I am honored to serve as the Auditing Section's President for 2005–2006. Thank you for the wonderful opportunity to work with all of the outstanding members of our Section. We have much to be proud of, and I want to do my part in maintaining and enhancing the many, many benefits of Auditing Section membership for you.
Carrying the Torch
The outstanding leadership last year of Linda McDaniel during her Presidency and Jean Bedard as Past President has provided a tremendous foundation for the Section. It is now my challenge to carry the torch handed to me into new and exciting opportunities for the Section. I am grateful for Linda's and Jean's leadership in setting a clear direction of how our Section can contribute through our research, education, and service to the vastly changing auditing and assurance profession. I am also very appreciative of the dedicated service of Jeff Cohen as Treasurer and Karen Pincus as Historian. We were sad to see them rotate off the Executive Committee in August and want to acknowledge our thanks for the extensive time and effort required for their fantastic service to the Section. Fortunately, their responsibilities have been handed over to two other outstanding members — Kathryn Kadous and Arnie Wright, who are now serving as Treasurer and Historian, respectively. As I transitioned into the President's role and as Linda rotated into the Past President role, we were thrilled to welcome Ray Whittington onto the Executive Committee team as Vice President-Academic.
|Linda McDaniel presents Jean Bedard with an award for her
outstanding service to the Auditing Section as Past President.
The Executive Committee would like to hear from you — please send your thoughts and ideas of how we can take the Section to new levels. Here's an overview of who is serving as your Executive Committee for 2005–20006 and how you can email us:
2005 Annual Meeting
I hope many of you were able to participate in the 2005 AAA Annual Meeting held in San Francisco, August 7–10, 2005. The unbelievable behind-the-scenes work and leadership of two of our own members — Joe Carcello who served as the Annual Meeting Planning Coordinator and Jane Mutchler who served as AAA President — produced a record-breaking attendance for AAA Annual Meetings. Joe's and Jane's incredible detailed work at planning the entire event included a first-time ever Sunday evening dinner with nationally recognized speakers, Senator Michael Oxley and PCAOB Board Member Bill Gradison, and three following days of outstanding plenary, concurrent, and luncheon sessions. Great job, Joe and Jane.
|Linda McDaniel presents Bill Messier with an award for his
outstanding service to the Auditing Section as Editor of
Auditing: A Journal of Practice & Theory.
Due to the outstanding work of Bryan Church, the Auditing Section had a record number of concurrent sessions featuring auditing and assurance research, education, and emerging issues panels. Serving as our Section's Annual Meeting Coordinator, Bryan secured 21 Auditing Section concurrent sessions where 63 auditing and assurance-related papers (a record number!) were presented and discussed. Attendees at the Auditing Section Luncheon were fortunate to hear the thought-provoking comments of Scott Taub, SEC Deputy Chief Accountant, who focused on challenges facing the auditing profession as changes are made to accounting standards, such as fair value accounting, in the U.S. and internationally. And, the Section was proud to have six papers included in the first-ever New Scholars Forum, 19 papers in the Research Forum, and one panel session on the "State of the Art in Auditing Research" which included Mark DeFond, Jere Francis, Bill Kinney, Bill Messier, and Mark Nelson as panelists. Bryan was assisted by Kathryn Kadous and team of 125 reviewers from across our Section. How great to see the involvement of so many of you who serve the Section as reviewers, presenters, discussants, panelists, and moderators. The Auditing Section's strength is in the number of members who unselfishly serve in so many ways. Thanks to Bryan and many of you who helped make the 2005 Annual Meeting a huge success.
Connecting Research with PCAOB Standards-Setting Initiatives
Because of the excellent leadership of the Section's recent past-presidents — Linda McDaniel, Jean Bedard, and Joe Carcello, the Section has been working over the last several months to help synthesize findings from auditing and assurance research related to PCAOB ongoing standards-setting initiatives. The PCAOB Staff has an interest in understanding research implications related to key topics affecting the PCAOB's standards-setting agenda, and the Auditing Section is working to help connect research to those directly involved in the PCAOB's initiatives.
During the summer and fall, our Section's Research Committee (led by Jay Rich) and our Standards Committee (led last year by Roger Martin and this year by Bob Allen) is coordinating two separate research teams composed of Section members who are preparing research syntheses related to two PCAOB project areas: Risk Assessment and Fair Values (please see the enclosed article written by Dana Hermanson overviewing the process followed by the Risk Assessment project team).
One of my initiatives over the next year is to strengthen the engagement of our Section in activities shaping policies and regulation. In August 2005, the Section announced its first-ever Call for Participants in a Research Program Related to PCAOB Standards-Setting Projects. I am thrilled that almost 40 Section members submitted their Notice of Interest by the September 15 deadline to participate on research teams related to these seven PCAOB Standards-setting projects:
- Audit Confirmations
- Audit Firm Quality Control
- Audit Reporting Model
- Auditing Related Party Transactions
- Communications with Audit Committees
- Engagement Quality Review
- Financial Fraud
The Executive Committee is currently working with the Research and Auditing Standards Committees to create the research syntheses project teams, which will be working diligently through the fall and winter to complete syntheses for submission to the PCAOB staff by spring 2006. I am very excited that the Section has the opportunity to connect research to those involved in PCAOB standards-setting activities, and during my term I want to continue strengthening the contribution of our Section to those serving at the PCAOB level.
