The IIA’s global headquarters in Florida

itself, there’s only one place I know of that can

and at many of the institutes around the world

make a coherent structure of the things that need

have been the hub of the wheel that keeps the

to happen in a coherent fashion: The Institute.”

operation moving forward. With a staff of around

From this hub come all the many spokes in the

230 at the global headquarters, the main work of

wheel—chapters, institutes, associated organiza-

The Institute continues daily with personnel from

tions, and of course, members. For Chambers, the

One Voice: The Institute of Today and Tomorrow

C

H

A

P

3

T

E

R

1992–2016

Attendees at a desert event in conjunction with a Global Council in Dubai in 2014.

role of The Institute is clear. “The ideal we seek is to

Canada, and the Caribbean. International confer-

carry out our mission to provide dynamic leadership

ences, volunteer boards and committees, and global

for the global profession of internal auditing,” he

councils all work to keep the leadership in the global

says. “Of course, our success doesn’t just happen.

organization connected and contribute to the body

It requires staff and volunteers with profession-

of knowledge.

alism and commitment to service as exemplified

The Institute in the United Kingdom and Ireland

by those who have served and continue to serve

is unique among affiliates in a number of ways.

this organization so well all over the course of its

Founded in 1948, it is the oldest institute outside

history. The quality and commitment of our staff

North America and remains one of the largest,

and volunteers will lead The IIA to success in the

with more than 8,500 members. It is also the only

next 75 years.”

chartered body, having gained this recognition from the U.K. Privy Council in 2010, successfully raising

Growing Globally

the profile of the profession and establishing parity with professionals in other fields, including accoun-

The Institute has seen exponential growth in

tants, doctors, and lawyers. Belonging to a chartered

membership, with more than 100 institutes worldwide

body affords qualified U.K. and Ireland Institute

and more than 155 chapters in the United States,

members the recognition of chartered status by

61

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

using the designation CMIIA (Chartered Member

culminated in the CIA now being established even

of the Institute of Internal Auditors). Until 2015, this

more firmly as the key benchmark certification for all

status was conferred on the basis of qualifications

internal auditors.”

offered only within the United Kingdom and Ireland.

The Institute’s global footprint continues to expand in the Middle East, The Institute’s fastest-

“The fundamental message conveyed was the imperative that the auditors had to build stronger

growing area in 2015. New international chapters have also been chartered in Angola, Bahrain, Mongolia, Niger, Togo, and Yemen. In 2016, The Institute is working with volunteers from other countries to expand into Afghanistan, Jordan,

competencies before having the

Kuwait, and Vietnam.

legitimate right of asking for the

of Accountants (IFAC), the International Association

recognition of their profession.”

other organizations around the world have served

Partnerships with the International Federation of Supreme Audit Institutions (INTOSAI), and many

—Giovanni Grossi

to increase the visibility of the profession and The

IIA Board Member and International Officer, Italy

Institute globally. In the United States, concentrated efforts over the last few years have helped ensure a place at the table when legislation is being drafted and regulation is being considered by keeping the

62

Following the convergence of The IIA–U.K. and

role of the internal auditor visible in Washington,

Ireland’s programs with those of the global body,

DC. Other countries have legislation or regulations

there is now a single suite of certifications common

mandating internal auditing for government entities

throughout the world. Gerry Cox, 2007–2008 global

as well as publicly held corporations.

chairman of the board and past U.K. and Ireland

Volunteers also play a significant role in the

president, said, “The convergence of these programs

work of expanding The Institute’s global footprint.

was made possible through the introduction of the

Patty Miller says that the global volunteers do a

Qualification in Internal Audit Leadership (QIAL), which

lot of the “heavy lifting.” They are the men and

is now the basis for conferring the CMIIA designation.

women who serve on the boards and committees,

Adoption of the full suite of programs in the U.K. and

head up studies, contribute to CBOK reports, and

Ireland confirms that we have a comprehensive suite

more. Without their hard work, The Institute would

of global certifications that meets the need of internal

not be where it is today. These global volunteers—

auditors around the world. All these factors have

and, in fact, each and every internal auditor around

One Voice: The Institute of Today and Tomorrow

C

H

A

P

3

T

E

R

1992–2016

the world—shoulder the responsibility for being

profession. In other words, ‘If you want a seat at the

advocates for the profession.

table, you must first demonstrate that you deserve

Longtime IIA board member and former inter-

it, that you are capable of delivering real value.’

national officer Giovanni Grossi of Italy has seen

From here comes the motto ‘Progress Through

the evolution of The Institute and the profession in

Sharing’—rather than working in isolation, rather

Europe since his involvement began more than 30

than reinventing the wheel. Joining The IIA would

years ago. During that time, he has filled a number

allow the local organizations to take advantage

of roles, including president of IIA–Italy, president of

of the global Institute’s knowledge as a precious

the European Confederation of Institutes of Internal

source of the needed competencies. That the

Auditing (ECIIA), chairman of The IIA International

strategy was the right one, there is no doubt: The

Relations Committee, and member of the Executive

growth in the number of national institutes and in

Committee and Board of Directors. “I therefore had

their size speaks for itself.”

the privilege of taking part in the spectacular evolution The IIA has been through since then, particularly as regards the European territory.”

Tailored Service

The formation of ECIIA in 1982 helped establish an important voice for internal auditing in Europe and

Recognizing the unique challenges that internal

unite the countries with the European Commission

auditors face in their various roles, The Institute’s

and the global IIA body.

specialty centers provide a community of practi-

Grossi says that global expansion was aided

tioners with instant access to communication and

by “the competence, the leadership, and the

resources. The first of those endeavors, the Audit

enthusiasm of a few individuals like Jean-Pierre

Executive Center, was developed in 2010 to serve

Garitte, 1998–1999 IIA board chairman and ECIIA

chief audit executives (CAEs) and offer insights for

president—individuals who, as officers of both their

their ever-evolving roles. The American Center for

local and the global audit organizations, went around

Government Auditing serves auditors working in

preaching about the role internal auditing could play

the government sector, and the Financial Services

in a modern society, and the consequent need to

Audit Center is available for financial auditors facing

create local associations that could help support that

increased scrutiny from legislators and regulators.

role. I had the honor of being one of them.”

