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KPMG and the
University of Illinois at Urbana-Champaign recently announced
case development grants under the Business Measurement Case
Development and Research Program. This ongoing competitive
program provides funding and other administrative support for
the development of case materials and follow-on research on
issues related to the assessment of client business risks, the
evaluation of business controls, and the measurement of
strategic and business process performance during a financial
statement audit. Case development projects funded under the
program are collaborative arrangements between KPMG's
engagement teams and teams of professors who specialize in
accounting, auditing, and business strategy.
During the
Program's first submission period, thirty-two proposals were
received requesting grants totaling approximately $870,000.
The program will disburse a total of $246,346 in support funds
to eight case development teams awarded funding during the
1998 submission period. Completed cases and accompanying
teaching notes will be distributed to business educators on a
worldwide basis at no charge. Case development teams can apply
for follow-on research grants of up to $50,000 after case
projects have been completed.
"This is a
timely project that will benefit not only KPMG and the
professional services field, but all of business," said
Bernard J. Milano, KPMG Peat Marwick's partner in charge of
university relations, diversity and alumni programs. "The
Program is intended to encourage scholarly research and case
study development that builds upon and advances the
strategic-systems auditing framework that is the foundation
for KPMG's Business Measurement Process (BMP) audit
methodology."
Grant recipients
were selected by a Program Advisory Board consisting of four
leading members of the academic community--William R. Kinney,
Jr., University of Texas at Austin; Krishna G. Palepu, Harvard
University; Katherine Schipper, University of Chicago; and Ira
Solomon, University of Illinois at Urbana-Champaign--and
KPMG's Timothy B. Bell, the Program's Executive Director and
KPMG's Director of Assurance Services. Speaking about the
importance of this program from the scholar's viewpoint, Ira
Solomon, the Program's Managing Director-Academic, said "This
program, by drawing on expertise from leading practitioners
and professors, promises to both significantly advance
knowledge of how audits must evolve to address the challenges
of the 21st century and to empower educators to incorporate
such innovations into their classrooms on a timely basis."
The eight case
development projects selected for funding during the 1998
submission period are described below.
| Researchers |
Shawn Davis
Ronald R. King
Washington University in St. Louis |
| Project
Title |
Auditing Firms
in the Pharmaceutical Industry Using A Strategic-Systems
Framework |
| Funding |
$26,500 |
Project
Description |
A case study
focusing on the relationship between business risk and audit
risk in the pharmaceutical industry. |
| Researchers |
Brian Ballou
Richard Tabor
Mustafa Uzumeri
Auburn University |
| Project
Title |
Identifying
and Integrating Business Process Knowledge: A
Strategic-Systems Approach to Auditing |
| Funding |
$25,600 |
Project
Description |
A
case study illustrating how knowledge of the client's
business and industry is translated into audit evidence. |
| Researchers |
Roger D.
Martin
Michigan State University
Fred Phillips
University of Saskatchewan
Michael D. Shields
Michigan State University |
| Project
Title |
Chains,
Linkages & Cars: Business Process Analysis and
Performance Measurement In An Industrial Products &
Automotive Audit |
| Funding |
$28,000 |
Project
Description |
A
case study focusing on how business process analysis and
process performance measurement provides evidence about the
validity of key assertions. |
| Researchers |
Mahendra Gupta
Washington University
George Foster
Stanford University
Richard Palmer
University of Tennessee at Martin |
| Project
Title |
The Strategic
Utilization of Electronic Commerce: Business Risks, Business
Controls, and Audit Considerations |
| Funding |
$40,000 |
Project
Description |
A
case study of the use of electronic commerce in procurement,
with analysis of business risk and audit implications using
a strategic-systems audit approach. |
| Researchers |
Royston
Greenwood
University of Alberta
Steven Salterio
University of Alberta and University of Waterloo |
| Project
Title |
A Comparison
of the Transactions-Cycle and Strategic-Systems Audit
Approaches: The Case for Complex Analytical Procedures |
| Funding |
$27,500 |
Project
Descriptions |
A
case study that demonstrates how the strategic-systems audit
approach overcomes some limitations to the
transactions-cycle audit approach. |
| Researchers |
Stephen Asare
Richard McGowan
Greg Trompeter
Arnold Wright
Boston College |
| Project
Title |
Variations in
Business Strategy and Complex Analytical Procedures |
| Funding |
$30,000 |
Project
Description |
A
case study that demonstrates how variation in business
strategy affects the development of auditor expectations. |
| Researchers |
Anne Ilinitch
Linda S. McDaniel
University of North Carolina at Chapel Hill |
| Project
Title |
Competitive Advantage and
Business Risk: Strategic-Systems Audits in the Managed
Health Care Industry |
| Funding |
$33,800 |
Project
Description |
A
case study that applies a strategic-systems audit approach
to the dynamic environment of the managed health care
industry. |
| Researchers |
Merle M.
Erickson
University of Chicago
Brian W. Mayhew
Georgia State University
William L. Felix, Jr.
University of Arizona |
| Project
Title |
Application of
a Strategic-Systems Knowledge Acquisition Framework to the
Lincoln Savings and Loan Audits |
| Funding |
$35,000 |
Project
Description |
A
case involving the retrospective application of KPMG's
Business Measurement Process to the Lincoln Savings and Loan
audits. |
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