Accountancy2008NOTRE DAME

Meet the New Chairman

Fred Mittelstaedt became chairman in August 2007

but has been at Notre Dame for almost sixteen

years. Many of you may have met him or had

him for a course. His background is summarized

briefly below.

Fred obtained his B.S degree in Accounting from

Illinois State University in 1979 and worked as an audi-

tor for Price Waterhouse (Chicago) from 1980 to 1981.

He earned his M.S. degree in Accounting from Illinois

State in 1982 and his Ph.D. in Accountancy from the

University of Illinois in 1987. Fred was an Assistant

Professor at Arizona State University from 1987 to 1992

before coming to the University of Notre Dame as an

Associate Professor. He was promoted to Professor

in 2000 and has been the Faculty Director for the M.S.

in Accountancy Program since 2003.

Fred has taught financial reporting courses since he

was a master’s student at Illinois State University. At

Notre Dame, he has taught intermediate and advanced

accounting courses to undergraduates, corporate finan-

cial reporting to MBAs and EMBAs, and advanced topics

in accounting measurement and disclosure to M.S. in

Accountancy students. He was one of the leaders of the

Project Discovery undergrad-

uate curriculum change, and

has received teaching awards

at both the undergraduate

and graduate levels. In 2007,

he became a coauthor on

Financial Reporting and Analysis (4th Ed.), which is used

in numerous MBA and undergraduate programs.

Fred’s research focuses on financial reporting and

retirement benefit issues and has been published in the

Journal of Accounting and Economics, The Accounting

Review, Review of Accounting Studies, the Journal of

Pension Economics and Finance, and several other

accounting and finance journals. He has obtained

research grants from the Department of Labor and

TIAA-CREF to investigate pension related issues. He is

a reviewer for numerous academic journals and has

served on the Editorial Advisory and Review Board for

The Accounting Review. In 2002, he testified on retiree

health benefits before the U.S. House of Representatives

Committee on Education and the Workforce.

Fred and his wife Tammy have two daughters:

Laura (18) and Grace (14). +

THREE WORDS ARE FOUND

ON THE TABLETS OF THE

MARK: “VITA DULCEDO

SPES” WHICH MEANS

“OUR LIFE, OUR

SWEETNESS, OUR HOPE.”

To our alums and friends,

Iam pleased to introduce the latest edi-tion of the Notre Dame Department ofAccountancy newsletter. As mentioned

on the first page of this newsletter, Ibecame chairman in August 2007. I haveenjoyed talking to many of you in my newrole, and I hope to talk to more of you inthe future. Everyone inside and outside of the university has been very supportiveduring my first year. The accountancydepartment is blessed with a dedicatedand talented faculty, an outstanding stu-dent body, helpful staff, and the enthusias-tic support of alumni and friends. Thispublication showcases some of the activi-ties and accomplishments of these groups.

Our faculty members are a key ingredi-ent to the success of the department. Theyspend time conducting research, develop-ing new course content, and providingservice to students, Notre Dame, and theprofession. It has become more time con-suming for faculty members to keep cours-es current because of the rapid pace ofchange in all areas of accounting. For theircourses in the coming year, faculty mem-bers will also devote more time to docu-menting assurance of student learning andaddressing relevant international issues. A few of our faculty members’ activities for the past year are mentioned in the fol-lowing pages. I also am pleased to intro-duce our four new faculty members, BradBadertscher, Jeff Burks, Jim Fuehrmeyer,and Brian Levey, whose profiles appearlater in the newsletter.

Our students are intelligent, well-round-ed, and collegial. They do very well incase competitions, are heavily recruited by employers, and give back to the com-munity. Many of our undergraduate stu-dents graduate with approximately 150hours of college credit and work for large

ND Accountancy / 2008 IssuePAGEØ2

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

DEPARTMENT CHAIRFred Mittelstaedt

ASSISTANT CHAIRJamie O’Brien

CO-EDITORJim WittenbachDena Leinen

CONTRIBUTORSVicky HolawayLorie MarshKen MilaniMike MorrisBill SchmuhlJanet O’TousaRam Ramanan

Message From the Chair

Accountancy AdvisoryBoard Members 2007-2008Ann Marie Achille PricewaterhouseCoopers, LLP

Matt BarrettUniversity of Notre Dame

Gene BastedoFedEx Corporation

Mark ChainDeloitte & Touche USA LLP

Dick FremgenDeloitte LLP

Tim GrayRyan Companies US, Inc.

Sanjay GuptaMichigan State University

Ken HaffeySkoda Minotti Certified PublicAccountants

Bill HarringtonPricewaterhouseCoopers, LLP

Jim HummerWhole Health Management

Tom MurphyCrowe Chizek and Company LLC

Drew PalufUniversity of Notre Dame

Norm PrestageErnst & Young LLP

Dan RahillKPMG’s Chicago Metro Tax Practice

Clare RicherFidelity Investments

Cynthia SmetanaThe Catholic Charities of theArchdiocese of Chicago

Michael W. WallaceRadiology Corp. of America

Glenn ZubrydBDO Seidman, LLP

New Assistant ChairAppointed

Jamie O’Brien, a double domer, was appointedto the position of Assistant Chairman for theAccountancy Department last July. Jamie, a

Summa Cum Laude graduate of the Department ofAccountancy in 1988, joined the faculty in 1990 asan Adjunct Instructor and has since been promoted to AssistantProfessional Specialist and then Associate Professional Specialist beforethis most recent promotion. In 1993, Jamie matriculated from theUniversity of Notre Dame Law School, also Summa Cum Laude. Jamie is aregular presenter at continuing education seminars for Certified PublicAccountants and Attorneys. He is a CPA, as well as an attorney, and uti-lizes his professional skills to teach a variety of business law and law-relat-ed courses and seminars, as well as to advise all undergraduate and gradu-ate accounting students. Jamie and his wife Amy are blessed with four (4)children: Jamie Jr. (18), Joshua (14), Margaret (10), and Elizabeth (6). +

accounting and consulting firms upon graduation. The majority of undergradu-ates pursue graduate degrees at top pro-grams, including the Notre Dame M.S. inAccountancy program. Approximately 50Notre Dame undergraduate students jointhe open-enrollment M.S. in Accountancyprogram each year. The vast majority ofour M.S. students are employed by publicaccounting firms, and the placement per-centage is generally close to 100% at thetime of graduation. In addition to academicachievement, our students continue theNotre Dame tradition of community servicethrough the Vivian Harrington Gray TaxAssistance Program, Beta Alpha Psi, theNotre Dame Accounting Association, andthe M.S. in Accountancy Association.Their diverse activities are described inseparate articles. Special thanks goes to Ken Milani, Janet O’Tousa, Bill Schmuhl,and Jim Wittenbach for serving as facultyleaders in these efforts.