These resources, along with Auditchannel.tv,

Grossi adds, “The fundamental message

Internal Auditor Online, and The IIA’s website,

conveyed was the imperative that the auditors had

ensure that auditors everywhere know they have a

to build stronger competencies before having the

community supporting them.

legitimate right of asking for the recognition of their

63

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

What Does the Future Hold?

“The next 10 years are going to be so very different from the last 10 years, and The Institute is

The Institute is moving boldly into the future. “It’s

poised to make a difference,” he says. As chairman,

easy for any organization that has been successful

he has sought to help the individual internal auditor

to rest on its laurels,” says Chambers. “The biggest

understand his or her worth in helping the organi-

risk is complacency . . . that we don’t allow ourselves

zation succeed rather than as the feared auditor

to become complacent and that somehow we say,

who only brings bad news. “We have to change

‘Oh well, we have got all these great things, we’ve

our image. We have to demonstrate how we add to

succeeded, let’s take a breath.’”

the value proposition. We have to help stakeholders

Larry Harrington, 2015–2016 chairman of the board, sees this point in history as critical for the

The Institute moves into its next 25 years with

internal auditor and The Institute. “Today we are

a new sense of purpose, rising to the enormous

at an important crossroads because boards and

challenges and calling future generations to the

management are expecting more than ever from

highest standards. A work begun in 1941 that has

internal auditors. They need for internal auditors

grown into a global presence still may have its finest

to be a catalyst for transformation,” he says. “In

years ahead of it.

order to be a catalyst, we have to spend more time looking forward rather than backwards.”

“The IIA will work tirelessly to pursue our vision: internal audit professionals will be universally recog-

Harrington urges internal auditors everywhere

nized as indispensable to effective governance, risk

to embrace new ways of learning and assessing

management, and control,” says Chambers. Fulfilling

risk. Like van Wyk, he speaks of the importance

that vision, however, comes with challenges, not the

of courage to have the difficult conversations, to

least of which is a business environment in which it

explore new methods and techniques, and to learn

is difficult to keep pace with emerging and evolving

something new every day by stepping out of one’s

risks. But, says Chambers, The IIA is equipped to

comfort zone. “We must broaden our own horizons.

help internal auditors meet those challenges.

We must elevate our performance.”

“We will continue to lead the profession by

One way to do that is to “harness, engage,

developing timely and relevant knowledge, global

and leverage the experience of the Millennials,” he

guidance, and career path guidelines,” he says.

says. “As leaders today, we need to make them

“The IIA will raise the profile of and demand for the

feel empowered and engaged.” As a result, internal

profession to ensure its position and reputation as

auditors will need to embrace a diversity of skillsets

an indispensable resource for key stakeholders.”

and thus challenge the status quo.

64

understand the power of internal auditing.”

One Voice: The Institute of Today and Tomorrow

C

H

A

P

3

T

E

R

1992–2016

Attendees fill the exhibit center on the opening day of the International Conference in London, England, 2014.

65

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

1

2

3

4

IIA leaders meet with members and dignitaries at events around the world.

1. Steve Goepfert, 2006–2007 chairman of the board, and Mr. Li Jinhua, auditor general of China, 2006 2. Latin American Conference in Brazil, 2010 3. Phil Tarling, 2012–2013 chairman of the board, meets with the president of Lebanon, 2013 4. Richard Chambers, IIA president and CEO, in Argentina, 2012 5. Paul Sobel, 2013–2014 chairman of the board with Mervyn King in Singapore 5 66

One Voice: The Institute of Today and Tomorrow

C

H

A

P

3

T

E

R

1992–2016

Mark Hadfield, a Canadian astronaut, addressing a general session at the 2015 International Conference in Vancouver, BC.

67

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

1

2

3

4

Staff at institutes around the world provide the support to serve IIA members.

1. IIA–Italy 2. IIA–Chinese Taiwan 3. IIA–Indonesia 4. IIA–South Africa 5. IIA–Austria CEO Norbert Wagner

5 68

One Voice: The Institute of Today and Tomorrow

C

H

A

P

3

T

E

R

1992–2016

At IIA Headquarters, nearly 230 staff serve our 180,000 members from two campuses in Altamonte Springs and Lake Mary, Florida.

69

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

IIA Staff Leadership From 1941 to 1947, The IIA was run by volunteers only, and its founders contributed countless hours to launch and grow a new professional association. From the 24 members who chartered The IIA in 1941, the number of chapters increased throughout the United States and expanded into Canada in 1944.

Volunteers organized the annual conferences beginning in 1942, launched Internal Auditor magazine in 1944, and introduced the first seminar program for internal auditors. Membership grew from the initial 24 to 1,322 members.

Volunteers continue to fulfill a vital role in the progress of The IIA and the profession of internal auditing, but we could not have achieved the progress, visibility, and prestige of a global profession without visionary staff leadership. I have been fortunate to work under seven of the nine CEOs in The IIA’s 75-year history, and each person brought a unique expertise to The Institute, expanding it in directions based on their knowledge of the profession and the association world. The IIA attracted some amazing individuals who steered key IIA initiatives and helped guide The IIA toward today’s strong and vibrant global organization that is the envy of other associations trying to make their global footprint.

—Judy Burke, IIA Vice President, Governance 1947–1962 Bradford Cadmus Membership Grew to 5,182 Bradford Cadmus was appointed

Archie McGhee had a passion

full-time managing director in

for internal auditing, coming from

February 1947, and under his

the Foote Mineral Company. He

leadership the headquarters was

oversaw the first Code of Ethics

established on Wall Street in New

and the approval of the concept

York City. He took a significant

for a certification program in 1969.

cut in pay from his position at

He set in gear the move to Central

Standard Brands in New York,

Florida when he hired a director of education located in Winter

but he truly believed in The IIA and directed it for 15 years.

Park, Florida, and later moved the magazine to that location.

Under his watch, the first Statement of Responsibilities of

McGhee also introduced the chapter option plan for affiliates

the Internal Auditor was approved; the first chapters outside

outside North America, which provided reduced services to

North America were established, beginning with London and

chapters for reduced fees.

