Visual Risk IQ, Vonya Global to present Continuous Auditing workshop in Chicago on November 7, 2008

One of our speaking efforts has been picked up on PRWeb. Come join us in Chicago for two hours of CPE and some lively discussion on Continuous Auditing and Monitoring

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Vonya Global, a leader in internal audit and independent risk assurance consulting, and Visual Risk IQ, a thought leader in continuous auditing, have come together to create a training workshop on the Continuous Auditing Lifecycle.

Chicago, IL, October 17, 2008 -- Vonya Global, a leader in internal audit and independent risk assurance consulting, and Visual Risk IQ, a thought leader in continuous auditing, have come together to create a training workshop on the Continuous Auditing Lifecycle. This workshop will be held in Chicago on November 6, 2008 and is open to the public but registration is required.

Continuous auditing and continuous monitoring are hot topics in the internal audit and compliance communities. While solutions offered by technology firms in this space can be quite capable, they are often impractical unless audit processes and management are also ready to adapt. Continuous auditing is known to help achieve compliance, audit and business performance objectives, so understanding some of the steps along the journey is often essential to getting such results in a cost-effective and direct approach.

This workshop will discuss several companies' journeys toward Continuous Auditing and Monitoring, and will present a Maturity Model that charts their course. The session will provide practical strategies that can be immediately applied to business regardless of where companies are on the maturity curve.

About Vonya Global - Vonya Global is a new idea in internal audit consulting and independent risk assurance services. With expertise in Finance, IT and Operations, Vonya Global helps its clients identify and assess risk, evaluate and improve internal controls, and implement continuous monitoring systems. Vonya Global is on a mission to prove there is a better way to serve clients by focusing on the basics; providing consistent quality, responsive service, and knowledge leadership. Having locations throughout the world, Vonya Global serves as a value added alternative to the large accounting firms. There is a better way, Vonya Global will show you.

Vonya Global LLC headquarters is located at 150 N. Michigan Avenue, Suite 2935, Chicago, IL 60601. For more information please email info @ vonyaglobal.com or visit www.vonyaglobal.com.

ABOUT VISUAL RISK IQ - Visual Risk IQ specializes in helping companies plan and implement continuous auditing and monitoring solutions that help them achieve their specific business objectives through increased frequency and depth of risk and control analysis. The company works with a variety of Fortune 1000 and large non-profit enterprises across a broad range of industry sector.

Expense Management becoming Mainstream?

We've been talking about using Continuous Auditing and Continuous Monitoring as ways to improve compliance and business performance for more than two years. The approach is characterized as "ask once, satisfy many," where business process owners can satisfy compliance objectives such as segregation of duties or spending authority limits, while also evaluating operational objectives like contract compliance and pricing.

CFO Magazine's September issue is highlighting some of the technologies that can accomplish these objectives.

The CFO article is very consistent with our experiences. Clients and business partners of Visual Risk IQ know that we can help review Accounts Payable, P-Card, and T&E data, looking for duplicate payments, financial fraud, and contract compliance. In the last several months, we've been expanding our service capabilities to deliver even more value for our clients.

My favorite quote in the article talks about the costs for such services. "For $50,000 to $100,000, a horde of consultants will sift through invoices, purchase orders, and contracts and produce a report, most likely on one facet of the business. Or, for $100,000 to $500,000, you can tap software that will do it for all aspects of the business all the time." People familiar with Visual Risk IQ know that our firm uses the continuous auditing software described in the article, to help organizations test-drive and prove its value for their organization, for less than the typical fees from the "horde of consultants."

The data files that we already use to provide a 100%, in-depth review of expenses for compliance and potential fraud factors can also be used to test for spending compliance. We have partnered with firms who are expert in selling and general & administrative cost reduction, and can analyze these same data files to identify the opportunities for improving expense management.

Joe Oringel
Visual Risk IQ
Charlotte NC, USA

Can I have a Waverunner with that?

Public sector abuse of P-Cards continues to be rampant.  The Dallas Independent School District, Knox County TN, Wake County NC, and more recently in Georgia, as reported in the Atlanta Journal Constitution.   In this recent Georgia case, an administrator for Georgia Tech used her P-Card to make nearly 3,000 fraudulent purchases totaling more than $300,000.  

The Georgia Tech administrator, Donna Gamble, has pled guilty to 22 counts of mail fraud and theft, and will be sentenced later this month in Federal Court.  Among her unauthorized purchases with federal grant monies included a Waverunner personal watercraft and lawn tractors.

