10469-NDnews04 FINacctdept/020812/pdf/acct_newsletter_040225.pdf · Oliver Zhen Li Assistant...

Accountancy2004NOTRE DAME January

Peter Easton Named NDAlumni/Andersen Chair

Peter Easton was named the Notre DameAlumni/Andersen Chair in Accountancy in 2003.Professor Easton holds undergraduate degrees

in teaching, agricultural science and economics fromthe University of Adelaide and the University of SouthAustralia. He received a graduate degree in financialmanagement from the University of New England in1980 and a Ph.D. in Business Administration withmajors in accounting and finance from the University

of California at Berkeley in 1984. An internationally recognized scholar,Professor Easton has held academic appointments at the University ofChicago, the University of California at Berkeley, The Ohio StateUniversity, Macquarie University, the Australian Graduate School ofManagement, the University of Melbourne, and Nyenrode University.

Professor Easton’s area of expertise is corporate valuation. Qualifiedas an expert witness in the Delaware Chancery Court, he has served as a consultant on valuation issues for investment and accounting firms inAustralia, the United Kingdom and the United States. His research andarticles have been published in the Journal of Accounting and Economics,the Journal of Accounting Research, the Accounting Review, ContemporaryAccounting Research, the Review of Accounting Studies, the Journal ofBusiness Finance and Accounting, and the Journal of Accounting, Auditingand Finance. He also serves as an associate editor of these journals.Peter has a forthcoming article in the Accounting Review entitled, “PERatios, PEG Ratios and Estimating the Implied Expected Rate of Returnon Equity Capital.” A frequent guest speaker at national and internation-al conferences, Professor Easton has received numerous awards of excellence in teaching and research. +

Seida Testifieson Capitol Hill

On February 13, 2003 Jim Seida,

Assistant Professor of

Accountancy, provided prepared

testimony before the Senate

Finance Committee on the ever-

increasing use of overly aggressive

corporate tax shelters. Professor

Seida, whose testimony focused

on the Enron Corporation, pointed

out that “...the difference between

Enron’s reported pre-tax book

income and taxable income was

substantial.” Professor Seida

concluded that “...if Enron’s tax

information was made more trans-

parent, maybe Enron’s financial

accounting gimmicks could have

surfaced earlier.” A complete

write-up of Professor Seida’s testi-

mony appears in the February 13,

2003 issue of Federal News Service.

More information on this topic

may be found at http://finance.sen-

ate.gov/sitepages/hearings.html.

+

Ann Marie AchillePricewaterhouseCoopers

Matthew J. BarrettUniversity of ND Law

Eugene J. BastedoFedEx Corporation

Don BouffardCrowe Chizek and Company, LLC

James A. BurkhartThe Procter & Gamble Co.

Mark M. ChainDeloitte LLP

Frank CrinitiCrowe Chizek and Company, LLC

Wayne R. EbersbergerErnst & Young

Richard I. FremgenDeloitte LLPUniversity of ND

Tim GrayRyan Companies

Kenneth M. HaffeySkoda, Minotti & Co.

James J. HummerWhole Health Mgmt., Inc.

Kevin T. MaguirePricewaterhouseCoopers

Andrew (Drew) PalufUniversity of ND Controller

Daniel F. RahillKPMG/Chicago Metro Tax Practice

Philip ReckersArizona State University

Clare RicherFidelity Investments

Cynthia SmetanaThe Catholic Charities of the

Archdiocese of Chicago

Jennie WilsonAllied Domecq QSR

Glenn ZubrydBDO Seidman LLP

Welcome to the latest edition of the Notre Dame Department of

Accountancy newsletter. Throughthis publication, we aim to keep in touch with our accounting alumniand friends. We also provide anupdate of our activities, showcasethe accomplishments of our stu-dents and faculty, and thank ourfriends for their contributions oftime and money in our accountingeducational programs.

Our educational programs continue to present challenging and rewarding curricula for our students. The interaction betweenthe business community and ourstudents is evident in our programsthrough a wide variety of activitiessuch as sponsored case competi-tions, lectures by professionals, student organization activities, andsummer internships. Our courseactivities continue to emphasize life-long learning skills in research,critical thinking, communication,technical capability, and solvingunstructured accounting and busi-ness problems. Moreover, our faculty continually seek out rich,current contexts to develop theseskills. For example, Professor TomFrecka has developed a new courseon Accounting Fraud Examinationand Professor Kevin Misiewicz ispresenting a special course onaccounting ethics. As always, ourmost treasured asset is our faculty.Through their dedication to NotreDame, our strong tradition of excel-lence in educating for the futurecontinues. Career placement at

Accountancy AdvisoryBoard Members 2003-2004

ND Accountancy / Jan. 2004 IssuePAGEØ2

ND ACCOUNTANCY ISSUED BY THE DEPARTMENT OF ACCOUNTANCY UNIVERSITY OF NOTRE DAME

DEPARTMENT CHAIRThomas Schaefer

ASSISTANT CHAIRThomas Stober

CO-EDITORJim WittenbachKathy Knox

CONTRIBUTORSLinda EspahbodiEd HumsAngela KaseKen MilaniKevin MisiewiczJanet O’Tousa

Message From the Chair

graduation remains among the best at Notre Dame—three monthsafter graduation almost all of ourstudents either have jobs, are in volunteer service, or graduate education.

We are delighted to announceseveral highly talented additions to our faculty this past year. First,Professor Peter Easton joined us asthe Notre Dame Alumni/AndersenChaired Professor after having been on the faculty at The OhioState University. Peter has agreedto direct our new Center forAccounting Research and Education(CARE). The activities of CARE arecurrently being formulated but themain goal is to raise Notre Dame’svoice in the world of accountingeducation. Next, Oliver Li joins us as an assistant professor. Oliver finished his Ph.D. this past summerfrom the University of Arizona andteaches and performs research infinancial accounting. Also we haveadded four professional specialiststo our faculty—Ed Hums andKathleen Knox in accountancy and Tonia Murphy and JamesO’Brien in business law.

