Today A MESSAGE FROM THE INSTITUTE OF INTERNAL AUDITORS
The IIA’s Web Presence:
Modernized for Today’s Users
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News from The IIA and the Internal Audit Profession The IIA’s Web Presence New Training Opportunities
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How can IIA On-site Training benefit you and your team? • Offer an ever-expanding course library on a wide variety of topics. • Customize training to your needs and specifications. • Provide superior facilitation by subject matter experts. • Combine live and virtual course delivery options. • Deliver training convenient to your schedule and location. • Reduce travel expenses associated with training. • Ensure consistency in the messaging you want reinforced with your team. • Give you peace of mind in knowing that your training is coming from the leader in the profession.
Call us today to learn more about IIA On-site Training and let us come to you!
Call +1-407-937-1388, e-mail GetTraining@theiia.org, or visit www.theiia.org/Onsite.
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Welcome message Dear IIA Member,
Today PUBLICATION DIRECTOR
Carrie Summerlin EDITOR
Paula Michaels STAFF EDITORS
Lisa Krist Melissa Calhoun Sandra Johnson Shelli Browning CONTRIBUTING EDITORS
Christina Brune ART DIRECTOR
Jon Peters Graphic Designer
Brandie Tate PRODUCTION MANAGER
Lori Shewack IIA PRESIDENT AND CEO
Richard F. Chambers, CIA, CCSA, CGAP, CRMA IIA CHAIRMAN OF THE BOARD
Denny Beran, CIA, CCSA, CRMA
IIA Today is a bimonthly publication produced exclusively for members of The IIA. To learn more about this publication, please visit www.theiia.org/IIAToday . We welcome all comments, questions, and feedback. Please send your message to IIAToday@theiia.org and include your name and contact information.
As chief information officer of The IIA, it gives me great pleasure to introduce this issue’s feature story, “IIA Web Presence Modernized for Today’s Users,” on page 6. The article explores some of the ways that The Institute is leveraging technology to better meet the needs of our customers through modern, easy-to-navigate websites that facilitate collaboration and systems integration. Our Sharepoint-enabled global, North American, and chapter websites are just one small piece of The IIA’s larger technology-investment puzzle. We began assembling this puzzle two years ago, with an in-depth review of our internal and external customer needs and the development of a three-year strategic plan to improve old technologies and take advantage of new platforms. Since then, we’ve invested in six technologies that offer a variety of benefits, including systems integration to avoid duplication of effort and ensure timely results for our customer, business intelligence collection to predict our customers’ needs, upgraded association management, and improved integration and collaboration with our chapters and institutes. Last year, we began upgrading and repairing our current technology environment and migrating off legacy systems. We also doubled The IIA’s web footprint by introducing six new websites, including the global website, Audit Executive Center, and AuditChannel.tv. In the future, we’re building new solutions, reducing the complexity of our systems, and leveraging technology to get away from manual processing. The end result will be new capabilities such as chapter-level e-commerce, downloadable e-books, and a new evaluation system, to name a few. It’s all part of our commitment to improving our service to The IIA’s web visitors, members, chapters, and committees. Thank you, and enjoy! Charles Redding Chief Information Officer The Institute of Internal Auditors
The Institute of Internal Auditors
247 Maitland Ave. Altamonte Springs, FL 32701-4201 USA +1-407-937-1100 www.theiia.org All contents copyright © The Institute of Internal Auditors (IIA) 2012.
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News
Three Big Events Point to One Solid Future for the Profession During the first quarter of 2012, The IIA hosted three successful events that drew internal audit professionals from around the world: its annual General Audit Management (GAM) Conference, Gaming Conference, and Leadership Academy. For the second year in a row, the GAM Conference posted recordbreaking attendance, with nearly 1,000 attendees. The Kissimmee (Orlando), Fla., event was the first to feature an IIA app for a conference, and social media was used extensively throughout the sessions. The 14th annual Gaming Conference, held in Las Vegas, drew 341 auditors, compliance officers, regula-
tors, and professionals from countries including the United States, Aruba, Australia, Cambodia, Canada, and Singapore. One of the most popular sessions focused on current trends and developments in Internet gaming. The following week, more than 300 IIA leaders representing 138 chapters arrived at the Walt Disney World Yacht & Beach Club Resorts in Lake Buena Vista, Fla., to network with one another and learn best practices in chapter administration. Themed “Mission Possible,” the three-day Leadership Academy provided an orientation for emerging chapter leaders. The IIA also recognized more than 80 chapters for demonstrating excellence in 2012.
