Auditing Section
American Accounting Association

Minutes of the Executive Committee Meetings
January 23-25, 1997

MINUTES OF THE EXECUTIVE COMMITTEE MEETING OF THE AUDITING SECTION OF THE AMERICAN ACCOUNTING ASSOCIATION

MEETING DATE: January 23, 1997
MEETING LOCATION: Jacksonville, Florida

IN ATTENDANCE: Executive Committee Members: Jane Mutchler, Karl Hackenbrack, Lisa Koonce, Arnie Wright, Barry Cushing, Dennis Schueler, Robert Knechel. Guests: Urton Anderson (Program Committee chair), Bill Dilla (CPE program committee chair), Gary Holstrom and Ira Solomon (Assurance Services Task Force), and Mike Groomer (Webmaster).

The meeting was called to order at 9:05 a.m.

Mutchler/Cushing - Information/Action
Jane Mutchler reported that recent staffing changes at the AAA Sarasota office would influence the Section's procedure for selecting meeting sites for the Mid-Year Meeting. The Committee agreed that the Vice-President Academic would be responsible for identifying possible sites for future Mid-Year Meetings.

Mutchler - Information/Action
Jane Mutchler reported that a survey was included in the information packet for the 1997 Mid-Year Meeting participants. The purpose of the survey is to obtain feedback regarding the Auditing Section. Jane agreed to compile the data and report the survey results at the August 1997 Executive Committee meeting.

Hackenbrack/Cushing/Mutchler - Information/Action
Karl Hackenbrack reviewed the Section's financial activity for the period July 1996 through December 1996. Karl reported that although a constant erosion in the cash balance was occurring, it posed no immediate risk to the Section. However, if the Section were to undertake new activities, then a cash shortage could result. The Committee discussed the need for the ability to raise dues in the future. Jane Mutchler reported that the current by-laws limit the Section dues to $15 per year and a by-law change would be necessary before the dues could be increased. Barry Cushing moved and Jane Mutchler seconded that: A proposal be made to the members of the Auditing Section to amend the Section's by-laws to increase the maximum annual dues from $15 to $30. The motion passed unanimously.

Karl Hackenbrack agreed to draft a proposed by-laws change for the next Section newsletter.

Mutchler - Information/Action
Jane Mutchler reported that KPMG Peat Marwick's commitment for co-sponsoring the Section's Mid-Year Meeting was for a three-year time period, with a funding review after every three years. As the 1997 Mid-Year Meeting was the third year of their initial commitment, it was agreed that Jane would talk with KPMG Peat Marwick regarding the possible continuation of their sponsorship.
Mutchler - Information/Action
Jane Mutchler led a discussion about possible luncheon speakers for the Annual Meeting in August 1997. The committee agreed to forward names to Jane.

Mutchler/Wright - Information/Action
Jane Mutchler led a discussion about the need for clearer guidelines regarding the Mid-Year Meeting reservations and registrations that were to be automatically performed by the AAA. There was some confusion about this matter among Executive Committee members. Arnie Wright agreed to follow up on this matter. The consensus was that Committee members wanted to make their own arrangements.

Mutchler/Cushing/Schueler - Information/Actions
Jane Mutchler led a discussion regarding the current submission guidelines for the Section's Outstanding Dissertation Award, including the restriction that dissertations could only be submitted once. Dennis Schueler moved and Barry Cushing seconded that: The outstanding dissertation award guidelines be changed so that dissertations can be submitted more than once. The motion passed unanimously.

Anderson - Information/Action
Urton Anderson, 1997 Mid-Year Meeting Program Chair, reported on the status of the 1997 Mid-Year Meeting. Urton led a discussion about problems encountered during the meeting planning process. Recommendations offered by the committee included offering an early registration discount (thereby discouraging late, on-site registrations which make planning more difficult), earlier communication of program content recommendations by the executive committee to the Planning Committee, and increased emphasis on education sessions.

Mutchler - Information/Action
Jane Mutchler led a discussion about a possible name change for the Section to reflect the movement towards broader assurance services. The Committee concluded that a name change was not necessary at this time. However, there was consensus that the Section needs to adopt this broader focus.

