I am very excited about the opportunity to serve as the Auditing Section’s President for 2006-2007. I plan to work hard to continue to move the section forward in the tradition of the many outstanding individuals who have led the Section in the past.
The immediate prior leadership of the Section has made tremendous strides in revitalizing the Section’s agenda. Under the leadership of Mark Beasley, Linda McDaniel, and Jean Bedard, the Section has undertaken a host of important initiatives that clearly provide significant value to the auditing profession and many opportunities for the membership. Most of these initiatives are continuing and will be highlighted later in this report. I also want to acknowledge the contributions of the other members of the Executive Committee, especially our outgoing officers, Kay Tatum, Secretary, and Scott Showalter, Vice President—Practice. Both worked diligently on behalf of the Section and will certainly be missed. Luckily, we have outstanding replacements, including Julia Higgs, Secretary; Mark Peecher, Vice President—Academic; and Trevor Stewart, Vice President—Practice. Please feel free to contact any of the members of the Executive Committee regarding ways we can improve the Section or its value to the membership.
2006 Annual Meeting
The 2006 Annual Meeting was another big success for both the organization as a whole and the Auditing Section. The Section is indebted to Julia Higgs and Christine Earley who did a fantastic job at coordinating the Auditing Section program. We had a total of 133 papers submitted for consideration for the meeting. Of these, 66 were presented in a total of 23 Auditing Section concurrent sessions (another record number!), 35 papers were presented in the Research Forum, and 6 were selected for the New Scholars Forum. I would like to thank the many Section members who served as reviewers, moderators and discussants for the meeting. It is the many volunteers that make these programs work.
The Section also sponsored five panels at the annual meeting, including:
- SOX Section 404: Should small companies have to comply?
- SOX Section 404: A two-year retrospective
- PCAOB Monitoring Function
- Overview of the New Risk Assessment Standards: Implications for Teaching and Research
- Teaching Corporate Governance
I want to offer my thanks to the many people who developed and served on these informative panels.
At the Section luncheon, Jeanette Franzel, Director, Financial Management and Assurance for the U.S. Government Accountability Office, gave an excellent presentation on the U.S. fiscal crisis. Personally, I was glad my children were not there to find out the bill that we are leaving with their generation! We were also privileged to have John Willingham’s wife, Carol, and their son and his family in attendance to accept a special award to John on behalf of the Section. In making the presentation, Mark Beasley spoke of John’s many contributions to auditing education, and Bob Elliott spoke of his many contributions to KPMG and the profession.
At the Opening Plenary Session, Bernie Milano received a Special Recognition Award from the American Institute of Certified Public Accountants for his work with the KPMG Foundation’s Ph.D. Project. Congratulations to my personal friend and good friend of the Auditing Section, Bernie Milano!
Update on Online Journal
The Auditing Section’s online journal was approved by AAA Executive Committee with a scope that would be limited to audit issues. The journal (working titled Current Issues in Auditing Practice) will be devoted to advancing the dialogue between academics and practitioners on current issues facing the auditing practice community. It will also publish practice cases that are suitable for classroom use. Dana Hermanson and Scott Showalter have agreed to co-edit the journal, which we hope to launch by the first quarter of 2007.
Working with Standards Setters
Building on the foundation established under the leadership of Jean Bedard, Linda McDaniel, and Mark Beasley, the Section is continuing its relationship with the PCAOB. In the spring, the PCAOB will be sponsoring a conference to bring together its staff and selected auditing academics to focus on issues of interest to the PCAOB. This year we will focus on the research related to fraud, risk assessment, and quality control. We will also have a discussion of the implications of academic research bearing on the cost-benefit of SOX, section 404, Auditing Standards No. 2, and the PCAOB. A closing panel will examine the issue of the competencies of future auditors and how they can be developed.
The Section is working with the AICPA’s Auditing Standards Board (ASB) and the International Auditing and Assurance Standards Board (IAASB) to generate research proposals related to the auditor’s standard report. Specifically, these standard setting bodies are interested in whether financial statement users understand the intended communications contained in the report. Details of the request for proposal are presented on the Section’s Web site.
KPMG Continues its Generous Support
I would like to acknowledge the generous support of the KPMG Foundation, which has committed to extend its financial support for the Section’s Mid-Year Conference and Auditing Section Doctorial Consortium for 2007, 2008, and 2009. This support is critical to ensuring the success of the Section. Thanks to KPMG and Bernie Milano for this vote of confidence in the Section.
Charleston in 2007
Mark your calendars for the 2007 Auditing Section Mid-Year Conference to be held January 12-13, 2007 in Charleston, South Carolina. Our meeting will be held at the Francis Marion Hotel.
I look forward to seeing you in Charleston.