As a final note I wish to thank allof our supporters for being such animportant part of our department’ssuccess. In particular, we are grateful to the members of ourAccountancy Advisory Board fortheir participation in strategic plan-ning, curriculum evaluation, andoverall advising. The support fromall of our friends and alumni is cru-cial to our Notre Dame tradition ofexcellence. Thank you, and Go Irish!

+


Recent Graduate Earns Top CPAScore in the Nation

Joseph Rutledge, who earnedbachelor’s and master’sdegrees from the University

of Notre Dame in 2001 and ‘02, has won the Elijah Watts Sells Gold Award for attaining the high-est score in the nation on lastyear’s Uniform Certified PublicAccountant Examination.

The American Institute ofCertified Public Accountants recognizes the three CPA candi-dates with the top scores on theexam with gold, silver and bronzeawards that are named in honor of Elijah Watts Sells, a foundingpartner of Haskins & Sells, a

predecessor of Deloitte LLP.The CPA examination is admin-

istered each year to more than120,000 people in the 50 states, the District of Columbia, Guam,Puerto Rico and the Virgin Islands.

After receiving his bachelor’sdegree in accountancy, Rutledgeremained at Notre Dame to earn a master’s degree in the field lastMay. He is from Westlake, Ohio,and works for Deloitte LLP inCleveland. In addition to the Sells Award, he also will receivethe Charles Schmidt Award for the best performance on the CPAexam in Ohio. +

Bill Nichols AppointedAssociate Dean

Professor Bill Nichols has been appointed

Associate Dean for Faculty and Budget.

He previously served the Mendoza College of

Business as Associate Dean for Graduate

Programs from 1995-2000. Bill received his D.B.A. from Florida State

University in 1978. His teaching and research interests are in financial

reporting. Bill’s research has been published in the Journal of Financial

Economics, the Journal of Accounting Research, The Accounting Review, the

Journal of Accounting, Auditing and Finance, the Journal of Business, Finance

and Accounting, the Journal of the American Taxation Association, and

several other accounting and finance journals. +

THOMAS F. SCHAEFER, Chair

Oliver Zhen Li Assistant Professor

Oliver joined the department inAugust, 2003 He holds a Ph.D. degreein Accounting from the University ofArizona (2003). Before pursuing anacademic career, Oliver worked in thecorporate banking area for three yearsfor the HSBC Holdings Ltd. His currentresearch interests include tax capital-ization and valuation, trading volumearound ex-dividend days and earningsannouncement days, dividend policyand institutional investors. He pub-lished a paper in the Journal of Ac-counting and Economics this year. He lives with his wife Rachel and his one-year old son David.

Edward F. HumsAssistantProfessionalSpecialist—Accountancy

Ed joined the faculty as an AssistantProfessional Specialist in 2003 aftertwo years as an adjunct faculty mem-ber. He currently teaches financialand managerial accounting. For 26years, Ed served in various adminis-trative roles at the University includ-ing budgeting, financial planning, taxreporting, systems management, andfinancial reporting. In 1989 whileworking in administration, Ed beganteaching on a part-time basis for thedepartment. Ed is a 1975 graduate ofNotre Dame with a degree in accoun-tancy, holds two masters’ degreesfrom Indiana University South Bend,and is licensed as a CPA in Indiana. Ed and his wife Shirley, an adminis-trator in the University’s athleticdepartment and Notre Dame alumna,reside in Mishawaka. Ed is a memberof the Sorin Society, Notre Dame

Monogram Club, Indiana CPA Society,and is a player/coach of the NotreDame faculty hockey team.

Kathy KnoxAssistantProfessionalSpecialist—Accountancy

Kathy joined the department as anAssistant Professional Specialist in the Fall semester of 2003. She mostrecently worked in the FinanceDivision at Notre Dame, where she was the Payroll Supervisor. Prior to that, Kathy taught Financial andManagerial accounting on an adjunctbasis at Notre Dame and worked withthe International Student section of the Tax Assistance Program. Kathyearned her B.S.B.A. from the University of Louisville in 1987, magna cum laude; her M.B.A. (Concentration inTaxation), with High Honors fromNotre Dame in 1991; and her CPA designation in 1993. Kathy’s area ofexpertise is Nonresident Alien taxa-tion, in addition to payroll taxationand financial accounting. She teaches the Financial and ManagerialAccounting principles courses, as well as being involved in the TaxpayerAssistance Program. Kathy and herhusband, Tracy, live in Granger andhave two children, Andrew (16) and Emily (10).

Tonia Hap MurphyAssistantProfessionalSpecialist—Business Law

Tonia began teaching at Notre Dame in 1992, after practicing law with alarge law firm in Indianapolis andworking as an in-house attorney at EliLilly and Company at its Indianapolisheadquarters. Tonia obtained her


Appointments Faculty

undergraduate degree from NotreDame and her Juris Doctorate at theUniversity of Michigan Law School.She now teaches the introductoryBusiness Law course. Tonia is a member of the Indiana Bar and theAcademy of Legal Studies in Business.She and her husband, Pat, have fouryoung daughters.