Manila in 1948; and membership grew to 5,182. Even after retirement in 1962 he continued as research and education director until his passing in 1964.

70

1962–1971 Archie McGhee Membership Grew to 8,017

The Institute of Internal Auditors: Appendix

1972–1978 John Harmon Membership Grew to More Than 16,000

L

E

A

D

E

R

S

H

I

P

1981–1985 Stanley Gross Membership Grew to More Than 28,000

John Harmon was the only

Stanley Gross served previously

non-internal auditor to hold

as chairman of the board and

the highest staff position. He

came from Sherwin-Williams

came from the U.S. Chamber

Company. In 1981, he and

of Commerce and oversaw

Chairman of the Board William

establishment of the global

Thompson appeared before

headquarters in Central Florida. His

the U.S. Senate on behalf of

knowledge of associations led to

The IIA regarding the Foreign Corrupt Practices Act. During

implementation of initiatives that quickly defined internal auditing

Gross’s tenure, The Institute also participated in the Grace

as a profession—certification, standards, establishment of The

Commission (1984), a blue-ribbon panel appointed by

Research Foundation, the launch of a Leadership Conference

President Ronald Reagan to study government waste.

for chapter leaders (still going strong today), and a truly global outreach effort to expand The IIA’s international presence.

Harmon also obtained a $500,000 grant from IBM, and The IIA

1985–1992 Peter Wilson Membership Grew to More Than 42,000

partnered with the Stanford Research Institute for the landmark

Before accepting a staff position,

Systems Auditability and Control (SAC) study in 1975.

Peter Wilson was an active volunteer with The IIA. Former

1979–1981 Robert Richmond Membership Grew to More Than 21,000

deputy auditor general of Canada, he also served the United

After a distinguished position

Nations in New York. Leveraging

as vice president and general

his government background,

auditor of BF Goodrich

Wilson helped The IIA achieve

Company, Robert Richmond

consultative status with the United Nations, official observer

began his leadership of The IIA.

status with the International Organization of Supreme Audit

He had served previously as The

Institutions (INTOSAI), and closer ties with the Canadian

IIA’s chairman of the board. While

Comprehensive Auditing Foundation (CCAF), International

his tenure was short, he oversaw

Consortium on Government Financial Management

implementation of the national institute agreement, which

(ICGFM), and International Federation of Accountants (IFAC).

gave greater independence to institutes around the world.

Additionally, he facilitated The IIA’s participation in the 1987 National Commission on Fraudulent Financial Reporting, which eventually led to The IIA’s participation as one of five founding members of the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

71

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

1992–2004 William (Bill) Bishop Membership Grew to More Than 97,700

2009–Present Richard Chambers Membership Now Exceeds 180,000

Bill Bishop was previously

Richard Chambers brings

with Shearson Lehman and

both public- and private-

American Express and was The

sector experience to The

IIA’s representative to COSO

IIA, having worked with

since its creation, contributing

PricewaterhouseCoopers,

to its landmark report Internal

Tennessee Valley Authority,

Control – Integrated Framework.

the U.S. Postal Service, the

His corporate connections

U.S. Army, and the U.S.

helped The IIA as he testified on its behalf before special

Government Accountability Office (U.S. GAO). He was

committees of the Securities and Exchange Commission

vice president of education and executive director of The

(SEC), the New York Stock Exchange (NYSE), the National

IIA Research Foundation from 2001 to 2004 and returned

Association of Securities Dealers (NASD) Blue Ribbon

as The Institute’s president and CEO in 2009. Under his

Committee on Improving the Effectiveness of Corporate

direction, The IIA provided new specialty centers for CAEs,

Audit Committees, and the AICPA’s Public Oversight Board.

government, and financial services; brought in environmental,

He also launched the Global Forum (now Global Council) for

health, and safety auditors; and achieved a revision to the

institute leaders in 1996, and oversaw introduction of the

International Professional Practices Framework (IPPF). His

CCSA and CGAP certification programs and acquisition of

business acumen provides The IIA with a solid financial

the National Association of Financial Services Auditors.

status with which to enhance member services and the profession in the future.

2004–2009 David Richards Membership Grew to 165,000 David Richards, from First Energy Corporation, was The Institute’s chairman of the board prior to his acceptance of the top staff position. He oversaw the first comprehensive Common Body of Knowledge (CBOK) study in 2006 and was instrumental in formation of the Canadian Council (now the Canadian Board), which provides governance, advocacy, and services to today’s 7,500 members in Canada. Under his leadership, the CIA Learning System was launched in 2007, and the first computer-based testing for the certification exams was offered in 2008. His focus was on services for the global membership.

72

The Institute of Internal Auditors: Appendix

A W A

R

D

S

The Institute of Internal Auditors William G. Bishop III, CIA Lifetime Achievement Award

The Institute’s Board of Directors formally established the William G. Bishop III, CIA Lifetime Achievement Award in December 2004 to recognize individual members who, through a career of accomplishments and dedication to The Institute, have impacted the international practice of internal auditing, advanced the awareness of The IIA, and inspired professionals around the world to make a difference in our profession and in the organizations we serve. It is given in honor of Bill Bishop, a past president of The IIA and an influential presence in internal auditing.

The award was presented informally three times before its formal establishment and one time since: • In 2000 to Lawrence B. Sawyer, recognized worldwide as “the father of modern internal auditing.”

• In 2002 to Mortimer A. Dittenhofer, recognized for his lifetime promotion of internal auditing in government and education.

• In 2004 to William G. Bishop III (posthumously) for his impact on the global profession culminating from his 12 years as IIA president.

• In 2008 to William L. Taylor for his extraordinary leadership and dedication over a lifetime of service to the global profession of internal auditing and The IIA.

73

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

The Institute of Internal Auditors Victor Z. Brink Award for Distinguished Service Before 1994, all board chairmen automatically received the Award for Distinguished Service. The award criterion was changed in 1994 to require review by a committee and to encourage recipients other than, or in addition to, past chairmen. Named in honor of Victor Brink, one of The IIA’s founding fathers and the author of the first major book on internal auditing, the award is given in recognition of extraordinary service to the profession through participation in IIA activities.

