The Badger Account Year In Review 2015-2016

A message from Terry Warfield, chair of the Department of Accounting and Information Systems

The Badger Account Year in Review

News about our students and faculty—their activities, awards, and accomplishments

2015–2016

From ethics and professionalism to the global mindset initiative

DEPARTMENT OF

ACCOUNTING & INFORMATION SYSTEMS

LETTER FROM THE CHAIR

TERRY WARFIELD PwC Professor in Accounting at the Wisconsin School of Business and chair of the Department of Accounting and Information Systems

Welcome to the 2016 issue of The Badger Account.

We have a lot of news to report. I hope you will enjoy catching up on what we have been doing.

Additionally, you can follow happenings in the department at go.wisc.edu/wsbaccounting.

First of all, the Department of Accounting and Information Systems continues to work to support the Wisconsin School of Business vision that public universities join forces with the business community to guide research opportunities, inform learning experiences, and generate the inspiring ideas and leaders that will propel us all forward. The department has been active in the past year to advance the School’s three strategic pillars—focused research excellence, inspiring learning experiences, and an exemplary learning community.

With the onboarding of nine new faculty over the past three years, our group has been exceptionally productive on the research front. We have published more than 12 scholarly articles and textbooks in the past year. Several faculty have external grants to support their research projects, many of which are in collaboration with Ph.D. students. Additionally, Karla Johnstone was awarded the School’s top research award (Mark Covaleski won this award last year). Our faculty are quite visible and are lead organizers at scholarly research conferences.

Our doctoral program is a key contributor to our research mission. Indeed, our recent new hires all specifically commented on the strength of our program and its students as key factors in choosing Wisconsin over other schools. This year, we admitted four new students (the Ph.D. program currently has 12 total students). Ph.D. candidate Zach Kowaleski was selected for a prestigious PCAOB fellowship as part of his research on broker-dealers, Ph.D. candidate Eric Condie received a research grant in support of his fraud research, and several of our Ph.D. students have national visibility through their roles as presenters and/or discussants in various research conferences.

As mentioned in prior newsletters, the Ph.D. program has benefitted from our recruitment of 2

ACCOUNTING AND INFORMATION SYSTEMS | YEAR IN REVIEW

accounting doctoral scholars (ADS). This program, sponsored by several public accounting firms and the American Institute of Certified Public Accountants (AICPA), provides support for students leaving public accounting to pursue careers as auditing or tax professors. We have had six ADS candidates in our program (two graduated this past year). As the ADS program has wound down, we embarked on a Ph.D. alumni fundraising campaign to bolster resources to support the Ph.D. program. Over the past two years, we have raised upwards of $600,000 in donations and pledges—some from Ph.D. alumni and some through a Deloitte Scholars campaign. At our recent awards banquet, we recognized the first Deloitte Scholar, Ph.D. candidate Abe Carr, while Ph.D. candidate In Gyun Baek received the first Lawrence and Margaret Ortman Scholarship, dedicated by Ph.D. alumnus Richard Ortman (Ph.D. ’71).

With respect to inspiring learning experiences, in the past year we built on our comprehensive curriculum review, which articulated our learning outcomes around the themes of knowing, doing, being, inspiring, and networking (KDBIN). We have had good outcomes from our Capstone course, which is an elective for MAcc graduate students (24 students enrolled in the first offering of the course, 42 enrolled in the second offering, and 26 enrolled in the third offering.). We will be seeking formal course approval for this innovative module-based course completed over a full graduate year. The Capstone course offers a unique opportunity to address new topics and expand on exposure to topics introduced in prior coursework, utilizing an evidenced-based practice model.

Indeed, our Capstone course serves as a model for the School’s emerging “Compass to Capstone” initiative.

Our Capstone offering complements and builds on the

range of cocurricular activities—the Future is Now, the Howard Carver Ethics and Professionalism Program, case competitions, internships, our active student groups, and active engagement with our alumni. In addition, with support of a major grant from EY, we are in the third year of delivering a set of curricular and cocurricular elements within the Global Mindset Leaders Program. This program is designed to introduce students to cultural and social diversity in business and supports the School’s and department’s strategic focus on diversity.