Wright/Schueler - Information/Action
Arnie Wright and Dennis Schueler reported that, to date, very few nominations had been received for the Educator Award, Service Award, and for the Executive Committee positions of Treasurer and President Elect. Arnie agreed to work with the Executive Committee in finalizing the nominations by May 1. Nominations should be forwarded to Dennis and Arnie.

Mutchler/Schueler/Wright - Information/Action
Jane Mutchler led a discussion regarding the possible update of A Statement of Basic Auditing Concepts to reflect the broader assurance service trends of the profession. Issues discussed included the nature of the revision, possible authors, quality control standards, and funding sources. The Committee agreed to proceed investigating the feasibility of this project. Jane agreed to identify members for a task force to study feasibility. It was agreed that this task force would report to the Executive Committee at the 1997 Annual Meeting in Dallas.

Mutchler/Hackenbrack/Cushing - Information/Action
Jane Mutchler led a discussion about the timing of the Section's business meeting. The Committee identified several reasons for moving the annual business meeting from the AAA Annual Meeting to the Auditing Section Mid-Year Meeting: greater attendance by Section members at the Mid-Year Meeting, encouragement of this practice by the AAA, and additional time for newly elected officers to become familiar with Section activities (the officer elections would occur at the Mid-Year Meeting but the change of officers would occur at the Annual Meeting). Based on this discussion, Karl Hackenbrack moved and Barry Cushing seconded: After the August, 1997 business meeting in Dallas, Texas, the Auditing Section should move its business meeting to the Mid-Year Meetings. The motion passed unanimously.

Mutchler/Cushing/Wright/Hackenbrack - Information/Action
Barry Cushing and Arnie Wright led a discussion on the results of their survey of former Section officers regarding co-sponsorship and publication of auditing symposia and their proposed policy statement for co-sponsorship and publication. The Committee discussed the benefits and costs associated with co-sponsorship and publication and agreed that a co-sponsorship decision should be separate from an agreement to publish conference papers in Auditing: A Journal of Practice and Theory. Based on this discussion, Karl Hackenbrack moved and Arnie Wright seconded that: The decision to cosponsor a symposium is independent of the decision to publish the proceedings (or portions thereof). A commitment to publish some or all of the proceedings of a symposium requires a majority vote of the Executive Committee. The motion passed unanimously.

The Executive Committee agreed to provide commentary on the proposed policy statement to Barry and Arnie, who agreed to revise the proposed policy statement on co-sponsorship and publication to reflect the input so received. The Committee agreed to re-examine the proposed policy statement at the August meeting.

Dilla/Hackenbrack/Schueler - Information/Action
Bill Dilla, Chairman of the CPE committee, led a discussion on the need for more explicit guidelines for CPE sessions at Mid-Year and Annual Meetings. The Committee discussed and revised a set of guidelines prepared by Bill. The revised guidelines are shown in Appendix A. Karl Hackenbrack moved and Dennis Schueler seconded. The policy statement on CPE sessions be approved. The motion was unanimously approved.

Mutchler - Information/Action
Jane Mutchler led a discussion regarding the need for a long-term strategic planning function within the Auditing Section. Issues discussed included the need for an independent (of the executive committee) strategic planning committee, the membership composition and time horizon of this committee, and the need for milestones to evaluate the outcome of a strategic plan. The Committee agreed to forward to Jane the names of possible committee members to Jane. Jane agreed to select members for the task force, establish their charge, and serve as the liaison.

Knechel/Mutchler - Information/Action
Robert Knechel reported on his work in developing an Auditing Section operating manual. The Committee discussed the need to include Mid-Year Meeting planning guidelines in the operating manual. Jane Mutchler agreed to charge Urton Anderson and Jack Krogstad with developing these guidelines for inclusion in the operating manual.

Mutchler/Knechel - Information/Action
Jane Mutchler led a discussion about the Section's Education Committee recommendation to hold a case competition at the next mid-year meeting. Issues discussed included possible funding sources (and possible conflicts with the sponsor of the mid-year meeting), guidelines for case evaluation, and timing of the case competition. The committee agreed that a case competition should be held at the next mid-year meeting, if possible. Jane Mutchler and Robert Knechel agreed to investigate the funding issues. Jane also agreed to follow-up with the Education Committee on more detailed guidelines for the case competition. The Committee agreed that if all important issues could be resolved within a relatively short time frame, they would vote via email on whether to hold the case competition at the 1998 mid-year meeting.