Recipients Before 1980 Howard L. Aiken Curtis T. Atkisson John R. Ballard F. Arnold Beale John D. Bradt Victor Z. Brink Arthur J. E. Child Herbert C. M. Cobb O. Ruffin Crow Jr. Earl H. Cunningham Henry B. Davidson J. O. Davies William R. Davies

Donald E. Dooley William H. Garbade Charles J. Ghesquiere Wallace R. Gilchrist Arthur E. Hald William T. Hamilton Charles N. Inman Arthur H. Kent Kenneth K. Kilgore Alan Lauckner William J. Lehmann Frank W. Lennon Robert B. Milne

Jack A. Mosher Cornelius H. Nagle Raymond E. Noonan James B. Parker William Berch Pitts Eugene F. Ratliff Robert L. Richmond Cedric C. Slain William S. Smith John B. Thurston Robert D. Whisler Duane E. Wilson

Recipients After 1980 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1992 1992 74

Stanley C. Gross James R. Kelly William. J. Harmeyer Charles L. Brown David V. Dunbar William E. Thompson Leon R. Radde James A. Hooper Hugh L. Marsh William E. Swanson John K. Watsen Ronald L. Bell William J. Duane Jr. O. Jack McGill G. Peter Wilson

1993 1993 1994 1995 1995 1996 1997 1998 1999 2000 2001 2002 2002 2003 2004

Herbert D. Miller Lawrence B. Sawyer A. J. Hans Spoel Orville W. Mills Jr. Sharon E. Stanford Willard E. Hick III Robert E. White No recipient Dennis K. Beran Anthony J. Ridley Jean Pierre Garitte Giovanni Grossi Howard J. Johnson David F. Bentley David A. Richards

2005 2005 2006 2007 2008 2009 2010 2011 2011 2012 2013 2013 2014 2015

Edward M. Dudley Ralph E. Purpur Carman Lapointe Archie R. Thomas Joannes Nieuwlands Stephen L. Morgan Betty L. McPhilimy Gerald D. Cox Robert N. McDonald Louis Vaurs Stephen Goepfert Patricia K. Miller Roderick Winters Michael Parkinson

The Institute of Internal Auditors: Appendix

A W A

R

D

S

The Institute of Internal Auditors Bradford R. Cadmus Memorial Award The award was established in 1965 in honor of Bradford Cadmus, the first managing director of The IIA, to recognize IIA members or nonmembers who have made outstanding international contributions in the field of internal auditing. The first award was presented posthumously to Bradford Cadmus in 1966.

1966 1967 1968 1969

Bradford R. Cadmus Victor Z. Brink Frederic E. Mints Donald E. Dooley

1970 J. O. Davies 1970 H. J. Hintze 1971 William S. Smith 1972 Frank W. Lennon 1973 Lawrence B. Sawyer 1974 Odd Hunsbedt 1975 F. A. Beale 1976 Duane E. Wilson 1977 William J. Harmeyer 1977 John B. Thurston 1978 Robert L. Richmond 1979 Roger N. Carolus 1979 Robert E. Gobeil 1980 Charles L. Duly 1981 John R. Ballard 1982 No recipient 1983 Aaron Schneider 1984 No recipient 1985 Mortimer Dittenhofer 1986 William C. Anderson 1986 Charles L. Brown 1987 Stanley C. Gross 1988 No recipient 1989 James P. Wesberry Jr. 1990 Michael J. Barrett

1991 1992 1992 1993

James B. Thomas Paul E. Heeschen John T. Reeve James A. Hooper

1993 Hugh L. Marsh 1994 David V. Dunbar 1995 A. J. Hans Spoel 1996 William J. Duane Jr. 1997 No recipient 1998 Knut Løken 1999 Paul G. Makosz 2000 William L. Taylor 2001 Thomas A. Johnson 2002 Anthony J. Ridley 2003 Wayne G. Moore 2004 Jacques Renard 2005 Larry E. Rittenberg 2006 Urton L. Anderson 2006 Glenn E. Sumners 2007 James M. Kaplan 2008 James P. Roth 2009 No recipient 2010 Juan Manuel Portal Martinez 2011 Richard J. Anderson 2012 No recipient 2013 No recipient 2014 Andrew D. Chambers 2015 John J. Flaherty

75

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

Chairmen, Employers, and Theme for Their Terms Year

Employer

Chapter/ Institute

1941–1942

John B. Thurston

New York

The North American Company

1942–1943

Robert B. Milne

New York

Columbia Engineering Corporation

1943–1944

William H. Garbade

New York

Shell Oil Company

1944–1945

Alan Lauckner

New York

Central Hanover Bank & Trust Co.

1945–1946

Curtis T. Atkisson

New York

Ebasco Services Inc.

1946–1947

Arthur E. Hald

New York

Consolidated Edison Company of NY

1947–1948

Earle H. Cunningham

Detroit

General Motors Corporation

Increasing the Usefulness of Internal Auditing to Management

1948–1949

Arthur J. E. Child

Toronto

Canada Packers Ltd.

Internal Auditors Look Ahead

1949–1950

James B. Parker

Chicago

International Harvester Company

Broadening Our Horizons

1950–1951

Victor Z. Brink

NY/Detroit

Columbia University

Management Acceptance

1951–1952

Herbert C. M. Cobb

New York

Worthington Pump & Machinery Corp. Education and Service to Management

1952–1953

Charles J. Ghesquiere

Detroit

Detroit Edison Company

New Fields for Internal Auditing

1953–1954

Raymond E. Noonan

Richmond

Reynolds Metals Company

Progress Through Sharing Internal Audit Knowledge

1953–1954

William T. Hamilton

Cleveland

Cleveland Electric Illuminating Co.

