1. AUDITING: INTERNAL AND OTHERWISE “Whatever you can do, or dream you can, begin it. Boldness has genius, power and magic in it.” --Johann Wolfgang von Goethe German writer and scientist

2. WHAT IS AUDITING? (by the Book) Audit—Definition One: An examination of records or accounts to check their accuracy The root of the word is [ME < Lat. auditus, a hearing < p.part, of audire, to hear.] An “Auditor” is one who audits accounts, but is also and maybe most importantly, “one who HEARS.”

3. INTERNAL AUDITING According to Wikipedia:According to Wikipedia: Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. [1]Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. [1] assuranceconsultingeffectivenessrisk managementcontrolgovernance [1] assuranceconsultingeffectivenessrisk managementcontrolgovernance [1]

4. YELLOW BOOK 1.01 The concept of accountability for use of public resources and government authority is key to our nation’s governing processes. Management and officials entrusted with public resources are responsible for carrying out public functions and providing service to the public effectively, efficiently, economically, ethically, and equitably within the context of the statutory boundaries of the specific government program.

5. As Tennessee's chief tax collector, the Department of Revenue is responsible for the administration of state tax laws and motor vehicle title and registration laws established by the legislature and the collection of taxes and fees associated with those laws. Roughly 1,100 people in the department. The Department collects approximately 92 percent of total state tax revenue. The department enforces the revenue laws fairly and impartially in an effort to encourage voluntary taxpayer compliance. We apportion revenue collections for distribution to the various state funds and local units of government.—From www.Tn.gov TN Dept. of Revenue

6. REVENUE INTERNAL AUDIT  Staff:Seven Auditors, including Director  Duties: Compliance and operational audits of departmental operations and functions. Also responsible for the department’s Risk Assessment, Year-end inventories of resale items, and Disclosure  Other:Disclosure Officer manages the Federal/State Tax Information Exchange Program

7. THE AUDITOR: Internal vs. External For an Internal Auditor there is no going home, when an audit is completed For an Internal Auditor there is no going home, when an audit is completed You serve at the discretion of management, but your responsibilities do not stop there You serve at the discretion of management, but your responsibilities do not stop there You work directly with and are part of the Management Team and co-workers, but you will be an outsider in many ways You work directly with and are part of the Management Team and co-workers, but you will be an outsider in many ways It is important for an Internal Auditor to know the entire organization inside and out It is important for an Internal Auditor to know the entire organization inside and out

8. BEING A GOOD AUDITOR Get closer to the auditee than an e-mail connection Get closer to the auditee than an e-mail connection Ask questions that you DO NOT know the answer to Ask questions that you DO NOT know the answer to Do not be afraid to let the Auditee know you don’t know something Do not be afraid to let the Auditee know you don’t know something Be fair, objective, and timely with your documentation and reporting Be fair, objective, and timely with your documentation and reporting Attend audit related training possible Attend audit related training possible Be prepared Be prepared

9. Personal Motivation Are you in it for the money? Are you in it for the money? For the challenges? For the challenges? For the duty and service? For the duty and service?

10. Professional Motivation: Why Do It? To ensure the efficient and effective operation of your chosen entity? To serve the citizens of your government or organization? To be a part of “making things better?” All of the above…

11. THE MEANING AGAIN-IIA Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

12. Melvin Jones, Sr. and Mary Jones My Examples, My Motivation. They set the bar that makes me the auditor I am.

13. HEART & SOUL She gave me the compassion needed to maintain my objectivity and conduct a professional audit engagement.