MINUTES OF THE EXECUTIVE COMMITTEE MEETING OF THE AUDITING SECTION OF THE AMERICAN ACCOUNTING ASSOCIATION
MEETING DATE: August 13, 1995
MEETING LOCATION: Orlando, Florida
IN ATTENDANCE: Robert Knechel, Karen Pincus, Tom Powell, Ira Solomon, Gerald Smith, Arnie Wright. Guests: Gary Holstrum, Ted Mock, Ray Whittington
The meeting was called to order at 2:10 p.m. Ira Solomon welcomed attendees and gave an overview of the agenda.
Wright/Powell
Information/Action
The minutes of the January 18, 1995; January 19, 1995; and January 22, 1995 Executive Committee meetings were discussed. Arnie Wright moved and Tom Powell seconded that: The minutes of the January 18, 1995; January 19, 1995; and January 22, 1995 Executive Committee meetings be approved. The motion carried unanimously.
Solomon
Information
Ira Solomon provided an overview of the annual business meeting and section luncheon. Urton Anderson and Jane Mutchler are the nominees for Chair-Elect and Joe Carcello and Karl Hackenbrack are the nominees for Secretary-Treasurer.
Wright
Information
Arnie Wright announced additional appointments for the next fiscal year. Robert Knechel will serve as historian and Dave Ricchiute will serve as Research Director. A report including the names of regional chairs and vice-chairs will be distributed at the business meeting.
Pincus/Powell/Knechel
Information/Action
Karen Pincus provided the treasurer's report on 1994-1995 and presented a proposed budget for 1995-1996 for discussion at the next Executive Committee meeting (copy attached). Karen Pincus agreed to provide Ira Solomon with a separate report of 1995 mid-year meeting costs for transmittal to the KPMG Peat Marwick Foundation. The Executive Committee discussed the issue of how much cash the section should retain. The consensus was that with the improvements in the Association's information system, it is now feasible to maintain a lower cash balance than has been maintained over the past several years. Karen Pincus agreed to communicate with the newly-elected Secretary-Treasurer to inform him on this issue. The proposed budget for the mid-year meeting was also discussed. Tom Powell moved and Robert Knechel seconded that: The budget for the mid-year meeting should include reimbursement of travel costs up to a maximum of $500 for each member of the Executive Committee and the Mid-Year Meeting Planning Committee. The motion passed unanimously.
Solomon/Pincus/Powell/Knechel
Information/Action
Ira Solomon presented a draft of an agreement with the KPMG Peat Marwick Foundation concerning support for the mid-year meeting. Karen Pincus suggested changes in the dates for reporting of costs. Tom Powell moved and Robert Knechel seconded that: The mid-year meeting agreement with the KPMG Peat Marwick Foundation be accepted as amended. The motion passed unanimously.
Mock
Information
Ted Mock reported on the progress of Auditing: A Journal of Practice and Theory. Discussion centered on efforts to reduce the cycle time for reviews and ethical issues, including dual submissions. Ira Solomon noted that the journal was the highest-rated section journal in the recent Association member survey and thanked Ted Mock for his contributions as editor.
Solomon
Information
Ira Solomon reported that the research-practice monograph is now in press. The monograph will be published by the AICPA in cooperation with the section. The section will receive 2,000 copies for distribution. Each member and key opinion leaders in practice will be mailed copies.
Knechel/Wright/Powell/Solomon
Information/Action
Robert Knechel presented a proposed draft of a policy statement for the selection of the editor of the section journal. Several minor changes to wording were discussed. Arnie Wright moved and Tom Powell seconded that: The policy statement for selection of the editor of the section journal be approved as amended. The motion passed unanimously. Per the policy statement, past-chair Ira Solomon will chair the nominations committee. Possible names for other committee members were suggested. Arnie Wright and Ira Solomon will speak with potential nominees as soon as possible.
Knechel/Pincus/Wright
Information/Action
Robert Knechel presented a proposed draft of a position description for the Past Chair. Several minor changes to wording were discussed. Karen Pincus moved and Arnie Wright seconded that: The position description for the Past Chair be approved as amended. The motion passed unanimously.
Wright/Pincus/Knechel
Information/Action
Arnie Wright presented a proposed draft of a position description for the Historian. Karen Pincus moved and Robert Knechel seconded that: The position description for the Historian be approved as drafted. The motion passed unanimously.
Solomon/Pincus/Powell
Information/Action
Ira Solomon presented a proposed draft of a position description for the Chair. Several minor changes to wording were discussed. Karen Pincus moved and Tom Powell seconded that: The position description for the Chair be approved as amended. The motion passed unanimously.