Progress Through Sharing

1954–1955

Henry B. Davidson

San Francisco

American Trust Company

Internal Auditing for Profit

1955–1956

Frank W. Lennon

Chicago

Pure Oil Company

Promoting Professional Progress

1956–1957

Eugene F. Ratliff

Indianapolis

Eli Lilly & Company

Earning Our Opportunity

1957–1958

William R. Davies

Pittsburgh

U.S. Steel Corporation

Strong Chapters Make a Strong Institute

1958–1959

William J. Lehmann

Los Angeles

Lockheed Aircraft Corporation

Widening Our Horizons

1959–1960

Wallace R. Gilchrist

Tulsa

Service Pipe Line Company

Helping Yourself to Progress

1960–1961

Cornelius H. Nagle

Richmond

Reynolds Metals Company

Promote Modern Internal Auditing Concepts

1961–1962

Cedric C. Slain

Chicago

International Harvester Company

Think Like the President

1962–1963

Robert D. Whisler

Milwaukee

S.C. Johnson & Son, Inc.

Help The Institute Serve You

1963–1964

Donald E. Dooley

Seattle

Weyerhaeuser Timber Company

Seeking Savings Worldwide

1964–1965

F. Arnold Beale

Toronto

Steel Company of Canada, Ltd.

Promoting Practical Business Controls

1965–1966

Kenneth K. Kilgore

Washington

U.S. Department of Defense

Flexibility – Key to Success

1966–1967

William S. Smith

Syracuse

Agway, Inc.

Demonstrate Management Perspective

1967–1968

O. Ruffin Crow Jr.

St. Louis

McDonnell Aircraft Corporation

Plan for Progress

1968–1969

William Berch Pitts

Seattle

Pacific Northwest Bell Telephone Co. Challenge and Innovate the Future

1969–1970

Duane E. Wilson

Chicago

Pan American Petroleum Co.

Dynamic Auditing in a Changing World

1970–1971

John A. Mosher

Los Angeles

Lockheed Aircraft Corporation

Progress Demands Effective Communications

1971–1972

Robert L. Richmond

Cleveland

B.F. Goodrich Co.

Achieve Professional Identity

1972–1973

John R. Ballard

Chicago

International Harvester Company

Better Service to Management

1973–1974

Howard L. Aikin

Indianapolis

American Life United Insurance Co.

Horizons Unlimited

1974–1975

Charles N. Inman

Los Angeles

Lockheed Aircraft Corporation

Personal Involvement – Key to Progress

1975–1976

John D. Bradt

Toronto

Imperial Oil Limited

Spirit of Professional Performance

1976–1977

Stanley C. Gross

Cleveland

Sherwin-Williams Company

Extend Internal Audit Influence

1977–1978

James R. Kelly

Minneapolis

Investors Diversified Services, Inc.

Focus on the Future

1978–1979

W. James Harmeyer

LA/San Diego

California Institute of Technology

Acceptance Demands Credibility

76

Chairman

Chairman’s Theme

The Institute of Internal Auditors: Appendix

C

H

A

I

R

M

E

N

1979–1980

Charles L. Brown

New York

J.C. Penney Co, Inc.

Credibility Requires Leadership

1980–1981

David V. Dunbar

Montreal

Bell Canada

Professionalism Requires Planning, Communication, & Commitment

1981–1982

William E. Thompson

Birmingham

AmSouth Bancorporation

You Are the Profession

1982–1983

Leon R. Radde

Minneapolis

Investors Diversified Services, Inc.

Reaching Out: Mark of a Professional

1983–1984

James A. Hooper

Los Angeles

Southern California Edison Co.

Professionals on the Move

1984–1985

Hugh L. Marsh

Pittsburgh

Aluminum Company of America

Excellence Demands Commitment

1985–1986

William E. Swanson

Toledo

Owens-Illinois Inc.

Achieve Professional Excellence

1986–1987

John K. Watsen

Washington

Federal National Mortgage Assn

Vision of the Future

1987–1988

Ronald L. Bell

Detroit

General Motors Corporation

Auditors’ Influence on Management

1988–1989

William J. Duane, Jr.

New York

Manufacturers Hanover Trust

Building Together for the Future

1989–1990

Herbert D. Miller

Tulsa

Williams Companies

Preparing for Tomorrow’s Professionalism

1990–1991

A. J. Hans Spoel

Brussels

Alcatel N.V.

Globalization Through Partnership

1991–1992

Orville W. Mills Jr.

Houston

Exxon Company USA

Harmonizing Diversity

1992–1993

John J. Flaherty

Westchester

Pepsico Inc.

Change

1993–1994

Robert E. White

North Jersey

Warner-Lambert Company

By Design

1994–1995

Carman Lapointe

Toronto/Ottawa

Bank of Canada

Striking the Right Balance

1995–1996

William L. Taylor

Washington

Inter-American Development Bank

Make It Happen

1996–1997

Anthony J. Ridley

Detroit

Ford Motor Company

Internal Auditing: A Profession for the 21st Century

1997–1998

Michael P. Fabrizius

Baltimore

Bon Secours Health System

A Passion for Excellence

1998–1999

Jean-Pierre Garitte

Belgium

J. Van Breda & Company

Building Bridges

1999–2000

Howard J. Johnson

Dallas

J.C. Penney Co, Inc.

Make it Unique

2000–2001

Jacqueline K. Wagner

Detroit

General Motors Corporation

Leading the Way

2001–2002

David A. Richards

Cleveland

FirstEnergy

Envisioning Our Future

2002–2003

LeRoy E. Bookal

Miami/Washington

Texaco, Inc.

Internal Auditors: Integral to Good Corporate Governance

2003–2004

Robert N. McDonald

Australia

Department of Natural Resources

Embrace the Challenge

2004–2005

Betty L. McPhilimy

Chicago

Northwestern University

Seize the Moment

2005–2006

Thomas J. Warga

New York

New York Life Insurance Company

Keeping Our Promise

2006–2007

Stephen D. Goepfert

Houston

United Airlines

Tell the World

2007–2008

Gerald D. Cox

U.K. & Ireland

Southwest Audit Partners

Raising the Bar

2008–2009

Patricia K. Miller

San Francisco

Deloitte & Co.

Recognized. Trusted. Valued.

2009–2010

Roderick M. Winters

Puget Sound

Microsoft Corporation

Achieving Our Potential

2010–2011

Günther Meggeneder

Austria

ista International GmbH

Shape the Future

2011–2012

Denny Beran

Dallas

J.C. Penney Co, Inc.