We also recognize the invaluable support of our alumni and friends. TheAdvisory Board meets with us twice a yearto provide feedback on our initiatives andto keep us abreast of the challenges thataccountants face in practice. In addition,we are grateful to the many professionalswho gave their time and effort for classpresentations and case competitions. Wealso thank you for your monetary contribu-tions, which support the faculty and stu-dents. We mention a few alumni in thisnewsletter; we are exceedingly grateful toall of you for how you represent and giveback to Notre Dame.

I hope that you enjoy reading about theactivities of our faculty, students, andalumni. I believe that we have one of thebest accounting programs in the country. I look forward to working with you inpreparing the next generation of leaders in accounting and business. +

ND Accountancy / 2008 IssuePAGEØ3

FRED MITTELSTAEDT, Chair

PWC

TEAM

S UP

WIT

H ND

IN

LOND

ON

In the 2007 spring semester, sever-al Notre Dame accounting majorsstudying in London enrolled in a newcourse titled “Accountancy in theUnited Kingdom.” The purpose of thecourse was to help Notre Dame stu-dents (while in residence in London)enhance their understanding of theaccounting profession in the UnitedKingdom, international accountingand finance issues, and the globalaccounting profession in general.PricewaterhouseCoopers providedtheir expertise, facilities, and helpedto organize, select, and present vari-ous topics to our ND students. NotreDame Professor Tom Schaefer super-vised the course and helped withoverall course development, studentcommunication, the syllabus, and stu-dent work assessment. The studentresponse to the course was extremelypositive. Here are just a few of theircomments about PwC.

“I would rate their (PwC’s) effortsat a 10. They were always very pre-pared for our sessions and wereinterested in getting to know us out-side of the classroom. I also liked that

there were a few ND alums inthere...that sparked our conversationsright off the bat!”

“I was pleasantly surprised by thefriendly, informative atmosphere they(PwC) created for us. It was aboveand beyond what I was expecting.”

“I learned a lot more than I expect-ed about international accounting andthe accounting profession in the UK.PwC’s presentations and ability toanswer our questions were impres-sive and thorough.”

Among the PwC people helpingwith the course in London were NDalums Andrea Larsen and BrianSweet. David Blondel and PaulEardley of PwC’s London offices alsoplayed major roles in the course.Special thanks goes to Greg Garrison,PwC’s Americas Leader, AssuranceServices, for providing PwC’s supportfor the course.

The course was offered in thespring 2008 semester with anexpanded syllabus including bothinternational accounting and financetopics. +

PAGEØ4ND Accountancy / 2008 Issue

The first question we asked our

entrepreneurs to think about focused

on the impact of their accounting

education at Notre Dame on their role

as business owners.

According to Steve Egan, owner/operator of Lula’sCafe, his accounting background was a usefultool (especially in the early years of Lula’s) in

“developing and following a business plan, interpretingand analyzing financial information and managing cashflows.” On an ongoing basis, Steve feels his courseworkin the Department of Accountancy, as well as his experi-ence as an auditor at Deloitte & Touche, helped todevelop his “sense of ethics and professional judg-ment.” As Steve puts it, “I am acutely aware of themonetary implications of any business decision I make,better equipped to take my company’s financial pulse,and better able to apply critical thinking skills towardsolving current problems and anticipating futureissues.”

An accounting background, from the perspective ofJohn Anthony of Anthony Travel, “makes owning andoperating a business easier because our understandingof the financial implications of all decisions is natural.We do not have the uncertainties and questions everytime we look at the financial statements. We understandthe difference between cash flow and net income. Weunderstand the difference between tax and bookentries. We are just more comfortable with our finan-cial situation because of our overall understanding ofthe numbers, process, and flow.”

We next asked our owner/operators to think aboutaspects of their business that they find most challeng-ing. In Steve Egan’s opinion, “the biggest challenge Iface is balancing my roles as primary caregiver to mytwin sons and as leader of my company. Time is cer-tainly a precious resource, and there are momentswhen I cannot fully focus on the organization and give itthe energy it requires. That said, there are tremendousblessings and joys in this challenge; I view it more as a

pleasurable and rewarding situation as opposed to anegative or difficult one.”

The biggest challenge for John Anthony “is to contin-ually look ahead and do our best to ensure long-termsuccess. All of our associates and clients have placed alot of responsibility with us, so we have obligations tothem to be prepared for future situations, opportuni-ties, and threats to produce the best outcome foreveryone involved.”

Finally, we asked our entrepreneurs what aspects ofbeing an owner/operator do they find most enjoyable.Steve Egan expressed his feelings this way, “Manyrestaurateurs would cite their biggest headaches andproblems as their staff and/or customers. That’s nottrue for me. The people who work at Lula’s are bright,intelligent, eclectic, playful, talented and thoughtful. I

STEVE EGAN, Owner/Operator Lula’s Restaurant

“I am acutely aware of the monetary implicationsof any business decision I make, better equippedto take my company’s financial pulse, and betterable to apply critical thinking skills toward solvingcurrent problems and anticipating future issues.”

— Steve Egan

Two Accounting Alums Who “Did It Their Way”

2007 MidwestSummerAccountingConference2007 was a busy year for the Center forAccounting Research and Education atthe University of Notre Dame.

The 2007 Financial StatementAnalysis and Valuation Conferencewas held in Napa Valley, California

in April, and focused on the quality, relia-bility, and relevance of financial state-ments. It hosted high profile practitionerssuch as renowned author and short-sellerKathryn Staley, Moody’s Investor ServiceManaging Director Greg Jonas, DiversifiedCredit Investments founder and Moody’sKMV Co-Founder Stephen Kealhofer, cur-rent Moody’s KMV Senior Director DougDwyer, Lehman Brothers Global Head ofQuantitative Equity Strategies ManagingDirector Matthew Rothman, Barclay’sGlobal Investor’s Scott Richardson, andyoung faculty including Florin Vasvari,Regina Wittenberg, Fan Yu, Charles Jones,Kumar Venkataram, Adam Reed and JeffYu. The 2008 conference was scheduledfor May 30 and 31, in London, and aspromised, was as fulfilling as the past twoconferences have been.