Pincus/Wright
Information/Action
Karen Pincus reviewed previous discussions of potential by-law amendments to split the Secretary-Treasurer position into two Executive Committee positions, change the Section fiscal year-end to match the Association's fiscal year-end, and move the section business meeting to the mid-year meeting. If time permits, these topics will be reintroduced at the August 15 business meeting. Arnie Wright agreed to establish a by-law changes committee to consider these and other potential by-law changes and oversee the process provided for by-laws changes.
Solomon
Information
Ira Solomon presented the report of the CPE committee, chaired by Jim Yardley. The consensus of the Executive Committee was that the committee should continue to explore the questions raised in its report.
Holstrum/Whittington/Knechel/Wright
Information/Action
Gary Holstrum and Ray Whittington presented a report from the Future Audit, Attest and Assurance Services Task Force. Given the scheduled date for the final report of the Elliott Committee, Gary Holstrum requested that the Task Force's charge be modified to extend the date of the task force's final report by one year. After the report was completed, Robert Knechel moved and Arnie Wright seconded that: The date of the expected final report of the Future Audit, Attest and Assurance Services Task Force is modified to extend it by one year to August 1997. The motion passed unanimously.
The meeting adjourned at 6:00 p.m.
Minutes submitted by: Karen V. Pincus
Secretary/Treasurer
American Accounting Association Auditing Section
Statement of Cash Receipts, Disbursements and Cash
Balance (Note 1)
| ACTUAL, FY95: 7/1/94-6/30/95 | BUDGET, FY95 | ACTUAL, FY94 | PROPOSED BUDGET, FY96 | |
| RECEIPTS: | ||||
| Membership Dues (Note 2) | $24,195.37 | $25,000 | $25,199 | $25,000 |
| Journal Subscriptions/Sales | 11,577.30 | 16,000 | 10,616 | 16,000 |
| Sales of Publications | 84,506 | 3,136 | ||
| Journal Submission Fees | 3,600.00 | 3,800 | ||
| CPE (net) | 1,110.64 | 1,500 | 1,528 | 1,500 |
| Contributions/Reimbursements (Note 3) | 15,523.91 | 9,500 | 9,575 | 25,000 |
| Conf/Meeting Registration (Note 4) | 14,740.00 | 44,000 | 7,150 | 15,000 |
| Miscellaneous Receipts | (25.00) | 0 | 25 | 0 |
| TOTAL RECEIPTS | $71,567.28 | $96,000 | $61,029 | $82,500 |
| DISBURSEMENTS: | ||||
| Awards | 438.71 | $1,000 | $465 | $ 500 |
| A:JP&T--Printing/Distribution | 20,513.51 | 30,000 | 36,498 | 30,000 |
| --Editorial Support (Note 5) | 15,000.00 | 22,500 | 7,500 | 22,500 |
| Newsletter: The Auditor's Report | 6,208.56 | 6,500 | 6,111 | 6,500 |
| Conventions/Meetings | 21,096.58 | 44,000 | 8,542 | 25,000 |
| Miscellaneous (Note 6) | 5,474.31 | 1,000 | 1,065 | 1,000 |
| TOTAL DISBURSEMENTS | $68,731.67 | $105,000 | $60,181 | $85,500 |
| Increase (Decrease) | $2,835.61 | $(9,000) | $848 | $(3,000) |
| Beginning Cash Balance | $63,621.50 | $63,621 | $62,773 | $66,457 |
| Ending Cash Balance | $66,457.11 | $54,621 | $63,621 | $63,457 |
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. The Association's fiscal year ends in August; audit adjustments, if any, to Section records are made in September.
2. As of July 1995 (1994), there were 1,329 (1,360) US members and 445 (435) foreign members. As of July 1995 (1994), there were 1,608 (1,617) full members, including 1168 (1190) US, and 440 (427) foreign; there were 166 (178) associate members, including 161 (170) US and 5 (8) foreign.
3. Contributions received during 1995 included $11,023.91 from the Deloitte and Touche Foundation to cover the costs of the 1993 supplement to Auditing: A Journal of Practice and Theory. Contributions budgeted for 1996 include those related to the 1994 journal supplement and the KPMG Peat Marwick pledge to cover the costs of the mid-year meeting.
4. The first mid-year Section meeting was held in January 1995 in Las Vegas, Nevada. The mid-year meeting is supported by registration fees and a grant from the KPMG Peat Marwick Foundation.
