Retail Checkout

​How can internal audit departments adapt to support transformation in the retail industry? What is the appropriate balance of traditional auditing vs. advisory projects? These are just a few questions internal audit executives from leading retail companies tackled together in a meeting of RILA's Internal Audit Committee this week. The group, which serves as a forum for industry benchmarking, best practice discussions, and peer-to-peer networking, convened 26 retail leaders this week at L Brands Headquarters in Columbus, Ohio.

The meeting kicked off with an Executive Spotlight featuring Stuart Burgdoerfer, EVP, CFO, LBrands. Burgdoerfer discussed the disruptive changes facing the retail industry and the importance of aligning goals throughout all levels of company leadership to support innovation and growth. He also highlighted the important role of Internal Audit Departments working the companies' Finance Departments on risk management and to ensure that transformation projects meet stated goals. A second Executive Spotlight featured John Talamo, SVP Asset Protection, LBrands, discussing emerging trends and increasing retail asset protection risks.

The meeting's sponsor, KPMG, presented highlights from their recent survey on the top risks in retail, the impact of the #MeToo Movement, and the use data analytics to manage risks. Sears Holdings' Senior Director, Internal Audit Eric Gee highlighted key findings from the recent RILA survey of Internal Audit organization, structure, roles and responsibilities.

Through member case study presentations, attendees heard from Abercrombie & Fitch's Chief Audit Executive Sarah Martin on developing a company cultural audit, L Brands' Senior Vice President, Internal Audit Paula Leachman on lessons learned from tech audits, and Sears's Eric Gee on using automation to streamline processes and create efficiencies for SOX audits.

In addition, the agenda was filled with meaningful roundtable discussions led by internal audit executives on the industry's most pressing topics;

• Target's Vice President & Chief Audit Executive Tricia Bartylla, CarMax's Director of Internal Audit Heather Choe, and AutoZone's Vice President of Internal Audit, Joyce Johns led a discussion on rating maturity of internal audit department data analytics programs;
• Dollar General Corporation's Vice President, Internal Audit Dave Fentress facilitated a candid conversation on working with business partners to establish appropriate controls in revenue recognition and lease accounting rules;
• Big Lots Vice President, Internal Audit David Bodiford and Kohl's Director, Enterprise Risk Services Clinton Satyavelu helped the group address balancing traditional vs. advisory projects in auditing and how to evaluate the impact of continuous auditing; and
• Staples' Senior Internal Audit Manger Jeannine Iovino led a discussion on managing third party risks to business continuity.

The meeting capped off with a discussion on how internal audit departments can work with legal teams to protect investigations under attorney-client privilege, led by LBrands Vice President Regulatory, Lowell (Chip) Howard Jr.

The next meeting of RILA's Internal Audit Committee will be in Fall 2018. To learn more and get engaged with RILA's Internal Audit Committee, please reach out to Kathleen McGuigan.