But what does CARE do?• Development and Maintenance of

Corporate Fraud and Bankruptcy Databases• Provides streaming video of each con-

ference session which is used by facultyand PhD students around the globe

• Provides research resources, workingpapers, information regarding workshopsat the university, and news and informa-tion about our faculty’s current and recent-ly published research through the CAREwebsite

• Offers research opportunities forMBA and PhD students

In November, CARE sponsored aFinance Club trip to visit with WarrenBuffett on November 9, 2007. CAREAdvisory Board member Ram Ramananwas in attendance, as was Notre Damefinance professor Jerry Langley.

would use those same words to describe our typicalcustomer—at any given time at Lula’s, I can be havingan interesting and intellectually stimulating conversa-tion with someone from a completely different walk oflife and often, from a different part of the country orthe world.”

Most enjoyable for John Anthony means “the abilityto make a difference in people’s lives: clients who havea lifetime memory because of an experience we provid-ed; associates who grow intellectually, professionally,financially, and personally because of the working envi-ronment at Anthony Travel.”

Becoming an owner/operator of a restaurant or atravel agency is yet another way a Notre DameAccounting degree can open the door to an interestingand challenging career. +

ND Accountancy / 2008 IssuePAGEØ5

“We do not have the uncertainties and questionsevery time we look at the financial statements.We understand the difference between cash flowand net income...between tax and book entries.”

— John Anthony

JOHN ANTHONY, Owner/Operator Anthony Travel

story continued on page 7

THE HAMILTON AWARD FOR ACCOUNTANCYMatthew Puglisi

Hoffman Estates, ILWade Sample

Charlotte, NC

THE ACCOUNTANCY CHAIRMAN’SAWARDBenjamin Hess

Lititz, PA

THE ACCOUNTANCY FACULTY AWARDJennifer Johnson

Niles, MI

THE BROTHER CYPRIAN, CSC AWARDMary Brigid Bulfin

Fort Lauderdale, FLFrancis Laski

Kenmore, NYJanice Ong

St. Joseph, MIJoseph McKenna

Northport, NY

THE ELMER LAYDEN AWARDJaclyn Maida

Bloomingdale, IL

Michael SpondNorth Little Rock, AR

Katlyn ReganWilton, CT

Timothy WyneRidgewood, NJ

THE FEDERATION OF SCHOOLS OF ACCOUNTING AWARDDevin Dunn

St. Charles, IL

THE JAMES DINCOLO AWARDJulia LaPointe

Lexington, MAChristine Lewis

Kirtland, OHRyan Smith

Seoul, South KoreaKathleen Sabloff

Boonton, NJ

THE PETER BRADY AWARDKevin Johnson

Chicago, IL

THE TARA K. DEUTSCH AWARDHouston Hum

North Little Rock, AR

2007 Senior Student AwardWinners, Department of Accountancy

2007AccountancyExcellenceScholarshipWinnersAnnounced

John Aland

Kyle Barrettsmith

Lauren Cummings

David Curtis

John Dalhoff

James Duffy

Rebecca Galley

Laura Godlewski

Rebecca Herrman

Heather Jackson

Colleen Kelly

Jason Nowak

Patrick Ryan

Allison Salmons

Peter Schreck

Chase Smerdzinski

Jamie Smith

Sean Smith

Jason Vierig

Ryan Winiarski

++

ND Accountancy / 2008 IssuePAGEØ6

ND Accountancy / 2008 IssuePAGEØ7

Deloitte CaseCompetitionThe 16th annual Deloitte & Touche Notre DameCase Study Seminar was held November 30,2007 at the Mendoza College of Business. Sixteams comprising of thirty-four students report-ed on the results of their research of complexaccounting issues in the areas of revenue recog-nition, leasing, asset impairments, employee termination costs and uncertain tax positions.All the cases presented to the students are fromthe Deloitte Foundation’s Trueblood Case Seriesand are based on current, real-life client situa-tions. The Trueblood cases were originallydeveloped for an annual conference, now under the direction of the American AccountingAssociation, designed to provide accounting faculty with current, reality-based experience in researching and resolving difficult accountingand auditing situations. Cases are available for classroom use at no charge to accountingfaculty throughout the United States.

Each student team is assigned a Notre DameFaculty advisor and an advisor from Deloitte &Touche. The Deloitte advisors, Mike Fox, TracyHarrison, Dyan Rohol, CJ Crawford and EricJohnson, are all graduates of Notre Dame andeager to spend time working with the students.The students must analyze their assigned case,research professional literature and develop afifteen minute presentation designed to simulatea communication to a corporate audit commit-tee. The “audit committee” for the competitionis comprised of four Deloitte partners: RichCaffarelli, Tom Keefe, Susie Kurowski and MikePower, all Notre Dame Alums. At the conclusionof each presentation, the four partners taketurns challenging the students on the basis oftheir conclusions much the same way thosepartners are challenged by members of theirclients’ audit committees.

After all presentations have been made, the fourpartners caucus to determine a “winning” teambased on the overall professionalism of theirpresentations. This year’s winning team—Caroline Schneider, Pat Sweeney, Serena Chan,Colleen Kelly, Jessica Carroll and AndrewMonahan, advised by CJ Crawford and NDProfessor Dave Ricchiute—was invited to repre-sent Notre Dame in Deloitte’s National StudentCase Study Competition this past March inScottsdale, Arizona. Other invited schoolsincluded the University of Illinois, BYU, UC—Berkeley and Morehouse College. +

PWC’s xTaxCompetitionFor the third year in a row, Notre Dame will be represented at thePricewaterhouseCoopers (PwC) xTAXNational competition in Washington, D.C.Professor Jim Seida coached the team oncampus and will accompany the team tothe nation's capital. Members of the team include Chris Mueller, a seniorAccountancy major, juniors John Dalhoff

and Jim Duffy and a pair of sophomores,Cathy Bowers and Anne Greteman. PwC'sxTAX National competition involves fiveteams (selected from campus winnersacross the United States) who will vie for the Hamilton Award. The WashingtonNational Tax Services group of PwC hostedthe event which occurred in late January of 2008. +

Pictured is the University’s team (left to right), Chris Mueller, Anne Greteman,Jim Duffy, Cathy Bowers, John Dalhoff and Professor Jim Seida.