One of the most important tasks for a department chair is related to people. This is the area which most reflects our contribution with respect to an exemplary learning community.

• Tom Linsmeier (MBA ’80, Ph.D. ’85) joined our faculty beginning in July, following a 10-year tenure as a member of the Financial Accounting Standards Board.

Since arriving on campus, Tom has been named the Ragatz Distinguished Chair in Accounting, an endowed chair established by Tom Ragatz (BBA ’57, J.D. ’61) and his wife, Karen. Hiring Tom with the help of the Ragatz chair is a big win for the department, School, and university and it represents a collaboration between the accounting department and the University of Wisconsin Law School: part of Tom’s teaching responsibility is a new introductory accounting course for lawyers. Mr. Ragatz addressed the initial class meeting this past fall (class enrollment was approximately 35 students) speaking on the necessity and desirability of engaging prospective new lawyers in the subject of accounting, and the numerous applications it has in problems encountered in the practice of law.

• Senior Lecturer Russell Epp received the Wisconsin School of Business Outstanding Teaching Award for lecturers.

• We continued an active student case competitions program, with strong showings by our student teams in the PwC xTax competition, the Deloitte Tax and Audit case competitions, and the KPMG International Case Competition.

• We also continue to place post-graduate interns at the Financial Accounting Standards Board (FASB) and Governmental Accounting Standards Board (GASB).

This year, Kayta Gruneberg (BBA ’15, MAcc ’16) began her work at the GASB, while Tanner Engmann (BBA ’15, MAcc ’16) and Andrew Debbink (BBA ’15, MAcc ’16) are serving at the FASB beginning in July 2016 and January 2017, respectively. Their selections continue our strong tradition of service to standard-setting boards.

• We continue to do well in the rankings of accounting programs, including a number five ranking in CPA exam pass rates and a number one ranking (for programs with 15 or fewer faculty, top 20 overall) in the Public Accounting Report rankings of master’s programs.

We continue to make progress on our strategic priorities. In prior newsletters, we have noted that our highest priority was to increase enrollment in the undergraduate and master’s programs. This year, I’m happy to report that we have more than 425 upper division accounting majors—an increase of 10% in the number of majors relative to two years ago (the quality of our incoming students has remained constant). As a result, we have the largest pledge class in Beta Alpha Psi and the largest class ever admitted to our MAcc program (135 this past spring). We aim to continue the trend of increasing enrollment, along with increasing diversity in the student population. Given the trends in growth, we could not be more gratified by our success in attracting tenure-track faculty to provide depth in our research and teaching capacity. Finally, I’d like to express my gratitude for the support of our advisory board, which provided good counsel and input on our curriculum and strategic plan over the past year.

In summary, I am very proud of both our accomplishments over the past year and of our outstanding students. I hope you are as excited as I am about our future. Our success is due in large part to the contributions of our alumni and friends, and our future depends on your continued support. If you place value on your experience at Wisconsin, and if you feel that you have benefited from your experience here, I hope you will consider making a contribution to the Department of Accounting and Information Systems at go.wisc.edu/givetoaccounting.

Thank you!

Terry Warfield PwC Professor in Accounting Department of Accounting and Information Systems Chair Wisconsin School of Business

WISCONSIN SCHOOL OF BUSINESS | TOGETHER FORWARD

3

LETTER FROM THE CHAIR

TERRY WARFIELD PwC Professor in Accounting at the Wisconsin School of Business and chair of the Department of Accounting and Information Systems

Welcome to the 2016 issue of The Badger Account.

We have a lot of news to report. I hope you will enjoy catching up on what we have been doing.

Additionally, you can follow happenings in the department at go.wisc.edu/wsbaccounting.

