Discussion: Identifying Value-Added Roles for IA in Green IT Activities Urton Anderson, CCEP Clark W. Thompson Jr., Professor in Accounting Education The University of Texas at Austin

Disclaimer The Securities and Exchange Commission, as a matter of policy, disclaims responsibility for any private publication or statement by any of its employees. The views expressed herein are those of the author and do not necessarily reflect the views of the Commission or of the author’s colleagues upon the staff of the Commission.

Agenda  Specifics of the paper  Green IT in the Organization  IA’s Current Roles  IA’s Potential Roles  Some Caveats on the Findings  The Bigger Issue – What is IA’s Value?  Combined Assurance and IA’s Role in Green IT

Specifics Three questions 1.What is extent of Green IT activities in organizations? 2.What is IA’s current role in Green IT? 3.What should be IA’s role in Green IT?

Specifics  Roles  Assurance  Facilitating  Consulting

 Sample  s to North American IIA members (self-classified as internal auditors)  Facebook  IIA newsletters  Additional data cleansing  What organization has 2000 auditors and 500 IT auditors?  85% US and Canada, remaining 17% over 43 countries.  Population  Organizations or individual auditors?  Results on extent of Green IT activities is likely to be overstated Some Caveats on the Findings

 Confusion on roles  Provide assurance that the green IT monitoring controls are being used properly by others (outside of internal auditing)  Monitor controls to determine whether green IT specifications are being complied with  Design/develop specifications for green IT activities (advising vs. management role?)  Design/develop controls to the monitor green IT activities to ensure compliance with green IT specifications (advising vs. management role?) “…should they [IA] perform those activities in light of auditing standards, particularly, regarding independence and objectivity- as well as risk they will be taking on?” Some Caveats on the Findings

The Bigger Issue – What is IA’s Value?

Where does Green IT fit?  Objectives  Risk

Combined Assurance and IA’s Role in Green IT COMBINED ASSURANCE King III Principle 3.5 The audit committee should ensure that a combined assurance model is applied to provide a coordinated approach to all assurance activities.

Assurance Net (PWC)

Combined Assurance Benefits  Provides Board/Governance Body and senior management with assurance needed to carry out their responsibilities  Reduce “assurance fatigue”

Assurance Map (PWC)

Questions? Urton Anderson McCombs School of Business The University of Texas at Austin (512) /(202)