MEETING DATES: August 16-18, 1998
MEETING LOCATION: New Orleans, Louisiana
MEETING DATE: August 16, 1998
MEETING LOCATION: New Orleans, Louisiana
IN ATTENDANCE: Executive Committee Members: Barry Cushing, Tim Bell, Joe Carcello, Jane Mutchler, Lisa Koonce, and Dennis Schueler. Guests: Jerry Sullivan (Incoming Vice-President of Practice), Stan Biggs (Mid-Year Meeting Program Committee chair), Jean Bedard (Incoming Secretary and Editor, The Auditors' Report), Faye Borthick (Chair, Communications Committee), Morley Lemon (University of Waterloo).
The meeting was called to order at 8:10 a.m.
Cushing/Bell
Information/Action
Barry Cushing led a discussion about the need for additional strategic planning for the Section. Tim Bell, incoming President, agreed to think about how to proceed with the strategic planning efforts and to consider the need for a task force to implement strategic planning actions and initiatives.
Mutchler/Carcello
Information/Action
Jane Mutchler led a discussion about the possibility of the Director of Education and the Director of Research of the Section serving on the Executive Committee as non-voting members, similar to that in the AAA. Discussion followed as to whether these positions would continue to be appointed (or would become contested elections) and whether they would entail voting rights.
Jane Mutchler moved and Joe Carcello seconded that: The Director of Education and the Director Research become members of the Executive Committee. The motion passed unanimously.
Cushing/Carcello/Mutchler
Information/Action
Barry Cushing led a discussion about whether to have the Director of Education and the Director of Research become elected members of the Executive Committee, if in fact the members of the Section approve a by-law change consistent with the previous motion. Joe Carcello moved and Jane Mutchler seconded that: If the Director of Education and the Director of Research are to become members of the Executive Committee, then they shall be selected on the basis of the election process of the Section. The motion failed with two yes and three no votes.
Jane Mutchler moved that: The Director of Education and the Director of Research become voting members of the Executive Committee. There was no second of the motion so it failed to pass.
Barry also agreed to write proposed by-law changes to add the Director of Education and Director of Research to the Executive Committee as ex-officio and non-voting members.
Mutchler/Cushing
Information/Action
Jane Mutchler led a discussion about the possibility of changing election of Section offers from contested to uncontested. The Committee agreed that Barry Cushing would write up the pro's and con's associated with contested elections for Section officers and then send this list out to the Section members via email and also via a posting on the Section's home page.
Mutchler/Cushing/Bell
Information/Action
Jane Mutchler led a discussion about the possibility of setting up five-person selection committees for the Outstanding Educator and Distinguished Service awards. The chair of the Outstanding Educator committee would be the Past-President, while the Vice-President of Practice would chair the Distinguished Service Award committee. Jane Mutchler moved and Tim Bell seconded that: A five-person selection committee be appointed for the Outstanding Educator Award, with the Past-President of the Auditing Section as the chairman. The motion passed unanimously.
Jane Mutchler moved and Tim Bell seconded that: A five-person selection committee be appointed for the Distinguished Service Award, with the Vice-President of Practice as chairman. The motion passed unanimously.
Krogstad/Cushing
Information/Action
Barry Cushing requested that Jack Krogstad identify and suggest potential corrections to all inconsistencies in the Section's current by-laws and to bring the proposed changes to the next Executive Committee meeting (January 1999 Mid-Year Meeting). Jack agreed to follow up.
Carcello/Mutchler
Information/Action
Joe Carcello led a discussion about the possibility of instituting an Auditing Section Outstanding manuscript award, similar to the AAA's Notable Contributions to Accounting Literature Award. The award would be limited to auditing-related publications and those published within the previous five years. Joe Carcello moved and Jane Mutchler seconded that: The Auditing Section begin a Notable Contributions to Auditing Literature Award for an outstanding auditing manuscript published within the last five years. The Award would be given no more often than annually. The motion passed unanimously.