The IIA Supports Members’ QAIP Efforts It’s been 10 years since The IIA introduced Standard 1300 Series: Quality Assurance and Improvement Program (QAIP), which includes the requirement for an internal audit activity to conduct an external assessment at least once every five years. Today some chief audit executives are preparing to embark on their next external assessment, while others are preparing for their first. This year, The IIA has strengthened its focus on supporting our profession’s QAIP efforts in a variety of ways. The March release of IIA Practice Guide: Quality Assurance 4
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and Improvement Program as well as global web events to introduce the guide have helped to educate members on implementing a QAIP and prompted a series of online discussions regarding the value of an external assessment. At the 2012 General Audit Management Conference in March, a panel of practitioners discussed how they are leveraging external assessments to enhance their internal audit team’s value. Additionally, an interactive Quality Forum for Chief Audit Executives will be held in Boston prior to The IIA’s July International Conference to garner insight into best practices, trends, and challenges with implementing and leveraging a QAIP.
The IIA’s Quality Services group continues to provide online tools/resources for members to download in addition to providing external quality assessment services. Learn more at www.theiia.org/quality.
Learn more on AuditChannel.tv Basil Woller, CIA and Quality Specialist, discusses QAIP and Varun Laroyia, vice president of Internal Audit for Johnson Controls, talks about the requirement to have an external quality assessment performed. Is it really worth it?
News
The Next Phase of Sawyer’s Internal Auditing— The Premier Reference Book is Coming The book that changed the internal audit profession is ready to do it again. Ten years after the passing of its original author and namesake, Lawrence B. Sawyer, The IIA Research Foundation is proud to present the 6th edition of the “father of modern internal auditing’s” original reference book, Sawyer’s Internal Auditing, 6th edition. The latest edition, scheduled for release in July 2012, features improvements such as an enhanced, user-friendly format and contains critical updates surrounding internal audit practices, guidance, and research that have occurred since the book’s last publication in 2005. The 6th edition also features insights from The IIA’s 2010 Common Body of Knowledge study, the most comprehensive global study ever conducted on the profession of internal auditing, as well as a new section that focuses on governance, risk management, and compliance. Jim Key, CIA, project manager, says beyond providing new information, this update will offer an enhanced, user-friendly format and style. “The 6th edition will have a concise writing style that reflects current professional language and a consistent voice throughout the document based on technical writing standards and best practices,” says Key. “The materials are cross-referenced with other chapters where appropriate and rich with references, exhibits, and citations. It will also include a bibliography that readers can access without slowing down their unique approach to navigating a document, rather than a directive approach of the reference document.” Another exciting and unique component of this update is the plan to develop a subscription-based service for the edition after the printed version is complete. The service, which will be available electronically, will also enable subscribers to access updates on research material, emerging best practices, IIA Standards, Practice Guides, Practice Advisories, and more. With a variety of delivery platforms — hardback, online, or via a mobile device — Sawyer’s Internal Auditing, 6th Edition is arguably the profession’s most prized reference guide. Visit www.theiia.org/bookstore to preorder and save 20 percent (US $140 for members and US $180 for nonmembers). Also include Sawyer’s Internal Auditing, 5th Edition to your pre-order and save 50 percent off the 5th edition.