James A. O’BrienAssistantProfessionalSpecialist—Business Law

Jamie joined the Department ofAccountancy faculty in 1990 as anAdjunct Instructor. He earned hisB.B.A. at the University of Notre Damein 1988, graduating Summa CumLaude. In 1993, Jamie graduated fromthe University of Notre Dame LawSchool, also Summa Cum Laude.Jamie is a regular presenter at contin-uing education seminars for account-ants and attorneys. He is also a CPA,as well as an attorney and utilizes hisprofessional skills to teach a variety ofbusiness law and law-related classesand seminars. Jamie and his wife,Amy, are blessed with four children:Jamie Jr. (13), Joshua (10), Margaret(5), and Elizabeth (1).

Jeffrey S. MillerAssistant Professor

Jeff earned his Ph.D. in Accountingfrom the University of Texas at Austinin 2000, his MBA from the University of Michigan in 1988, and his B.S. degreein Accounting from The Ohio StateUniversity in 1982. His professionalexperience includes six years of corpo-rate finance with NCR Corporation andfour years of public accounting withErnst and Young. Jeff’s teaching andresearch interests are in the area offinancial accounting and reporting. His research focuses on investor andanalyst reactions to voluntary disclo-sures of financial information and has been published in the Journal ofAccounting Research. Jeff and his wife,Michelle, have two children, Lauren(10) and Grant (6).

Margaret B.Shackell-DowellAssistant Professor

Margaret received her Ph.D. from theUniversity of Michigan in 1999. Herresearch examines the accountinginformation that managers use to makeoperational decisions, and motivateand reward employees within firms.She teaches managerial accounting. In 2003, Margaret was awarded theDepartment of Accountancy’s DincoloAward for Excellence in undergraduateteaching. Prior to her Ph.D., Margarettaught at the University of Waterlooand developed training programs for a National Canadian CharteredAccounting firm. Her husband, GlenDowell, does research in corporatestrategy and organization theory.Margaret and Glen have a daughter,Claire and a son, Gavin. +


STUD

ENT

TEST

IMON

IAL

I began graduate school

with several goals—to

challenge myself, enhance

my theoretical understanding

of accounting, and develop as

a person. The quality of

professors, students, and

overall educational

environment of the Master

in Accountancy program at

Notre Dame allowed me to

accomplish these goals. As

I'm about to begin my career

in public accounting, I am

grateful to have developed a

strong network of extremely

talented individuals upon

whom I can rely. I am

endlessly proud to be a part

of Notre Dame's family!

– Paula LampelaMS-Accountancy, ‘03

“

”

Renewals

THE ACCOUNTANCY CHAIRMAN’S AWARDErin Nigh

Pemberville, OhioYang Tommy Xu

Beijing, P.R. China

THE ACCOUNTANCY FACULTY AWARDJennifer Dobosh

Clinton, Pennsylvania

THE WILLIAM G. BARTH AWARDYogeld Andre

Poughkeepsie, New YorkTim Brennan

Naperville, IllinoisRamon Villalpando

Chicago, Illinois

THE PETER BRADY AWARDJessica Boehm

Roselle, Illinois

THE BROTHER CYPRIAN, CSC AWARDAlexis Dowdle

Oswego, New YorkCarolyn Billick

Chagrin Falls, OhioAnne Gallagher

Waukesha, WisconsinScott Klitsch

Mequon, Wisconsin

THE TARA K. DEUTSCH AWARDPatrick Amato

Perrysburg, Ohio

THE JAMES DINCOLO AWARDKimberly Talianko

Huntsville, AlabamaSusan Varnum

Fort Myers, FloridaAbby Holtz

Avoca, IowaBirgit Heinisch

Washington Crossing,Pennsylvania

THE INDIANA CPA SOCIETY AWARDDaniel Sirken

Rochester, Indiana

THE ELMER LAYDEN AWARDMartin Clarke

Appleton, WisconsinValerie Kruse

Peachtree City, GeorgiaRamon Villalpando

Chicago, IllinoisPeter Marsh

Bowling Green, Ohio

THE HAMILTON AWARD FOR ACCOUNTANCYLeslie Odmark

Norcross, Georgia

2003 Senior Student AwardWinners, Department of Accountancy

The University of Notre Dame AccountancyExcellenceScholarshipWinners 2003

The Department of Accountancyawarded twenty-three scholar-ships to Fall 2003 junior

accountancy majors. The scholar-ships are primarily merit-based.Funding for the scholarships is madeavailable through the generosity ofDeloitte, Ernst & Young, KPMG andPricewaterhouseCoopers.

Meghan Barnes

Michael Baron

Patrick Biladeau

William Coffey

Sean Dennis

Stephanie Didier

Michael Flanagan

Christine Gaumond

Christopher Hale

Matthew Harris

Hristo Georgiev Hristov

Michael Iselin

Kenneth Kosman

Kathryn Landsberg

Sarah Lowe

Michael Lund

Amy Reiff

Alison Ruddy

Christopher Scovil

Sarah Twedell

Sarah Wear

Kristin Yemm

Courtney Zeph

+

+



PWC’s xTAX Competition

XTAX (short for xtreme Tax) is a new PricewaterhouseCoopers’

national competition designed to give students experience

and exposure to real world accounting and tax issues while teaming

with friends and colleagues. Four teams (five students each)

competed on Wednesday, November 12.