5. At the end of fiscal 1995, there was an unpaid disbursement request of $7500 for editorial support.
6. Miscellaneous disbursements for fiscal 1995 included $3,930 of travel reimbursements for a meeting of the Future Audit, Attest & Assurance Services Task Force, $225 photography costs for the mid-year meeting, 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 and costs for mailing papers to be reviewed for the mid-year meeting.
AUGUST 14, 1995
Orlando, Florida
Chairperson Ira Solomon welcomed approximately 150 members to the Auditing Section's annual Business Meeting on August 14, 1995 in Orlando, Florida.
As the first order of business, Robert Knechel presented the report of the nominating committee and called for nominations from the floor for Chair-Elect and Secretary-Treasurer. There were no nominations from the floor and the nominations were closed. Jane Mutchler was elected Chair-Elect and Karl Hackenbrack was elected Secretary-Treasurer.
Ira Solomon recognized a number of members and committees for their contributions to section activities during the past year and reported on key events of the year.
Tim Bell presented a report of the activities of the Research Committee. The monograph titled Audit Practice, Research and Education--A Productive Collaboration is being published and distributed by the AICPA in cooperation with the section. The monograph is now in press. Section members will receive a copy in the mail within the next month. Additional copies will be distributed to key opinion leaders in the practice community. Potential classroom uses of the monograph were discussed. Don Kleinmutz announced the availability of a monograph on "Judgment and Decision-Making Research in Accounting and Auditing," which also offers potential classroom use.
Karen Pincus presented a Treasurer's report, including a Statement of Cash Receipts, Disbursements and Cash Balance for the fiscal year ended June 30, 1995 (copy attached). The proposed budget for 1995-1996 was also discussed, including the impact on the budget of the mid-year meeting. The budget will be finalized by the 1996 Executive Committee at its August 15 meeting.
Ted Mock presented an editor's report on the section journal and thanked section members for their contributions. Ira Solomon noted that in the recent American Accounting Association member survey, Auditing: A Journal of Practice and Theory was the highest-rated section journal for both visibility and quality. Al Michenzi presented a report on the section newsletter. Ira Solomon expressed the section's gratitude to Larry Ponemon and Al Michenzi for their work as editor and co-editor of the newsletter and introduced Jean Bedard as the new newsletter editor.
Gary Holstrum presented a report of the activities of the Future Audit, Attest and Assurance Services Task Force and outlined future plans. Copies of the task force's interim report are available upon request to Gary Holstrum at the University of South Florida. Members were reminded that Robert Elliott would be speaking on this topic at the plenary session on Wednesday August 16.
Arnie Wright, the incoming Chairperson, discussed plans for the coming year and distributed reports from regional chairpersons, a list of new appointments, copies of new policies for the "Outstanding Auditing Educator" and "Distinguished Service in Auditing" awards, and a summary of the strategic plan for the next three years. His agenda for the coming year focuses on commencing initiatives to foster the collaboration between research and practice; placing section history, policies and procedures on the Internet; and considering possible by-law changes and the role of the mid-year meeting in section governance.
The "Town Meeting" portion of the meeting included discussions of how to meet the needs of international members of the section; the pros and cons of publishing a proceedings from the mid-year meeting, possibly as a journal supplement; and the turnaround time for reviews for papers submitted to Auditing: A Journal of Practice and Theory and the role of practice reviewers.
Jack Krogstad announced plans for the section's 1996 mid-year meeting to be held January 25-27, 1996 in San Antonio, Texas. A call for papers and requests for volunteers for reviewers, session chairs and discussants were distributed. The submission deadline for papers is September 15. Members who wish to volunteer as reviewers, session chairs or discussants or wish to contribute ideas for special sessions were asked to contact Jack Krogstad at Creighton University as soon as possible.
The meeting was adjourned at 11:50 a.m. to the Auditing Section luncheon where David A. Wilson, President of the Graduate Management Admission Council, was the featured speaker.