2007 Midwest Summer Accounting Conference

continued from page 5

The trip allowed 41 students to sit down and talk to Buffett atBerkshire Hathaway headquarters before having lunch at Piccolo’srestaurant in Omaha. Josh Parsons, a club member in attendance, said,“Mr. Buffett stands out for his ability to retain his humility given hisincredible intelligence and success. His modesty and sense of humortranscended the entire trip from his speech where he freely admittedthings he doesn’t understand to taking pictures where he’d have studentshold his wallet. It was evident from the trip that Mr. Buffett embodies thesense of duty to community that Notre Dame holds so dearly, and it wasclear why family businesses choose Mr. Buffett as the pattern of choice.”

As we all know, Warren Buffett’s success is not accidental. His under-standing of accounting information is central to Berkshire Hathaway’ssuccess. Even though Buffett professes he began his career as a securi-ty analyst, his emphasis on accounting—strong accounting—is a key-stone to his success.

CARE spearheaded a campaign in the fall of 2006 to gain an audiencewith Mr. Buffett, but efforts to persuade him to speak at our 2007 FSAConference failed. We persevered, however, and Mr. Buffett agreed tosee a group of students in Omaha. So we went to work again, and thecollaboration CARE made with Notre Dame’s MBA office resulted in theFinance Club’s ability to visit Buffett on November 9, 2007.

Want more information? Visit CARE’s website at www.nd.edu/~care-cob, or email Lorie Marsh, Program Manager and CARE ExecutiveDirector, at lmarsh1@nd.edu. +

ND Accountancy / 2008 IssuePAGEØ8

Beta Alpha Psi Officers:

Co-Presidents Monica Chambers (MSA)

Molly Eyerman (MSA)

Co-Vice-Presidents, ProfessionalActivities

Meghan Flaherty (Senior)Rachel Brandon (Senior)

Vice-President, Service Activities Christina Pelka (Senior)

Director, Banquets & SocialSharita Cooper (MSA)

Director, Membership Kirsten Bergstrand (MSA)

Treasurer Steven Crowley (MSA)

Co-Corresponding SecretariesAubrey Jarred (Senior)

Meghan Krippinger (Senior)

Webmasters Rebecca Galley (Junior) Kevin Musheno (Senior)

Chairperson, Accounting for the Future

Matt Hamel (Senior)

Chairperson, Financial LiteracyProgram

Christopher Mueller (Senior)

Number of Members: 80

Faculty Advisor Professor Janet O’Tousa

Notre Dame’s chapter of BetaAlpha Psi is proud to haveachieved national distinction

as a Distinguished Chapter.Chapters are recognized based onthe number of professional and serv-ice hours logged by their member-ship as well as chapter participationin nationally designated activities.The membership performed 1,125hours of community service, andprofessional meeting attendanceamounted to 1,032 hours. Chapteractivities included attendance andpresentations at the MidwestRegional meeting and the Annualmeeting. This outstanding effort onthe part of the membership and theofficers resulted in our fourthDistinguished Chapter award. Twoof the officers, Monica Chambersand Christina Pelka, represented thechapter at the Beta Alpha Psi AnnualMeeting. In addition to attending anumber of leadership training ses-sions, they presented our FinancialLiteracy program during theCommunity Service ChapterOperations session. Our chapteralso served as the moderator forthis session. Chris Mueller present-ed our Accounting for the Futureprogram at the Midwest RegionalMeeting. He was joined by ChristinaPelka, who represented the chapteras the President Elect.

Beta Alpha Psi members attendbetween 6 to 8 meetings per semes-ter. Each meeting is focused on atopic chosen to enrich the members’educational experience or preparethem for some aspect of their profes-sional careers. Topics includedCareer Opportunities, Value of theCPA designation, CPA exam, Ethics,Tax Tips for the Graduate, ForensicAccounting, International

Accounting Standards, RailroadAccounting, Fair Value Accounting,Hedge Funds and the Sub-PrimeMarket.

The Accounting for the Futurepresentation highlighted our serviceprojects for this year. Designed tocomplement departmental goals ofincreasing accounting majors, thepresentation was given to freshmen(rising sophomores) entering theCollege of Business in Fall 2008.Intended to acquaint them with notonly the major, but the many oppor-tunities available in the profession, a panel of members representing thejunior, senior and Masters’ classesdiscussed their choice to major inaccounting, internship experiences,and how they felt the major preparesthem for an outstanding professionalcareer. This event exceeded ourexpectations as we hosted 65 risingsophomores.

Ongoing service projects contin-ued as members participated in theTaxpayer Assistance Program andCPA Service Day, provided weeklyhomework assistance to students inthe Introductory Accounting classes,and staffed a weekly math-tutoringclinic for K through 12 students, inpartnership with the St. JosephCounty Public Library. We began anexciting new partnership with theCenter for the Homeless. Membersattended weekly job training classesand helped with resume writing,interview skills and mentoring theclients. We intend to expand thisproject and enter the Best Practicescompetition at the 2009 MidwestRegional Meeting.

+

Our website: http://www.nd.edu/~bapsi/

Beta Alpha Psi Achieves Fourth DistinguishedChapter Award

ND Softball Stadium GetsBoost with GiftBy: FORREST MILLER | South Bend Tribune Staff WriterOriginally published December 12, 2007

Notre Dame has receiveda $3 million gift for theconstruction of a new

softball stadium in the memo-ry of a former player.

Linda and Paul Demo, themother and stepfather of for-mer Irish player Melissa Cook,have decided to honor thememory of their daughter inthis manner.

Cook (who was an account-ing major at Notre Dame) wasone of four people killed inMarch of 2002 when a massive section of scaffolding fell fromthe John Hancock Center onto her car in down-town Chicago.

Cook’s cousin, Jill Nelson, also died. Linda Demo and Nelson’smother were among seven people injured in the accident.

The families of those who died and were injured reached a settlement earlier this year with the skyscraper’s owner andother companies named in a joint lawsuit.

The Demos devoted much of their portion of the settlementto Notre Dame and to their Melissa Cook Memorial Foundationwhich will provide financial assistance for Northwest Indianastudents to attend the college of their choice.