Introduces a New Certification
The Board of Environmental, Health & Safety Auditor Certifications (BEAC) has launched a new certification, the Certified Process Safety Auditor
(CPSA), which attests to qualified process safety auditors’ education, experience, training, personal and professional skills and attributes, and adherence to the BEAC Code of Ethics. As the CPSA exam won’t be finalized until late 2012, qualified individuals who meet additional
education and experience requirements can apply now under Phase 1 to receive the CPSA with professional experience recognition. Visit www.BEAC.org or email info@beac.org for details regarding the new CPSA, including the qualification criteria for Phase 1 and Phase 2. w w w. t h e i i a . o r g
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Feature story
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Feature story
IIA Web Presence Modernized for Today’s Users The Institute of Internal Auditors (IIA) has redesigned and enhanced its North American website, www.theiia.org. Mirroring The IIA’s global website, www.globaliia.org, which was introduced last October, the newly improved North American site features a clean, professional design with an array of user-friendly features. The site also serves as a portal to chapter websites, which are undergoing a dramatic facelift of their own, and facilitates access to the fast-growing IIA video-sharing site, Auditchannel.tv. North American Website “We’ve listened to our members, who voiced the need for a more robust, member-centric website with a more intuitive design,” says Larry Harrington, chairman of The IIA’s North American Board. “The streamlined format of the new North American website makes it easier for our members to find the information they need to be successful, whether it be news about local training opportunities or issues affecting the internal audit profession globally.” The enhanced North American site enables IIA members to log in using their email address to update their personal information and take advantage of all the benefits of membership. Upgraded search capabilities produce more relevant search results, and mega-menus make it easy to
drill down into the site quickly and find information with fewer clicks. The redesigned site also features an interactive chapter map, convenient left navigation, and improved course browsing and event search capabilities. Several of the website’s enhancements are due to its newly adopted Microsoft SharePoint platform. “The new platform has helped improve the site’s functionality,” explains Kevin Mayeux, chief officer for IIA North American operations. “We’re also using a process to identify documents by topic, type, language, and other factors, which ensures greater consistency in content and improved search capabilities across chapter websites, committee websites, the North American website, and the global website.”
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Feature story
Mega-menus make it easy to drill down into the site quickly and find information with fewer clicks.
Chapter Websites The IIA’s chapter websites likewise are in the midst of transitioning to the modern Sharepoint platform, with enhanced navigation and search capabilities. The conversion not only provides a consistent look and feel for all websites in the IIA family, but offers a number of additional benefits for the user, web administrator, and chapter leaders, including automatic news feeds from The IIA’s website, an updated and flexible document repository, and an area that is accessible only to chapter leaders. “With the first 10 sites already having gone live and 17 additional sites well on their way, our goal is to convert all of The IIA’s 160 chapter websites by the end of this year,” says Melissa Calhoun, manager of web operations for The IIA. It’s a massive effort that involves moving each chapter’s existing content over to the new platform — a job that will be performed by IIA headquarters staff — and giving local
Enhanced search capability makes it easier for our members to find the information they need to be successful.
web administrators several months to get comfortable in the new environment, make simple updates, and fully populate their sites. “We want to make this as easy for our chapters as possible, because most of the people who are operating the chapter sites have full-time jobs and don’t have the ability to spend a week using the system every day and learning it,” explains Calhoun. “Ultimately, however, we anticipate that the enhanced functionality of the new platform will make their jobs easier,” she adds. A key design change involves the chapter website home page, which features “buckets,” or specific fixedheight areas to place information. “This will prevent chapters from placing all of their content on the home page, which makes it cluttered and difficult to navigate,” explains Calhoun. “Instead, the new design encourages best practice by limiting
One of the first chapter websites to transition to the new platform is the Central Florida Chapter Website: www.theiia.org/goto/CentralFlorida.
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Interactive chapter map allows members to locate chapters in your area.
the home page so that it becomes a portal to the other sections of the chapter site.” One of the most exciting and longawaited aspects of this transition is that chapter leaders will no longer need to have their site’s content approved by IIA headquarters. Instead, each chapter will be responsible for approving its own content. “It’s going to make our volunteers’ lives a lot easier and enable them to operate their sites the way that they’d like,” says Calhoun. The converted chapter websites also now offer restrictedaccess chapter leader and web administrator areas, enabling document storage and collaboration.