First of all, the Department of Accounting and Information Systems continues to work to support the Wisconsin School of Business vision that public universities join forces with the business community to guide research opportunities, inform learning experiences, and generate the inspiring ideas and leaders that will propel us all forward. The department has been active in the past year to advance the School’s three strategic pillars—focused research excellence, inspiring learning experiences, and an exemplary learning community.

With the onboarding of nine new faculty over the past three years, our group has been exceptionally productive on the research front. We have published more than 12 scholarly articles and textbooks in the past year. Several faculty have external grants to support their research projects, many of which are in collaboration with Ph.D. students. Additionally, Karla Johnstone was awarded the School’s top research award (Mark Covaleski won this award last year). Our faculty are quite visible and are lead organizers at scholarly research conferences.

Our doctoral program is a key contributor to our research mission. Indeed, our recent new hires all specifically commented on the strength of our program and its students as key factors in choosing Wisconsin over other schools. This year, we admitted four new students (the Ph.D. program currently has 12 total students). Ph.D. candidate Zach Kowaleski was selected for a prestigious PCAOB fellowship as part of his research on broker-dealers, Ph.D. candidate Eric Condie received a research grant in support of his fraud research, and several of our Ph.D. students have national visibility through their roles as presenters and/or discussants in various research conferences.

As mentioned in prior newsletters, the Ph.D. program has benefitted from our recruitment of 2

ACCOUNTING AND INFORMATION SYSTEMS | YEAR IN REVIEW

accounting doctoral scholars (ADS). This program, sponsored by several public accounting firms and the American Institute of Certified Public Accountants (AICPA), provides support for students leaving public accounting to pursue careers as auditing or tax professors. We have had six ADS candidates in our program (two graduated this past year). As the ADS program has wound down, we embarked on a Ph.D. alumni fundraising campaign to bolster resources to support the Ph.D. program. Over the past two years, we have raised upwards of $600,000 in donations and pledges—some from Ph.D. alumni and some through a Deloitte Scholars campaign. At our recent awards banquet, we recognized the first Deloitte Scholar, Ph.D. candidate Abe Carr, while Ph.D. candidate In Gyun Baek received the first Lawrence and Margaret Ortman Scholarship, dedicated by Ph.D. alumnus Richard Ortman (Ph.D. ’71).

With respect to inspiring learning experiences, in the past year we built on our comprehensive curriculum review, which articulated our learning outcomes around the themes of knowing, doing, being, inspiring, and networking (KDBIN). We have had good outcomes from our Capstone course, which is an elective for MAcc graduate students (24 students enrolled in the first offering of the course, 42 enrolled in the second offering, and 26 enrolled in the third offering.). We will be seeking formal course approval for this innovative module-based course completed over a full graduate year. The Capstone course offers a unique opportunity to address new topics and expand on exposure to topics introduced in prior coursework, utilizing an evidenced-based practice model.

Indeed, our Capstone course serves as a model for the School’s emerging “Compass to Capstone” initiative.

Our Capstone offering complements and builds on the

range of cocurricular activities—the Future is Now, the Howard Carver Ethics and Professionalism Program, case competitions, internships, our active student groups, and active engagement with our alumni. In addition, with support of a major grant from EY, we are in the third year of delivering a set of curricular and cocurricular elements within the Global Mindset Leaders Program. This program is designed to introduce students to cultural and social diversity in business and supports the School’s and department’s strategic focus on diversity.

One of the most important tasks for a department chair is related to people. This is the area which most reflects our contribution with respect to an exemplary learning community.

• Tom Linsmeier (MBA ’80, Ph.D. ’85) joined our faculty beginning in July, following a 10-year tenure as a member of the Financial Accounting Standards Board.

