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
2015 TACUA Annual Conference
March 2, 2015
Mark Salamasick, CIA, CRMA, CISA, CSP
• Director of Center for Internal Auditing, UTD – 12 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 and Boards since 1990 currently on the
Learning Solutions Committee
• 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 twelve years
• Enjoy running, road and mountain biking, traveling, and speaking
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 (Not Including College and University)
College and University Auditors
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
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?
Required Skills and Abilities:
• Strong verbal and written communication skills, to effectively present to peers and
management.
• Excels at building and maintaining trustworthy and effective relationships through
strong interpersonal skills with emphasis on relationship-building and consistent
demonstration of solid professional judgment.
• Well-organized, detail-oriented and able to successfully manage multiple competing
tasks.
• Ability to work efficiently and independently, with limited required direction.
• Solid understanding of internal auditing standards, COSO, COBIT and risk
assessment practices.
• Solid understanding of the technical aspects of accounting and financial reporting.
• Broad understanding of the products offered by the business and a familiarity with
the processes used to deliver them.
Another
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
More Realistic?
This candidate must possess a greater than basic understanding
of fundamental layers of information systems including network
infrastructure, computer operating systems, database
management systems, and computer applications. This
candidate should also possess knowledge of IT controls and how
they affect the control environment (COBIT, COSO, and related
standards are preferred) as well as Sarbanes-Oxley Section
404. CISA or CISA candidate, CIA or CIA candidate, and/or CPA or
CPA candidate with 2-4 years or more equivalent auditing
experience. Bachelors degree in Accounting, Finance, or related
field required; Masters degree preferred.
What is changing?
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Public Accounting
Public Corporations
Private Firms, Private Equity, and IPO’s
Government(Not Colleges and Universities)
College and Universities
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
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
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
FUTURE
Options for future staffing
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Maintain current staff
Decrease staffing when auditors leave
Recruit from other organizations
Recruit individuals in career transition
Hire students from Colleges and Universities
Co-sourcing/outsourcing will increase
Future Demand/Supply of Internal
Auditors
• Demand for internal auditors 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
Why New Programs Won’t Be Created
• 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 new schools teaching
internal audit
• 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
How to attract students?
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Advocate the Profession in many ways
Faculty/Staff
Lots of disciples
Sense of Community (IIA/ISACA Student Chapter)
Intramural sport teams
Cross discipline approach
Lots of large events
Scholarships
• 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!
Where do you have an advantage?
• When was the last time you were on a campus?
• Do you speak to faculty in the business school?
• Do you teach a class or make presentations to a
class?
• Would most students love to work for their
alma mater?
• Do you network with students at your school?
• Does your school have an internal audit course?
Getting started
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Building relationship with faculty
Mentor students
Class Presentations
Student Groups
Student Interns
Be an advocate for the profession in many
ways