Auditing Section
American Accounting Association

Minutes of the Executive Committee Meetings
August 11 - 12, 1994

August 11, 1994 (Annual Meeting)

Financial Statements

August 11, 1994 (Executive Committee)

Financial Statements

August 12, 1994 (Executive Committee)

Financial Statements

Chairperson Robert Knechel welcomed approximately 100 members to the Auditing Section's annual Business Meeting on August 11, 1994 in New York, New York.

As the first order of business, Bill Messier presented the report of the nominating committee and called for nominations from the floor for Chair-Elect and Vice-Chair, Practice. There were no nominations from the floor and the nominations were closed. Arnie Wright was elected Chair-Elect and Tom Powell was elected Vice-Chair, Practice.

Tim Bell presented a report of the activities of the Research Committee. The monograph tentatively titled Audit Practice, Research and Education--A Productive Collaboration is progressing on schedule, with publication expected in late Winter or early Spring. The proposed policy statement on subjects for research is of interest to multiple sections and thus the committee's report will be forwarded to the Association.

Tom McKee presented a report of the activities of the Education Committee, including the February 1995 Audit Education Conference co-sponsored with Price Waterhouse. Copies of proceedings from this conference are available upon request to Tom McKee. The Education Committee, in conjunction with this conference, conducted a survey about the demand for additional auditing cases. The survey revealed a demand for more cases, particularly short cases, and showed strong support (87%) for a proposed case competition. The Education Committee will continue to work on the proposal for a case competition. Following this report, Robert Knechel acknowledged the important contribution of Price Waterhouse in funding the Education conference.

Karen Pincus presented a Treasurer's report, including a Statement of Cash Receipts, Disbursements and Cash Balance for the fiscal year ended June 30, 1994 (copy attached). The proposed budget for 1994-1995 was also discussed, including the impact on the budget of the mid-year meeting.

John Sennetti presented a membership analysis based on the AAA database. The analysis revealed that 65% of section members are academics (51% U. S. and 14% non-U.S.) and 35% of section members are from practice (24% U. S. and 11% non-U. S.). Regional membership profiles were also presented. The membership analysis will be forwarded to the 1994-1995 Membership Director for further consideration.

Robert Knechel presented a review of the year's activities, thanking the members of the section who donated their time to various section activities. He announced the first section mid-year meeting to be held on January 19 (CPE), 20 and 21, 1995 in Las Vegas, Nevada at Bally's Hotel. The call for papers has been distributed with a submission deadline of October 1.

Ira Solomon, the incoming Chairperson, discussed plans for the coming year and distributed reports from regional chairpersons, a list of new appointments, and a summary of the strategic plan for the next three years. His agenda for the coming year focuses on the 1995 first mid-year meeting and planning for future mid-year meetings; the research/education/practice monograph; reinvigorating CPE activities to increase diversity of offerings and maintain continuous improvement; and a new committee to study the scope of services issue.

Ted Mock presented a report on the year's activities for Auditing: A Journal of Practice and Theory. He expressed his thanks to members who volunteer their time to work on the review process and particularly to outgoing editor Joe Schultz, who was invaluable in the transition process. A draft report on submissions and their disposition was distributed; a final report will appear in the journal.

The "Town Meeting" portion of the meeting began at 11 a.m. Topics discussed included the KPMG Peat Marwick letter regarding changes in the recruiting process; the possibility of moving the business meeting and officer elections to the mid-year meeting, which would require a bylaws change; the importance of the mid-year meeting to the section; the change in the date of the USC/Grant Thornton Audit Judgment Symposium to May, 1995 (from February 1995) to accommodate the move to a mid-year Auditing Section meeting; the turnaround time for reviews for papers submitted to Auditing: A Journal of Practice and Theory and the role of practice reviewers; the strategic plan to cosponsor auditing symposia and publish the papers in a supplement to Auditing: A Journal of Practice and Theory; and the Institute of Internal Auditor's request for bids to update the Common Body of Knowledge study for internal auditing.

The meeting was adjourned at 11:15 a.m. to the Auditing Section luncheon where Michael Monaco, Executive Vice President and Chief Financial Officer of American Express was the featured speaker.

Submitted by:

Karen V. Pincus, Secretary-Treasurer

NOTES:

1. The Statement of Cash Receipts, Disbursements and Cash Balance was compiled from monthly financial reports received from the American Accounting Association national office. During fiscal year 1994, the American Accounting Association changed its information system. The changes went into effect on reports beginning in August 1993.

2. As of July 1994 (1993), there were 1,360 (1,451) US members and 435 (318) foreign members. As of July 1994, there were 1,617 full members (1190 US, 427 foreign) and 178 associate members (170 US and 8 foreign).