Since arriving on campus, Tom has been named the Ragatz Distinguished Chair in Accounting, an endowed chair established by Tom Ragatz (BBA ’57, J.D. ’61) and his wife, Karen. Hiring Tom with the help of the Ragatz chair is a big win for the department, School, and university and it represents a collaboration between the accounting department and the University of Wisconsin Law School: part of Tom’s teaching responsibility is a new introductory accounting course for lawyers. Mr. Ragatz addressed the initial class meeting this past fall (class enrollment was approximately 35 students) speaking on the necessity and desirability of engaging prospective new lawyers in the subject of accounting, and the numerous applications it has in problems encountered in the practice of law.

• Senior Lecturer Russell Epp received the Wisconsin School of Business Outstanding Teaching Award for lecturers.

• We continued an active student case competitions program, with strong showings by our student teams in the PwC xTax competition, the Deloitte Tax and Audit case competitions, and the KPMG International Case Competition.

• We also continue to place post-graduate interns at the Financial Accounting Standards Board (FASB) and Governmental Accounting Standards Board (GASB).

This year, Kayta Gruneberg (BBA ’15, MAcc ’16) began her work at the GASB, while Tanner Engmann (BBA ’15, MAcc ’16) and Andrew Debbink (BBA ’15, MAcc ’16) are serving at the FASB beginning in July 2016 and January 2017, respectively. Their selections continue our strong tradition of service to standard-setting boards.

• We continue to do well in the rankings of accounting programs, including a number five ranking in CPA exam pass rates and a number one ranking (for programs with 15 or fewer faculty, top 20 overall) in the Public Accounting Report rankings of master’s programs.

We continue to make progress on our strategic priorities. In prior newsletters, we have noted that our highest priority was to increase enrollment in the undergraduate and master’s programs. This year, I’m happy to report that we have more than 425 upper division accounting majors—an increase of 10% in the number of majors relative to two years ago (the quality of our incoming students has remained constant). As a result, we have the largest pledge class in Beta Alpha Psi and the largest class ever admitted to our MAcc program (135 this past spring). We aim to continue the trend of increasing enrollment, along with increasing diversity in the student population. Given the trends in growth, we could not be more gratified by our success in attracting tenure-track faculty to provide depth in our research and teaching capacity. Finally, I’d like to express my gratitude for the support of our advisory board, which provided good counsel and input on our curriculum and strategic plan over the past year.

In summary, I am very proud of both our accomplishments over the past year and of our outstanding students. I hope you are as excited as I am about our future. Our success is due in large part to the contributions of our alumni and friends, and our future depends on your continued support. If you place value on your experience at Wisconsin, and if you feel that you have benefited from your experience here, I hope you will consider making a contribution to the Department of Accounting and Information Systems at go.wisc.edu/givetoaccounting.

Thank you!

Terry Warfield PwC Professor in Accounting Department of Accounting and Information Systems Chair Wisconsin School of Business

WISCONSIN SCHOOL OF BUSINESS | TOGETHER FORWARD

3

Ph.D. PROGRAM The Ph.D. program is a key contributor to the vibrancy of our research environment.

The department said farewell to four graduates in May 2016 and welcomed four new students ready to embark

Welcome New Ph.D. Candidates

on their journeys in the fall of 2016.

Rachel Martin Rachel accepted a position as an assistant professor at Utah State University where she will continue focusing on research interests that include compensation and performance evaluation incentives, psychological and sociological influences on control design and performance, and judgment and decision-making.

4

Chunzi (Mayer) Liang Mayer obtained her Bachelor of Science in Business Administration from Boston University with concentrations in accounting and finance. She then graduated from the University of Michigan’s MAcc program before joining PwC as an assurance associate in Boston. Her clients included public and private insurance companies.

Mayer’s preliminary research interests lie in financial accounting.

Kara Obermire

In Gyun Baek

Kara has accepted a position as an assistant professor at Oregon State University, a great fit for her personally and professionally. Kara’s research focuses on the monitoring of financial reporting by auditors and audit committees. Her work addresses audit committee effectiveness, audit quality, auditor independence, and geographically distributed audit engagement teams.