Assess Our Relevance

2012–2013

Philip D. Tarling

U.K. & Ireland

Huawei

Say it Right

2013–2014

Paul J. Sobel

Atlanta

Georgia-Pacific LLC

Imagine the Possibilities

2014–2015

Anton van Wyk

South Africa

PricewaterhouseCoopers

Mind the Gap

2015–2016

Lawrence J. Harrington

Greater Boston

Raytheon Company

Invest in Yourself

77

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

The Institute of Internal Auditors International Conferences Date

Location

Conference and Theme

1942

New York, New York

Internal Auditing-A new Management Technique

1943

New York, New York

Internal Auditing—Philosophy and Practice

1944

New York, New York

Internal Auditing—Now and After the War

1945 None

78

1946

New York, New York

Internal Auditing—A Post War Appraisal

1947

Detroit, Michigan

Increasing the Usefulness of Internal Auditing

1948

Chicago, Illinois

Internal Auditing Looks Ahead

1949

Toronto, Ontario

Internal Auditing, Instrument of Control

1950

Atlantic City, New Jersey

Internal Auditing in Action

1951

New York, New York

Internal Auditing—Management Acceptance

1952

St. Louis, Missouri

Education and Service to Management

1953

Cleveland, Ohio

New Fields for Internal Auditing

1954

Dallas, Texas

Progress Through Sharing

1955

Boston, Massachusetts

Internal Auditing for Profit

1956

Chicago, Illinois

Promoting Professional Progress

1957

Los Angeles, California

Earning Our Opportunities

1958

Detroit, Michigan

Operational Auditing:The Expanding Field for the Internal Auditor

1959

Washington, DC

Widening Our Horizons

1960

Milwaukee, Wisconsin

Helping Yourself to Progress

1961

Montreal, Quebec

Promote Modern Internal Auditing Concepts

1962

Seattle, Washington

Acquiring Management’s Objectives

1963

New York, New York

1964

Houston, Texas

Seeking Savings World-Wide

1965

St. Louis, Missouri

Promoting Practical Business Controls

1966

Toronto, Ontario

Flexibility—Key to Success

1967

San Francisco, California

Demonstrate Management Perspective

1968

Pittsburgh, Pennsylvania

Plan for Progress

1969

Minneapolis, Minnesota

Challenge and Innovate the Future

1970

Atlanta, Georgia

Dynamic Auditing in a Changing World

1971

Chicago, Illinois

Progress Demands Effective Communications

1972

Los Angeles, California

Achieve Professional Identity

1973

Washington, D.C.

Better Service to Management

1974

London, England

Horizons Unlimited

1975

Dallas, Texas

Progress Through Sharing

1976

Boston, Massachusetts

Bicentennial Boston in June

1977

Hollywood, Florida

Key to Tomorrow

The Institute of Internal Auditors: Appendix

C

O

N

F

E

R

1978

San Francisco, California

Golden Gateway to the World of Auditing

1979

New York, New York

Auditing Measuring Up for the 80s

1980

Toronto, Ontario

Reaching New Heights of Professionalism

1981

Phoenix, Arizona

Auditing Everything Under the Sun

1982

Washington, DC

Productivity—A Capital Idea

1983

Jerusalem, Israel

Follow the Audit Trail

1984

Chicago, Illinois

Futuristic Auditing—Capture the Spirit

1985

Sydney, Australia

Bridge to the Future of Internal Auditing

1986

New York, New York

Independence & Enlightenment

1987

Dallas, Texas

Recounting the Past-Rehearsing the Future

1988

London, England

Live & Learn in London

1989

San Francisco, California

Exploring Audit Frontiers

1990

St. Louis, Missouri

Gateway to the 90s

1991

New York, New York

Forward From Fifty

1992

Phoenix, Arizona

Audit Trails to the Southwest

1993

Chicago, Illinois

Audit Fever—Catch It

1994

Toronto, Ontario

Quality—The Challenge

1995

Paris, France

Meeting Customer Expectations

1996

Anaheim, California

Global Internal Auditing— “It’s A Small World After All”