Joe Carcello agreed to write up the details surrounding the award and a policy statement. The Committee agreed that the selection committee would involve five persons with the Section's Director of Research serving as chairman.
Biggs
Information/Action
Stan Biggs reported on the progress of the 1999 Mid-Year Meeting to be held in Atlanta. Stan agreed to check with the AAA about the possibility of sending email notification about the Mid-Year meeting so that individuals can register as soon as possible.
Cushing/Mutchler/Carcello
Information/Action
Barry Cushing led a discussion about the timing of the recognition given to the Section's award winners. Jane Mutchler moved and Joe Carcello seconded that: The Section move the recognition given to Section award winners (i.e., Outstanding Educator, Distinguished Service, Outstanding Dissertation, and Notable Contributions to Auditing Literature) from the Annual meeting to the Mid-Year meeting. The motion passed unanimously. The Committee agreed that the next public recognition of the award winners be at the January 2000 Mid-Year meeting.
Bedard/Cushing/Koonce
Information/Action
Jean Bedard led a discussion about whether the Section should continue its policy of only disseminating The Auditors' Report via electronic publishing on the Web. Tim Bell moved and Lisa Koonce seconded that: The Auditors' Report be disseminated via hard copy to Section Members, while the electronic copy continue to be available on the Section's home page beginning with the Fall 1998 issue. The motion passed unanimously. The Committee agreed that the Executive Committee would continue to work toward full website dissemination of The Auditors’ Report but at a reduced pace.
Bedard
Information/Action
Jean Bedard led a discussion about having the Editor of The Auditors' Report attend the Executive Committee meetings (as an ex-officio and non-voting member) to facilitate publication of the newsletter. The Committee agreed that this was not necessary and that the Secretary should be more diligent in sending the Executive Committee's minutes to the Editor of The Auditors' Report.
Cushing/Mutchler
Information/Action
Barry led a discussion about the Membership Committee's report that Section membership has been declining. Jane Mutchler reported that Sarasota has been re-designing their reporting systems and that their prior membership numbers were probably not accurate. The latest membership numbers (July 1998) are purported to be accurate, although it was noted that many Section members sign on in July and August, so that the July 1998 numbers may not reflect the most up-to-date enrollment.
Krogstad/Schueler/Mutchler/Bell
Information/Action
Jack Krogstad led a discussion about the possibility of the Section sending the Section publications to approximately 50 key practitioners in the profession. Discussion centered around how the list of 50 practitioners would be identified, and it was agreed that the Section's Standards Committee would be charged with identifying those 50 names. Dennis Schueler moved and Jane Mutchler seconded that: The Section send copies of the Section’s publications to approximately 50 practitioners in the profession and that the Section's Standards Committee identify those 50 individuals. The motion passed unanimously. Tim Bell agreed to send a cover letter to the 50 practitioners once the list was available.
Carcello/Bell
Information/Action
Joe Carcello led a discussion about the possibility of the Membership Committee (1) acting on their recommendation that the Section send invitations to those members listed in Hasselback as having an auditing interest, but who are not currently members of the Section, and (2) surveying individuals who have discontinued membership in the Section to learn more about their reasons for the discontinuance. Tim Bell agreed to prepare a list of members as of 1997 and to have the Membership Committee compare it to a current 1998 member list prepared by Sarasota. The Committee agreed to have the Membership Committee work on (1) and (2) above.
Koonce/Schueler/Carcello
Information/Action
Lisa Koonce led a discussion about the possibility of offering a reduced rate to PhD students to attend Mid-Year meetings, another recommendation of the Membership Committee. Dennis Schueler moved and Joe Carcello seconded that: The Section allow PhD students to attend Section Mid-Year Meetings at a reduced rate of $25 with advance registration. If the students register after the advance registration date, then they would be required to pay the full registration fee. The motion passed unanimously. Lisa Koonce agreed to inform Stan Biggs, 1999 Program Committee Chair, of this policy so that he can alter the registration form appropriately. Tim Bell agreed to contact universities in the Southeast Region to be more proactive about getting students to attend the 1999 Mid-Year meeting.