The winning team (coached by Professor Oliver Li) now has a

chance to move on to the National Finals to be held in Washington,

D.C. at PricewaterhouseCoopers’ National Tax Services. +

Deloitte Case Competition

During the fall semester 36 undergraduate students, six faculty

and nine Deloitte professionals participated in the Deloitte Case

Study Seminar. A real-world financial reporting issue was assigned to

each of six teams. Teams were given several weeks to research their

financial reporting issue cumulating with formal presentations to a

panel consisting of three Deloitte partners. The presentation by the

team of Ryan Bannister, Michael Baron, Christy Donnelly, Kirk

Gomsak, Robert Gorynski and Kristin Yemm was ranked first by the

panel. During the spring semester this team, along with its faculty

advisor Professor Dick Fremgen, will represent Notre Dame at a

national competition in Scottsdale, Arizona. +

First BusinessLaw Forum Looksat White CollarCrime

The Business Law Facultypresented the inaugural BusinessLaw Forum on Nov. 5. The

speaker was Donald J. Schmid, ND ‘82,an Assistant United States Attorney forthe Northern District of Indiana who has extensive experience prosecutingwhite collar criminal cases. He spoke to a packed Jordan Auditorium audienceabout recent developments in whitecollar crime. The Business Law Facultyhave launched this speaker series togive students (and others in theMendoza community) additionalexposure to topics covered briefly in the introductory business lawcourses. The next Business Law Forumwill be held in the spring. +

The members of Li’s Leaders. From left to right: Craig Oliver, John Shaida,Mark Bellantoni, Andrew Vancura and Joe Reilly.New Ethics

Courses

Two new courses to help studentsrecognize ethical issues inaccounting, understand ethical

approaches, and improve moral reason-ing and ethical decision making will beoffered in Spring, 2004. Kevin Misiewiczwill teach BA 341 Topics in BusinessEthics with a focus on accounting. It isa one semester hour course for under-graduate business majors. Kevin andPat Murphy, professor of Marketing and Director of the Institute for EthicalBusiness Worldwide in the MendozaCollege of Business, will co-teach a 1.5 semester hour course, Ethics inAccounting. It is an elective for gradu-ate students in the MS-AccountancyProgram and the MBA Program. +


The Beta Sigma Chapter

of the national accounting

fraternity, Beta Alpha Psi,

has 100 members: 79

Masters’ in Accountancy

students and 21 Seniors.

Officers for the current

academic year are:

PresidentKevin Schumm

Vice-President, ServiceCarolyn Billick

Vice-President, Social ActivitiesLaly Molina

ReporterAbby Holtz

TreasurerScott Klitsch

Corresponding SecretaryStephanie Lee

WebmasterMark Bellantoni

Faculty AdvisorJanet O’Tousa

Agoal of this year’s officers is to try to take the chapter to distinguished status at

the national level. Since thisinvolves a commitment on the partof every member to attain a certainnumber of hours in professionalactivities as well as community service, a Member Handbook wasdeveloped and distributed in orderto acquaint each member with theirresponsibility. The website (locatedat http://www.nd.edu/~bapsi/) hasbeen updated and improved formember use as well as to publicizeevents sponsored by our chapter.All meetings are open to the entire department.

Professional meetings to datehave offered the members a varietyof topics to enrich their educationalexperience. Topics have includedTransition from College to Career in a Public Accounting Firm (E&Y),Personal Finance (Professor KenMilani), Ethical Issues on the Job(PwC), and Audit of Inventory usingan interactive CD (KPMG). Springmeetings are being scheduled andwill feature representatives fromBritish Petroleum, Johnson &Johnson, the FBI and the SEC.

A number of Community Serviceprojects are available to the mem-bers. Service to the accountancydepartment is accomplished through“Super Sunday Study Sessions,” oneon one or small group study assis-tance offered to sophomores in thePrinciples’ classes the Sunday beforeeach mid-term and the final. A proj-ect for the South Bend community,

that will allow members to applytheir accounting and analytical skills,is being developed with El Campito,a day care center that serves lowincome families. Other projectshave included Relay for Life(American Cancer Society fund-raiser) and CPA Service Day (mem-bers worked with local CPAs at anumber of different sites in the community). During the springsemester, members will be makingpresentations to local high schoolstudents in the Accounting for theFuture program, developed in con-junction with the AICPA.

Plans are in place to give a BestPractices Presentation at the upcom-ing Mid-West Regional meeting to beheld in March. If the presenters aresuccessful at taking first place, theywill receive financial support to pres-ent at the Annual meeting to be heldin Orlando, FL in August 2004.

Invitations for membership areissued twice during the year and initiates attend a formal installationceremony. Keynote speaker at theFall Initiation Banquet was ProfessorGlen Dowell. The Spring InitiationBanquet is currently being planned.

The culmination of the year is theAnnual Awards Banquet, jointlysponsored with the AccountancyDepartment. At this banquet, theAlumnus of the Year is announced.Jennie Wilson was this past year’srecipient (see related article for picture and bio). She served as thekeynote speaker and gave a veryinteresting talk about her careerpath and work life balance issues. +

Beta Alpha Psi Update: Beta Sigma Chapter ChartsCourse for Distinguished National Status

Notre Dame, Ernst & Young“Your Master Plan” ProgramContinues To Thrive

The University of Notre Dame and the University ofVirginia, in collaboration with Ernst & Young, offer agraduate level program called YMP “Your Master Plan.”

The program is unique in that it recruits non-accounting stu-dents to the accounting profession. The first class graduated 46 students in 1999. Today the class size has increased to animpressive group of approximately 75 students.

The YMP Program has not only grown in size and scope, but the quality of the students has improved. The average GPAis 3.55 and the average GMAT rose from 590 for the first classto an average of 606 for the Class of 2004.