Public and private sector organizations are replacing expensive purchase orders and procurement processes with P-Cards, as the cost per transactions is very favorable.  Aberdeen Research shows that P-Card purchases often cost less than 1/3 the amount of more traditional purchase order and invoice purchases.  Yet these P-Card purchases introduce more risk, and all types of organizations are challenged by how to best control and monitor credit card spend.  

Supervisory review, transaction review by a central p-card administrator, and limiting card usage at certain merchants and merchant types are all controls that organizations use to ensure charges are authorized and in compliance with preferred vendor agreements.   But the news headlines suggest strongly that these controls are not sufficient.

Stay tuned in coming weeks as we look to chronicle other organizations that have implemented continuous controls monitoring for frequent, in-depth, and efficient transaction review.

Joe Oringel
Visual Risk IQ
Charlotte NC, USA

How to Earn $25 Million Per Year, at Least for a While....

The answer isn't to be an NBA All-Star or an Oscar winning actress. But the good news is a college degree isn't required. Apparently limited Federal oversight over Medicare and Medicaid spending in South Florida has allowed at least one fraudster to "earn" $105 Million over four years before finally getting caught in a recent sting operation.

Clues that led to the prosecution include Department of Health and Human Services include the following:

• The South Florida region billed Medicare more than $2 billion each year for injectable HIV medications. That figure is 22 times as high as the amount of similar claims in the rest of the country, and is far out of line with demographic data in a population of 2 million people in Miami-Dade County, HHS statistics show.
• HHS investigators discovered that nearly half of 1,581 medical equipment companies they visited in the Miami area did not comply with basic Medicare requirements to be open during scheduled hours and to have a telephone number.

For more information on the specific case and some of the troubling patterns suggested, read the MSNBC story.

Those of you familiar with Visual Risk IQ's services know that we combine visual outlier analysis with continuous transaction monitoring, primarily for accounts payable, procurement card, and travel and entertainment. But since summer of 2007, we have also been developing a practice in Health Benefits auditing, in partnership with Atlanta-based Thomas Ray and Associates. Stories like this validate our decision to expand our work into this payment stream, as overpayments through errors and fraud seem much greater than with accounts payable.

More to follow this summer as we continue to continue our work in this highly visible expense area.

Joe Oringel
Visual Risk IQ
Charlotte NC 28277

Turning up the heat on FCPA, from Inside Counsel

Ever since my undergrad days at LSU in the mid-1980's, I've thought Internal Audit should report to General Counsel (GC) instead of the CFO. The GC is an advisor to the Board, and who better to provide advice, especially on matters of law and compliance. Because of this belief, I've subscribed to Inside Counsel, which is the equivalent trade magazine for in-house Legal Officers as CFO Magazine or CIO Magazine are for those executives.

This months' issue of Inside Counsel follows trends that we've been hearing throughout the internal audit world. Specifically, that enforcement of the Foreign Corrupt Practices Act (FCPA) is stepping up for large, global corporations, and that this increased focus leads to greater risk, especially those whose internal monitoring programs are judged to be sub-standard. To read the entire article, click through this link

Continuous auditing and monitoring, including monitoring of relationships between suppliers, customers, and employees is not frequent among the Global 1000. But many organizations that do such monitoring are often able to identify risky transactions or relationships well in advance of any regulators. Further, a couple of organizations who are among the leaders in continuous monitoring of FCPA have actually had to implement such programs because the monitoring has been forced upon them by regulators.

So if you're looking for one more reason to experiment with Continuous Auditing or Continuous Monitoring, see the following list of FCPA fines and payments, and ask what you're doing to make sure your organization stays off of this dubious list.

Siemen's $2 BILLION in bribes revealed, settlement pending
Baker Hughes $44 million in penalties paid (charges of bribery in Kazakhstan)
Chevron $30 million in penalties paid (Oil for Food Corruption in Iraq)
Volvo $7 million in penalties paid (Oil for Food Corruption in Iraq)
Flowserve $4 million in penalties paid (Oil for Food Corruption in Iraq)
Ingersoll-Rand $2.5 million in penalties paid (Oil for Food Corruption in Iraq)

As always, comments and suggestions are welcome.

Joe Oringel
Visual Risk IQ, LLC
Charlotte NC, USA

APEX Analytix Forms Alliance with Visual Risk IQ

Sharing some news about our firm that crossed the wire this week...

source: Triad Daily Business News

Consulting firm to represent APEX Analytix software and services as part of its advisory capabilities in continuous auditing and monitoring.

