Thursday, January 11

8:00 AM – 5:15 PM

Doctoral Consortium

1:00 PM – 6:00 PM

Registration

1:30 PM – 4:00 PM

CPE Workshops

Title: Current Issues Facing Audit Committees: Insights for Teaching and Research

Mark Terrell, Partner, and Scott Reed, Senior Manager, KPMG Audit Committee Institute

Title: The Impact of Enterprise Resource Planning (ERP) and E-Commerce on Assurance and Business Practices: Implications for Education

Vicky Arnold and Steve Sutton, Oklahoma State University

6:30 PM – 9:00 PM

Welcome Reception

Friday, January 12

7:00 AM – 5:00 PM

Registration

7:00 AM – 8:20 AM

Continental Breakfast

8:20 AM – 8:45 AM

Welcome

Acknowledgements: KPMG and Bernie J. Milano, President and Trustee KPMG Foundation

8:45 AM – 9:45 AM

Plenary Session: Rick Causey, Executive Vice President and Chief Accounting Officer, Enron Corporation

"Creating a New Economy Business: The Transition of Enron"

Award of Merit: Bernard J. Milano and KPMG Foundation

9:45 AM – 10:15 AM

Break

10:15 AM – 11:45 AM

Session 1–Information Characteristics and Information Processing

Moderator: Jacqueline Hammersley, University of Illinois

"Gender Effects on Information Processing During Audit Analytical Procedures: An Extension of the Selectivity Hypothesis to Auditor’s Diagnostic Reasoning"

Eric N. Johnson, Indiana University at Indianapolis

Ed O’Donnell, Arizona State University

Discussant: Christine Haynes, University of Texas at El Paso

"The Use of Deep Feature and Surface Feature Information in the Performance of Complex Audit Tasks"

Christine Earley, University of Connecticut

Discussant: Fred Phillips, University of Saskatchewan

10:15 AM – 11:45 AM

Session 2 – Earnings Management and Audit Quality

Moderator: Mark Zimbelman, Brigham Young University

"Auditor Tenure, Auditor Independence and Earnings Management"

Larry Davis, Michigan Technological University

Billy Soo, Boston College

Greg Trompeter, Boston College

Discussant: John Sennetti, Nova Southeastern University

"Audit Quality, Public Ownership and Firms’ Discretionary Accruals Management"

Heidi Vander Bauwhede, Catholic University of Leuven

Ann Gaeremynck, Catholic University of Leuven

Marleen Willekens, Catholic University of Leuven

Discussant: Robert Knechel, University of Florida

10:15 AM – 11:45 AM

Session 3 – Panel: Independence and Non-Audit Services

Moderator: Linda McDaniel, University of North Carolina at Chapel Hill

Panel Members:

Lynn Turner – Chief Accountant of SEC

Greg Jonas – Global Managing Director of Arthur Andersen’s Financial Assurance Services (FAS)

Zoe-Vonna Palmrose, POB Panel on Audit Effectiveness and University of Southern California

Dan Simunic, University of British Columbia

10:15 AM – 11:45 AM

Session 4 –Audit Services and Audit Fees

Moderator: Ann Pushkin, West Virginia University

"Local Government Audit Procurement Requirements, Audit Effort, and Audit Fees"

Laurence Johnson, Colorado State University

Robert J. Freeman, Texas Tech University

Stephen P. Davies, Colorado State University

Discussant: Randy Elder, Syracuse University

"Price and Demand Effects in the Market for Audit Services"

Ross S. Guest, University of Sydney

Allen T. Craswell, University of Sydney

Discussant: Paul Polinski, Louisiana State University

11:45 AM – 1:00 PM

Lunch:

Distinguished Service Award: Dan M. Guy; Life-Time Achievement Award: awarded to Robert K. Elliott, Partner KPMG, with an introduction by Bill Kinney, University of Texas at Austin

1:15 PM – 2:15 PM

Business Meeting

2:15 PM – 2:30 PM

Break

2:30 PM – 3:40 PM

Special Plenary Session: Robert K. Elliott, Partner, KPMG and Immediate Past Chair of the AICPA "Twenty-First Century Assurance"

Special Remarks: Steve Butler, Chairman, KPMG

Moderator: Bill Felix, University of Arizona

3:30 PM – 4:00 PM

Break

4:00 PM – 5:30 PM

Session 5 – Fraud, Restatements and Litigation

Moderator: David Sinason, Northern Illinois University

" Ratio Analysis – Predictor of Fraud?"