National and International Leadership by Section Members
Consistent with the goal of strengthening the interaction between members of the Auditing Section and the PCAOB, another of my goals is to help highlight the many existing leadership contributions of several members of our Section to numerous other national and international organizations that play major roles in leading and influencing the audit and assurance profession. It is thrilling to see so many of our fellow members directly involved in numerous national and international issues affecting the profession. Their involvement clearly demonstrates the important role of the accounting academic community in national and international efforts affecting our profession.
Because many of you may not be aware of how your fellow Section members are serving at national and international levels, here's a quick summary of several individuals who currently serve or recently served at national and international levels with these organizations:
AICPA Auditing Standards Board (ASB)
- Bill Messier—Serving as the Academic Member on the ASB and selected task forces
- Lyn Graham—Serving on ASB and its "Risk Assessments" Task Force
- Brian Ballou—Serving on the ASB's "Risk Assessments" Task Force
Committee of Sponsoring Organizations of the Treadway Commission (COSO)
- Larry Rittenberg—Serving as COSO Chair
- Mark Beasley—Serving as the AAA Representative on the COSO Board
- Joe Carcello—Serving on COSO's Internal Control for Small Businesses Project Task Force
- Doug Prawitt—Serving on COSO's Internal Control for Small Businesses Project Task Force
Government Accountability Office (GAO)
- Abe Akresh—Serving at the GAO
International Auditing and Assurance Standards Board (IAASB)
- Roger Simnett—Serving as Member of the IAASB
- Bill Kinney—Serving on the AICPA's International Auditing Standards Subcommittee which interacts with the IAASB
- Bill Messier—Serving on the AICPA's International Auditing Standards Subcommittee which interacts with the IAASB
- Doug Carmichael—Serving as the PCAOB's Chief Auditor
- Gary Holstrum—Serving as the PCAOB's Associate Chief Auditor and Director of Research
- Kay Tatum—Serving on the PCAOB's Standing Advisory Group (SAG)
- Zabihollah (Zabi) Rezaee — Serving on the PCAOB's Standing Advisory Group (SAG)
Securities and Exchange Commission (SEC)
- Andy Bailey—Serving as Deputy Chief Accountant in the Office of Chief Accountant
- Mark Taylor—Serving as an SEC Academic Fellow
- Andrew McLelland—Serving as an SEC Academic Fellow
- Audrey Gramling—Just completed a one-year SEC Academic Fellowship
In addition to these, numerous others serve in key activities of other professional organizations such as The Institute of Internal Auditors and ISACA, among numerous others—please let us know how you are serving. In addition, the Section is fortunate to have representatives from these 0rganizations serving the Section as members of our Committees, including the Practice Advisory Council and the Executive Committee.
It is exciting to see how the auditing academic profession is playing critical leadership roles in numerous national and international initiatives. I believe that our entire Section's membership can help support the efforts of these who are serving by sharing insights we gain through our research and teaching that might have important implications for standards-setters and regulators. I am convinced that what we all do related to research and education can lead to significant insights for those affecting national and international policies and regulations related to auditing and assurance. Let's help those serving in these and other key roles make that connection by sharing your insights from relevant topic-specific research and education conducted by you with them. That way, these individuals can be better informed of ways audit and assurance research and education affect key policy issues affecting the global profession.
Special SOX Edition of Issues in Accounting Education
The AAA is planning to issue a special edition of Issues in Accounting Education, "The Impact of Sarbanes-Oxley and Recent Accounting Scandals on Accounting Education." Many of you may be interested in submitting papers and other materials for consideration for this special issue. Submissions must address some educational aspect of Sarbanes-Oxley or recent accounting scandals. And, the AAA is seeking reviewers from the Auditing Section to assist in processing requested manuscripts. One of our members, Dana Hermanson, is serving as Guest Editor for this special edition. Please see additional announcements contained in this edition of The Auditor's Report.
2006 Mid-Year Auditing Conference
Please mark your calendars for January 12–14, 2006 for the 12th Annual Mid-Year Auditing Conference to be held at the Hilton Universal Hotel at Universal Studios in Los Angeles, California. Through the outstanding work of our Mid-Year Meeting Planning Co-Coordinators—Mark DeFond and Todd DeZoort—we are planning an incredibly rich agenda of plenary and concurrent sessions. This year is especially exciting as we will be meeting jointly with the AAA's International Section and will host keynote, plenary, and concurrent sessions dealing with a wide variety of contemporary topics related to audit, attestation and assurance practices, education, and research with an emphasis on international issues.
