A dermatologist isn't a bad idea - however food could also be an issue. Iams has alot of grains and chemicals in it. Try a more natural dog food, and adding omega 3 oils (such as salmon, sardine, or other fish oils) to her food, and get a good medicated shampoo, but don't bathe to frequently. Sounds like an allergy or dermatitis causing the dry flaky skin to me.
__________________ Momma to King Louie 
Missing my angels  California Lily and  Benjamin Button, forever in my heart |