1997

Philadelphia, Pennsylvania

Revolutionizing Auditing Around the World

1998

Dallas/Fort Worth, Texas

Blazing Trails Into the 21st Century

1999

Montreal, Quebec, Canada

The Internal Auditor: Leading the Way

2000

New York, New York

New Century • New Challenges • New York

2001

Buenos Aires, Argentina

Globalization & Diversity: An Auditor’s Odyssey

2002

Washington, DC

An Event Too Monumental to Miss

2003

Las Vegas, Nevada

The IIA and Las Vegas: A Winning Combination

2004

Sydney, Australia

Be inspired. Be informed. Be in Sydney

2005

Chicago, Illinois

Your Kind of Town. Your Kind of Conference

2006

Houston, Texas

A Conference of Infinite Possibilities

2007

Amsterdam, Netherlands

Get into the Flow

2008

San Francisco, California

Your Golden Gate to Excellence

2009

Johannesburg, South Africa

A World in One City

2010

Atlanta, Georgia

Auditing Through Leadership

2011

Kuala Lumpur, Malaysia

Standing Tall

2012

Boston, Massachusetts

Revolutionizing Internal Auditing

2013

Orlando, Florida

One World, One Profession, One Destination

2014

London, England

Time to Make the Connection

2015

Vancouver, BC, Canada

Mountains of Change—Oceans of Opportunities

2016

New York, New York

75 Years of Progress Through Sharing

E

N

C

E

S

79

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

Numbers in italics represent photos. ___________ A ACL, 24 Aikin, Howard L., 20 Al Khoori, Abdulaziz, XVI–XVII Al Muwaijei, Ali, XVI–XVII Albright, Madeleine, 41 Ali, Abdulqader Obaid, XVI–XVII American Accounting Association (AAA), 38 American Institute of Certified Public Accountants (AICPA), 38 Anderson, Kathy, 56 Atkisson, Curtis T., 2 Audit Executive Center, XV, 6, 56, 63 B Ballard, John R., 20 Barr, Edward J., 10 BEAC. See Board of Environmental, Health, and Safety Auditor Certifications Beale, F. Arnold, 3 Bell, Ronald L., 21 Benisek, Glenn, 56 Beran, Denny, IX, 13, 14, 26, 28, 45 Bergmeier, Barb, 56 Bishop III, William G., 33 biography/photo, 72 COSO representative, 38 William G. Bishop III, CIA Lifetime Achievement Award, recipient, 73 Board of Environmental, Health, and Safety Auditor Certifications (BEAC), XV, 31 Bookal, LeRoy E., 44 Bradford R. Cadmus Memorial Award, recipients, 75 Bradt, John D., 20 Brink, Victor Z., XII, 2, 5, 7 organizational meeting (Williams Club), 5 Brown, Charles L., 21, 25, 41 C Cadbury Report, 38 Cadmus, Bradford, XII, 8 biography/photo, 70 managing director, hiring (1947), 12 replacement, 14 Carolus, Roger N., 37 80

CaseWare Analytics, 14 CBOK. See Common Body of Knowledge Certification in Control SelfAssessment (CCSA), 31 Certification in Risk Management Assurance (CRMA), 31 Certified Financial Services Auditor (CFSA), 31 Certified Government Auditing Professional (CGAP), 31 Certified Internal Auditor (CIA) Bahrain recognition, 58 computer-based testing, XV designation, value, 26 genesis, 26, 28–33 Chairmen of the Board listing of chairmen, 76–77 photos (1941–1966), 2–3 photos (1967–1991), 20–21 photos (1992–2016), 44–45 Chambers, Kim, XVI–XVII Chambers, Richard, XVI–XVII, 5, 7, 12, 14, 47, 60–61, 64 Argentina (2012), 66 biography/photo, 72 Chartered Member of the Institute of Internal Auditors (CMIIA), 62 Chief audit executives (CAEs), 63 Child, Arthur J. E., 2 Christensen, Brian, 12 CMIIA. See Chartered Member of the Institute of Internal Auditors Cobb, Herbert C. M., 2 CoCo. See Criteria of Control Board Code of Ethics, XIII, 23, 28 Committee of Sponsoring Organizations of the Treadway Commission (COSO), 38 IIA impact, 50 IIA partnership, 31 IIA representation, 33 Common Body of Knowledge (CBOK) initiation (1972), 25, 28 Cooper, Allen, 56 Cooper, Cynthia, 40, 54 COSO. See Committee of Sponsoring Organizations of the Treadway Commission Cox, Gerald D., 45, 62 Criteria of Control Board (CoCo), 38 Crow, Jr., O. Ruffin, 20 Crowe Horwath LLP, 36

Cunningham, Earle H., 2 Cuthbertson, Bob, 14 D Davidson, Henry B., 3 Davies, William R., 3 Dittenhofer, Mortimer, 24 William G. Bishop III, CIA Lifetime Achievement Award, recipient, 73 Dooley, Donald E., 3 Duane, Jr., William J., 21 Duly, Charles, 25 Dunbar, David V., 21 E Enron, 54 Eubanks, Gina, 56 European Confederation of Institutes of Internal Auditing (ECIIA), XIV, 63 F Fabrizius, Michael P., 44 Financial Executives International (FEI), 38 Flaherty, John J., 44 Foreign Corrupt Practices Act (FCPA), 34, 36 G Garbade, William H., 2 Garitte, Jean-Pierre, 44, 63 Ghesquiere, Charles J., 2 Gilchrist, Wallace R., 3 Global Council (Global Forum) Beijing (2015), 30 Dubai desert event (2014), 61 Lima (2013), 30 New Delhi (2012), 30 Orlando (1996), 30 Vienna (2011), 30 Global Forum, first meeting (1996), XIV, 30 Goepfert, Stephen D., 40, 45, 66 Gonner, Sylvia, 60 Gowell, Mike, 6 Grant Thornton, LLP, 59 Gross, Stanley C., 20, 29 biography/photo, 71 testimony, 34 Grossi, Giovanni, 40, 62, 63

The Institute of Internal Auditors: Index

H Hadfield, Mark, 67 Hald, Arthur E., 2 Hamilton, William T., 3, 13 Harmeyer, W. James, 21, 41 Harmon, John, XIII, 23 biography/photo, 71 leadership, 25 Harrington, Lawrence J., IX, 45, 64 Hooper, James A., 21 I IAEP. See Internal Auditing Education Partnerships IFAC. See International Federation of Accountants IIA–Chinese Taiwan, 68 IIA–Indonesia, 68 IIA–Italy, 68 IIA–South Africa, 68 IIA-UAE reception (2014), XVI–XVII Inman, Charles N., 20 Institute of Internal Auditors, The (IIA) annual national conference (1958), partial registration list, 16 business, changes, 59–61 chapters, formation/increase, 13 COSO founding member, 38 COSO partnership, 31 ECIIA Conference members (1996), 47 Executive Committee group (1991–1992), 39 Lake Mary campus meeting (2015–2016), 48 expansion (Lake Mary campus), 42 first annual conference (Biltmore Hotel, 1942), 10 first meeting, IX future, 64 global growth, 61–63 goals, 1 headquarters Altamonte Springs, Florida, XI, XIII, 23 Lake Mary, Florida, 42 staff, 69 Winter Park, Florida, 18 managing director, hiring, 12–13 mentoring, 58–59 minutes (9/23/1941), 4 profession, advancement, 60 staff, 68 presidents and CEOs, 70–72

timeline, XII–XV volunteer executive leadership, gathering (1970s), 6 volunteers, photos, 40 Institute of Internal Auditors Research Foundation, The, XIII, 33, 59 direction, 28 internal auditor study, 36 Institute of Management Accountants (IMA), 38 Internal auditing cosourcing, 59–61 framework, improvement, 57–58 global perspective, cultivation, 23–28 insourcing, 59–61 outsourcing, 59–61 profession, defining, 13 professional status (Milne belief), 5 Internal Auditing — A New Management Technique (1943), 10 Internal Auditing: Assurance and Advisory Services (textbook), 34 Internal Auditing: Its Nature and Function and Methods of Procedure (Brink), 7–8 Internal Auditing Education Partnerships (IAEP), 59 Internal Auditor advent, 10 current issue, cover, 11 first issue, cover, XIII, 11 Internal Auditor Online, 63 Internal Control – Integrated Framework (translation), 38 International Conference (IIA) Atlanta (2010), 55 Chicago (1956), 15 chronology/locations, 78–79 Kuala Lumpur (2011), 55 London (1988), 55 London (2014), 65 Orlando (2013), 55 speakers, 41 Sydney (1985), 55 25th anniversary celebration (1966), 17 Washington (2016), 67 International Federation of Accountants (IFAC), 58, 62 International Integrated Reporting Council (IIRC), 58