3. Journal subscriptions and sales of publications were accounted for in a single category before the Association changed its information system in August 1993.

4. The section, in conjunction with Price Waterhouse, held the second Audit Education Conference in February 1994. Registration fees for the conference were $7,150; $7,050 of funds contributed in a prior year by Price Waterhouse were used to pay hotel and food costs.

5. At the end of fiscal 1994, there were $7800 of unpaid disbursement requests ($7,500 for editorial support and $300 for regional CPE sessions expenses).

6. Miscellaneous disbursements for fiscal year 1994 consist primarily of UPS and postage charges not specifically related to distribution of the Auditing journal or section newsletter. The postage charges include allocated postage charges from the Association.

MEETING LOCATION: New York, New York

IN ATTENDANCE: Steve Aldersley, Robert Knechel, Bill Messier, Karen Pincus, Ira Solomon, Gerald Smith. Guests: Tom McKee, Ted Mock, Larry Ponemon

The meeting was called to order at 7:15 a.m.

Knechel/Messier
Information/Action

The minutes of the February 18, 1994 Executive Committee meeting were discussed and one error in the draft was pointed out and corrected. Robert Knechel moved and Bill Messier seconded that: The minutes of the February 18, 1994 Executive Committee meeting be approved. The motion carried unanimously.

McKee/Knechel
Information/Action

Tom McKee reported on the work of the Education Committee, including the change in responsibility for CPE, the status of the Education Conference sponsored by Price Waterhouse, and the proposed case competition. Robert Knechel requested that the Education Committee continue to work on the proposal for a case competition as a possible evolution of the Education Conference and to prepare a report and recommendation for the mid-year Executive Committee meeting.

Ponemon/Chair-Elect
Information/Action

Larry Ponemon reported on the Section newsletter, particularly the survey of demand for paid advertisements, deadlines for future issues, and the appointment of the next editor. Since the survey revealed no demand for paid advertisements, it was agreed that the experimental period for accepting paid ads was not needed. Deadlines for future issues are September 15, 1994; January 15, 1995; and May 1, 1995. Larry Ponemon requested that the new Chair-Elect, to be elected at the 1994 business meeting, try to appoint the next newsletter editor before the mid-year meeting to ease the transition between editors.

Mock
Information/Action

Ted Mock reported on the progress of Auditing: A Journal of Practice and Theory. He raised questions about the lead time for production of the journal, particularly the supplement issues, pointing out the desirability of shortening the process once material is submitted to Sarasota and considering ways to speed up the review process. Robert Knechel requested the editor to prepare a report for presentation to the Executive Committee at the mid-year meeting on how production times could be shortened. Ted Mock agreed to prepare the report. Ted Mock also agreed to, in the future, copy the Section Secretary/Treasurer on any transmissions of submissions fees or other cash receipts to Sarasota.

Knechel/Mock
Information/Action

Robert Knechel presented a proposal from the University of Waterloo requesting section co-sponsorship of a planned 1995 Audit Symposium. The Executive Committee discussed with Ted Mock the process for review of manuscripts submitted to co-sponsored conferences and published in supplements to the Section journal. Ted Mock agreed that the current policy statement should be revised to expand the description of the review process and he will present a draft of a revised policy statement to the Executive Committee at the mid-year meeting. The issue of submission fees for papers reviewed was also discussed. Karen Pincus moved and Robert Knechel seconded that: Journal submission fees must be paid for section-co-sponsored conference papers submitted for review by Editorial Board members of Auditing: A Journal of Practice and Theory. The motion carried unanimously. Robert Knechel then moved and Karen Pincus seconded that: The Auditing Section will act as co-sponsor for the 1995 University of Waterloo/Ernst and Young Audit Symposium, with the proviso that details about the review process for submitted papers are to be determined in consultation with the Editor of Auditing: A Journal of Practice and Theory. The motion passed unanimously.

Mock/Smith/new Vice-Chair, Practice
Information/Action

Ted Mock requested help in identifying additional practice members as journal reviewers. A discussion of the policy on practice reviewers followed. Gerald Smith agreed to trace the history of policy statements on the use of practice reviewers and distribute these statements to the Editor and the Executive Committee before the mid-year meeting. Robert Knechel suggested that the newly-elected Vice-Chair, Practice should work with the journal Editor to create a means to orient new practice reviewers and to identify new practice reviewers. Several Executive Committee members noted that there is a more general need to identify practice members to assist in a variety of section activities and suggested that the Vice-Chair Practice's recommendations need not be confined to journal review participation.

Pincus
Information/Action

Karen Pincus provided the treasurer's report on 1993-1994 and presented a proposed budget for 1994-1995 for discussion at the next Executive Committee meeting (copy attached). The report included an update on the Association's new accounting system. Karen Pincus agreed to draft a letter concerning questions and suggestions on the new system for discussion by the Executive Committee at the mid-year meeting.