Mutchler - Information
Jane Mutchler reported that due to the recent increased web activity, she appointed an Associate Webmaster, Richard Rand, to work with the Section Webmaster, Mike Groomer. Jane also reported that it was the responsibility of the Secretary to monitor the Auditing Section's home page and to submit Executive Committee minutes and other section news to the Webmaster.

Holstrom/Solomon - Information/Action
Gary Holstrom and Ira Solomon led a discussion on the progress of the Task Force for Future Audit, Attestation, and Assurance Services. Issues discussed included the purpose of the Task Force, its progress, the nature and length of the Task Force's written output, timetable, and possible publication outlets (e.g., supplement to Auditing: A Journal of Practice and Theory, the Section's home page, monograph).

The Executive Committee stressed the importance of the Task Force's work, but noted that they want to review their output before they make a potential recommendation as to the appropriate forum for dissemination.

Groomer - Information/Action
Mike Groomer, Webmaster, reported on the activity of the Auditing Section's website and led a discussion on possible new uses of the website. Issues discussed included capturing links to the home pages of auditing professors and publishing The Auditors' Report on the website without distribution of a hard copy.

The meeting adjourned at 4:15 p.m.

Minutes submitted by: Lisa Koonce, Secretary

Any revenues remaining for a co-sponsored session, after the AAA deducts for expenses such as room rent, basic audio-visual equipment (overhead and slide projector), and break refreshments, will come directly to the Auditing Section.

Out of these net revenues, the Auditing Section may reimburse the presenters for expenses incurred in connection with the CPE session. The Auditing Section does not normally reimburse presenters for travel expenses incurred in conjunction with CPE sessions. Exceptions to this policy may be made by the Auditing Section CPE committee.

The Auditing Section will not reimburse members' travel costs to present a CPE workshop, if the member would normally be attending the meeting at which the workshop is to be held. This includes AAA Annual Meetings, Auditing Section Mid-Year Meetings, and Regional Meetings within the member's own region.

A member may be reimbursed for travel costs if presenting an Auditing Section sponsored CPE workshop at a regional meeting outside his or her own region. Such reimbursement requires the approval of the Auditing Section CPE committee.

The above policies are intended to apply for co-sponsorship with organizational sponsors such as the IIA. For CPE sessions where the Auditing Section has a corporate (i.e., for profit) co-sponsor, the co-sponsor would pick up all expenses beyond basic room rent, audiovisual, and refreshment expenses.

MINUTES OF THE EXECUTIVE COMMITTEE MEETING OF THE AUDITING SECTION OF THE AMERICAN ACCOUNTING ASSOCIATION

MEETING DATE: January 24, 1997
MEETING LOCATION: Jacksonville, Florida

IN ATTENDANCE: Executive Committee Members: Jane Mutchler, Karl Hackenbrack, Lisa Koonce, Arnie Wright, Barry Cushing. Guests: Bill Felix (Editor, Auditing: A Journal of Practice and Theory), Efrim Boritz and Morley Lemon, University of Waterloo faculty.

The meeting was called to order at 6:00 p.m.

Boritz/Lemon - Information
Efrim Boritz and Morley Lemon asked that the Auditing Section co-sponsor the University of Waterloo Auditing Conference and also agree to publish selected papers from the conference (subject to quality control standards for the papers). Boritz and Lemon discussed the theme of the conference (Assurance Services), conference timing (Spring 1998), number of papers to be presented (6), paper submission deadline (mid-November), honorarium for presenters and discussants, and Ernst & Young's proposed funding.

Mutchler/Wright/Hackenbrack/Cushing/Felix - Information/Action

The Committee and Bill Felix then met privately and discussed the Waterloo proposal. Issues discussed included the nature of the review process, placement of publishable papers (supplement vs. regular volume), the need for an "engagement letter," and the need for monies to support editorial and review services provided by Bill Felix and his staff.

Arnie Wright moved and Jane Mutchler seconded: The Auditing Section agrees to co-sponsor the 1998 University of Waterloo Auditing Symposium. The motion passed with five yes votes and 1 yes vote by proxy.