In Gyun earned his bachelor’s degree in business administration and master’s degree in empirical studies in accounting from Seoul National University, where he worked as a research and teaching assistant. He also served a two-year term in tactical air control in the Republic of Korea Air Force and co-founded a venture startup prior to joining the Wisconsin School of Business. He completed internships at EY and Boston Consulting Group in Seoul and his primary research interest is in managerial accounting.

Matt Kaufmann

Mary Vernon

We congratulate Matt on his position as an assistant professor at Portland State University. An Oregon native, Matt found a great role, where he will be teaching accounting information systems. Matt’s primary research interests relate to the intersection of management control, internal control, and accounting information systems.

Mary holds both a Bachelor of Science in Accountancy and a Master of Accounting Science degree from Northern Illinois University. Upon graduation, she began working in the tax department of Miller, Cooper & Co., Ltd., a midsized public accounting firm based in Chicago. After gaining experience in public accounting, Mary moved on to wealth management at RMB Capital Management, a Registered Investment Advisory firm. While at RMB, she expanded her knowledge of retirement planning, investing philosophies, and the impact of risk/return on client portfolios. Mary’s research interest is in the tax field.

Xiao Xiao

Zachary King

Congratulations to Xiao Xiao who accepted an assistant professor position at Guanghua School of Management, Peking University. Xiao will continue her research in financial reporting.

Zach earned his Bachelor of Science in Finance with a minor in economics from Rutgers University. During his time at Rutgers, he was involved in several research classes and out-of-the-classroom research projects. Armed with this experience, Zach became a research assistant for one of the assistant professors at Rutgers and learned that he had a passion for academic research related to capital markets.

Zach also served as the treasurer for the Student Finance Association and was a member of Beta Alpha Psi. In his free time, Zach enjoys sailing as a member of the Hoofers Sailing Club and training for marathons.

ACCOUNTING AND INFORMATION SYSTEMS | YEAR IN REVIEW

WISCONSIN SCHOOL OF BUSINESS | TOGETHER FORWARD

5

Ph.D. PROGRAM The Ph.D. program is a key contributor to the vibrancy of our research environment.

The department said farewell to four graduates in May 2016 and welcomed four new students ready to embark

Welcome New Ph.D. Candidates

on their journeys in the fall of 2016.

Rachel Martin Rachel accepted a position as an assistant professor at Utah State University where she will continue focusing on research interests that include compensation and performance evaluation incentives, psychological and sociological influences on control design and performance, and judgment and decision-making.

4

Chunzi (Mayer) Liang Mayer obtained her Bachelor of Science in Business Administration from Boston University with concentrations in accounting and finance. She then graduated from the University of Michigan’s MAcc program before joining PwC as an assurance associate in Boston. Her clients included public and private insurance companies.

Mayer’s preliminary research interests lie in financial accounting.

Kara Obermire

In Gyun Baek

Kara has accepted a position as an assistant professor at Oregon State University, a great fit for her personally and professionally. Kara’s research focuses on the monitoring of financial reporting by auditors and audit committees. Her work addresses audit committee effectiveness, audit quality, auditor independence, and geographically distributed audit engagement teams.

In Gyun earned his bachelor’s degree in business administration and master’s degree in empirical studies in accounting from Seoul National University, where he worked as a research and teaching assistant. He also served a two-year term in tactical air control in the Republic of Korea Air Force and co-founded a venture startup prior to joining the Wisconsin School of Business. He completed internships at EY and Boston Consulting Group in Seoul and his primary research interest is in managerial accounting.

Matt Kaufmann

Mary Vernon

We congratulate Matt on his position as an assistant professor at Portland State University. An Oregon native, Matt found a great role, where he will be teaching accounting information systems. Matt’s primary research interests relate to the intersection of management control, internal control, and accounting information systems.

Mary holds both a Bachelor of Science in Accountancy and a Master of Accounting Science degree from Northern Illinois University. Upon graduation, she began working in the tax department of Miller, Cooper & Co., Ltd., a midsized public accounting firm based in Chicago. After gaining experience in public accounting, Mary moved on to wealth management at RMB Capital Management, a Registered Investment Advisory firm. While at RMB, she expanded her knowledge of retirement planning, investing philosophies, and the impact of risk/return on client portfolios. Mary’s research interest is in the tax field.

