21st Century Audit Management
Opportunities and Challenges
Version 1

As we enter the new millennium Audit Professionals face both opportunities and challenges that will keep Auditing a challenging career and an excellent training ground for corporate executives.

Are both opportunities and challenges different sides of the same coin?

We asked a number of Audit Professionals and Audit Consultants what they felt these challenges and opportunities are as we enter the 21st Century.

We sincerely appreciate the input that we received.

Perhaps the challenges and opportunities can be summarized in the following:
 

Doing More with Less

Effective Usage of Both Internal and External Resources

Creating the Integrated Auditor

Adapting to New Organizational Environments

"Tuning In" on an Organization's Strategic Relationships

Auditing in a Highly Automated Environment

Effectively Usage of Automation to Audit

Addressing Management Concerns with the Cost and Other Effects of Fraud

Finding New Tools to Meet the Audit Challenge

Meeting the Challenges Created by the New Economy
 

"21st Century Audit Management Opportunities and Challenges" is also available for order online as a downloadable product.

We hope that you find this information very beneficial and decide to join this effort by submitting a case study or similar information that would benefit others.

If you like the quality of this CD, check the Latest News web page on the http://www.pleier.com/latestn.htm for additional offerings that should help provide concentrated information to help meet managements' expectations including the following::
 


Tell other Audit Professionals during your sharing about this new electronic publication.

Our sincerest thank you to the following Contributing Authors and Organizations:

Nelson Jones, NAV Canada

Nelson Jones is the Director of Internal Audit, Canada's civil air navigation system service provider.

Mr. Jones's prior experiences includes a number of years with a major public accounting firm before joining the Canadian federal government.  He specialized in financial systems and investment planning and analysis.

Mr. Jones is a governor on the Board of the Ottawa Chapter of the Institute of Internal Auditors and Chair of the CIA Program.

Click the following to review Nelson's thoughts about definition of an ethic, the cultural shock of change, the relationship of stress to ethics, management's options, and the challenge to the Internal Auditor:

           "Ethic, Ethics and Culture - A Personal Perspective"

Michael Lapelosa, CISA, CFE, Group Health Incorporated

Michael Lapelosa is the Audit Director for Group Health Incorporated (GHI) where he is  responsible for Internal Audit,
Performance Appraisal TQM and information security.

Mr. Lapelosa's 18-year career in Internal Audit includes a background of financial service, state government, and healthcare.

Mr. Lapelosa is also an adjunct professor at Baruch College.

He has taught a wide variety of training sessions for organizations including the USDA Graduate School, the Foundation for Accounting Education (FAE), and the Institute of internal auditors.

Mr. Lapelosa has published several articles including "Internal Auditing and the New Model Economy", "Outsourcing Self Test", and "Auditing Factoring Companies.

Click here a more detailed biography:   Michael Lapelosa's Biography

Click the following to review Michael's thoughts about how the new economic model that has culminated in the 21st century is itself a challenge to the Internal Auditor:

           "The New Model Economy - the Challenge to the Internal Auditor"
 

Robert S. McCabe, CIA, CPA, CFE

Bob McCabe is Senior Vice President of PRI Audit & Control, a pioneer in providing internal audit services since 1984.

Mr. McCabe earned a BA in History from Benedictine University, a BS in Accounting from Calumet College and MS in Business Science from Indiana University NW.  His audit experience includes internal audit management positions at Bell & Howell, Navistar, Pullman, and Transamerica Commercial Finance.  Bob is a Governor of the Chicago Chapter of The Institute of Internal Auditors.  He is also a member of the American Institute of Certified Public Accountants, the Illinois Society of CPA’s and the National Association of Certified Fraud Examiners.

PRI provides solutions to your business problems by providing top quality internal audit professionals, individually or in teams, as leaders and doers, when, where, and for as long as needed from their offices in South Bend, Chicago, Indianapolis, Knoxville, Nashville, New Orleans and Belgium.  Their varied backgrounds and multi-industry experience mesh with your people and business style to perform analyses, implement solutions and gain results in line with your corporate goals.

Further information on audit assistance can be viewed at their web site, www.priaudit.com . Further information on staffing can be viewed at their web site www.pristaffing.com .

Mr. McCabe offers some suggestions in meeting the challenge of doing more with less that include the use of Outside Service Companies, Non-Audit Employees, Retirees, and College Interns.  Click below for Bob's answer to the question:

            "Need More Audit Time ?"
 

David McNamee - www.mc2consulting.com

David McNamee, CIA, CISA, CFE, CGFM, is a world-class expert in the area of Management as it related to the Internal Auditing profession. He is the President of Management Control Concepts, a successful consulting firm he founded in 1991 to specialize in improving corporate governance through consulting projects, training, and auditing services in business risk and management control.  Management Control Concepts serves a worldwide client list from all segments of public and private enterprise.