Lemon/Cushing/Schueler
Information/Action
Morley Lemon led a discussion about the Section possibly co-sponsoring the 1999 Waterloo Audit Symposium. Discussion centered on possible themes for the conference, how the Editorial review process would work, etc. Joe Carcello moved and Dennis Schueler seconded that: The Section co-sponsor the 1999 University of Waterloo Audit Conference in accordance with the Section's policy statement and in consultation with the Auditing: A Journal of Practice and Theory editor. The motion passed unanimously. (One Section officer was absent during this vote.)
Cushing/Bell
Information/Action
Tim Bell led a discussion about the possibility of having a CPE session at the 1999 Mid-Year meeting sponsored by KPMG Peat Marwick. The session would pertain to KPMG's new Business Measurement Process. The CPE session would be free to anyone who wanted to attend and KPMG would pay the Section for the lost revenues from not having a Section revenue-generating CPE session. The Section agreed to the proposal.
Carcello/Schueler
Information/Action
Joe Carcello reported on the Section's finances. See Treasurer's report in Appendix to these minutes. Dennis Schueler moved and Tim Bell seconded that: The Section accept the Treasurer's report. The motion passed unanimously.
The Committee discussed having a policy statement about the appropriate level of cash balance for the Section. Dennis Schueler agreed to obtain a copy of the Institute of Internal Auditors' policy statement on cash management and to forward it to Barry Cushing or Tim Bell.
Carcello/Bell
Information/Action
Joe Carcello led a discussion about whether the Section should raise its Section dues to members and institutions. Joe presented information (below) about the dues of the Section relative to other AAA sections.
Institutions Members
Auditing: A Journal of Practice and Practice $25 $15
Behavioral Research in Accounting $20 $15
Journal of Management Accounting Research $35 $15
Journal of Information Systems $15 $20
Journal of the American Taxation Association $30 $20
Financial Accounting Section (no journal) $20
International Section (no journal) $20
Joe Carcello led a discussion about raising the institutional rate by $5 and considering using that money to explore the possibility of distance learning for Section members. Tim Bell moved and Joe Carcello seconded that: The Section raise the institutional rate from $25 to $30. The motion passed unanimously.
Carcello
Information/Action
Joe Carcello, Annual Meeting Program Director, reported on the number of auditing paper submissions to the 1998 AAA annual meeting. The Section had more submissions (90) than did any other Section other than the Financial Reporting section and, thus, had more AAA meeting sessions than any other sections except Financial Reporting. Joe Carcello led a discussion about the need to have the next Annual Meeting Program Director identified on a timely basis so that an effective transition could occur. The Committee agreed that an Assistant to the Annual Meeting Program Director be appointed right away. This individual would rotate into the Director’s position the following year.
Borthick/Bell/Carcello
Information/Action
Faye Borthick, Chair of the Communications Committee, led a discussion about the activities and recommendations of the Communications Committee. One recommendation was that the Section experiment with putting some articles from Auditing: A Journal of Practice and Theory on the Section's web page. To pay someone to put the sample articles on the home page on a trial basis, the Task Force requested $250 from the Section. Tim Bell moved and Joe Carcello seconded that: The Section provide $250 of Section funds to the Communications Committee so that they can put 100 pages of Auditing: A Journal of Practice and Theory on the Section home page. The motion passed unanimously.
Borthick
Information/Action
Faye Borthick led a discussion about the possibility of (1) submissions of papers and (2) reviews of papers for Auditing: A Journal of Practice and Theory being handled electronically (via email). The Committee agreed to put on the Section's home page the "white paper" prepared by the Communications Committee which outlines this and other ideas.