Feature story
AuditChannel.tv Both the North American and chapter websites feature a prominent link to The IIA’s six-month-old video-sharing site, AuditChannel.tv, which is home to more than 200 multilingual videos on audit, governance, and risk management. With 11 “video channels” focused on areas such as fraud, governance, risk, technology, operations, finance, compliance, and more, AuditChannel.tv enables internal audit professionals worldwide to view and comment on short videos (most are under five minutes in length) that address the topics of greatest interest to the profession. “The goal is for people to think of AuditChannel.tv as one of the places they go to find what’s new within the profession,” says Linda Moore, vice president of global development for The IIA, “and to spread the word about informative videos amongst their peers via email and various social media networks.” And viewers seem to be doing just that. Recently, a video on auditing social media reached 10,500 views, 500 of which occurred within just a few days. What’s more, the average time users spend on the site has increased significantly since the site was introduced — from 13 minutes to more
than 20 — suggesting that many people are watching multiple videos each time they visit.
notes that second and third revisions of the site are already scheduled for 2013 and 2014.
“Although The IIA still produces most of the videos on the site, we’re starting to see more and more video uploads from members around the world, which is really encouraging,” says Moore, who regularly approaches speakers at IIA conferences and chapter meetings about filming a brief excerpt of their presentation. “It’s not difficult to do, and you don’t need to be a professional videographer,” she says. “Using an iPhone or sitting in front of a web-cam is perfectly acceptable.”
Future plans for the chapter websites include offering video capabilities, encouraging social media feeds on the home page, and introducing ecommerce capabilities that enable chapters to sell training, books, or any other product or service. “Many of our chapters have specifically requested e-commerce capability, and we’re happy to say that it will be coming down the road, most likely after all the sites have been converted,” says Calhoun.
Besides its rapid growth in popularity, the most significant change the site has witnessed since its birth is the addition of a new Public Sector channel. The only industry-specific channel available on AuditChannel. tv, it features videos tailored specifically to public sector auditors, including several videos from the auditor general of South Africa.
Advances for Tomorrow The IIA’s North American Board is expecting tremendously positive feedback from members regarding The Institute’s recent investment in technology improvements. “We will continually enhance the North American website’s functionality to respond to user feedback and ensure we’re meeting the members’ and public’s needs,” says Mayeux, who
As for the future of AuditChannel.tv, Moore explains that the site’s goal is to help internal auditors and others charged with governance, risk, and control responsibilities to be more proactive, rather than reactive. “Not only do we want the site to grow and become more robust, but we want it to empower our users to provide their organizations with new solutions and perspectives and share their insights with their colleagues across the world,” she says. “This is the type of content we strive to produce and garner from our audience.” To that end, Moore is making it a priority to stay on top of the current issues — including today’s hot topics such as social media, merger and acquisition activity, and the Foreign Corrupt Practices Act — and ensure that videos on those subjects are readily available on the site.
Register as a user at AuditChannel.tv or AuditChannel.tv/mobile (for mobile devices). Once registered, you can view, rate, and comment on the site’s current content — and add your own.
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training
C O N F E R E N C E Positioning Internal Audit for Greater Success October 9 –11, 2012 / Encore at Wynn Las Vegas / Las Vegas, NV
Now, for the eighth consecutive year, audit executives, management, and staff auditors will convene in Las Vegas for what All Star Conference alumni have touted, “The best conference The IIA offers – especially for the price!” Since its speakers are the highest rated from previous IIA conferences, you have a better opportunity to learn from the best of the best during 32 concurrent sessions in tracks on: ■■ Governance: Implementing the 3 Cs - Culture, Communication, and Change ■■ Technology: Effective Auditing During Times of Rapid Change ■■ ERM: Maximizing Value and ROI ■■ Ethics and Fraud: Proactive Strategies For Professional Success
This year’s confirmed General Session topics and speakers are: ■■ “The Internal Audit Leader of the Future,” Larry J. Harrington, Vice President, Internal Audit, Raytheon Co.; and The IIA’s immediate past Chairman of the Board. ■■ “Fraud Indicators for Risk Management Professionals,” James Ratley, President, Association of Certified Fraud Examiners. ■■ “Enhancing the Value of Internal Auditing,” Denny K. Beran, CIA, CCSA, CRMA, Senior Vice President and Director of Audit, JCPenney Co. Inc.; and The IIA’s 2011-2012 Chairman of the Board. ■■ “Surviving and Thriving in Uncertainty: Enterprise Risk Management for the Future,” Rick Funston, Managing Partner, Funston Advisory Services LLC.
