May Lunch Meeting – Two Topics!
Topic: SAS 128 Using the Work of Internal Auditors – What This New Standard Means to
Internal and External Auditors
How PCAOB External Audit Engagement Deficiencies Might Impact Public Filers and
Their Internal Auditors in 2014
Date: Tuesday, May 13, 2014
Time: 11:30AM to 1:30PM EST
Presenters: Scott Fair, Director of Risk Advisory Services, McGladrey LLP
Jay Moeller, Partner, Battelle Rippe Kingston LLP
Location: Moerlein Lager House
Beer Baron Hall
115 Joe Nuxhall Way
Cincinnati, OH 45202
Cost: $35 for members
$45 for non-members
(No refunds within 48 hours of event)
CPE: 2 CPE Hours
Please RSVP by 12:00 noon on Friday, May 9, 2014 with the Programs Committee using the "Register Me" link below.
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SAS 128 Using the Work of Internal Auditors – What This New Standard Means to Internal and External Auditors (Scott Fair CPA, CIA)
As a result of its Clarity Project, the Auditing Standards Board issued SAS 128 in February 2014. This statement supersedes SAS 65, The Auditor’s Consideration of the Internal Audit Function in an Audit of Financial Statements and is effective for audits of financial statements for periods ending on or after December 15, 2014. SAS 128 addresses the external auditor’s responsibilities when using the work of internal auditors.
Scott Fair’s presentation will provide members with an overview of changes resulting from the new standard, including a requirement, prerequisite to being able to use the work of then internal audit function, that the external auditor evaluate the application by the internal audit function of a systematic and disciplined approach, including quality control. Scott will also highlight the nature of the external auditor’s use of internal audit work as well as opportunities and pitfalls in coordination of internal and external audit activities during the course of a year.
Scott is a Director of Risk Advisory Services at McGladrey LLP in Columbus, Ohio. Scott has more than 20 years of diverse experiences in operations and financial roles. He has a unique perspective having been an auditor for many years (both internal and external), and has had roles in representing management responsible for the audit process and chairing an audit committee overseeing governance. Scott assisted 6 organizations in their SOX certification process, including leading a SOX Project Management Office for over 2 years. As SOX project manager, he coordinated teams in 11 countries for a project spanning more than 20,000 hours. Scott also led control rationalization efforts at 3 organizations, reducing key controls by as much as 70%.
Prior to joining McGladrey, Scott served in a Controller/CFO type role for a $800 million manufacturing company counseling executive management and leading special projects. He also has worked for two other major accounting firms as well as running his own consulting business for 5 years.
How PCAOB External Audit Engagement Deficiencies Might Impact Public Filers and Their Internal Auditors in 2014 (Jay Moeller CPA, CGMA)
In October 2013 the Public Company Accounting Oversight Board (PCAOB) released Staff Audit Practice Alert No. 11, entitled, Considerations for Audits of Internal Control Over Financial Reporting. The Practice Alert highlights certain requirements of the auditing standards of the PCAOB in aspects of audits of internal control in which significant auditing deficiencies have been cited frequently in PCAOB inspection reports. Specifically the Alert discusses the following topics – risk assessment and the audit of internal control; selecting tests of controls; testing management review controls; IT considerations; roll-forward of controls tested at an interim date; using the work of others, and evaluating identified control deficiencies.
Jay’s presentation will provide an overview of the role of the PCAOB and the 2013 Practice Alert and how it impacts internal and external auditors. Jay will provide insight as to why PCAOB Board Member Jeanette Franzel recently called for a “perfect storm” in the area of internal control over financial reporting as management, internal auditors, and external auditors address the updated 2013 COSO Internal Control Integrated Framework while at the same time dealing with PCAOB inspection findings.
Jay earned his Bachelor of Science in accountancy from Miami University in 1990. Upon graduation, he joined Coopers & Lybrand, but has been with Battelle Rippe Kingston since 1994. He became a Partner in 2000. Jay is the Partner in Charge of the firm’s Troy office. He is currently the Chair of the Employee Benefits Practice Group and Advisory Solutions Practice Group. He is also a member of the firm’s Manufacturing & Distribution Practice Group and SEC Practice Group. Jay has also developed a specialty in serving foreign-owned entities.
Jay is a member of the Ohio Society of Certified Public Accountants (OSCPA) and American Institute of Certified Public Accountant (AICPA). Jay served as a member of the AICPA’s Executive Board and Governing Council from 2010-2013, serving on the Political Action and Finance Committees. He served as Chair of the OSCPA for 2008-2009 and on the Executive Board of the OSCPA for 2003-2005. He has also served on numerous OSCPA Committees and Task Forces, chairing several. He is also a 2000 graduate of the OSCPA’s Center for Leadership. He was named one of “Ohio’s Most Influential CPAs” in 2008.
Jay is the past Chair of the Board of Trustees for Health Partners of Miami County and a former Board of Trustees member of Reach Out of Montgomery County. He is a former member of the Board of Directors of the Troy Area of Chamber of Commerce and has served on several Troy Chamber Committees. He is a 2000 graduate of the Troy Area Chamber of Commerce Leadership program and the 2005 recipient of the A. Robert Davies MD Memorial Outstanding Young Man of the Year Award. Jay also was a recipient of the Dayton Business Journal’s 2001 “40 Under 40” award. In 2012, the Governor of Ohio appointed Jay to the Executive Order of the Ohio Commodore. Jay is also an ad hoc accounting classroom presenter to Wright State University and Miami University.