Where will the next generation of auditors come from

Report
Where Will the Next Generation
of Internal Auditors Come From?
The Fight for Talent!
Mark Salamasick CIA, CISA, CRMA, CSP
Director of Center for Internal Auditing Excellence
The University of Texas at Dallas
For
Houston IIA Chapter
November 3, 2014
Mark Salamasick, CIA, CRMA, CISA, CSP
• Director of Center for Internal Auditing, UTD – 11 Yrs.
• Adjunct Faculty, University of Texas at Dallas – 18 years
• SVP, Internet/Intranet Services, Bank of America – 2 years
• Director IT Audit, SVP, Internal Audit, Bank of America – 18 years
• Senior Consultant, Accenture – 4 years
• Instructor of Accounting and Information Systems, Central Michigan University
– 3 years
• BS in BA and MBA – Central Michigan University
• Numerous IIA International Committees since 1990 currently on Learning
Solutions and previously the Board of Trustees of the Research Foundation
• Four books published by IIA International
• Chartered and Past President of Two Toastmaster Clubs
• Recruited hundreds of entry level auditors for twenty years and trained
hundreds of college hires over eleven years
• Enjoy running, road and mountain biking, traveling, speaking and financial
investments
2
Agenda
• Past
• Present
• Future
PAST
Where have internal auditors
come from in the past?
Quick
Survey
Where did you start your career?
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Public Accounting
Industry
Government
Were you aware of the profession of Internal Audit at that time?
Quick
Survey
What job did you start with?
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Internal Audit
External Audit
Tax
Something Else
Other companies
Universities
Public accounting firms
The IAEP program at UT Dallas offers a variety a networking
opportunities important for any career searching/planning including
receiving offers for an internship and/or full-time position.
Michael Callahan, Lennox International
IAEP gave me the tools I needed to start my career
on the right path. The program is designed to build
communication, risk assessment, and process design
skills that are essential for any career decision.
Kunaal Sarna, Microsoft
The IAEP program served as the foundation and gateway into a career that provides the
fundamental knowledge of management, solid business practices and understanding of
an organization in its entirety. I have leveraged that experience into other career fields
and realized that a base knowledge of internal auditing is an invaluable tool set that is
critical to the success of any project, any career.
Cynthia Nguyen, UT Southwestern Medical Center
PRESENT
Baseline - Profile Group
• Positions
• Size of Audit Groups
• Size of IT Audit Groups
• Openings
Is this Realistic?
Requirements Experience and Education (Audit Senior):
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Bachelor’s degree in Accounting.
CISA designation required.
CPA or CIA preferred.
3+ years of audit experience (Big 4/public experience preferred).
2+ years of IT Internal Audit experience.
Prior experience in performing SOX-related audits.
Prior experience in the financial services industry.
Advance skills with the following Microsoft products: Excel, Word, Visio,
PowerPoint, and Access.
Really?
Job Requirements (Audit Senior):
• Bachelor's degree in Accounting or Finance, or similar business degree
• Minimum of 5 years of auditing experience in public accounting and/or a corporate
internal audit
• In-depth knowledge of and experience applying audit principles, practices, and
procedures
• Strong knowledge of Generally Accepted Accounting Principles (GAAP) and
Sarbanes-Oxley (SOX)
• Ability to document, analyze and make improvement recommendations in
processes and controls
• Proficient in Microsoft Office Suite
• Excellent verbal/written communication skills
• Ability to multi-task and adapt to changing organizational and departmental needs
• Ability to work collaboratively with all departments, management levels within the
company, and external stakeholders
• Relevant certification such as CPA, CIA or similar
• Must be able to travel up to 30% of the time
• Operations, JDE, Hyperion and ACL experience a plus
This is more like it!
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Desired Skills and Experience
MUST HAVE:
Strong investigative and analytical ability required.
Excellent consultative and judgment skills, confidentiality, and interpersonal ability.
Must be able to communicate effectively with employees at all levels.
Must have the ability to negotiate and influence results without direct authority.
Thorough understanding of accounting principles and standards.
Bachelor’s Degree in Accounting, Finance, or related field required (Master’s from
an IAEP program preferred).
Minimum of 5 years’ healthcare auditing related experience.
Certified Public Accountant (CPA) or Certified Internal Auditor (CIA) required.
NICE TO HAVE:
ACL and/or IDEA experience preferred.
Have you looked here lately?