Borthick/Schueler/Mutchler
Information/Action
Faye Borthick led a discussion about the possibility of having Sarasota re-develop and maintain the Section's home page. Dennis Schueler moved and Jane Mutchler seconded that: The Section begin immediately having the AAA in Sarasota re-design and maintain the Section's home page. The motion passed unanimously. The Committee agreed to designate an Editor and Associate Editor to determine and monitor the content of the home page.
Bell
Information/Action
Tim Bell led a discussion about the year 2000 Mid-Year meeting. He reported that it would be held in Newport Beach, California. Arnie Wright is the designated Program Committee chair.
Mutchler
Information/Action
Jane Mutchler updated the Committee on the Section's joint work with the Institute of Internal Auditors' on independence. She reported that the committee's work was on schedule and under budget. The Executive Committee discussed the need to have a panel at the Mid-Year meeting reporting on the progress of the committee's work. Jane Mutchler agreed to contact Stan Biggs about this issue.
Mutchler
Information/Action
Jane Mutchler led a discussion about the possibility of having a "teaching ideas database" for the Auditing Section. The AAA was exploring this idea and was interested in having the Auditing Section implement the idea. The Committee agreed to have the Education Committee further explore this issue.
The meeting adjourned at 5:15 p.m.
Minutes submitted by: Lisa Koonce, Secretary
Appendix
Treasurer’s Report
|
1998 Annual Meeting |
|||||
|
American Accounting Association - Auditing Section |
|||||
|
Statement of Cash Receipts, Disbursements, and Cash Balance (Note 1) |
|||||
|
FY 97: |
10 mo. Period |
||||
|
9/1/96-8/31/97 |
9/1/97-6/30/98 |
||||
|
(ACTUAL) |
(ACTUAL) |
||||
| RECEIPTS: | |||||
| Membership Dues (Note 2) |
$ 23,438.50 |
$ 17,036.50 |
|||
| Journal Subscriptions |
12,362.25 |
12,575.00 |
|||
| Sales of Publications/Royalties (Note 3) |
1,413.36 |
12,117.43 |
|||
| Journal Submission Fees |
4,515.00 |
2,625.00 |
|||
| CPE (net) |
2,401.09 |
770.77 |
|||
| Reimbursements (Note 4) |
7,295.42 |
21,222.42 |
|||
| Mid-Year Meeting Registration |
16,620.00 |
17,410.00 |
|||
| Miscellaneous Receipts |
5.75 |
- |
|||
| TOTAL RECEIPTS |
$ 68,051.37 |
83,757.12 |
|||
| DISBURSEMENTS: | |||||
| Awards |
$ 1,033.09 |
- |
|||
| A:AJPT -- Printing / Distribution (Note 5) |
16,958.93 |
24,317.75 |
|||
| A:AJPT -- Editorial Support |
15,000.00 |
15,000.00 |
|||
| Newsletter: The Auditor's Report |
6,928.82 |
2,941.45 |
|||
| Mid-Year Meeting |
23,880.92 |
29,193.10 |
|||
| Miscellaneous Expenses (Note 6) |
1,595.37 |
972.16 |
|||
| TOTAL DISBURSEMENTS |
$ 65,397.13 |
72,424.46 |
|||
| Cash Increase (Decrease) |
$ 2,654.24 |
11,332.66 |
|||
| Beginning Cash Balance |
49,549.31 |
52,203.55 |
|||
| Ending Cash Balance |
52,203.55 |
63,536.21 |
|||
| NOTES: | |||||
| 1. The Statement of Cash Receipts, Disbursements, and Cash Balance was compiled from the | |||||
| monthly financial reports received from the American Accounting Association national office. | |||||
| 2. As of June 30, 1998, there were 1,195 U.S. members and 422 foreign members; 1,473 were | |||||
| full members and 144 were associate members. As of August 31, 1997, there were 1,264 | |||||
| U.S. members and 440 foreign members; 1,561 were full members and 143 were associate | |||||
| members. | |||||
| 3. The increase from the prior year was due to royalty receipts from the Copyright Clearance | |||||
| Center related to articles published in AUDITING: A JOURNAL OF PRACTICE & THEORY. | |||||
| 4. KPMG Peat Marwick Foundation reimbursement of the 1998 mid-year meeting deficit | |||||