Xiao Xiao

Zachary King

Congratulations to Xiao Xiao who accepted an assistant professor position at Guanghua School of Management, Peking University. Xiao will continue her research in financial reporting.

Zach earned his Bachelor of Science in Finance with a minor in economics from Rutgers University. During his time at Rutgers, he was involved in several research classes and out-of-the-classroom research projects. Armed with this experience, Zach became a research assistant for one of the assistant professors at Rutgers and learned that he had a passion for academic research related to capital markets.

Zach also served as the treasurer for the Student Finance Association and was a member of Beta Alpha Psi. In his free time, Zach enjoys sailing as a member of the Hoofers Sailing Club and training for marathons.

ACCOUNTING AND INFORMATION SYSTEMS | YEAR IN REVIEW

WISCONSIN SCHOOL OF BUSINESS | TOGETHER FORWARD

5

Ph.D. PROGRAM

MACC PROGRAMS

Ph.D. Alumni Reception

Accounting Programs Ranked #1

Each summer the Department of Accounting hosts a reception for alumni of the Ph.D. program during the American Accounting Association (AAA) annual meeting. More than sixty faculty, Ph.D. students, and alumni gathered together at Bobby Van’s in New York City to reconnect.

Both the graduate and undergraduate accounting programs in the Wisconsin School of Business earned #1 rankings among programs with fifteen or fewer accounting faculty by the Public Accounting Report in their Annual Professors Survey. Each year the Public Accounting Report surveys accounting professors across U.S. colleges and universities to rank collegiate accounting programs.

Accounting Students Chosen For Prestigious Internships with Standard-Setting Boards Master of Accountancy (MAcc) students Andrew Debbink, Tanner Engmann, and Kayta Gruneberg were recently selected for postgraduate technical assistant (PTA) internships. Engmann joined the Financial Accounting Standards Board (FASB) in July and Debbink will join in January 2017; Gruneberg joined the Governmental Accounting Standards Board (GASB) in July.

These graduates will have the opportunity to be assigned to major agenda projects at each board or to short-term practice and implementation issues. PTAs are involved in all phases of their assigned projects, including analyzing written submissions received on documents issued for public comment, reviewing and analyzing published research, preparing memorandums on technical issues for board members’ information, drafting due process documents, and much more.

The MAcc program has a long tradition of students being selected for these prestigious PTA positions.

Recent FASB interns include Andrea Willett (BBA ’13, MAcc ’14), Alex Debbink (BBA ’12, MAcc ’13) and Kate Konetzke (BBA ’12, MAcc ’13). Recent GASB interns include Matt Baker (BBA ’14, MAcc ’15) and Liesl Seiser (BBA ’13, MAcc ’14).

L to R: Ph.D. student Kimberly Walker, University of Tennessee Ph.D. student Michelle Harding, Ph.D. students Eric Condie and Amy Tegeler, Cass Hausserman (Ph.D., ’14)

Ph.D. Student Recognition

Zach Kowaleski (BBA ’08, MAcc ’09) Zach will represent the university as an economic research fellow at the PCAOB Center for Economic Analysis. While there, he will work on his dissertation using the PCAOB broker-dealer inspection program data to research broker-dealer audit quality sources and signals.

Current and former PTAs joined former FASB board member Tom Linsmeier for a class session with students in the three-week Professional Issues course. L to R: Kayta Gruneberg, Alex Debbink, Tom Linsmeier, Kate Konetzke (BBA ’12, MAcc ’13), Tanner Engmann, Matt Baker (BBA ’14, MAcc ’15)

6

ACCOUNTING AND INFORMATION SYSTEMS | YEAR IN REVIEW

WISCONSIN SCHOOL OF BUSINESS | TOGETHER FORWARD

7

Ph.D. PROGRAM

MACC PROGRAMS

Ph.D. Alumni Reception

Accounting Programs Ranked #1

Each summer the Department of Accounting hosts a reception for alumni of the Ph.D. program during the American Accounting Association (AAA) annual meeting. More than sixty faculty, Ph.D. students, and alumni gathered together at Bobby Van’s in New York City to reconnect.