The format will be similar to prior Auditing Mid-Year Conferences, but the joint meeting allows us to host combined plenary sessions focused on international audit and assurance issues. While our section will maintain the same number of concurrent research and education sessions, our members also will be able to attend concurrent sessions hosted by the International Section.
Our first plenary session will feature three individuals serving in key international standards setting roles—John Kellas (IAASB Chair), David Brown (Member, International Public Interest Oversight Board and former Chair of the Ontario Securities Commission), and Jim Sylph (IFAC Technical Director). The Saturday plenary session will feature Greg Garrison, lead partner for PricewaterhouseCoopers, LLP U.S. Assurance Practice, who will complement the Hollywood setting for our Conference by highlighting his role in serving as the engagement partner on the Academy Awards balloting process engagement. You'll enjoy the hotel's location, which is directly across the street from Universal Studios and Universal's CityWalk-Hollywood, which is filled with restaurants, shops, and theatres in the heart of Hollywood. Please see the Mid-Year Conference Call for Registration contained in this issue and posted at the Section's web site for further details. The Auditing Section is grateful for the generous support provided by the KPMG Foundation for our Midyear Conference.
Auditing Section Doctoral Consortium
We are also excited to be hosting our 7th Annual Auditing Doctoral Consortium on Thursday, January 12, 2006, preceding the Mid-Year Conference Meeting. Karl Hackenbrack, 2006 Doctorial Consortium Chair, has assembled an impressive line-up of speakers and panelists for this all-day event for current doctoral students. The purpose of the Consortium is to stimulate students' research by exposing them to the latest ideas and thoughts from leading researchers in auditing, and by providing opportunities for networking with other Ph.D. students interested in auditing, established auditing researchers, and journal editors.
Because of the generous support from the KPMG Foundation, the Consortium is open to all Ph.D. students who have an interest in auditing research. Students may be at any stage in their program, and there is no limit to the number of students who may attend from any one university. However, there is a limit on the total number of students who can attend the Consortium, and applicants will be accepted on a first-come basis with repeat attendance on a space available basis. To encourage students to attend the entire Mid-Year Conference, their conference registration fee is only $25. Please encourage your doctoral students to attend, as this is a wonderful opportunity both for learning and for making valued contacts that will last throughout their careers. As an added benefit, the Auditing Section offers complimentary AAA and Section memberships for up to two years for all doctoral consortium attendees.
I am grateful to all those individuals who are serving on Section related committees. These individuals are busy with several initiatives for the Section. In addition to coordinating the research syntheses projects, the Research Committee (Jay Rich, Chair) is updating the Section's Research Database through 2005 while the Standards Committee (Bob Allen) is positioning itself to respond to upcoming exposure drafts, including COSO's internal control for small businesses exposure draft to be issued in October by COSO. The Education Committee (Jay Thibodeau, Chair) is considering the development of a new Section sponsored online-journal focused on audit and assurance education. The Communications Committee (Brian Ballou, Chair) is exploring ways to raise the visibility of auditing research and education among business school deans through strengthened communications. In addition, they are working to identify ways to improve communications to Section members. Our Membership Committee (Chris Agoglia, Chair) is exploring creative ways to attract and retain members for the Section. Last year under Julia Higg's leadership, the Membership Committee offered one-year free trial memberships to non-members who indicated an interest in Audit education and research in the most recent Hasselback Directory, and the current Membership Committee is contacting those who accepted that offer (about 50 individuals) to encourage them to renew their membership with the Section. The Practice Advisory Council (PAC) is working on hosting a panel at the 2006 Mid-Year Conference and is helping to coordinate the PAC sponsored research project currently underway, with hopes of sponsoring future projects in 2006. Charles Stanley (CPE Chair) is coordinating CPE opportunities for the 2006 Mid-Year Conference and 2006 AAA Annual Meeting. Finally, several Section members are serving on selection committees for the Section's awards to be announced in January 2006.
Concern for Those Affected by Hurricanes Katrina and Rita
Our thoughts and prayers are extended to many of our Section members directly or indirectly affected by the recent Hurricanes along the Gulf Coast. Many of our members serve in universities directly in the storms' paths, while other members have close family and friends who may have been seriously affected by the recent tragic events. We offer our encouragement and support to those affected and want to know if there is any way our Section can serve you as you recover from these recent challenges.
Help Us Help You
As I close, I want to encourage you to help us help you by keeping us informed of relevant developments affecting the profession and the Auditing Section. We will strive to keep the Section's membership informed through our web site, which is excellently maintained by Glen Gray, Section Webmaster, and through The Auditor's Report, which is expertly coordinated by Jim Bierstaker and Mark Zimbelman. We will periodically keep you informed of upcoming events and important information through email—so please make sure that you communicate any changes in email contact information to the staff at the AAA.
I look forward to seeing you in Los Angeles in January 2006. Make plans now for January in Hollywood!