Liming Guan, Oklahoma State University

Kathleen Kaminski, Georgia College and State University

T. Sterling Wetzel, Oklahoma State University

Discussant: Steve Glover, Brigham Young University and PricewaterhouseCoopers

"Restated Financial Statements and Auditor Litigation"

Zoe-Vonna Palmrose, University of Southern California

Susan Scholz, University of Kansas

Discussant: Roger Martin, Indiana University

4:00 PM – 5:30 PM

Session 6 – Panel – Implications of the 150 Hour Rule: Views from the Profession and Academia

Moderator: Jean C. Bedard, Northeastern University

Panel Members:

Beatrice Sanders, Director – Academic and Career Development for the AICPA

Larry Gramling, University of Connecticut and Incoming President of the Connecticut State Society of CPAs

Mike Diamond, Executive Vice-Provost, University of Southern California

Jeri Calle, National Partner in Charge of University Relations & Human Resources – Assurance, KPMG, and incoming Chair of the Auditing Section’s Practice Advisory Council

4:00 PM – 5:30 PM

Session 7—Auditor and Client Retention

Moderator: Bradley Schweiger, St. Cloud University

"Audit Service Production and Pricing: Evidence From Auditor Switches"

Karl Hackenbrack, University of Florida

Chris Hogan, Southern Methodist University

Discussant: Mike Willenborg, University of Connecticut

"Client Characteristics and Client Screening By Large Audit Firms"

Jong-Hag Choi, Hong Kong University of Science and Technology

Rajib Doogar, University of Illinois

Discussant: Charles Bame-Aldred, University of Massachusetts-Amherst

4:00 PM – 5:30 PM

Session 8 – Earnings Quality and Audit Committees

Moderator: Jeff Cohen, Boston College

"An Empirical Investigation of the Impact of Timely Interim Reviews: Evidence of Earnings Quality and Market Response Behavior"

Kevin Raedy, University of North Carolina at Greensboro

Steven K. Rock, University of Colorado at Boulder

Discussant: Mike Ettredge, University of Kansas

"The Effectiveness of Blue Ribbon Committee Recommendations in Mitigating Financial Misstatements: An Empirical Study"

Susan Parker, Santa Clara University

Gary Peters, University of Georgia

Discussant: Dana Hermanson, Kennessaw State University

6:30 PM

Reception, Dinner, Champagne Toast

Entertainment and Special Recognitions

M.C.: Karen Pincus, University of Arkansas

Saturday, January 13

7:00 AM – 3:00 PM

Registration

7:15 AM – 8:45 AM

Continental Breakfast

7:45 AM – 8:45 AM

Invited Research and Practice /Education Projects Forum

1 "Resource Allocation and Efficiency in Public Section Audits"

Kar Ming Chong, University of New South Wales

Colin Dolley, Edith Cowan University

Keith A. Houghton, University of Melbourne

Gary Monroe, Edith Cowan University

2 "The Impact of Client Employee Incentive Schemes on the Design of Audit Procedures"

Shane Dikolli, University of Texas at Austin

Susan A. McCracken, Rotman School of Management

Justin B. Walawski, CPA Australia

3 "The Effects of Risk Assessments and Partner Preferences on Audit Planning Decisions"

James L. Bierstaker, University of Massachusetts at Boston

Arnold Wright, Boston College

4 "Should Canadian Going Concern Reporting Standards Conform to International Requirements: An Experimental Investigation"

Asokan Anandarajan, New Jersey Institute of Technology

Chantal Viger, University of Quebec at Montreal

Tony Curatola, Drexel University

5 "The Effects of Audit Review & Audit Risk on Auditors’ Justifications and Judgments"

Susan Curtis, University of Illinois at Urbana-Champaign

6 "The Role of Documentation and Memory in Internal Control Evaluation"

Lori Kopp, University of Manitoba

7 "Voluntary Disclosures and Auditor Specialization: The Case of Commodity Derivative Disclosures"

Gary F. Peters, University of Georgia

Lawrence J. Abbott, University of Memphis

Susan Parker, Santa Clara University

8 "An Investigation of Auditor/Client Tenure"

David H. Sinason, Northern Illinois University

Jefferson P. Jones, Auburn University

Sandra Walter Shelton, DePaul University

9 "Teams As a Learning Forum For Accounting Professionals: An Analysis"

Gary Kleinman, Fairleigh Dickinson University

Philip Siegel, Fairleigh Dickinson University

Claire Eckstein, Fairleigh Dickinson University

10 "Audit Firm Characteristics and Type II Errors in the Going Concern Opinion"

Kimberly A. Dunn, Baruch College – City University of New York

Christine E.L. Tan, Baruch College – City University of New York

Elizabeth K. Venuti, Hofstra University

11 "Benchmarking the Production of Audit Services: An Efficiency Frontier Approach"

Caren Schelleman, Maastricht University

Steven Maijoor, Maastricht University

12 "Litigation Against Auditors: Does It Change Audit Reporting Behavior?"