Submitted by:
Karen V. Pincus, Secretary-Treasurer
American Accounting Association Auditing Section
Statement of Cash Receipts, Disbursements and Cash
Balance (Note 1)
| ACTUAL, FY95: 7/1/94-6/30/95 | BUDGET, FY95 | ACTUAL, FY94 | |
| RECEIPTS: | |||
| Membership Dues (Note 2) | $24,195.37 | $25,000 | $25,199 |
| Journal Subscriptions/Sales | 11,577.30 | 16,000 | 10,616 |
| Sales of Publications | 845.06 | 3,136 | |
| Journal Submission Fees | 3,600.00 | 3,800 | |
| CPE (net) | 1,110.64 | 1,500 | 1,528 |
| Contributions/Reimbursements (Note 3) | 15,523.91 | 9,500 | 9,575 |
| Conf/Meeting Registration (Note 4) | 14,740.00 | 44,000 | 7,150 |
| Miscellaneous Receipts | -25.00 | 0 | 25 |
| TOTAL RECEIPTS | $71,567.28 | $96,000 | $61,029 |
| DISBURSEMENTS: | |||
| Awards | 438.71 | $1,000 | $465 |
| A:JP&T--Printing/Distribution | 20,513.51 | 30,000 | 36,498 |
| --Editorial Support (Note 5) | 15,000.00 | 22,500 | 7,500 |
| Newsletter: The Auditor's Report | 6,208.56 | 6,500 | 6,111 |
| Conventions/Meetings | 21,096.58 | 44,000 | 8,542 |
| Miscellaneous (Note 6) | 5,474.31 | ,1000 | 1,065 |
| TOTAL DISBURSEMENTS | $68,731.67 | $105,000 | $60,181 |
| Increase (Decrease) | $2,835.61 | $(9,000) | $848 |
| Beginning Cash Balance | $63,621.50 | $63,621 | $62,773 |
| Ending Cash Balance | $66,457.11 | $54,621 | $63,621 |
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. The Association's fiscal year ends in August; audit adjustments, if any, to section records are made in September.
2. As of July 1995 (1994), there were 1,329 (1,360) US members and 445 (435) foreign members. As of July 1995 (1994), there were 1,608 (1,617) full members, including 1168 (1190) US, and 440 (427) foreign; there were 166 (178) associate members, including 161 (170) US and 5 (8) foreign.
3. Contributions received during 1995 included $11,023.91 from the Deloitte and Touche Foundation to cover the costs of the 1993 supplement to Auditing: A Journal of Practice and Theory. Contributions budgeted for 1996 include those related to the 1994 journal supplement and the KPMG Peat Marwick pledge to cover the costs of the mid-year meeting.
4. The first mid-year Section meeting was held in January 1995 in Las Vegas, Nevada. The mid-year meeting is supported by registration fees and a grant from the KPMG Peat Marwick Foundation.
5. At the end of fiscal 1995, there was an unpaid disbursement request of $7500 for editorial support.
6. Miscellaneous disbursements for fiscal 1995 included $3,930 of travel reimbursements for a meeting of the Future Audit, Attest & Assurance Services Task Force, $225 photography costs for the mid-year meeting, 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 and costs for mailing papers to be reviewed for the mid-year meeting.
MINUTES OF THE EXECUTIVE COMMITTEE MEETING OF THE AUDITING SECTION OF THE AMERICAN ACCOUNTING ASSOCIATION
MEETING DATE: August 15, 1995
MEETING LOCATION: Orlando, Florida
IN ATTENDANCE: Executive Committee Members: Arnie Wright, Jane Mutchler, Tom Powell, Karl Hackenbrack, Ira Solomon, Robert Knechel. Other: Gerald Smith (past historian).
The meeting was called to order at 7:10 a.m.
Wright
Information/Action
Arnie Wright welcomed the new members of the Executive Committee and described briefly their responsibilities. Arnie will provide new members position descriptions.
Solomon/all members of the Executive Committee
Information/Action
Ira Solomon led a discussion on the composition of the Editor Nominations Committee. It was agreed that Arnie Wright has the responsibility to appoint committee members. Individual members of the Executive Committee suggested several potential committee members, and it was agreed that all members of the Executive Committee provide Arnie and Ira a list of potential Editor Nominations Committee members during the week of August 21st.
Hackenbrack
Action
Karl Hackenbrack agreed to distribute a directory of the Section's Executive Committee.
Solomon/all members of the Executive Committee
Information/Action
Ira Solomon indicated that the Committee needs to identify target individuals to receive free copies of the monograph "Auditing Practice, Research, and Education: A Productive Collaboration." Ira agreed to compile and forward a list of target individuals to Tim Bell. All Executive Committee members agreed to forward names of target individuals to Ira and Arnie by September 15th.WrightInformation Arnie Wright provided an overview of the Section's strategic plan (attached to these minutes). Arnie emphasized his commitment to the communication element of the "New Activities for 1995-96" component of the strategic plan.