Graduates from the YMP Program provide a diverse workforce (i.e., educational background, ethnicity, and internationalexperience) to the accounting profession, which increasinglyrequires problem solvers to bring a broader perspective to an ever-increasing complex and global marketplace. +


Jennie Wilson Named Alumnus of the Year

Jennie Wilson is Chief Financial Officer for Allied Domecq QSR(ADQSR) one of the world’s most successful quick service restaurantchains featuring the Dunkin’ Donuts, Baskin-Robbins and Togo’s

brands. A subsidiary of Allied Domecq PLC, ADQSR is the franchisor forDunkin’ Donuts, Baskin-Robbins and Togo’s Eateries locations aroundthe world. Jennie is responsible for the entire financial and accountingfunctions for the worldwide franchising business comprising more than10,000 outlets. Prior to joining ADQSR in 1992, Jennie was an audit man-ager with Ernst & Young where she oversaw the planning and executionof audits and special projects as lead manager for a variety of public and private companies. A Certified Public Accountant, Jennie received a bachelor’s degree in business administration from the University of Notre Dame in 1986 and currently serves as a member of theUniversity’s Accounting Advisory Board.

A native of Columbus, Ohio Jennie now resides in Norwell,Massachusetts with her husband, Mark and their three sons, Connor,Ryan and Jack. +

Notre DameAccountingAssociation Shows Support

The Notre Dame AccountingAssociation recently sent carepackages to soldiers with connec-

tions to the University, including gradu-ates and students’ family members. Thecollection drive allowed the students toshow their appreciation for the sacri-fices the Armed Services makes for us.An e-mail appeal was sent to all under-graduate students asking for contribu-tions to the project. The hope was that,even though their duty called them faraway, the care packages would helpthem feel connected to the United States in a special way. +

Twins Pass CPA Exam

In May 2003 Brad and Paul Buser (identical twins) passed

the CPA exam on their first sitting. This may be a first for

Illinois! The twins, whose hometown is Racine, Wisconsin,

received their BBA degrees from Notre Dame in May 2003.

Both Brad and Paul are members of the Beta Gamma Sigma

Honor Society and both had summer internships with Big-Four

firms. Brad with PricewaterhouseCoopers in Dallas and Paul

with Deloitte in Chicago. Furthermore, both participated in

the Deloitte Case Competition on campus. Brad and Paul

work for the Boston Consulting Group in Chicago. +

ND Accountancy / Jan. 2004 IssuePAGE10

2003 Accountancy Department Workshop SeriesPat Murphy, University of Notre Dame Ethics Workshop Reading

Ray Ball, University of Chicago Earnings Quality in U.K. Private Firms

Maria Nondorf, UNC – Chapel Hill Accounting Choice and The Limitations to the Share Repurchase Option

Oliver Li, University of Notre Dame Investor Tax Heterogeneity and Ex-Dividend Day Trading Volume—The Effect of Dividend Yield and Institutional Ownership

Andrew Schmidt, Arizona State University The Persistence, Forecasting Ability, and Valuation Implications of the Tax Change Component of Earnings

Brooke Elliott, University of Washington Reconciling GAAP losses and pro forma profits: Effects on investor judgments

Oliver Li, University of Notre Dame Tests of the influence of a firm’s post-IPO age on the decision to initiate a cash dividend

Peter Easton, University of Notre Dame Linear Earnings-Value Relations, Nonlinear Transactions, and Linear Accrual Rules

Mark Nelson, Cornell University Quantitative Materiality Perspectives and Auditors’ Disposition of Detected Misstatements

Frank Selto, University of Colorado Choice and Change of Measures in Performance Measurement Models

Jake Thomas, Yale University Contributed capital versus retained earnings: tax differences and value implications

Hong Xie, University of Illinois The impairment of auditor credibility: Evidence from the Enron-Andersen saga

Paquita Friday, University of Notre Dame How Does the Market Value Expected Pension Asset Returns?

Joe Piotroski, University of Chicago The Influence of Analysts, Institutional Investors and Insiders on the Incorporation of Market, Industry & Firm-Specific Information into Stock Prices

Mingyi Hung, U. of Southern California Investor Protection and Analysts’ Cash Flow Around the World

Oliver Li, University of Notre Dame Heterogeneous Valuation of Accruals and Trading Volume

92 Students Matriculate to Masterof Science in Accountancy Program

All recent graduates of a variety of successful undergraduate account-ing programs at reputable institutions throughout the United Statesand world, the Class of 2004 began their fall semester with a plethora

of activity. Team building exercises at orientation, workshops within theMendoza College of Business and a trip to the Big 4 in Chicago, ignited themomentum necessary to succeed in the challenging curriculum and recruit-ing season offered throughout the fall by the program. The 92 studentsbrought a variety of interests and academic, as well as, personal experiencesto form a productive and focused environment for successful learning. +


STUD

ENT

TEST

IMON

IAL

Receiving my Master of

Science in Accountancy

at Notre Dame truly helped

to round out and bring

together my undergraduate

studies. I found that in my

undergraduate work, we often

assumed accounting data to

be correct and ready for

financial analysis. However,

the recent scandals in

corporate America have

proven this notion to be

incorrect and underscored

the need for financial analysts

to have a strong accounting

background. The world-class

faculty in the MSA program

often used real-world cases

to study past and potential

problems with accounting

information, leaving me in a

much better position to apply

my classroom knowledge to

real-world business settings.

I would strongly recommend

the Master of Science in

Accountancy Program to any

Finance major looking to

gain a stronger academic

background as they explore

and pursue different job

opportunities in the business

environment.