Jacqueline Lau, University of Melbourne

Christine A. Jubb, University of Melbourne

13 "Audit Quality and the Provision of Non-Audit Services: Evidence from the Property-Casualty Insurance Industry"

Joel E. Pike, University of Wisconsin at Madison

14 "A Longitudinal Study of Applicable Decision Aids For Detailed Tasks in A Financial Audit"

Mohammad Abdolmohammadi, Bentley College

Catherine Usoff, Bentley College

15 A Comprehensive Survey of Audit Education Practices"

Eric N. Johnson, Indiana University at Indianapolis

William Dilla, Iowa State University

Jon Andrus, Chapman University

Jane Baird, Minnesota State University-Mankato

Paul Caster, Fairfield University

Christine Earley, University of Connecticut

Tim Louwers, Louisiana State University

Doug Prawitt, Brigham Young University

16 "Teaching Risk Assessment"

William G. Shenkir, University of Virginia

Paul L. Walker, University of Virginia

17 "Developments in the Audit Methodologies of Large Accounting Firms"

W. Morley Lemon, University of Waterloo

Kay W. Tatum, University of Miami

W. Stuart Turley, University of Manchester

18 "Auditors' Belief Revision: Recency Effects of Contrary and Supporting Audit Evidence and Source Reliability"

Arvind Patel, University of Queensland

19 "The Effect of Complexity and a Decision Aid on Decision Accuracy, Consensus, and Efficiency"

Maureen Francis, Elmhurst College

Cathleen Miller, University of Michigan-Flint

8:45 AM – 10:15 AM

Session 9 – Panel – Internal Auditing Standards

Moderator: Larry Rittenberg, University of Wisconsin – Madison, IIA Vice Chair

Panel Members:

Dale E. Johnson, Director Internal Audit Services

PricewaterhouseCoopers

Basil Woller, VP and General Auditor, El Paso Energy Corporation

Urton Anderson, University of Texas at Austin

8:45 AM – 10:15AM

Session 10 – Analytical Investigations of Misstatements and Independence

Moderator: Julia Higgs, Florida Atlantic University

"Materiality Uncertainty and Earnings Misstatement"

Evelyn Patterson, State University of New York at Buffalo

Reed Smith, State University of New York at Buffalo

Discussant: Kenny Reynolds, Louisiana State University

"Audit Firm Scope and Auditor Independence"

Rajib Doogar, University of Illinois

Discussant: Ganesh Krishnamoorthy, Northeastern University

8:45AM – 10:15 AM

Session 11 – Industry Specialization: Pricing and Auditor Reporting

Moderator: Douglas Prawitt, Brigham Young University

" Brand Name Audit Pricing, Industry Specialization and Leadership Premiums Post Big 8 and Big 6 Mergers"

Andrew Ferguson, University of Technology-Sydney

Donald Stokes, University of Technology-Sydney

Discussant: Timothy B. Bell, Director - KPMG Assurance & Advisory Services Center

"Auditor Industry Specialization and Auditor Reporting"

Lawrence Abbott, University of Memphis

Gary Peters, University of Georgia

Discussant: Audrey Gramling, Georgia State University

8:45 AM – 10:15AM

Session 12 – Continuous Auditing

Moderator: Keith Sherman, Manager - Strategic Learning Group, Grant Thornton

"The Relationship of Risk Assessments and Information Technology To Detected Misstatements"

Lizabeth A. Austen, University of Arkansas

Aasmund Eilifsen, Norweigian School of Economics and Business Administration

Bill Messier, Georgia State University

Discussant: Brian Ballou, Auburn University

"Continuous Auditing"

Mark Nigrini, University of Kansas

Discussant: Alex Kogan, Rutgers University

10:15 AM – 10:45 AM

Break

10:45 AM – 12:15 PM

Session 13 – Panel – International Accounting and Auditing Standards: Implications for Accounting Scholars

Moderator: Roger Simnett, University of New South Wales

Panel Members:

James Leisenring, Director of International Activities Financial Accounting Standards Board