Both the graduate and undergraduate accounting programs in the Wisconsin School of Business earned #1 rankings among programs with fifteen or fewer accounting faculty by the Public Accounting Report in their Annual Professors Survey. Each year the Public Accounting Report surveys accounting professors across U.S. colleges and universities to rank collegiate accounting programs.

Accounting Students Chosen For Prestigious Internships with Standard-Setting Boards Master of Accountancy (MAcc) students Andrew Debbink, Tanner Engmann, and Kayta Gruneberg were recently selected for postgraduate technical assistant (PTA) internships. Engmann joined the Financial Accounting Standards Board (FASB) in July and Debbink will join in January 2017; Gruneberg joined the Governmental Accounting Standards Board (GASB) in July.

These graduates will have the opportunity to be assigned to major agenda projects at each board or to short-term practice and implementation issues. PTAs are involved in all phases of their assigned projects, including analyzing written submissions received on documents issued for public comment, reviewing and analyzing published research, preparing memorandums on technical issues for board members’ information, drafting due process documents, and much more.

The MAcc program has a long tradition of students being selected for these prestigious PTA positions.

Recent FASB interns include Andrea Willett (BBA ’13, MAcc ’14), Alex Debbink (BBA ’12, MAcc ’13) and Kate Konetzke (BBA ’12, MAcc ’13). Recent GASB interns include Matt Baker (BBA ’14, MAcc ’15) and Liesl Seiser (BBA ’13, MAcc ’14).

L to R: Ph.D. student Kimberly Walker, University of Tennessee Ph.D. student Michelle Harding, Ph.D. students Eric Condie and Amy Tegeler, Cass Hausserman (Ph.D., ’14)

Ph.D. Student Recognition

Zach Kowaleski (BBA ’08, MAcc ’09) Zach will represent the university as an economic research fellow at the PCAOB Center for Economic Analysis. While there, he will work on his dissertation using the PCAOB broker-dealer inspection program data to research broker-dealer audit quality sources and signals.

Current and former PTAs joined former FASB board member Tom Linsmeier for a class session with students in the three-week Professional Issues course. L to R: Kayta Gruneberg, Alex Debbink, Tom Linsmeier, Kate Konetzke (BBA ’12, MAcc ’13), Tanner Engmann, Matt Baker (BBA ’14, MAcc ’15)

6

ACCOUNTING AND INFORMATION SYSTEMS | YEAR IN REVIEW

WISCONSIN SCHOOL OF BUSINESS | TOGETHER FORWARD

7

MACC PROGRAMS Professional Issues Course

Farewell and Welcome

One hundred twelve Integrated Master of Accountancy (IMAcc) students were admitted to the program in the spring of 2015 and completed internships in the spring or summer of 2016. Those students who completed a Spring 2016 internship returned to campus in April and participated in a threeweek Professional Practice Issues in Accounting, Auditing, and Taxation course led by Professor Karla Johnstone.

The course allows students to use their internship experiences to build a foundation for future development and prepare for graduate school. The format of the course is fast-paced and challenging, but provides a common bond for the students as they reflect on their time at WSB.

Each May the department celebrates the accomplishments of graduating MAcc students as they leave their student status behind and become Wisconsin School of Business alumni. On Saturday, May 14, 2016, MAcc students had the opportunity to participate in the campuswide commencement ceremony at Camp Randall Stadium and hear from featured speaker and UW–Madison alumnus Russell Wilson. Later in the day, the department hosted a celebration for the graduates and their families at the Wisconsin School of Business. Several faculty members joined Dean François Ortalo-Magné to personally congratulate the new graduates.

