I want to thank the members of the Auditing Section for giving me the opportunity to serve as the president of the Auditing Section. It is a great honor and I will do my best to meet the high standards set by the Past President, Stan Biggs, and his predecessors. I thoroughly enjoyed my year as Vice President–Academic and was continually amazed by the work that needed to be done and the enthusiasm and competence with which the Executive Committee performed its work. On behalf of the Auditing Section, I would like to thank the following outgoing members of the Executive Committee for their outstanding service: Karen Pincus, Past President; Mark Beasley, Treasurer; and Jack Robertson, Historian. Each of these individuals has worked hard for the Section and its members for many years. I would also like to welcome three new members of the Executive Committee: Joe Carcello, Vice President–Academic; Rick Tubbs, Treasurer; and Andy Bailey, Historian. Continuing members are Stan Biggs, Past President; Abe Akresh, Vice President–Practice; and Audrey Gramling, Secretary. I am very fortunate to have the opportunity to work with such distinguished colleagues.

The Auditing Section was well represented at the AAA Annual Meeting in Atlanta. There were 27 auditing papers in concurrent sessions, 12 forum papers, and two panel sessions. The papers were of excellent quality and, as best I could tell, the sessions were well attended. Thanks go out to Robin Roberts, Director of the 2001 Annual Meeting Committee; Randy Elder, Assistant Director; Dana Hermanson, CPE Director; and the 67 volunteers who reviewed the 72 submitted papers. Randy Elder, Director of the 2002 Annual Meeting Committee, has a call for submissions in this issue and Bill Heninger has a call for CPE proposals. Remember that the number of concurrent sessions our section is assigned is a function of the number of papers submitted to the Annual Meeting. Our representation at the Annual Meeting is in your hands!

The Executive Committee met twice in Atlanta, bringing closure to several projects from last year. These included the evaluation of the Section’s committee structure and operations, and the related revision of the Section’s operating manual. Jack Robertson has done a great job reorganizing the operating manual. Under Stan’s leadership, the Section’s committee structure has been considerably streamlined. The result should be more effective and efficient Section operations. Under the new committee structure, standing committees generally have a chairperson and six members who have staggered two-year terms. The awards committees are yearly appointments. Terms of the various program committees vary, but the committee chair first serves as vice chair and then a third year as past chair to provide the committee with continuity. Figure 1 outlines the Section’s committees. You can find additional information about these committees and all of the Section’s positions using links on the Section’s home page.

The year 2001–2002 is a transition year to this new committee structure, and as a result, some committees had no new members this year. This is one reason that some volunteers for this year’s committees could not be offered positions. If you volunteered but were not appointed to a committee this year, please continue to volunteer. The Executive Committee and the Section’s members greatly appreciate your willingness to serve. Keep in mind that the more flexible you can be in indicating your preferences, the easier it is for the Vice President–Academic to make committee assignments.

The most significant issue the Executive Committee considered in Atlanta was the Section’s financial condition. Outgoing Treasurer Mark Beasley reported that the Section has developed a significant structural cash flow deficit over the past several years. The Executive Committee is actively investigating the primary causes and possible solutions to this serious problem. One primary cause is the increase in printing costs over the last few years. As you know, the Executive Committee has already taken one action to partially address the problem. This is the first edition of The Auditor’s Report that does not have a hard-copy version mailed out to members. We initiated the electronic version of The Auditor’s Report with the intent that it would replace the hard- copy version. The Executive Committee decided (see Minutes to Executive Committee meeting, August 12, 2001) that now is the time to make the change to the electronic newsletter. Treasurer Rick Tubbs will provide a full reporting of the Section’s financial condition at the Section’s Business Meeting in Orlando. Please plan to attend.

In addition to the online The Auditor’s Report, you should also be aware by now of the implementation of the online election of the Section’s officers. Previously these elections occurred at the Section’s business meeting held during the Midyear Meeting. The members approved this change at the 2001 business meeting in Houston. Online voting makes the election process more democratic, as members who cannot attend the Midyear Meeting now have an opportunity to vote. Please make the online election work by voting!!

The last item I wish to comment upon is my initiative for the coming year. The practicing side of the profession, and especially the AICPA, has invested heavily in expanding their members’ competencies and the variety of the services and products offered under the assurance services umbrella. However, we academics as yet have done little to shift our focus or even recognize this shift in the profession. Most accounting firms’ web sites promote their assurance services, and it can be difficult to find even a reference to auditing. In contrast, most auditing textbooks still focus on the traditional audit with only a cursory treatment of other services. Similarly, little research is directed at assurance services, although Vera-Munoz, Kinney, and Bonner, The Accounting Review (July 2001), is a notable exception and hopefully a promise of things to come.

Expanding our horizons by considering the implications of assurance services for research and teaching should have several benefits, providing (1) opportunities for increased interaction between academics and practitioners and for academics to contribute to practice; (2) new, relevant, and timely research questions; and (3) opportunities to broaden students’ perceptions of the challenges and opportunities our profession offers. Accordingly, the Communications Committee chaired by Roger Debreceny, the Research Committee chaired by Bill Wright, and the Education Committee chaired by Bill Dilla are all working on various dimensions of the implications of expanding professional services. Finally, Vice President–Practice Abe Akresh is leading an expansion of the Practice Advisory Council. I will report on the progress of these initiatives at our Midyear Meeting in Orlando.

In the meantime, if you have comments, suggestions or questions for the Section’s officers, including myself, or any of the Committee Chairpersons, please contact us.