– Brendon NunninkMS-Accountancy, ‘03

“

”

A Big Notre Dame WELCOME tothe MS-Accountancy Class of 2004!Grace AgustinaCharles AllenKristopher AllenEmily AlliboneJennifer BezdicekToby BieblCarolyn BillickJeffrey BormanAndrew BozzelliMichael BurkholderDavid CantosJoseph CatalanoKerrie ClevelandStephanie CookSteven CronkJennifer DoboshAlexis DowdleEric EddyBryan FordJoseph GartnerBrian GibsonBradley GoffGregory HarrimanBrennan HayEric HedinKatie HeidlerBirgit HeinischDaniel HenningsAbby HoltzSarah JenkinsHai Jiang

Zebb KappTimothy KappellScott KlitschChad KohorstElizabeth KuckFrank LamsensMark LeaheeyStephanie LeeNicholas LesniakMargaret MacDonaldBrian MacKinnonJeffrey MarlerMark MarquezSondra MaulerMatthew MeadKristin MillerDave MoehrmanJohn MooreRichard NaponelliLeslie OdmarkBethany O’HanlonMartin OsborneJames PachTim PattonJoseph PayneJohn PenillaMatthew PiggotJonathan PressnellKristine ReidyCharles RemleyRichard Rodriguez

Geoffrey RudziewiczMegan RyanMatthew SanchezDaniel SchmitKevin SchummMichael ShultzAnuj SinghalDaniel SirkenChristopher SkidmoreMark SmeraglinoloTracy SmithBrian StefanskiLuke StepusinBryan StewartTheodore StranskyShelby StrongKimberly TaliankoTarun TalwarDiane TedoreJoseph TeelucksinghAndrew VancuraMichael ViolaBrian VnakCourtney WeberJennifer WehmerByron WittenbergLusiena WongBeilei XuRuo YangElizabeth Young

+


Enrollment in the five SpecialTopics in Tax courses has morethan doubled over the past cou-

ple of years. Each course, with theexception of State and Local Taxes, isa 1 credit hour course that meetsonce a week for 5 weeks. State andLocal Taxes is a 3 credit, one semes-ter course. The students enrolled inthe Financial and Tax tracks choosethese courses to meet graduate elec-tive requirements.

Peter A. Sweeney, partner with thefirm of Vladem, Lerman, Sweeney & Company, LLP, teaches Personal

Financial Planning.This course coverstopics such as estateand gift, retirement,income tax, invest-ment, as well as, riskmanagement plan-

ning. Peter has been working withindividual and business groups forover 25 years. He holds a BBA inFinance from the University of NotreDame, a Masters in Management fromNorthwestern Kellogg School ofManagement and a Masters in theScience of Taxation from DePaulUniversity. Peter is also a member ofAICPA, ICPA, NACVA, CPA/PFS and is aCertified Financial Planner (CFA).

Joseph Tapajna, the National TaxProfessional Practice Director in the Risk Management/Quality

Assurance functionfor the WashingtonNational Tax Groupof Deloitte LLP teaches AccountingPeriods andMethods. This

course reviews the historical devel-opment of tax accounting principlesand how they are evolving in light

of a complex business environment.Specific topics include the cash andaccrual methods of tax accounting,tax rules governing the time value of money and the taxation of invento-ries. Joe received his BBA from theUniversity of Notre Dame in 1973 andhis J.D. from the Indiana UniversityLaw School in 1976. He has served on the Tax Accounting ProblemsCommittee of the Federal Tax Sectionof the American Bar Association, is a past chair of the AICPA’s Relationswith the Bar Committee and co-chair of the National Conference ofLawyers and CPA’s. He has served onthe Legal Services Task Force of theIndependence Standards Board andthe AICPA’s Tax Executive Committeeand Tax Accounting Subcommittee.

Steve Kukanza, Partner in Charge of International Tax Services withPricewaterhouseCoopers, teaches

International Tax.The course beginswith an overview offundamental interna-tional taxation issuesand then coversbasic jurisdiction

principles of U.S. tax law. Taxation offoreign taxpayers for U.S. activitiesand taxation of U.S. taxpayers for for-eign activities is also covered withspecific attention paid to taxing rules,source rules, the role of income taxtreaties, and filing, withholding andreporting requirements. Steve haspracticed international tax for overtwenty-one years. During his career,Steve has provided international taxadvice to a number of the leadingglobal companies includingPharmacia & Upjohn, 3M, BaxterInternational Inc., Diafuku, Ecolab,Wendy’s International, EmersonElectric, Arjo Wiggins Appleton Plc and Gateway.

Jeffrey M. McGowan, Tax Partner withKruggel, Lawton & Co., LLC CPAs,located in South Bend, IN., teaches

State and LocalTaxes. The coursefocuses on variousissues of state andlocal taxation.Topics coveredinclude multi-state

nexus issues, apportionment andallocation, and consolidated and unitary issues. Jeff holds a BBA fromthe University of Notre Dame and anMBA from the University of NotreDame. He is a licensed CPA in Illinoisand Indiana, member of AICPA,Indiana CPA Society, an IndianaCertified Level II Assessor-Appraiserand holds a certification Series 65. He brings 17 years of experienceworking in the taxation area of Ernst & Young, Crowe Chizek andCompany, LLC and Kruggel, Lawton & Co., LLC CPAs.

Jim Breen is currently in his 5th year teaching in the Master’s pro-gram. He is a 1974 graduate of Notre

Dame’s AccountingProgram and he alsohas a Master ofScience in Taxationdegree from DePaulUniversity.

Jim has been withKPMG’s Chicago office since his grad-uation from ND. He was promoted to partner in 1983 and specializes inthe taxation of financial service enti-ties. In 1998, Jim received the BetaAlpha Psi Outstanding AlumnusAward. Jim also served on theAccounting Advisory Board from1997 through 2000.

Jim and his wife Nancy have two children currently attendingNotre Dame - Patrick (2004) andMeghan (2006). +

Popular Special Topics Courses Help StudentsTransition to Professional World


Criminologist Lecture CoversAccounting Fraud Issues

Tax Assistance Program Sees Most Productive Year

On November 20, 2003, Joseph T. Wells, Chairman,Association of Certified Fraud Examiners gave a talkentitled “What Accountants Need to Know About Fraud.”