With almost 100 people already registered, you won’t want to miss this final opportunity in 2012 to earn up to 18 CPE credits at the affordable rate of US $1,195 for IIA members (if you register on or before July 27). Get conference details and register today at www.theiia.org/goto/AllStar2012. Group discounts are also available by calling +1-407-937-1111.
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training
Get the Competitive Edge Your stakeholders rely on you for your competence and expertise – turn to us for ours. Get the skills you need to drive results during every phase of your career by attending one of these new courses: ■■ Operational Auditing: Influencing Positive Change ■■ Assessing Risk: Ensuring Internal Audit’s Value ■■ Lean Six Sigma Tools for Internal Audit Planning ■■ Lean Six Sigma Tools for Internal Audit Fieldwork ■■ Data Analysis for Internal Auditors ■■ Auditing the Cloud All 60+ of The IIA’s courses can be delivered to your chapter or organization as customizable On-site Training. Many are also available as eSeminars. Visit www.theiia.org/Training for details.
IIA members receive exclusive pricing, early registration, multi-course, and group discounts. Use Source Code “20%-Second Course” when registering for a second course at the same seminar location. Some restrictions apply.
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special feature
American Hall of Distinguished Audit Practitioners Names Inaugural Inductees The IIA’s North American Board inducted nine inaugural members into The Institute’s newly created American Hall of Distinguished Audit Practitioners during the IIA General Audit Management Conference in Orlando, March 20, 2012. The American Hall recognizes internal audit practitioners who have made extraordinary contributions to the internal audit profession in the United States. To be considered for the honor, an internal auditor must exemplify high ethical conduct, integrity, moral character, service, and leadership and be nominated by at least two individuals who are actively engaged in the profession.
Pictured above left to right: Larry Harrington, Cynthia Cooper, Steve Goepfert, Ralph Purpur, Glenn Sumners, Bill Taylor
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special feature
Not only have the inaugural members of the American Hall diligently served their employing organizations, but they have provided thought leadership in advancing internal audit education and knowledge throughout the United States. The nine new members include:
Cooper
1. Cynthia
Cynthia Cooper, former chief audit executive (CAE) at Worldcom, who courageously blew the whistle on fraudulent accounting practices and was named one of Time magazine’s Persons of the Year.
Goepfert
2. Steve
Steve Goepfert, United Airlines vice president of internal audit, who has been an influential advocate for the internal audit profession and internal
audit education and has held numerous IIA volunteer leadership roles, including serving as chairman of The IIA’s Global Board of Directors in 2006–2007.
Purpur
3. Ralph
Ralph Purpur, retired vice president of auditing for Estée Lauder, who served as a dedicated volunteer leader for The IIA for more than 20 years and chaired The IIA’s Building Fund Campaign in 2000, which raised nearly US $1 million.
sity, and who authored the first major book on internal auditing in 1941.
Cadmus
7. Bradford
Bradford Cadmus, who served as the first managing director of The IIA and was instrumental in growing the profession and The IIA globally.
Sawyer
8. Larry
Larry Sawyer, widely known as the “father of modern internal auditing,” who wrote numerous editions of Sawyer’s Internal Auditing — the first extensive manual on the profession and its practice.
Sumners
4. Glenn
Glenn Sumners, Ph.D., director of the Louisiana State University Center for Internal Audit, who founded the country’s (and the world’s) first higher education program for internal auditing and The IIA’s first Internal Auditing Education Partnership.
Taylor
5. Bill
Bill Taylor, retired auditor general of the Inter-American Development Bank, who served in key volunteer leadership positions for three decades, including serving as chairman of The IIA’s Global Board of Directors in 1995–1996, and who is one of only four individuals to receive The IIA’s Lifetime Achievement Award.
Thurston
9. John
John Thurston, who was one of The IIA’s founding fathers, its first chairman, and an eminent authority in the field of internal auditing. “American IIA members have long demonstrated the professionalism, expertise, and leadership required to help set the bar for the practice of internal auditing in this country,” says IIA North American Board Chairman Larry Harrington. “We are so pleased to recognize and showcase the dedication and achievements of these exemplary practitioners by inducting them into the American Hall of Distinguished Audit Practitioners.”