GREENSBORO – APEX Analytix, a leading provider of services and software for performance improvement, error prevention and fraud detection in accounts payable, today announced a new alliance agreement with Visual Risk IQ, a consulting and systems integration firm specializing in risk advisory services for large global businesses.

Under the terms of the agreement, Visual Risk IQ now will represent APEX Analytix recovery audit and fraud detection services, as well as the company’s industry-leading FirstStrike™ software for continuous monitoring of accounts payable for errors and fraud.

“APEX Analytix offers best-in-class people and technology, backed by a solid 20-year track record,” said Joe Oringel, managing director, Visual Risk IQ. “As a result, we now can offer our clients an innovative combination of software and services that can help them meet even their most aggressive governance, risk and compliance objectives.”

The APEX Analytix FirstStrike™ software family helps companies protect their bottom line. FirstStrikeTM Fraud Detect provides the continuous monitoring companies need to fight fraud in accounts payable disbursements. FirstStrike™ Accounts Payable and FirstStrike™ Purchasing automate the detection and prevention of errors in accounts payable and procurement. APEX Analytix also provides a broad range of recovery audit and vendor risk analysis services through its team of certified auditors and fraud examiners.

Visual Risk IQ specializes in helping companies plan and implement continuous, auditing and monitoring solutions that help them achieve their specific business objectives through increased frequency and depth of risk and control analysis. The company works with a variety of Fortune 1000 firms across a broad range of industry sectors.

“Visual Risk IQ is a great fit for us,” said Chris Siemasko, vice president of product management for APEX Analytix. “They are widely recognized as thought leaders in risk analysis, and they share our belief in the value of continuous monitoring to improve internal controls. We see them leading the evolution in this emerging market through advisory services, educational seminars and a proprietary maturity model that helps clients turn their strategic vision of the future into a reality.”

About APEX Analytix

APEX Analytix is an innovative audit recovery firm serving more than a third of the Fortune 100. The company has transformed the audit recovery industry with FirstStrike™, a highly functional family of standards-based software that detects and prevents both errors and fraud and improves performance across the procure-to-pay process. To date FirstStrike™ has saved businesses more than $1.5 billion in overpayments and is the most widely used software of its type. For more information call 800.284.4522 or visit www.apexanalytix.com.

About Visual Risk IQ

Visual Risk IQ helps people responsible for governance, risk and compliance achieve their compliance and business performance objectives through practical application of process changes and innovative technologies. The company provides value for clients using a combination of experienced-based learning and co-sourcing projects, satisfying current requirements in the context of a future vision. For more information on Visual Risk IQ, visit www.visualriskiq.com.

source: Triad Daily Business News

Top CFO concern's - How Continuous Auditing (CA) can help

CFO Magazine and Duke's Fuqua School of Business published their quarterly Top 10 Concerns of CFO's on May 1, 2008, and this quarter's list seems to demonstrate the potential benefit of more frequent and more in-depth controls monitoring and auditing procedures. To read the article in full, please click thru to: http://www.cfo.com/article.cfm/11078610/c_11081639?f=insidecfo

Though most CFO concerns are repeats from previous quarters (e.g. weak consumer demand, credit markets, and the housing market fall-out), a couple of new entrants demonstrate the potential value of continuous auditing and monitoring. Specifically, Costs of Health Care, Costs of Fuel and Costs of Non-Fuel Commodities all represent opportunities, based on our current experience with Continuous Auditing (CA) and Continuous Monitoring (CM).

Visual Risk IQ is currently working with several large global enterprises on pilots of continuous auditing and monitoring in the areas of Procurement Card (P-Card), Travel and Entertainment (T&E) and Employee Health Benefits. Examples of P-Card and T&E issues identified by CA / CM include 40 and 50 gallon fuel purchases for employees who drive company cars with 15 gallon tanks. No matter what the cost of fuel per gallon, using Company funds to fuel a personal boat or the neighbors SUV(s) is not inappropriate. In the case of Employee Health Benefits, we will be using sophisticated data mining and analytics to find claims that have been paid by a Company's Third Party Administrator where the claims are not in compliance with the Summary Plan Description.

Going back to recover Health Claims, T&E or P-Card expenditures that have been paid in error is sometimes perceived as a time-consuming and costly process. However, use of modern CA and CM software can dramatically reduce the cost of detecting these errors. Further, because the errors can be detected closer to the transaction date (and often before the payments are made!), the investment in CA / CM can pay for itself many times over.

Stay tuned, as we hope to chronicle some of the specifics of these reviews....

Joe Oringel
Visual Risk IQ
Charlotte, North Carolina