International Internal Audit Standards Board (Miller, chairman), 37 International Organization of Supreme Audit Institutions (INTOSAI), 58, 62 International Professional Practices Framework (IPPF), 23 cover, XV mandatory guidelines, core principles, 57 International Standards for the Professional Practice of Internal Auditing (1978), XIII, 36–38, 54, 57 IPPF. See International Professional Practices Framework J Jinhua, Li, 66 Johnson, Howard J., 44 K Kastenschmidt, Rob, 48 Kelly, James R., 20 Kilgore, Kenneth K., 3 King, Mervyn, 41, 66 King Report, 38 Kissinger, Henry, 41 L Lapointe, Carman, XIV, 44, 52 audience recollection, 53 award recipient, 47 career, beginning, 54–56 Latin American Conference (Brazil, 2010), 66 Lauckner, Alan, 2 Leadership Conference, 40 award presentation (2014), 46 Lehmann, William J., 3 Lennon, Frank W., 3 Lewis, George, 56 Louisiana State University (LSU), IIA pilot program, 58 M Marsh, Hugh L., 21, 23, 38 McDonald, Robert N., IV–V, 40, 45 McGhee, Archie, XIII, 14 biography/photo, 70 McPhilimy, Betty L., 45 Meggeneder, Günther, 45 Menkus, Belden, 50

81

Celebrating Our Past . . . Inspiring the Future: 75 Years of Advancing the Internal Audit Profession

Millage, Anne, 10–11 Miller, Herbert D., 21 Miller, Patricia K., 45, 59 International Internal Audit Standards Board chairman, 37 Standards quote, 37 Mills, Jr., Orville W., 44 Milne, Robert B., 2 organizational meeting (Williams Club), 5 Mosher, John A., 20 Mouri, Naohiro, 40

R Radde, Leon R., 21 Ramamoorti, Sridhar, 49 Ratliff, Eugene F., 3 Researching trends, 33–34 Richards, David A., 44 biography/photo, 72 Richmond, Robert L., 20, 34 biography/photo, 71 Ridley, Anthony J., 44 chairman, impact, 60 Rowley, Coleen, 54 RSM US LLP 48

N Nagle, Cornelius H., 3 National Commission on Fraudulent Financial Reporting (Treadway Commission), 38 Navigating Technology’s Top 10 Risks (CBOK report), 50 New York Stock Exchange (NYSE), internal auditing requirement, 53 Noonan, Raymond E., 2, 13 North American Distinguished Audit Practitioners Award, recipients, 40

S Saint, Carolyn D., 46 Sawyer, Lawrence B., 8, 19, 22 Standards perspective, 36–37 William G. Bishop III, CIA Lifetime Achievement Award, recipient, 73 Slain, Cedric C., 3, 8 Smith, William S., 20, 23 internal auditor certification, groundwork, 28 Sobel, Paul J., XVI–XVII, 45, 66 Soloman, Cindy, 41 Spoel, A. J. Hans, XIV, 21, 51 leadership, 53 Statement of Responsibilities of the Internal Auditor impact, 13 publication, 8, 13 Stippich, Warren, 59 Strammello, Steven, 36 Sumners, Glenn, 40, 58 Swanson, William E., 21

O Organisation for Economic Cooperation and Development (OECD), 58 P Parker, James B., 2 Peters, Tom, 41 Pett, Jason, 31 Pflumm, Basil, 33, 38, 43, 60 Pitts, William Berch, 20 Plamondon, Cyndi, 28, 30 Practice of Modern Internal Auditing, The (Sawyer) cover, 36 PricewaterhouseCoopers (PwC), 31 Progress Through Sharing (IIA motto), XIII, 63 Progress Through Sharing Internal Audit Knowledge (Noonan introduction), 13 Protiviti, 12, 28 Purpur, Ralph, 40 Q Qualification in Internal Audit Leadership (QIAL), 31, 62

82

T Tarling, Philip D., 45 Lebanese president, 2013 meeting, 66 Taylor, William L., 40, 44 William G. Bishop III, CIA Lifetime Achievement Award, recipient, 73 TeamMate, 6 Technology, evolution, 50 Thompson, William E., 21, 34 Thurston, John B., IX, 2 goals, 1 organizational meeting (Williams Club), 5 remarks (1941), 9 Tompkins, James, 56

Treadway Commission. See Committee of Sponsoring Organizations of the Treadway Commission; National Commission on Fraudulent Financial Reporting Tripp, Timothy, 56 U Ulmer, Bonnie, 33–34 U.S. Sarbanes-Oxley Act of 2002, 53 U.S. Securities and Exchange Commission (SEC), 38 V van Wyk, Anton, 45, 49 Victor Z. Brink Award for Distinguished Service, recipients, 74 W Wagner, Jacqueline K., 40, 44 Wagner, Norbert, 68 Warga, Thomas J., 45 Watkins, Sherron, 54 Watsen, John K., 21 Whisler, Robert D., 3 White, Richard (testifying, Treadway Commission), 35 White, Robert E., 44 (award presentation), 47 William G. Bishop III, CIA Lifetime Achievement Award, recipients, 73 Wilson, Duane E., 20, 28 Wilson, Peter biography/photo, 71 Winters, Roderick M., 45 Witzany, Angela, 57 Wolters Kluwer. See TeamMate World Bank, 58 WorldCom bankruptcy, legislative solutions, 53 whistleblower (Cooper), 54 Wszelaki, John (award presentation), 46 Z Zitting, Dan, 24