Four American Hall inaugural members received the honor posthumously in recognition of their significant contributions to the early years of the profession:
Brink
6. Victor
Victor Brink, one of the three founders of The IIA, who served as CAE at Ford Motor Co. and a professor of internal auditing at Columbia Univerw w w. t h e i i a . o r g
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special feature
Benchmark with GAIN and Get Full Value at a Reduced Cost Nearly 30 percent of internal audit functions that participated in a recent study lack a formal quality assurance and improvement program, and 3 percent of responding organizations outsource all of their internal audit work. That’s just a sample of the type of information you’d already know if you participated in The IIA’s Annual Global Audit Information Network (GAIN) Benchmarking Study. With participants across more than 17 industries, 100 sub-industries, and 42 countries, the GAIN study provides valuable benchmarking data unique to the internal audit profession, enabling chief audit executives (CAEs) to compare their internal audit department’s size, staff experience, staff credentials, and many other relevant metrics against similar organizations in peer groups of their choice. “It’s easy, affordable, and comprehensive,” says Hal Garyn, vice president of North American Audit Services for The IIA. Since 1992, the GAIN Annual Benchmarking Study has provided a global knowledge exchange forum for internal auditors, helping CAEs to evaluate the current state and future 14
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direction of their internal audit function by enabling them to compare apples to apples. Some of the many areas in which CAEs have found the GAIN Annual Benchmarking Study to be invaluable include: ■■ Providing independent opinions that support the direction of the department. ■■ Offering best practice suggestions. ■■ Validating staffing models and costs. ■■ Improving processes and procedures. ■■ Providing support for departmental direction and staffing. ■■ Identifying the resources needed to perform duties and responsibilities effectively. “We have used the GAIN study to facilitate making appropriate adjustments in certain areas where we have encountered significant differences in comparison to other audit shops in the same industry,” says Howard Ewan, Office Depot’s director of internal audit for North America and Europe, who has relied on the annual benchmarking study for the past
seven years. “It’s always good to know how we measure up against other audit shops — especially those with whom we play in the same sandbox.” Other GAIN users have reported that the benchmarking information provides them a credible way to express to key stakeholders how their organization’s internal audit staff size and budget compare to other organizations. “It has helped countless organizations justify and, where applicable, make the case for increased resources,” says Garyn.
And now, for a limited time, participate in the 2012 GAIN Benchmarking Study and receive your report for just US $125 (US $100 off the standard participant price), or US $99 for members in the government and college/university sectors. This offer ends Aug. 31, so act quickly. Visit www.theiia. org/gain to view a sample report, get answers to FAQs, download the questionnaire, and get started. For more information, email gain@theiia.org.
Our Principal Partners Make a Difference The IIA acknowledges the ongoing support from our Principal Partners, who help enhance the internal audit profession by sharing their resources and knowledge with our most valuable asset – our members. These partners actively serve as members and volunteers within The IIA, participate in the introduction of new guidance, develop world-class training, and show their commitment in many other ways in an effort to advance the internal audit profession.
The IIA encourages you to tap into the expertise of our Principal Partners in 2012!
IIA Conference Schedule
IIA Members: Register early for IIA Conferences and save! Call +1-407-937-1111 to ask about group discounts. www.theiia.org/Conferences
247 Maitland Avenue Altamonte Springs, FL 32701-4201 USA
Please recycle this brochure by passing it along to a colleague.
August 20 – 22, 2012
Governance, Risk, and Control Conference The Breakers / Palm Beach, FL
September 16 – 19, 2012
Southern Regional Conference Hilton Austin / Austin, TX
October 9 – 11, 2012
All Star Conference Encore/Wynn / Las Vegas, NV
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IT Audit & Controls Conference (IIA/MIS)
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October 30 – November 1, 2012
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Modernized for Today’s Users
The IIA’s Web Presence:
Today A M E M B E R S - O N LY P U B L I C AT I O N