Mr. McNamee's resume can be obtained by clicking the following: David McNamee   his email address is: email: dmcnamee@aol.com

Mr. McNamee believes that in order to survive in the 21st Century Chief Internal Auditors must understand the strategic relationships that exist in their organization.  Mr. McNamee discusses these strategic relationships and their importance in "The Governance Loop: Protecting Stakeholders Interests."

Mr. McNamee has also authored additional offerings in the Professional Sharing Series publications on the topics of "Auditing Fraud" and "CSA - Control Self Assessment" that are available through Pleier, Inc.

            "The Corporate Governance Loop: Protecting Stakeholders Interests"
 

Editors Note: Learning "The Governance Loop" facilitates implementation of a successful re-engineering effort such as the one described in Mr. Wysockie's information about "Re-engineering Canada Post Corporation's Internal Audit Department" that is also available in this electronic publication.

Navin Pasricha, Chief Internal Audit Newsletter

Navin Pasricha is the editor of Chief Auditor, a newsletter published in India that is read in 53 countries.

Mr. Pasricha recently surveyed his readers to determine whether or not there had been any significant changes over the last 3 years in the scope of auditing effort, the methods of auditing, and reporting relationships.

In this article Mr. Pasricha summares the results of that survey.

* The following is reprinted with permission from the Chief Auditor newsletter, New Delhi, India.

Click below for details of the article.

            "Internal Audit Change is on the Fast Track"

Joseph R. Pleier, MBA, CDP, Pleier, Inc.

Joseph R. Pleier, MBA, CDP, is the president of Pleier, Inc., the company that publishes ADM PLUS Audit Management Systems used world-wide since 1986.

Mr. Pleier's prior experience includes I.S. audit manager of a major retail corporation, I.S. auditor at one of the largest utilities in the United States, and systems analyst at a major oil company.

Mr. Pleier's resume can be obtained by clicking the following: Joseph R. Pleier   his email address is: email: jpleier@pleier.com.

In his position Mr. Pleier has assisted 100s of audit departments to further automate their management process using ADM PLUS software, training, and consulting.

The following describes the development of the material in this electronic publication.

            "Searching for the Keys to Improved 21st Century Audit Management"
 

Howard Stollery, CFE, Canada Post Corporation

Howard Stollery is a chartered accountant and licensed public accountant with over forty years experience in public
accounting, financial management, management consulting, internal audit, and preventive and investigative security.
He holds commerce and MBA degrees from Queen’s and York Universities.

Mr. Stollery is a director and treasurer of the Ottawa Chapter of the Association of Certified Fraud Examiners, and has been very active in selecting luncheon topics and obtaining speakers.

Mr. Stollery discusses a proactive approach to the management of the fraud problem in which internal Auditors could play an important part.

Click the following to review Mr. Stollery's thoughts to share with Internal Auditors:

           "The Internal Auditor's Role in Fraud Prevention"

John Tongren, Ph.D., CCP, CISA, CMA, CSP
                                                - www.coactiveconnection.com

John D. Tongren is a specialist in management control processes and the impact of technology on their effectiveness. He has earned international recognition for his expertise in the audit and control aspects of information systems as well as his visionary perspective on contemporary internal audit issues.  Dr. Tongren originated The CoActive Management Model, The CoActive Control Principles and The CoActive Audit Principles.  He is active in the total quality movement as well as the development and audit of quality systems.  He is an academic as well as a practitioner.  Dr. Tongren is a Faculty Member of the University of Phoenix Online Campus and teaches accounting, information systems and management topics in the UOP MBA/TM (Technology Management) program. Dr. Tongren's resume can be obtained by clicking the following:
John Tongren's email address is: email: jtongren@coactiveconnection.com

This Powerpoint presentation presents some solutions to the challenge of creating and maintaining the "Integrated Auditor". Click below to view this PowerPoint presentation and click the left mouse to move from page to page during the presentation.

           "The Integrated Auditor"

Brian Wysockie, MBA, CISA, Canada Post Corporation

* The following is a reprint of a presentation delivered at a recent ADM PLUS User Conference.

Brian Wysockie was an Audit Director at the time of this presentation.  He has since migrated from the Audit Department to become an Operations Manager with that same corporation.

Mr. Wysockie was involved with a major re-engineering of the Internal Audit Department at the Canada Post Corporation, Canada's Postal Service, that was planned to transform that department into a World Class Audit Department.

In this PowerPoint presentation Mr. Wysockie presents some insight into the re-engineering process that worked well for the Canada Post Corporation including actual performance measurements used to evaluate the success of their Audit Department.

Click below to view this Powerpoint presentation and click the left mouse to move from page to page during the presentation.

           "Re-engineering Canada Post Corporation's Internal Audit Department"

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