The SherwinWilliams Company Internal Audit Loss Prevention Greg

The Sherwin-Williams Company Internal Audit & Loss Prevention • Greg Schillo -Field Audit Supervisor. Eastern Division • Brad Henderson -Field Auditor-Cincinnati Zone

Company Overview • In business since 1866, SW has been in operation for 138 years. • Over 25, 000 employees. • In 2004, sales rose to over $6 billion. • More than 3, 000 automotive, paint stores and chemical coatings stores Worldwide.

Company Structure The company is comprised of 3 Operating Groups, a Corporate Division: • Corporate • Paint Stores Group • Consumer Group • Consumer • Diversified Brands • Wood Care • Global Group – Automotive Division – Chemical Coatings Division

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 • Purchasing • Accounting • Tax • Audit & LP • 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

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.

Training • 7 Week Training Program – 2 weeks with 3 different training auditors located across the country. – ½ the audit in 1 st two weeks, ½ the audit in 2 nd two weeks, whole audit 3 rd two weeks. – Very intense and in depth – Evaluated at end of each session – One week audit by self with no trainer.

Benefits of Field Audit Travel Relocation Knowledge of Positively the business impact business processes Opportunities Independence for advancement Self Satisfaction Part of continuous improvement Teamwork

Interviewing We will be on campus for interviews: October 4, 2005

Careers Field Auditor Analyst Corporate Auditor Senior Field Auditor / Field Audit Supervisor Senior Zone Supervisor Field Audit Manager Field Audit Supervisor Any other Accounting / Finance positions the company has to offer.

Conclusion Questions? Comments…