“The circumstances of this gift were sobering, but the wayin which it will honor Melissa is wonderful,” said Rev. John I.Jenkins, Notre Dame’s president. “We are most grateful to theDemos for this generous gift in memory of their daughter.”

Paul and Linda Demo reside in Palm Harbor, Fla.Melissa Cook Stadium will be built on the southeast corner

of the Notre Dame campus near Eck Baseball Stadium.Work on the $4.8 million facility will begin when the project

is fully funded. The university is seeking additional funding.“The Demos’ generosity is incredible,” said Irish softball

coach Deanna Gumpf. “I am excited to think that when peoplewalk into the stadium they will see her name and learn herstory. Her legacy will live on at Notre Dame.”

The stadium will seat about 1,500.“It will be as good as any other stadium in the nation,”

said Gumpf.The batters will face the same way they do at Eck Stadium. Cook was a native of Merrillville and hit .210 in three

seasons with the Irish.“She came to us as an infielder, and we made her a catch-

er,” recalled Brian Boulac, head coach at the time.“I wouldn’t call her a jokester, but she always wanted to

have fun; she always had a smile. It wasn’t all business forher. She was a good student and enjoyed playing the game,”added Boulac. +

ND Accountancy / 2008 IssuePAGEØ9

Ann Manion NamedOutstandingAlumnus for 2007

AnnManiongraduated

magna cumlaude from theUniversity ofNotre Dame in1977 with a BBAin Accounting.She was amongthe second classof women to

graduate from the University of Notre Dame.Ann became a Certified Public Accountant in 1977.

Ann worked for PricewaterhouseCoopersfor 11 years, where she was a senior auditmanager until 1988. Ann became a full-timemom with the birth of her first daughter,Mary in 1988.

Ann volunteered as a member of the board of directors of the Women’s CareCenter. Dr. Janet Smith, a young Notre Dameprofessor, founded this organization in 1984.When Janet left the community in 1989, Annbecame the CEO of Women’s Care Center ona pro bono basis. The center exists to helpwomen choose life for their babies, havehealthier pregnancies, and become betterparents.

Since 1989, the center has grown from one to 14 centers. Last year, we served 8,000women who made over 38,000 client visits to our 14 pregnancy centers in Indiana andMichigan. They have added a school-basedabstinence education outreach to over 5,000youth on an annual basis. Other servicesinclude parenting skills education classes,one-on-one goal counseling and the Crib Clubincentive program, which provides cribs, car seats and other tangible necessities.

Ann married Daniel Manion in 1984. He is a federal appeals court judge in the 7th circuit. They have four children. +

ND Accountancy / 2008 IssuePAGE10

2007 Accountancy Department Workshop Series

Sandra Vera-Munoz, COMMITTEE CHAIR

COMMITTEE: Oliver Li, Jeff Miller, Dave Ricchiute, Lisa Sedor, Margaret Shackell-Dowell

William Tayler, Cornell University The Balanced Scorecard as a Strategy-Evaluation Tool: The Effects

of Responsibility and Causal-Chain Focus

Mary Billings, Indiana University Tempting Trading Opportunities and Litigation Consequences

G. Ryan Huston, Texas A&M University Can Compensation Policies and Director Independence

Alleviate Agency Conflicts Associated with Shareholder Demands

for Dividends?

Jeff Burks, University of Iowa Sarbanes-Oxley and the Effect of Restatements on CEO and CFO

Compensation and Turnover

Rachna Prakash, Emory University Macroeconomic Factors and Financial Statements:

Asset Writedowns during Recessions

Max Hewitt, University of Washington Using Cognitive Load Theory to Explain the Accrual Anomaly

Yunhao Chen, University of Minnesota Consistent Expectation Management Patterns and Market Reactions

to Earnings Announcements

Brad Badertscher, University of Iowa Evidence on the Pecking Order of Earnings Management

Mingcherng Deng, Columbia University “Principles-Based Accounting, Legal Liability, and Asymmetric

Information Problems”

Bob Libby, Cornell University When Do Analysts Adjust for Biases in Management Guidance?

Effects of Guidance Track Record and Analysts’ Incentives

Daniel Beneish, Indiana University The Predictable Cost of Earnings Manipulation

Naomi Soderstrom, University of Colorado-Boulder Earnings Management through Real Activities Manipulation:

Evidence from Nonprofit Hospitals

Andy Leone, Penn State University The Importance of Distinguishing Errors from Irregularities in

Restatement Research: The Case of Restatements and

CEO/CFO Turnover

Carol Marquardt, Baruch College-CUNY Managing EPS Through Accelerated Share Repurchases:

Compensation vs. Capital Market Incentives

Ellen Engel, Chicago GSB Audit Committee Compensation and Demand for Monitoring of the

Financial Reporting Process

Brad Badertscher, University of Notre Dame Earnings Management and the Predictive Ability of Accruals with

Respect to Future Cash Flows

Jeff Burks, University of Notre Dame Materiality Decisions and the Correction of Accounting Errors

David Farber, University of Missouri-Columbia What Determines an Earnings String?

Peter Easton, University of Notre Dame “Earnings Management? Sample Selection Bias, Averaging, and Scaling

Lead to Erroneous Inferences”

Open-Enrollment Program Welcomes101 Students to MSAA Class of 2008

The M.S. in Accountancy Class of 2008 includes 101 undergraduate stu-dents from the University of Notre Dame and many other universitiesinside and outside of the United States.

Internships: Prior to entering the M.S. in Accountancy program, 82 of 101(81%) of the students had at least one internship.