Mr. Wells, white-collar criminologist and former FBI agent, isfounder of the Association of Certified Fraud Examiners, a28,000 member professional organization headquartered inAustin, Texas. He is the author of scores of articles and sixbooks related to fraud. He has been named to AccountingToday’s list of the “Top 100 Most Influential People” in account-ing and in 2002 the American Accounting Association namedMr. Wells the “Accounting Education Innovator of the Year.”

His presentation at Notre Dame was in conjunction with anew Accounting Lyceum Course developed by Professor TomFrecka entitled “Fraud Examination.” +

The Mission Statement

of the University of Notre

Dame includes the

following:

“ . . . the University seeks to

cultivate in it students . . . a

disciplined sensibility to the

poverty, injustice and oppression

that burden the lives of so many.

The aim is to create a sense of

human solidarity and concern

for the common good that will

bear fruit as learning becomes

service to justice.”

Adirect response to this section of the UniversityMission Statement are

service learning efforts that havebecome part of the fabric of NotreDame. The Vivian Harrington GrayNotre Dame-Saint Mary’s College Tax Assistance Program was one of the first service learning opportu-nities at Notre Dame.

2003 was the 32nd year of operation for the Tax AssistanceProgram. Providing free income tax preparation to the communitiessurrounding Notre Dame is the pri-mary service of the Tax AssistanceProgram. Over ninety students from Notre Dame and Saint Mary’sCollege participated in the 2003 Tax Assistance Program effort.They prepared over 3,100 tax returns and helped over 1,700 taxpayers. This made 2003 the most productive year ever for theTax Assistance Program.

Another outreach of the TaxAssistance Program occurs whenother colleges and universitiesinquire about the service learningeffort and its details. VITA (VolunteerIncome Tax Assistance) programsoperated at Case Western Universityin Cleveland (under the guidance ofNotre Dame graduate Ben Nichols)and the Wharton School at theUniversity of Pennsylvania inPhiladelphia where Pat McLanahan, a Notre Dame alum, headed theactivity. Also during 2003, ButlerUniversity in Indianapolis, estab-lished a VITA program using the Tax Assistance Program as a model.

Over forty Notre Dame alumnigroups established Tax AssistanceProgram operations in their respec-tive areas. The Notre Dame AlumniAssociation (guided by Sean O’Brine)was the primary sponsor of this ini-tiative. Ken Milani is the faculty advi-sor for the Tax Assistance Program. +

In addition to its professors,

the Master of Science in

Accountancy program also

enlists several practitioners to

teach a variety of elective tax

courses. These individuals help

students to bridge the gap

between theory and practice,

demonstrating how concepts

learned in the classroom are

actually applied.

– Marianne (O’Brien) DedaMS-Accountancy, ‘02

”STUD

ENT

TEST

IMON

IAL

“

Chao-Shin Liu coau-thored an article with Fred Mittelstaedt on“Materiality Judgmentsand Disclosure of RetireeHealth Care Costs underSFAS No. 81,” published in the Review ofAccounting Studies. Hispaper “Recognition andDisclosure Reliability:Evidence from SFAS No.106,” coauthored withPaquita Friday and FredMittelstaedt has beenaccepted for publication in the ContemporaryAccounting Research. Chao was awarded a university 2002 KanebTeaching award. He also served on the 2003Outstanding DissertationAward Committee and2004 Annual ProgramCommittee for theInternational AccountingSection of the AmericanAccounting Association.

On the teaching front, Ken Milani closed hisyear as a Kaneb Center for Teaching and LearningFaculty Fellow with a pres-entation—“The Four M’s of Teaching—Mechanical,Managerial, Motivationaland Media.” He also continued to participate in several Notre DameExecutive Developmentefforts (e.g., Certificate inExecutive ManagementProgram, BayerCorporation’s Finance

for Non-Financial SeniorManagers) and the SportsManagement Institutewhich was held at theUniversity of Michigan.

Articles were publishedin Practical Tax Strategiesand the Journal ofInternational Taxation.In both cases, the co-authors were “DoubleDomers.” Tax Tips for the 2003 Graduate, a monograph written withJohn Connors (a NotreDame Law school gradu-ate) was made available on the internet at South-Western Publishing’s web site.

Milani continues toserve as the FacultyCoordinator of the Vivian Harrington Gray Tax Assistance Program.An additional service ofthe Tax AssistanceProgram found Milani and Claude Renshaw, a faculty member at SaintMary’s College, writing acolumn—Tax Talk—for theSouth Bend Tribune. Thecolumn featured incometax questions from readersthat were answered byMilani and Renshaw.

Jeff Miller presented“Pro Forma Disclosures:Do Analysts andNonprofessional InvestorsReact Differently?” at theAmerican AccountingAssociation’s 2003Financial Accounting and

Reporting Section mid-yearmeeting. His coauthoredpaper titled “ConfirmingManagement EarningsForecasts, EarningsUncertainty, and StockReturns” was published in the September, 2003Journal of AccountingResearch. Jeff also has a forthcoming article (with Jim Fredrickson –Hong Kong) in TheAccounting Reviewentitled, “The Effect of Pro Forma EarningsDisclosures on Analysts’and NonprofessionalInvestors’ Equity ValuationJudgements.” He alsoserves as an ad hocreviewer for TheAccounting Review,Contemporary AccountingResearch, and BehavioralResearch in Accounting.

Kevin Misiewiczserves this year as a member of the TeachingResources Committee forthe American TaxationAssociation. He continuesas Faculty Director of theCollege’s Master of Sciencein Administration Program.On March 14, Kevin pre-sented a campus update to the Notre Dame Club of Phoenix and received a Lilly Summer Fellowship to “Foster VocationAwareness in the MSA program.”

