The Sherwin-Williams Company

Internal Audit & Loss Prevention

•Greg Schillo

-Field Audit Supervisor-Eastern Division

Company Overview

• In business since 1866, SW has been in operation for 139 years.

• Over 25,000 employees.

• In 2005, sales rose to over $7 billion.

• More than 3,000 automotive, paint stores and chemical coatings stores Worldwide.

Company Structure

• Global Group– Automotive

Division– Chemical

Coatings Division

• Paint Stores Group

The company is comprised of 3 Operating Groups, a Corporate Division:

•Corporate

•Consumer Group

•Consumer

•Diversified Brands

•Wood Care

Corporate• Comprised of many departments that are common

across all operating divisions and business units.• In some instances (i.e. Fixed Assets, Accounts

Payable), the systems are Corporate based; however divisions are responsible for day to day activities.

Departments Include:

•Human Resources• Accounts Payable• Audit & LP

•Purchasing • Accounting• Tax

•Safety • Fixed Assets • Environmental

•Legal • Real Estate • Risk Management

Internal Audit & Loss Prevention

• Comprised of: – Field Audit

• Consists of a Manager, four Field Audit Supervisors, two Senior Zone Supervisors, two Analysts, and approximately 50 Field Auditors

– Corporate Audit• Consists of approximately 22 auditors

throughout Corporate, IT, and International.

Department Structure

                                                                                                                                       

                                                                  

Department Structure

A u d it A n a lystO p e ra tio ns

A u d it A n a lystR e c ru itm e nt

F ie ldA u d ito rs

S E F A S

F ie ldA u d ito rs

S W F A S

F ie ldA u d ito rs

M W F A S

F ie ldA u d ito rs

E F A S

S e n io rF ie ld

A u d ito rs

2 S en io r Z o neS u p e rv iso rs

F ie ld A u d it M a n a g er

C o rp o ra teA u d it S ta ff

In te rn a tio n a lA u d it S ta ff

IT A u d itS ta ff

C o rp o ra te A ud it M an a g er

V P In te rn a l A u d it & Lo ss P re ve n tion

S e n io r V P / C FO

General Responsibilities

• The Company maintains an Internal Audit Department– means of providing all levels of management

with information to better control operations.

• Internal auditing is an independent review and appraisal activity assigned the responsibility to audit all activities of the Company as a service to management.

Department Functions

• Why we audit:– To ensure compliance with Company and

Division policy and procedure, as well as GAAP• To ensure accuracy and integrity of Company

financial records, and that proper support exists

– To safeguard assets– To act as deterrent to potential irregularities– Ensure Division employees are knowledgeable– Be “eyes and ears” of top management– Determine variances– Take an independent point of view on

Company operations

Department Functions

• Who we audit:– Company operations, not

personalities/individuals– Deficiencies may be the responsibility

of the District Manager, Distribution Center, landlord, plant, Division office, as well as store Manager.

Department Functions

• When we audit:– Surprise basis

• Stores have no chance to hide things• Enables auditors to evaluate appearance

from customer’s perspective• Determine that operating procedures are

complied with on a timely basis• To act as a deterrent to potential

irregularities.

• 7 Week Training Program– Eight day Orientation at Headquarters in

Cleveland, OH– 2 weeks with 2 different training auditors

located across the country.– ½ the audit in 1st two weeks, ½ the audit in

2nd two weeks.– Very intense and in depth– Evaluated at end of each session– One week audit by self with no trainer, but

one day visit from Supervisor.

Training

Benefits of Field Audit

Travel Relocation Self Satisfaction

Knowledge of the business

Positively impact business processes

Part of continuous improvement

Opportunities for advancement

Independence

Teamwork

Interviewing

We will be on campus for interviews:

March 2006**Exact Date TBD in 2/06.

CareersField Auditor

Analyst

Senior Field Auditor / Field Audit Supervisor

Senior Zone Supervisor

Field Audit Manager

Field Auditor

Corporate Auditor

Field Audit Supervisor

Any other Accounting / Finance positions the

company has to offer.

Conclusion

Questions?

Comments…