Orientation: The students were introduced to their peers through fourdays of administrative, informational, and fun activities. Also, included in ori-entation was a trip to Notre Dame’s Chicago Santa Fe Building for the MSAChicago Career Day with the “Big 4” accounting firms, two consulting firms andone investment firm. The accounting firms participated in a “NetworkingBreakfast” followed by presentations and small group breakout sessions forquestions and answers. Similarly, the consulting and investment firms joinedthe students for a “Networking Lunch” followed by presentations and smallgroup breakout sessions for questions and answers. Each student had anopportunity to meet with representatives from all firms.

story continued on page 15

story continued on page 15

The students pic-tured (left to right)are MSAA volunteers:Eric Bolyard, EmilyWorley, JenniferGalano, Josie Hughes,Bill Borchers, andRob Schenkenfelder

ND Accountancy / 2008 IssuePAGE11

M.S. in Accountancy for E&Y NearsCompletion of First Decade

Notre DameAccountingAssociationThe Notre Dame Accounting Association(NDAA) is once again active in the studentand professional community. Our organiza-tion is open to all prospective and currentaccounting majors and those interested inthe accounting profession. Thanks to therecruitment efforts of Rebecca Herrman’09, Sara Kurtzman ’08, and Katie Mackin’07, membership includes over 80 students.During the fall semester, NDAA hosted itssecond annual “Career Opportunities withMiddle Market Firms” hosted by NatalieRobnett ’08. Fundraiser proceeds from thesale of accounting t-shirts and a conces-sion stand before the ND vs. Duke game,superheaded by Andrew Balsley ’09, sup-ported the club’s activities. These includedthe Christmas Care Package Drive fortroops stationed in the Middle East, organ-ized by Liz Byrum ’08 and Laura Godlewski’09. Over 130 packages were distributedto alums and friends of the Notre Damecommunity. Future events include informa-tional sessions on the CPA exam and staterequirements and succeeding in audit andtax internships; a welcoming party for newaccounting majors; and a tour of Big 4offices in Chicago. NDAA is lead by KerryRicho ’08 as its President, Matt Wentz asgraduation student liaison, and BillSchmuhl as faculty advisor. +

The Accountancy Departmentwill complete its tenth year of operation of the “Your Master

Plan” (YMP) Program for Ernst &Young employees in the summer of2008. The YMP Program is unique inits partnership with one professionalservice firm and was one of the first totarget non-accounting undergraduatemajors. As of August 2007, 579 stu-dent/employees of Ernst & Young haveearned a M.S. Degree in Accountancyfrom the University of Notre Dame,with an equal number earning thesame degree from the University ofVirginia. Both universities have signeda new three-year contract with Ernst &Young extending the YMP Programthrough the 2008-2010 period.

The program recruits primarilynon-accounting majors (about 80% ofeach entering class) to the account-ing profession for work in Assuranceand Advisory Business Services. As a result, this program avoids competing directly with other M.S. in Accountancy programs for under-graduate accountancy majors andErnst & Young is better able to attractand retain a diverse and talentedworkforce, many of whom might nototherwise enter the accounting pro-fession. Students have come to theYMP Program from over 150 differentundergraduate institutions.

The program timing adds balanceto the academic year at Notre Damesince it occurs when other academic

programs are not in session. Thisstructure allows significant participa-tion from Notre Dame faculty mem-bers, with 19 different Notre Dameprofessors teaching 22 sections ofcourses in accounting, finance, orbusiness law each year. Delivery ofthe program occurs over two intenseacademic summers, while the stu-dents are housed on campus. Thenon-accounting majors take under-graduate accounting courses in an“Accounting Immersion Program” dur-ing the first half of the first summer. A small contingent of undergraduateaccounting majors arrive for the sec-ond half of the first summer, and thecombined groups begin thirty-threecredit hours of graduate courses

The students pic-tured (left to right)are MSAA volunteers:Eric Bolyard, EmilyWorley, JenniferGalano, Josie Hughes,Bill Borchers, andRob Schenkenfelder

Business LawCourse SupportsCatholic Mission

Father Jenkins asked that during the 2007-08 academic year, scholarsacross the University consider

how Pope Benedict XIV’s encyclical Deus Caritas Est may direct their workand their lives. In the encyclical, thePope noted, “Love of neighbor, groundedin the love of God, is first and foremost a responsibility for each individual member of the faithful.” Students in theintroductory Business Law course thisyear were asked to be thinking and com-menting on what that means for the busi-nessperson. A DCE-related topic was onethat students could choose to fulfill thepaper requirement for the course. Twoguest speakers, Prof. Charles E. Rice ofthe Notre Dame Law School and MichaelNovak of the American EnterpriseInstitute, spoke with students about theencyclical during the fall semester. Thisconsideration of the encyclical supportedND’s Catholic mission and emphasis onethics across the curriculum. +

“Hope for All on Capitol Hill”Deloitte & Touche Tax partners Scott Ecker (CostaMesa office) and Jon Oleksyk (Chicago office)returned to Professor Wittenbach’s classroom onOctober 2, 2007 to announce this year’s winning team in the Tax Proposal Competition.

Chris Pingel, Bryan Schmit and Renee Tibbitts proposed a “Hope for All” tax credit that simplifies the current structure of deductions and credits with respect to the cost of higher education. The trio traveled to Washington, D.C. in October and presented their proposal to Deloitte’s National Tax Policy Office. They also visited Capitol Hill and the AICPAs’ Washington office. +

Tax Assistance ProgramUpdate

During 2007 over ninety students (from Notre Dame and SaintMary’s College) participated in the Vivian Harrington GrayTax Assistance Program (TAP). This marked the 36th year

of service to the community by the TAP. Free income tax prepara-tion was provided to over 1,900 taxpayers. TAP personnel (whichinclude undergraduate students, MSA students and Accountancyfaculty) prepared over 3,600 federal and state income tax returns.Rigorous training, regularly scheduled service and a reward struc-ture that emphasizes an intangible (i.e., the good feeling thatcomes from helping others) are integral elements of the TAP, aservice learning effort that is headed by faculty coordinator, KenMilani. Notre Dame Business, a publication devoted to coveringactivities of the Mendoza College of Business, included extensivecoverage of the TAP in the Fall/Winter 2007 edition. +

Tax package triopictured (left toright) are ChrisPingel, ReneeTibbitts andBryan Schmit.

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Brad Badertscher joined theDepartment of Accountancyfaculty in the fall semester of2007 after obtaining hisAccounting Ph.D. from theUniversity of Iowa. Brad’s areaof expertise is financialaccounting and he doesresearch in both financialaccounting and federal incometaxation. He is currently exam-ining issues relating to financial restatements, earningsmanagement, quality of earnings, and book-tax conformi-ty. Brad earned his MBA from the University of Iowa, hisB.S. from the University of Nebraska-Kearney and he is a Certified Financial Analyst (CFA). Prior to beginning the Ph.D. program, Brad worked as a valuation analyst at the Principal Financial Group in Des Moines, Iowa. He and his wife Leah live in South Bend.