| ($7,609.55) and reimbursement of cash advance ($4,000) to the 1999 mid-year meeting | |||||
| plenary speaker (Michael Novak). The remaining balance, $9,612.87, represented a | |||||
| reimbursement to the Section from the University of Waterloo for the costs associated | |||||
| with publishing the 1996 supplement of A:AJPT. | |||||
| 5. The following issues of A:AJPT were published during the 97-98 FY: Spring 97, | |||||
| Fall 97, and Spring 98. | |||||
| 6. Miscellaneous expenses for the first 10 months of FYE 8-31-98 includes $749 for postage. | |||||
MEETING DATE: August 18, 1998
MEETING LOCATION: New Orleans, Louisiana
IN ATTENDANCE: Executive Committee Members: Tim Bell, Barry Cushing, Karen Pincus, Joe Carcello, Jack Krogstad, Jean C. Bedard. Guest: Tom Powell (Chair, Practice Advisory Council)
The meeting was called to order at 7:05 AM.
Bell
Information/Action
Tim Bell brought the meeting to order, and welcomed the new officers: Karen Pincus, the incoming Vice President-Academic and President-Elect, and Jean Bedard, the incoming Secretary. Tim announced that he and Barry Cushing are the Auditing Section’s AAA Council representatives for 1998-99. The Executive Committee liaisons to the Section’s committees and activities are as follows:
Tim Bell (President): Midyear Meeting Program Committee, Annual Meeting Program Committee, Editor of Auditing: A Journal of Practice and Theory
Karen Pincus (Vice President – Academic and President-Elect): Outstanding Dissertation in Auditing and Dissertation Chair Award Committees, Regional Chairs
Jerry Sullivan (Vice-President – Practice): Auditing Standards Board Liaison Committee, Practice Advisory Council, Distinguished Service in Auditing Award Committee
Barry Cushing (Past President): Nominationsng Committee, Research Committee, Outstanding Auditing Educator Award Committee, Notable Contributions to Auditing Literature Award Committee
Jean Bedard (Secretary): Membership Committee, Editor of The Auditors’ Report, Communications Committee, Web Editor
Joe Carcello (Treasurer): Education Committee, CPE Committee
In addition to these liaisons, Barry Cushing as Past President will chair the Outstanding Educator Award Committee, and Jerry Sullivan as Vice President-Practice will chair the Distinguished Service Award Committee. The Section’s new Notable Contribution to Auditing Literature Award will be selected by a committee appointed by the President-Elect.
Bell/Bedard
Information/Action
Tim Bell asked Jean Bedard to rewrite the policy for the Outstanding Dissertation Award , given to reflect the change in timing of the Award approved by the Executive Committee on August 16. The new policy should indicate that the candidates must submit their materials by May 1. Also, the policy should now specify that eligibility for the award includes all who have finished their dissertations within the preceding two calendar years.
Bell/Pincus/Carcello
Information/Action
The Executive Committee discussed the issue of whether to have the term of the Editor of The Auditor’s Report extend for two years instead of three, with an Associate Editor appointed each year to become Editor the following year. Tim Bell asked Karen Pincus to discuss this issue with Gary Braun, the current Editor. Joe Carcello noted that the position of Annual Meeting Program Director should be handled similarly. The Executive Committee agreed that in the future, the term of the Annual Meeting Program Director will be for two years. Each year, the President-Elect will appoint an Assistant Director, who will assist the Director with the upcoming Annual Meeting program, and serve as the Program Director in the following year.