Messier
Information/Action

Bill Messier reported on the work of the Committee to Develop Criteria for the Selection of the Editor for Auditing: A Journal of Practice and Theory. The Committee's recommendations were discussed; the consensus of the Executive Committee was that there was no need for a new Executive Committee position to direct publications and that the general recommendations as to the editor nomination committee responsibilities and selection criteria were sound. There was also general consensus that the editor nomination committee should be chaired by the Past-Chair of the section. Bill Messier agreed to draft a policy statement for the Executive Committee to vote on at the mid-year meeting.

Knechel
Information

Robert Knechel reviewed the agenda for the section Business Meeting.

The meeting adjourned at 9:00 a.m.
Minutes submitted by: Karen V. Pincus, Secretary/Treasurer

NOTES:

1. The Statement of Cash Receipts, Disbursements and Cash Balance was compiled from monthly financial reports received from the American Accounting Association national office. During fiscal year 1994, the American Accounting Association changed its information system. The changes went into effect on reports beginning in August 1993.

2. As of July 1994 (1993), there were 1,360 (1,451) US members and 435 (318) foreign members. As of July 1994, there were 1,617 full members (1190 US, 427 foreign) and 178 associate members (170 US and 8 foreign).

3. Journal subscriptions and sales of publications were accounted for in a single category before the Association changed its information system in August 1993.

4. The section, in conjunction with Price Waterhouse, held the second Audit Education Conference in February 1994. Registration fees for the conference were $7,150; $7,050 of funds contributed in a prior year by Price Waterhouse were used to pay hotel and food costs.

5. At the end of fiscal 1994, there were $7800 of unpaid disbursement requests ($7,500 for editorial support and $300 for regional CPE sessions expenses).

6. Miscellaneous disbursements for fiscal year 1994 consist primarily of UPS and postage charges not specifically related to distribution of the Auditing journal or section newsletter. The postage charges include allocated postage charges from the Association.

MEETING LOCATION: New York, New York

IN ATTENDANCE: Robert Knechel, Karen Pincus, Tom Powell, Ira Solomon, Gerald Smith, Arnie Wright

The meeting was called to order at 7:10 a.m.

Solomon/Smith/Wright/Powell
Information/Action

Ira Solomon welcomed the new members of the Executive Committee and discussed their duties. A general discussion of the need for an expanded written description of the duties of Section vice-chairs ensued. Gerald Smith agreed to provide the new officers with an annotated current description of their duties and Arnie Wright and Tom Powell volunteered to suggest expanded descriptions based on their experiences this year. An initial draft of these expanded descriptions will be prepared for discussion at the mid-year meeting.

Knechel
Information/Action

Robert Knechel reported on the work of the Ad Hoc Committee for Fostering Research Cooperation, chaired by Tim Bell. Per the vote of the Executive Committee at the February 18, 1994 meeting, the committee's report will be forwarded to the Association level. Robert Knechel will forward the report, after deleting the names of the researchers on the example included in an attachment to the report.

Knechel/Wright
Information/Action

Robert Knechel reported on the need to update guidelines for both criteria and selection processes for the Distinguished Service and Outstanding Educator awards. Arnie Wright agreed to draft new guidelines for consideration at the Executive Committee mid-year meeting.

Knechel/Pincus/Solomon
Information/Action

Robert Knechel summarized the revised charge for the CPE director and reported that Jim Yardley, newly appointed CPE director, will be canvassing members regarding interest in an expanded set of CPE opportunities. Karen Pincus suggested that a policy on reimbursement of costs for CPE session providers would be helpful and pointed out that since prices for CPE, which are set in Sarasota, are not automatically communicated to the CPE director, the director should be made aware of the need to check price information. Ira Solomon agreed to ask Jim Yardley to draft a policy on CPE costs reimbursement for Executive Committee consideration at the mid-year meeting and to inform the CPE director of the need to check with Sarasota for price information.

Pincus/Solomon/Knechel
Information/Action

Karen Pincus reviewed the proposed budget for 1994-1995, as amended following the August 11 Executive Committee meeting to remove any budgeted revenue from newsletter advertising. A copy of the budget, as revised, is attached to these minutes. Ira Solomon moved and Robert Knechel seconded that: The 1994-1995 budget be approved. The motion passed unanimously.

Pincus/Wright/Arnold
Information/Action

Karen Pincus reported that a Section Treasurer's meeting is scheduled for August 13 from 10:00 a.m. to 11:15 a.m. in the Kern Room of the New York Marriott Marquis, but that she could not attend due to being a presenter in a session scheduled at the same time. Arnie Wright and Tom Powell volunteered to attend the session to represent the Auditing Section.