Jeff Burks joined the depart-ment in the summer of 2007.He holds a Ph.D. from theUniversity of Iowa (2007),majoring in accounting andminoring in finance. He doesresearch in the areas of finan-cial accounting and corporategovernance. In particular, hefocuses on the disclosure andconsequences of accountingerrors and irregularities. He has an M.B.A. fromCreighton University and a B.B.A from the University of Notre Dame, and worked as an internal auditor in thefinancial services industry. He and his wife, Anne, havethree daughters, Claire, Ellen, and Grace.

Jim Fuehrmeyer joined thefaculty in 2007 after twenty-seven years with Deloitte &Touche. As an audit partner,Jim served both public and privately owned clients in avariety of industries includingmanufacturing, distribution,banking, broker/dealers, publicutilities, futures exchanges,healthcare, consumer products,and service businesses. For the last five years, he servedas the professional practice director for Deloitte’s Illinois

and Eastern Iowa practices with responsibility for auditquality control, accounting consultation and risk manage-ment. He is a past board and audit committee memberfor the Illinois CPA Society and is past chair of that orga-nization’s Accounting Principles Committee. Jim is along-time member of the American AccountingAssociation and has been a Trueblood Seminar discus-sion leader annually since 1991. Jim earned a B.S. degreefrom the U.S. Military Academy at West Point and an MBAwith a specialization in accounting from the University of Chicago. He and his wife Jean reside in South Bend.They have two daughters, both Notre Dame alumnae.Their younger daughter just finished her third year oflaw school at the University of Notre Dame. Their olderdaughter and son-in-law, a Notre Dame alumnus, havetwo boys and reside in Boston. Jim is a member of theSorin Society, the Illinois CPA Society, the AmericanInstitute of CPAs, and the American AccountingAssociation. He is licensed as a CPA in Illinois, Indiana,Michigan and Iowa. Jim’s academic interests includeauditing and financial reporting and he will be teachingboth undergraduate and graduate courses. In his sparetime, he’s an avid reader and triathlete.

Brian Levey joined the depart-ment in August, 2007. He teach-es the Introductory BusinessLaw course. Previously, Brianwas Fannie Mae’s Vice Presidentfor Ethics, with responsibilityfor the ethics and business con-duct function, including thecode of conduct, ethics helplineand related training. Prior tojoining Fannie Mae, Brian wasthe Director of Compliance and Business Ethics withSmiths Group plc, an international engineering companybased in the United Kingdom. Before that, Brian was a deputy ethics officer and associate counsel with MCI (formerly WorldCom and now Verizon). Brian has alsobeen in private practice and served as an adjunct professor at George Mason University, The GeorgeWashington University and Northern Virginia CommunityCollege. Brian holds a master of laws from The GeorgeWashington University, a juris doctor from The CatholicUniversity of America, and a bachelor of business admin-istration in finance and business economics from theUniversity of Notre Dame. He and his wife, Alison, have one child. +

Department Welcomes New Faculty Members

Chao-Shin Liu was invited by the TaiwaneseNational Science Council tomake several presentationsin Taichung, Taiwan in June,2007. His paper, coauthoredwith Paquita Davis-Friday,was published in TheInternational Journal ofAccounting. He also coau-thored a paper with TomSchaefer, which was pub-lished in the Review ofQuantitative Finance and Accounting.

Jeff Miller was a visitingprofessor at the Universityof Notre Dame Australia, Fall 2006. He presented hispaper (coathored with LisaSedor at the University of Washington) titled “TheInfluence of Observed StockPrice Changes on Analysts’Earnings Forecast Revisions:Experimental Evidence” at the Unversity of SouthCarolina in fall 2007. He alsopresented at the 2007 NotreDame Mendoza College ofBusiness Ethics Conference.

Kevin Misiewicz was the campus organizer andfaculty adviser to thewinning student team ofPricewaterhouseCoopersxTax Challenge. The team’spresentation was selected as one of five out of over 40 schools for a nationalcompetition in January inWashington, DC. He present-ed “Shaken & Stirred: A Moral Competence in Tax Practice Module” at the Mid-Year Meeting of the American TaxationAssociation in San Antonio

in February, 2007 and pre-sented “Teaching Ethics inthe Accounting Curriculum”at the Annual Meeting of the American AccountingAssociation in Chicago inAugust 2007.

Mike Morris is a memberof the editorial board ofIssues in AccountingEducation. He is also the faculty advisor for the Ernst& Young “Your Master Plan”(YMP) M.S. in AccountancyProgram. Mike serves on theBoard of Directors of EarlyChildhood DevelopmentCenter in South Bend,Indiana. He is currentlyteaching “DecisionProcesses in Accounting” to undergraduate accountingmajors and “Accounting for Decision Making andControl” to students in the “Accounting ImmersionProgram,” which is designedfor the non-accountingmajors of the M.S. inAccountancy Program forErnst & Young employees.

Jamie O’Brien, newlyappointed Assistant Chair of the AccountancyDepartment, undertakes a wide array of academicand professional activities.His teaching includes four(4) courses each semester of law-related courses in the MBA, MNA, M.S. in Accountancy, andUndergraduate programs.

Additionally, ProfessorO’Brien advises all under-graduate and graduateAccountancy students con-cerning course selection

and CPA examinationrequirements for all fifty (50)states. Professor O’Brien isalso a regular lecturer andpresenter for professionaldevelopment and profession-al education seminars, theprevious year presenting at the Northwest CPASociety’s Annual Seminar, on November 27, 2007. His topic “2007 Annual TaxUpdate” was well received by approximately 130 CPAs.

Maintaining professionallicenses as both a CPA and an Attorney, ProfessorO’Brien also served as a vis-iting faculty member/adjunctat the Kelly School ofBusiness during the pastseveral summers, teachingNon-Profit Tax Courses andimplementing cutting edgedistance learning technologyfor a portion of the relatedinstruction.

Janet O’Tousa completed7 years as faculty advisor forBeta Alpha Psi, Notre Dame’schapter of the internationalaccounting honorary society.The chapter served as a co-host of the Beta Alpha PsiMidwest Regional meeting(March 2007). Members presented the chapter’sFinancial Literacy Programat both the MidwestRegional and Annual meet-ings (August 2007). Also in August 2007, Janet attend-ed the American AccountingAssociation’s AnnualMeeting and presented a poster titled “IndividualContracts Can EnhanceLearning Goals of Studentsin an IntroductoryAccounting Course” during

the meeting’s EffectiveLearning Strategies session.Janet is celebrating her 20thyear teaching Accountancy I and Accountancy II tosophomore business majors.

