How to Manage and Overcome Current Day Audit Challenges IIA Miami Panel – September 2018 Introduce moderator Covering 3 main challenges Resources Stakeholders Audit Process Q&A’s from audience Pause for questions or comments throughout If we cannot get to your question, Panelists will be available throughout the conference and at happy hour Introduce panelists

All our panelists serve on the IIA Miami Board of Governors Meet The Panelists Steve Roth Blanca Malagon Jonathan Wolfe Introduce the panel by playing: Guess Who Matches? (Audience Participation to identify 2 panelists that have criteria in common) All currently serve on the IIA Miami Board of Directors but 2 of these panelists are Past Presidents Steve & Jonathan 2 of these panelists are FIU adjunct professors Steve & Blanca 2 of these panelists led their own consulting business at one point in their career 2 of these panelists have been Gators, Panthers or Hurricanes in FL Universities Panelists will share something the audience may not know about them Vice President Internal Audit Norwegian Cruise Line Holdings Associate Vice President Chief Audit and Compliance Officer University of Miami Senior Director AutoNation All our panelists serve on the IIA Miami Board of Governors

Resource Challenges Manage and Overcome Challenges It’s all about the people: IA depends on good people to get the job done But first, we have to find them Manage and Overcome Challenges

Resource Challenges: Talent Acquisition Polled Panelists Prior to Conference Average: Approx. 4 months to fill an IA position Longest: 1 Year or 8 months on average South FL Mkt figures provided by local recruiters which is in line with what our panelists (Thank you to Brilliant and Leeds Professional Resources) "What talent sourcing techniques have worked best for you? Has your team employed any creative forms of recruiting? (please share examples)" How should companies determine when to employ external help (recruiter(s) and/or temporary co-sourcing)? Are there any tips for ensuring you make the most of external help? How does your team get ready to conduct effective interviews? Are there any techniques you or your interview team employ to identify the best candidates? In order to standout, what technical or soft skills should professionals looking to enter the job market focus on developing? NOTE: 10/16/2018 IIA National featuring a Members-only Webinar: Attracting and Retaining Top-Talent in Internal Audit (1 CPE Hour) IA

Resource Challenges: Managing Different Generations 2020 2025 Traditionalists Mid 70 year old’s Baby Boomers 50 – 70 year old’s Gen X 50 – 40 year old’s Gen Y: Millennials 20 – 40 year old's Gen Y: Millennials 20 – 40 year old's Gen Z 20 year old's Once we have the right people, we have to effectively manage them In 2020, we will have 5 generations working side by side in the workplace Each with different working styles, communication preferences, expectations, etc. By 2025, Millennials are projected to represent 75% of the workforce Critical to understand how to effectively manage these members of the team

Resource Challenges: Managing Different Generations Challenges when Managing Millennials Steve Blanca Jonathan Encouraging face-to-face communication Maintaining high level of engagement Finding ways to set themselves apart Managing expectations of career advancement Balancing the need for constant feedback/praise Managing expectations How have you had to adapt to managing millennials and which techniques do you feel have worked best? With different generations within the IA department and the organization as a whole, what skills are millennials and Gen Z's developing in your departments to successfully integrate into the workplace?

Resource Challenges: Doing More with Less Increasing efficiencies Balancing requests for special projects How has your internal audit department become more efficient, especially during times when sourcing talent has put a strain on resources? Can you describe a time when you had to balance BoD and/or Management requests for special projects with the completion of the audit plan? How did you do more with less? Manage and Overcome Challenges

Stakeholder Challenges IA interacts with many stakeholders Challenge: balancing varying stakeholders’ expectations & maintaining effective communication with all parties Manage and Overcome Challenges

Stakeholder Challenges: Expectations and Communication How do you balance board expectations with executive management expectations? How do you manage changing and expanding expectations of Internal Audit when changes in key leadership occur? Can you share any examples of innovative ways to report to the Audit Committee and Executive Mngt.? How do you ensure you're staying clear/concise without losing relevant content? What tips can you share for different levels of Management seeking to become trusted advisors? Any pitfalls that may hinder getting/keeping your seat at the table?

Audit Process Challenges Large Image slide Audit Process Challenges You’ve got the right people, you’ve become a trusted advisor to the company stakeholders Challenges pop up throughout all the stages of the audit process – Lets discuss how we navigate through these Planning Fieldwork Reporting Follow up Manage and Overcome Challenges

Audit Process Challenges Steve Blanca Jonathan Average time to complete operational audit 3 months 2 months Varies, from a few days to ongoing throughout the year Longest audit stage Planning Reporting or Fieldwork and Follow up, if issues identified Most challenging audit stage All stages can bring unique challenges Length of reporting phase 3 weeks Varies up to several weeks for complex reports Average number of report drafts 20 5 or more for complex reports Average number of quarters for audit follow up 2 quarters 2 to 4 quarters 1 to 6 quarters Flexibility is key in internal audit, how do you plan for fluctuations in risk that may arise during the audit year? How often do you reassess the audit plan during the year? What tools do you employ to gain comfort the audit plan will be completed or raise flags timely to adapt? What proactive management methods can be applied throughout the audit process when working with external auditors? How is your audit team employing data analytics to provide value to the organization? Can you give an example of a section of your audit report you consider most helpful to stakeholders? In a matrix organization, where process owners may report to various departments, how do you balance competing interests and obtain Management's buy-in during the reporting phase? How do you develop truly mutual agreeable action plans to address internal audit findings?

Thank you! What are your biggest audit challenges? Continue the conversation on social media Thank you panelists for participating in open dialogue & sharing your experiences Continue conversation during conference, Happy Hour and Social Media Manage and Overcome Challenges