Bell/Carcello/Cushing
Information/Action
Tim Bell asked Joe Carcello to draft a policy statement for the Notable Contribution to Auditing Literature Award. As voted by the Executive Committee on August 16, eligibility for the Notable Contributions Award requires that an auditing-related article must have been published within the past five years and at least one author must be a member of the Auditing Section. Joe Carcello asked whether the policy statement should include a provision that members of the Executive Committee are excluded from consideration for the award during their terms of office. Members of the Nominating Committee for the Notable Contributions Award will be appointed each year by the President-Elect. The Director of Research may be designated as the Chair of this Committee by the President-Elect, or may serve as a member of the Committee. Members of the Executive Committee are excluded from eligibility for the Award during their terms of office.
Bell/Pincus
Information/Action
Tim Bell circulated the Section’s 1998-99 Roster, noting that Karen Pincus will appoint members of the three award committees, in addition to new appointments to replace other individuals in the Roster whose terms expire in 1999. Committee charges and lengths of terms were reviewed last year, and are contained in the Operating Manual, Section I, Part F. This document should be used as the most current compilation of this information.
Cushing
Information/Action
Barry Cushing reported on the status of officer and Editor nominations. The Nominations Committee will develop a list of 6 to 10 candidates for Vice President-Academic and Treasurer. Following ranking of and contact with the individuals chosen by the Committee, the final set of two nominees for each office will appear in the Fall issue of The Auditor’s Report. Also, the Nominating Committee for the Editor of Auditing: A Journal of Practice and Theory has a preliminary list of 12 to 15 nominees, which they will begin contacting soon. Two or more final candidates will be submitted to the Executive Committee prior to the Midyear Auditing Section Meeting. Discussion ensued of the stipend to be paid to the Editor to offset expenses. The amount of this payment has been a subject of negotiation with prior Editors-elect.
Cushing
Information
Barry Cushing reported that he had spoken to Bill Felix about the proposal that the Auditing Section sponsor the Waterloo Audit Symposium in the Autumn of 1999. Bill spoke quite favorably about his interactions with the Waterloo faculty related to the
Section’s recent sponsorship of the 1998 Waterloo Audit Symposium, and he encouraged the Executive Committee to proceed with sponsorship of the 1999 Symposium. This removes the only contingency attached to the Executive Committee’s decision on Sunday, August 16, to sponsor the 1999 Waterloo Audit Symposium. Barry agreed to communicate this decision to Morley Lemon.
Powell
Information/Action
Tom Powell reported on the activities of the Practice Advisory Council. Tom noted that there was a large turnout at Monday’s session on electronic commerce, sponsored by the PAC. Tom also noted that he is a member of the Professional Relations Committee of the AAA, which is studying the PAC as a model for the whole organization. Tom also brought up that he has occasionally had difficulties bringing in speakers that are not members of the AAA, in terms of registration, etc. Joe Carcello asked that Tom contact him directly to make sure that all needs of invited speakers are met by AAA personnel.
Tom asked that the Section use the name "Practice Advisory Council" consistently. The term "Practice Advisory Committee" is sometimes used, but "Council" is preferred. Also, the PAC is seeking new members, with a preference for individuals who direct resources for their organizations.
Bell
Information/Action
Tim Bell reported on outcomes of the strategic planning meetings held prior to the Annual Meeting. One important follow-up effort will be an Outreach Task Force chaired by Karen Pincus and Jerry Sullivan, to work with key groups outside of the academic community. The goal of these efforts is to engage the academic community in shaping the future, rather than merely responding to trends. Importantly, the Section should strengthen connections with the Auditing Standards Board and the Practice Advisory Council. During the upcoming year, we will identify two or three key initiatives, and continue with other activities on a maintenance basis.
The meeting was adjourned at 8:30 AM.
Minutes submitted by: Jean C. Bedard, Secretary
January 27, 1999