Knechel/Smith/Powell
Information/Action
Robert Knechel (aka WebMaster) provided an update on his efforts to store and distribute electronically Section materials. Gerald Smith noted that we may need to appropriate funds to convert the Section's operating manual to an electronic medium. We discussed briefly what aspects of the manual to scan. Gerald agreed to provide Robert an inventory of the manual's contents before passing the manual on to Robert. Tom Powell agreed to provide Executive Committee members a list of accounting/auditing resources on the internet. We discussed briefly the likely contents of the Section's internet homepage. Robert agreed to have something up by the mid-year meeting and to report on progress to date and future opportunities at the mid-year Executive Committee meeting.
Wright/Hackenbrack
Information/Action
Arnie Wright described briefly the Section's financial position with particular attention to the Section's strong cash position. Karl Hackenbrack agreed to discuss with Karen Pincus her views and to report on the minimum cash balance needs at the mid-year Executive Committee meeting.
Wright
Information/Action
Arnie Wright presented a proposed budget (attached to these minutes). Discussion of what is a reasonable reimbursement for the editor of Auditing: A Journal of Practice and Theory ensued. Ira Solomon moved and Jane Mutchler seconded that: The 1995-1996 budget be approved. The motion passed unanimously.
Wright
Information
Arnie Wright provided an update on the activities of the 1996 Mid-Year Meeting Steering Committee. Issues discussed included (1) increasing the number of education related sessions, (2) reimbursement of travel expenses for Executive and Steering Committee members, and (3) how to the increase the participation of key individuals at the mid-year meeting.
Wright
Information/Action
Arnie Wright led a discussion of potential members of the 1997 Mid-Year Meeting Steering Committee. There was a consensus among the Executive Committee members that the Steering Committee chair be a member of the prior year's Steering Committee and continue as a committee member for the subsequent year. Arnie also led a discussion on site selection for the 1997 Mid-Year Meeting. The Executive Committee members expressed a preference for Florida. Arnie agreed to contact Linda Stafford for bids on facilities in three Florida locations.
Wright/Mutchler
Information/Action
Arnie Wright shared a draft of new proposed guidelines for selecting the Outstanding Dissertation in Auditing Award. The draft was prepared by the 1994-95 Outstanding Dissertation Award Committee. Issues discussed included: submission comparability, submission completeness, and blind review process. Jane Mutchler agreed to redraft the Award Committee's report for the mid-year Executive Committee meeting.
Wright
Information/Action
Arnie Wright led a discussion of the perception among some that the review process for Auditing: A Journal of Practice and Theory is too cumbersome and not timely. The role and involvement of the practitioner reviewer was discussed as was the need for more information. Arnie agreed to request from the Director of Publications relevant reports on the other Association journals, to distribute those reports to all Auditing Section Executive Committee members, and to report on such inquiries at the Executive Committee's mid-year meeting.
Wright
Information/Action
Arnie Wright led a discussion on the benefits of changing the titles of the Section officers from Chair/Vice-Chair to President/Vice-President. Tom Powell moved and Ira Solomon seconded that: The Auditing Section's By-Laws Committee draft necessary changes to the by-laws to change the title of Chair to President and Vice-chair to Vice-President. The motion passed unanimously.
Solomon
Information/Action
Ira Solomon led a discussion on the desire to have a member of the Executive Committee attend the Future Audit, Attest, and Assurance Services Task Force in an ex officio capacity. It was agreed that the past Chairperson serve that role.
Wright
Information/Action
Arnie Wright led a brief discussion on the need to address four Section by-law changes: (1) split the Secretary/Treasurer position into two positions, (2) move elections from the August business meeting to the mid-year meeting, (3) change the Section's fiscal year end from June 30th to August 31st, and (4) change the titles of the Section officers from Chair/Vice-Chair to President/Vice-President. These changes are to be referred to the Section's By-Laws Committee to be appointed by Arnie Wright with a rough draft of each by-law change available for the Executive Committee's mid-year meeting and final drafts available for the August meeting. It was suggested that Robert Knechel and Gerald Smith be appointed to the Section's By-Laws Committee.
Powell
Action
Tom Powell agreed to draft a mission statement for the Section's Practice Advisory Council and led a discussion of the draft at the Executive Committee's mid-year meeting.
Wright
Information/Action
The next Executive Committee meeting will be at the Section's mid-year meeting: Thursday January 25th from 9:00 to noon and Sunday January 28th from 9:00 to 11:00 a.m.
The meeting adjourned at 9:10 a.m.
Minutes submitted by: Karl Hackenbrack Secretary/Treasurer
October 21, 1998