Fred Mittelstaedt was a recipient of a KanebTeaching Award for the2002-2003 academic year.

Sandra Vera-Muñozcontinues to serve on the Editorial Advisory and Review Board of TheAccounting Review. Sandraalso serves as CouncilMember-at-Large of theAmerican AccountingAssociation. On July 25,2003, Sandra participatedin the KPMG Midwest Area Faculty Symposium in St. Louis, Missouri.

Tonia Murphy attendedthe Annual Meeting of theAcademy of Legal Studiesin Business in Nashville,TN, August 13-15. In addi-tion to attending work-shops and presentationson pedagogy and substan-tive law, Tonia moderateda panel discussion onemployment law issuesand helped review paperssubmitted for a studentcompetition.

Jamie O’Brien has been invited to address100 Certified PublicAccountants from theChicago-land area onDecember 2, 2003 at theNorthwest Indiana CPA Society’s AnnualContinuing ProfessionalEducation Seminar.

Faculty Activities


O’Brien will make a fourhour presentation on the 2003 changes in thefederal income tax law.

Ram Ramanan made an invited research presentation at PurdueUniversity. He also pre-sented a paper at the 14th Annual FinancialEconomics and AccountingConference held at IndianaUniversity, Bloomington,Indiana. He continues to serve as the CollegeDiversity Officer, FacultyAdvisor for Beta GammaSigma and the Chair of the University AcademicAffirmative ActionCommittee. He is therecipient of the LillyFaculty Fellowship for the year 2003-04.

Ram was theOutstanding Teacher of the Year for both thetraditional MBA programand the first graduatingclass of the ChicagoExecutive MBA program.

Dave Ricchiute’s paper,“Effects of an Attorney’sLine of Argument onAccountants’ ExpertWitness Testimony,” is forthcoming in theJanuary 2004 issue of The Accounting Review.

Juan Rivera participatedat the 19th AnnualConference on AccountingEducation for teachers ofprinciples of Accountingheld in St. Louis, Missouriin February 2003. He wasalso an AICPA FacultySpecial Delegate at theAmerican AccountingAssociation AnnualMeeting in Hawaii inAugust, 2003. He present-ed a paper on “Rural andEconomic Development in the context of NAFTA”at the 8th AnnualConference on Free Tradein the Americas held at theTexas A & M InternationalUniversity in April, 2003.In November, 2003 JuanRivera was appointed as a Fellow of the KelloggInstitute for InternationalStudies of the University of Notre Dame.

In April, NorlinRueschhoff received the John P. BegleyDistinguished ServiceAward at the 50th anniversary celebration of Creighton University’sBeta Alpha Psi chapter. In May, Norlin gave a presentation on “EmergingInternational AccountingIssues” at the IndianaAccounting EducatorsConference. He taught the undergraduate andgraduate InternationalAccounting courses in the spring semester and

was director of theSantiago, Chile, MBA pro-gram for the fall semester.He continued as Treasurerof the Faculty Senate andas an Editorial Board mem-ber for the InternationalJournal of Accounting.

Lisa Sedor has a forthcoming article (with Kathryn Kadous –Illinois) in ContemporaryAccounting Research enti-tled, “The Efficacy ofThird-Party Consultationin Preventing MonogenialEscalation of Commitment:The Role of MentalRepresentations.”

Thomas Schaefer ispresident for the AmericanAccounting Association’sAccounting ProgramsLeadership Group for 2003-2004. He has recentlybeen appointed to theAccreditation QualityCommittee of theInternational Associationfor the Advancement ofCollegiate Schools ofBusiness (AACSB) and currently serves on theBoard of Governors for the Federation of Schoolsof Accountancy.

Articles by Dan Simonand his co-authors at the University of SouthCarolina and theUniversity of New South

Wales, Australia, were published recently in the International Journal of Accounting, theInternational Journal of Auditing and Research in Accounting in EmergingCountries.

Thomas Stober recentlycompleted a term on theeditorial board of TheAccounting Review. Tomalso served as Coordinatorfor the AAA FinancialAccounting and ReportingSection for the 2003Midwest Regional Meetingin St. Louis. He continuesto serve as Assistant Chairof the Department ofAccountancy.

Jim Wittenbach is a contributing author to the 2004 Pratt & KulsrudTaxation Series which consists of four textbooks:Individual Taxation;Taxation of Corporate,Partnership, Estate and GiftTaxation; Federal Taxation;and Fundamental Conceptsof Taxation. He was therecipient of a KanebTeaching Award for the2002-2003 academic year.Jim published an article(co-authored with EllenOnsi Bonito) in theMarch/April 2003 issue of Taxation of Exempts. +


Department of Accountancy102 Mendoza College of Business

Notre Dame, IN 46556

Nonprofit Org.U.S. PostageP A I D

Notre Dame, INPermit No. 10

(FRONT ROW) Tom Schaefer, Kevin Misiewicz, Sandra Vera-Muñoz, Fred Mittelstaedt, Ken Milani and

Jeffrey Miller. (BACK ROW) Tom Frecka, Mike Morris, Dan Simon, James Wittenbach, Lisa Sedor,

Margaret Shackell-Dowell, Norlin Rueschhoff, Tom Stober and Chao-Shin Liu. (NOT PICTURED) Peter Easton,

Paquita Friday, Oliver Li, William Nichols, Ram Ramanan, David Ricchiute, Juan Rivera and Jim Seida.

UniformCPA ExamGoesDigital

Beginning inApril 2004, the

Uniform CPA exam willbe given in an electronic for-mat. The exam will cover thesame four sections but thelength is reduced from 15.5 to14 hours. There is an oppor-tunity to take the exam fourtimes per year now. Visitwww.cpa-exam.org for moreinformation. +

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