Ram Ramanan serves on the advisory board forCARE and attended the con-ference sponsored by CAREin California during April2007. Ram also serves as theCollege Diversity Officer andthe faculty advisor to BetaGamma Sigma, the BusinessSchool Honor Society. Alongwith Peter Easton and JerryLangley, Ram has organizeda visit of about 40 MBAs to meet Warren Buffett, astrong proponent of account-ing. The visit to Omaha,Nebraska took place inNovember, 2007.

Professor Emeritus NorlinRueschhoff was a visitinglecturer at the University of Innsbruck in Austria inApril 2007 under the aus-pices of the friendship agree-ment with the University ofNotre Dame. He serves astreasurer of the local SerraClub, as treasurer of hishomeowners association,and continues to serve assection historian and mem-ber of the OutstandingService Award committee for the American AccountingAssociation’s InternationalAccounting Section. He presented a research paper on “InternationalStockholder Reporting” atthe International AccountingCongress held in Mexico Cityin October of 2007.

Faculty Activities

ND Accountancy / 2008 IssuePAGE14

RESE

ARCH

PAP

ERS

Ram Ramanan coordinated with several of the Big Ten

schools in organizing the third Big Ten Summer Conference.

The conference was held June 8-9, 2007 in the Tippie College

of Business, University of Iowa. About 45 Accounting

Researchers participated in this conference representing

seven schools including the University of Notre Dame.

Jeff Burks represented Notre Dame at this conference

where four research papers were presented. +

Sandra Vera-Muñoz’spaper titled “Accountants’usage of causal businessmodels in the presence of benchmark data: A note,” co-authored with MargaretShackell and Marc Buehner, was published inContemporary AccountingResearch in Fall 2007. In May2007 she participated in aninvited four-member facultypanel in the New York officeof Ernst & Young to assist in the development of expe-riential learning activities for university faculty. In July 2007 she attended PwCUniversity for Faculty inPrinceton, NJ. She served asreviewer for The AccountingReview, ContemporaryAccounting Research, andthe 2007 AAA/ABO ResearchConference. Also, she servedas faculty adviser forKPMG’s Future DiversityLeaders Program. Sandra coordinates theAccountancy Department’sResearch Workshop series,

and serves in the Council of the Mendoza College of Business as a member-at-large.

Jim Wittenbach is a contributing author to the 2008 Pratt & KulsrudTaxation Series published by Thomson. He has a forthcoming article inTAXES-The Tax Magazineentitled “Taking Advantageof the Partial Gain Exclusionon the Sale of a PrincipalResidence.” He was the 2007 recipient of the Masterof Science in AccountancyOutstanding ProfessorAward. He continues to participate in the“Residential Scholars” program sponsored by the Office of Student Affairs. Jim serves as the advisor to the Masters of ScienceAccounting Association and as the co-editor of theNotre Dame AccountancyNewsletter. +

ND Accountancy / 2008 IssuePAGE15

Open Enrollment Program

continued from page 11

leading to the M.S. in Accountancy Degree. Two dis-tance learning courses are sandwiched between thesummers while students are serving clients at Ernst &Young offices throughout the nation. A major strengthof the YMP Program is the learning synergy resultingfrom the interaction of the academic experience withthe professional application. The program recognizesthis on-the-job learning through internship creditsearned upon completion of a faculty-directed academic paper.

The students become Ernst & Young employees at the beginning of the first summer and are assignedto spend full-time studying for two summers. Ernst &Young finances the cost of the program for each stu-dent in return for a three-year expense recovery com-mitment subsequent to graduation. The opportunityto obtain a M.S. Degree from the University of NotreDame, gain practical client-serving experience, meetmost of the CPA exam requirements, and establish a large professional network of other Ernst & Youngemployees has allowed YMP graduates to jumpstarttheir accounting careers. +

Class of 2008 officers: President–Brooks Wunder | VP of Fundraising–Eric Bolyard | VP of Recruitment–Sarah Carroll | VP of Community Service–JosieHughes | VP of Communications–Julie Rose |Secretary/Treasurer–Rob Schenkenfelder

Fundraisers: The MSAA held a concession standprior to the Boston College game, October 13. | OnSeptember 19, members helped set up and teardown the Career Fair booths. | The proceeds of both projectswere used to fund their community service projects,intramural sports, and other events throughout the year.

Community projects: Students brought school supplies to orientation to be donated to an area elementary school with a high number of low incomefamilies. The 105 items consisting of pencils, markers,notebooks, crayons and more were donated to PerleyElementary School. | MSAA supplied food forThanksgiving dinner for three families with childrenenrolled at Perley Elementary School. | They adopteda family for Christmas to buy presents for the childrenand parents. | After Christmas they mentored studentsat Robinson Center and area elementary schools. +

M.S. in Accountancy for E&Y

continued from page 11

Presented at the University of Iowa

Department of Accountancy102 Mendoza College of Business

Notre Dame, IN 46556

Nonprofit Org.U.S. PostageP A I D

Notre Dame, INPermit No. 10

(Bottom to Top): Ken Milani, Bill Schmuhl, Jim Seida, BrianLevey, Jeff Burks, Tonia Murphy, Tom Stober, Jamie O’Brien,Kevin Misiewicz, Dave Ricchiute, Juan Rivera, Jeff Miller,Sandra Vera-Munoz, Tom Frecka, Brad Badertscher, FredMittelstaedt, Mike Morris, Jim Wittenbach, Jim Fuehrmeyer,Tom Schaefer, Janet O’Tousa (Not Pictured) Peter Easton, EdHums, Chao-Shin Liu, Bill Nichols, and Ram Ramanan

Accountancy Faculty

(Bottom to Top): Ken Milani, Bill Schmuhl, Jim Seida, BrianLevey, Jeff Burks, Tonia Murphy, Tom Stober, Jamie O’Brien,Kevin Misiewicz, Dave Ricchiute, Juan Rivera, Jeff Miller,Sandra Vera-Munoz, Tom Frecka, Brad Badertscher, FredMittelstaedt, Mike Morris, Jim Wittenbach, Jim Fuehrmeyer,Tom Schaefer, Janet O’Tousa (Not Pictured) Peter Easton, EdHums, Chao-Shin Liu, Bill Nichols, and Ram Ramanan