Arnie Wright moved and Karl Hackenbrack seconded: The Auditing Section agrees to the publication in Auditing: A Journal of Practice and Theory of selected papers from the 1998 University of Waterloo conference (publication subject to the typical quality control standards of the journal as implemented by the Editor). The motion passed with 5 yes votes and 1 yes vote by proxy.

Karl Hackenbrack moved and Arnie Wright seconded that: The University of Waterloo faculty provide $5000 of support directly to the Editor of Auditing: A Journal of Practice and Theory to cover incremental costs associated with publishing selected papers from the 1998 Waterloo conference. The motion passed with 5 yes votes. One executive committee member was absent for the vote.

Jane Mutchler charged Barry Cushing and Arnie Wright to finalize the "engagement letter" with the University of Waterloo. Bill Felix agreed to work with the University of Waterloo on the necessary wording in the call for papers.

The meeting adjourned at 7:08 p.m.
Minutes submitted by: Lisa Koonce, Secretary

President Jane Mutchler welcomed approximately 80 members to the Auditing Section's Town Meeting on January 25, 1997. Jane Mutchler thanked Urton Anderson for his work as Mid-Year Meeting Program Chair.

Bill Messier, 1998 Mid-Year Program Chair, reported that the 1998 Mid-Year Meeting would be held in Mesa, Arizona from January 22-24. The submission deadline for papers will be September 1. Members who wish to volunteer at reviewers, session chairs, or discussants were asked to contact Bill Messier.

Barry Cushing, Vice President, reported on the 1997 Outstanding Auditing Dissertation Award. Barry delineated the criteria for the award and described the nomination procedure. Nominations are to be submitted to Barry Cushing by February 28, 1997.

Mike Groomer, Chair of the Section's Communication Task Force, reported on activities at the Section's website. "Hits" at the website grew dramatically after the 1996 Annual meeting. Mike reported that most of the Mid-Year Meeting papers were on the website and would remain there for another month.

Arnie Wright, Past President, announced that nominees were needed for the Distinguished Service Award, Outstanding Educator Award, and two Executive Committee positions: President-Elect and Treasurer. These awards and positions are described in the Auditors' Report.

Morley Lemon, Chair of the Education Committee, announced tentative plans for a case competition at the 1998 Mid-Year Meeting. Additional information would be forthcoming as the details of the competition are finalized. Morley also reported that his committee would be sending out a survey to Section members regarding the topics covered in courses beyond the introductory auditing course.

Efrim Boritz announced plans for an auditing conference to be held at the University of Waterloo in Spring 1998. The theme of the conference is "Assurance Services." The conference will be co-sponsored by Ernst & Young and the Auditing Section. Submissions are due in mid-November, 1997 and accepted papers will be considered for publication in Auditing: A Journal of Practice and Theory.

Joe Carcello, Program Chair for the Annual Meeting, reported that the number of submissions (63) was down from the previous year (78). He noted that other sections also were experiencing similar submission declines. Notifications of acceptances are to be made by early May. Three panel sessions are planned for the Annual Meeting.

Bill Felix, Editor of Auditing: A Journal of Practice and Theory, reported on activity at the journal. For the first six months of his Editorship, 55 manuscripts had been received. The average number of days to receive reviewer comments was 46 days.

Jean Bedard, Editor of the Auditors' Report newsletter, announced that the deadline for submission of news items is February 1.

James Thompson, Director of Research at the Institute of Internal Auditors, discussed the IIA's role in funding auditing research. The IIA has spent over $2 million related to research, primarily in the field of internal auditing. Approximately $400,000 of these monies had been directed to academic programs with internal auditing curricula.

Tom Powell, Chair of the Practice Advisory Council, reported that the purpose of the Practice Advisory Council was to facilitate communication between accounting practitioners and academics. The Practice Advisory Council met on January 24, 1997, and recommended that one academic join their council. The Practice Advisory Council's goal is develop a "control curriculum" (coverage of role of controls) by August. They also plan on holding panel discussions at future Mid-Year and Annual Meetings.

Jane Mutchler reported on recent activities of the Section's Executive Committee, including their vote to change the timing of the annual business meeting (from the Annual Meeting to the Section Mid-Year meeting), a possible revision of A Statement of Basic Auditing Concepts, and plans for a strategic planning task force for the Section.

The meeting was adjourned at 10:05 a.m.

Minutes submitted by: Lisa Koonce, Secretary

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