Solomon/Smith
Information/Action

Ira Solomon suggested that it might be time to move Section records, such as copies of minutes, position descriptions and committee reports to electronic storage. Gerald Smith agreed to consider the issues in moving the Auditing Section operating manual to electronic storage and prepare a report for consideration at the mid-year meeting.

Solomon/Knechel
Information/Action

Ira Solomon reviewed the strategic plan for activities for 1994-1995 (see attachment). Planning and execution of the 1995 and 1996 mid-year meetings were discussed as part of this plan. Ira Solomon requested that the 1995 mid-year meeting steering committee prepare a document to pass on to the 1996 steering committee concerning issues that must be addressed. Karen Pincus suggested that one issue that should be addressed is the possibility of electronic dissemination of papers to be presented at the mid-year meeting, in keeping with the electronic dissemination of papers planned for the 1995 annual meeting. Arnie Wright suggested that another issue to be addressed is the need for continuity between steering committees, perhaps by an ad hoc position for the past chair of the steering committee or other means. Robert Knechel outlined some additional issues, such as the feasibility of moving officer elections to the mid-year meeting, and agreed to prepare and distribute such a report by September 1, 1994. Ira Solomon noted that the 1996 steering committee's charge will include consideration of these issues, including proposing any recommended changes to the Section's bylaws. Ira Solomon will be naming a chair for the 1996 steering committee shortly.

Solomon/Knechel
Information/Action

Ira Solomon led a discussion of the timing of the next Executive Committee meeting. The consensus was that while holding the meeting on the day before the Section mid-year meeting would be ideal, this was not feasible given the Past Chair's dual role as head of the steering committee for the mid-year meeting. Consequently, the executive committee agreed to schedule its next meeting as a dinner meeting at Bally's Hotel in Las Vegas on Wednesday, January 18, 1995 starting at 4:00 p.m.. This date immediately precedes the CPE day before the mid-year meeting. In addition, it was agreed to have a second Executive Committee meeting to review the mid-year meeting. This meeting will be held as a breakfast meeting on Sunday, January 22, 1995. Robert Knechel agreed to make room arrangements for the two meetings, and to arrange to have appropriate meals delivered to the rooms.

Solomon
Information

Ira Solomon led a discussion on the proposed Committee on Future Audit, Attest and Assurance Services. The Executive Committee agreed that the committee's charge should include serving as a vehicle for communication between Auditing Section members and the Elliott committee of the AICPA to provide timely information flows and make the views of Section members known on these issues. It was also generally agreed that the committee members should be initially appointed for a two-year term. Ira Solomon requested Executive Committee members to provide him with suggested names for a committee chair and announced that he would appoint the chair shortly.

Solomon/Powell
Information/Action

Ira Solomon led a discussion of John Sennetti's report on membership trends. Sennetti's recommendation that new members should receive a membership document met with general favor. Ira Solomon agreed to forward the suggestion to Eric Hirst, new Membership Director. Tom Powell volunteered to be the Executive Committee liaison with Hirst on the membership document.

Powell
Information/Action

Tom Powell raised the issue of needing to formalize the Section's strategic planning process and a short discussion ensued. Tom Powell volunteered to prepare a report for consideration at the mid-year Executive Committee meeting on formalizing the strategic planning process.

The meeting adjourned at 9:10 a.m.

Minutes submitted by: Karen V. Pincus, Secretary/Treasurer

NOTES:

1. The Statement of Cash Receipts, Disbursements and Cash Balance was compiled from monthly financial reports received from the American Accounting Association national office. During fiscal year 1994, the American Accounting Association changed its information system. The changes went into effect on reports beginning in August 1993.

2. As of July 1994 (1993), there were 1,360 (1,451) US members and 435 (318) foreign members. As of July 1994, there were 1,617 full members (1190 US, 427 foreign) and 178 associate members (170 US and 8 foreign).

3. Journal subscriptions and sales of publications were accounted for in a single category before the Association changed its information system in August 1993.

4. The section, in conjunction with Price Waterhouse, held the second Audit Education Conference in February 1994. Registration fees for the conference were $7,150; $7,050 of funds contributed in a prior year by Price Waterhouse were used to pay hotel and food costs.

5. At the end of fiscal 1994, there were $7800 of unpaid disbursement requests ($7,500 for editorial support and $300 for regional CPE sessions expenses).

6. Miscellaneous disbursements for fiscal year 1994 consist primarily of UPS and postage charges not specifically related to distribution of the Auditing journal or section newsletter. The postage charges include allocated postage charges from the Association.

Auditing Section Home Page

The Webmaster

October 22, 1998