Robert H. Herz, Partner PricewaterhouseCoopers

Katherine Schipper, L. Palmer Fox Professor of Business Administration, Duke University

10:45 AM – 12:15 PM

Session 14 – Biases and Threats to Independence

Moderator: Paul Caster, Fairfield University

"An Experimental Investigation of Self-Serving Biases in an Auditing Trust Game: The Effect of Group Affiliation"

Ronald King, Washington State University

Discussant: Brian Mayhew, University of Wisconsin-Madison

"Contingent Economic Rents: Insidious Threats to Auditor Independence"

Jesse Bealer, Millsaps College

James Hunton, University of South Florida

Discussant: James Bierstaker, University of Massachusetts at Boston

10:45 AM – 12:15 PM

Session 15 –Effects of Audit Opinions on Bankruptcy and Earnings Management

Moderator: James Flagg, Texas A & M University

"The Relation of Audit Opinion and Auditor Change with Bankruptcy Emergence"

Daniel Bryan, University of Oregon

Sam Tiras, University of Buffalo

Clark M. Wheatley, Florida International University

Discussant: Christine Tan, Baruch College - City University of New York

"Audit and Non-Audit Service Provision: Earnings Management and Audit Opinion Implications"

Sylvia Chai, Australian Accounting Standards Board

Christine Jubb, The University of Melbourne

Discussant: William Dilla, Iowa State University

10:45 AM – 12:15 PM

Session 16 – Auditor – Client Negotiations

Moderator: Susan McCracken, University of Toronto

"Resolving Auditor-Client Conflicts Concerning Financial Statement Issues"

Jenny Goodwin, University of Queensland

Discussant: Robert Tucker, Fordham University

"Modeling the Auditor’s Intended Strategy in Auditor-Client Negotiation"

Michael Gibbins, University of Alberta

Steve Salterio, University of Waterloo

Discussant: Jay Rich, University of Connecticut

12:15 PM – 1:30 PM

Lunch:

Outstanding Educator: Ken T. Trotman; Notable Contributions to Literature: D. Eric Hirst and Lisa L. Koonce; Outstanding Dissertation: Kevan L. Jensen; Outstanding Dissertation Co-Chairs: William F. Messier and W. Robert Knechel

1:30 PM – 3:00 PM

Session 17 – Panel –The Role of Financial Statement Analysis in Audit Planning and Execution: Implications for Academics

Moderator: Gil Manzon, Boston College

Panel Members:

Dan Sunderland, Review Partner, Deloitte & Touche

Jack MacKinnon, Partner, PricewaterhouseCoopers

Eric Hirst, University of Texas at Austin

1:30 PM – 3:00 PM

Session 18 – Auditor Independence and Risk

Moderator: Rich Houston, University of Alabama

"Antecedents and Consequences of Independence Risk: Framework For Analysis"  [Fig. 1] [Fig. 2]

Karla Johnstone, University of Wisconsin-Madison

Michael H. Sutton, Former Chief Accountant of the SEC

Terry D. Warfield, University of Wisconsin-Madison

Discussant: Lori Kopp, University of Manitoba

"Perceptions of the Relationship Between Non-Audit Services and Auditor Independence"

Greg Jenkins, North Carolina State University

Kathy Krawczyk, North Carolina State University

Discussant: Lisa Milici Gaynor, Florida State University

1:30 PM – 3:00 PM

Session 19 – Firm Organization and Employee Turnover

Moderator: Bob Ramsay, University of Kentucky

"Expertise Management by Public Accounting Firms"

Michael Gibbins, University of Alberta

Karim Jamal, University of Alberta

Discussant: Mark Peecher, University of Illinois

"Big 5 Auditors’ Professional and Organizational Identification"

Michael Bamber, University of Georgia

Venkataraman Iyer, University of North Carolina at

Greensboro

Discussant: Shane Dikolli, University of Texas at Austin

1:30 PM – 3:00 PM

Session 20 – Pricing of Audit Services

Moderator: Larry Davis, Michigan Technological University

"An Empirical Test of the Insurance Hypothesis in Auditing"

Robert A. Leitch, University of South Carolina

Dennis O’Reilly, Xavier University

Brad Tuttle, University of South Carolina

Discussant: Elaine Maudlin, University of Missouri-Columbia

"Audit Litigation and the Pricing of Audit Services"

Keith Houghton, The University of Melbourne

Teo Eu-Jin, The University of Melbourne

Discussant: Lyn Graham, BDO Seidman