Chapter Job Postings
•NRG Energy - Sr. Internal Auditor
•Location:Houston, Texas
•Date Posted:October 22, 2014
•Date Ending:November 22, 2014
•Swift Energy Company Internal Auditor II
•Location:Houston, TX
•Date Posted:October 14, 2014
•Date Ending:November 15, 2014
•Allegiance Bank Texas - Senior Auditor
•Location:Houston, TX
•Date Posted:October 13, 2014
•Date Ending:November 12, 2014
•Harris County Auditor's Office - Audit Manager
•Location:Houston, TX
•Date Posted:October 13, 2014
•Date Ending:November 12, 2014
•Harris County Auditor's Office - Manager Construction/Contract Audit
•Location:Houston, TX
•Date Posted:October 13, 2014
•Date Ending:November 12, 2014
•Harris County Auditor's Office - Senior Auditor
•Location:Houston, TX
•Date Posted:October 13, 2014
•Date Ending:November 12, 2014
What is changing?
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Public Accounting
Public Corporations
Government
Private Firms, Private Equity, and IPO’s
Increased demand
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More retiring
More control-related positions
More rotational strategies in audit groups
More demand in other parts of company
Higher level IT knowledge
Decreased supply
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Public accounting
Universities
Other organizations
Full employment
What is the Population of Schools
Teaching Internal Audit?
• 82 US Schools out of 460 AACSB Accredited
Universities
• 32 US Schools part of IAEP program
• Limited interest among Universities to start
new programs
• Many programs are struggling
IAEP programs
Orlando, September 2014
Three types of programs
Centers
Comprehensive
Foundation
Centers for Internal Auditing
Excellence
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The University of Texas at Dallas
Louisiana State University
University of Houston
University of Pretoria
Erasmus University Rotterdam
University van Amsterdam
What have I noticed about
Students?
• They don’t know where
they want to work
• They don’t know what
they want to do
• They don’t understand
career alternatives in
risk management
• They don’t all come in
with the same
backgrounds and
perspectives
• They are eager to learn
Why New Programs Won’t Be Created
• Lack of a Champion
• Many barriers in starting new internal audit
programs
• Marketing internal audit to students is difficult
• Some false starts in new academic programs
• Even current programs in internal audit will have
difficulty staying at least status quo
• Potentially some schools teaching internal audit
FUTURE
Options for future staffing
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Maintain current staff
Decrease staffing when auditors leave
Recruit from other companies
Recruit individuals in career transition
Hire internal audit students from Universities
Hire students from Universities
Co-sourcing/outsourcing will increase
Future Demand/Supply of Internal
Auditors
• Demand for internal auditors and risk
management professionals will continue to
increase significantly
• Winners will be those with staffing/recruiting
strategy and long term outlook
• Losers will be those who recruit randomly
Other areas of the organization
Understand why people leave!
• Don’t like my boss
• Travel
• Career advancement
– Promotion
– Salary/Benefits
– No room for advancement
• Student volunteers(Unpaid)
–Students want experience
–Good way to test and gain
experience
• Paid formal internships
• Full time while going to school
Winning the war for talent:
Actions steps
Differentiate yourself
What are Internal Audit students
looking for in an employer?
Survey Says
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Opportunities for Growth and Advancement-19
Work/Life Balance-14
Competitive Salary/Benefits-13
Good Corporate Culture-12
Flexibility - 11
Diversity in Work-7
Constantly Learning/Training-3
Challenging Work-3
Recognition/Feel Wanted - 3
Great Leadership-2
Good Travel - 2
Highly Technical Environment - 2
Does the Board think Highly of Audit - 2
Continually network
Visit a campus
Speak to a class
How to attract students?
• Advocate the Profession in many ways
• Faculty/Staff
• Sense of Community (IIA/ISACA/ACFE
Student Chapter)
• Cross discipline approach
• Lots of large events
• Create lots of disciples
• Scholarships
Advocate for Academic
Relations and the
Profession of Internal Audit
Denny Beran
How can YOU help?
Advocate the Profession
Invest in the Future
Time
Talent
Treasures
• Lack of new talent entering internal audit
• Shortage of internal auditors will get
significantly worse
• Need to advocate the profession in many
ways
• Very few new classes and programs
• Everyone in this room can help!
Getting started
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Building relationship with faculty
Advocate the profession
Mentor students
Mentor those in career transition
Class Presentations
Student Groups
Be an advocate for the profession in many ways
https://na.theiia.org/about-us/about-ia/Pages/Academic-Relations.aspx
https://www.youtube.com/watch?v=Zi1L-0wC7wA
For Additional Resources
https://na.theiia.org/about-us/about-ia/Pages/Academic-Relations.aspx
https://www.youtube.com/watch?v=Zi1L-0wC7wA
http://jindal.utdallas.edu/centers-of-excellence/center-for-internal-auditing-excellence/
https://www.utdallasiia.com/

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