The course included several external speakers who engaged the students on a variety of topics, including: • “Internal Control: Perspectives from a CFO.” 2016 Distinguished Alumnus Dan Kelly (BBA ’84, MBA ’85), CFO, American Family Insurance.

The graduating MAcc students demonstrated their gratefulness for their MAcc graduates Ousmane Kabre and Tanner Engmann time as Business Badgers by pledging to give back to the School. With guidance from the UW Foundation, the peer-driven commencement campaign resulted in 75% of MAcc graduates pledging to give back.

• “Financial Accounting Standards Setting and Regulation: Views about Materiality.” 2008 Distinguished Alumnus Tom Linsmeier (MBA ’80, Ph.D. ’85); Kate Konetzke (BBA ’12, MAcc ’13), senior consultant with Deloitte; and Matt Baker (BBA ’14, MAcc ’15), current GASB PTA intern.

• “Material Negative Events: Materiality, Misstatements, Restatements, and Remediation.” Brad Zastoupil (BBA ’04, MAcc ’05), senior manager, national quality organization, PwC. • “Perspectives on ‘Intelligent Disobedience.’” Ira Chaleff, award-winning author and pioneer in the growing field of followership studies.

• “Emerging Governmental Accounting Standards and Current Perspectives about the Importance of Governmental Accounting.” Carla Gogin (BBA ’92), partner, Baker Tilly.

• “Tax Policy and Regulation.” Todd Watchmaker (BBA ’82), KPMG Tax and Lead Relationship Partner with UW–Madison; Matt Lorenz, KPMG Tax Partner; Jason Divine, KPMG Federal Tax Senior Manager.

• “Advanced Issues in Taxation.” Ronald Sonenthal, Deloitte Tax Partner and Chief Operating Officer.

The department welcomes a new group into the two-year graduate-only Master of Accountancy (GMAcc) program.

• “Your Professional Brand, Making Career Choices, and Lifelong Learning.” Dan Langer (BBA ’78), Controller, UW–Madison Accounting Services; Zach Kowaleski (BBA ’08, MAcc ’09), Ph.D. student in the Wisconsin School of Business; Kim Walker, Ph.D. student in the Wisconsin School of Business; Salman Aasi (MAcc ’14), senior analyst, Dispute Consulting, Duff & Phelps; Joe Paskov (BBA ’12, MAcc ’13), Bentall Kennedy.

As we say goodbye to one MAcc class in the spring, we welcome a new class of graduate students each fall. We are excited to welcome 110 new MAcc students in the fall of 2016. Students have the opportunity to take courses in accounting theory, strategic cost management, advanced audit and assurance, and corporate tax in addition to the innovative Capstone course. In addition to the challenging curriculum, 52 MAcc students will help advance the School’s teaching mission by leading introductory accounting courses for students in their first two semesters at WSB.

• “Corporate Governance and the Role of the Audit Committee.” David Gay (BBA ’96), office managing partner at EY. • “Center for Audit Quality: Perspectives.” Cynthia Fornelli, executive director.

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ACCOUNTING AND INFORMATION SYSTEMS | YEAR IN REVIEW

WISCONSIN SCHOOL OF BUSINESS | TOGETHER FORWARD

9

MACC PROGRAMS Professional Issues Course

Farewell and Welcome

One hundred twelve Integrated Master of Accountancy (IMAcc) students were admitted to the program in the spring of 2015 and completed internships in the spring or summer of 2016. Those students who completed a Spring 2016 internship returned to campus in April and participated in a threeweek Professional Practice Issues in Accounting, Auditing, and Taxation course led by Professor Karla Johnstone.

The course allows students to use their internship experiences to build a foundation for future development and prepare for graduate school. The format of the course is fast-paced and challenging, but provides a common bond for the students as they reflect on their time at WSB.

Each May the department celebrates the accomplishments of graduating MAcc students as they leave their student status behind and become Wisconsin School of Business alumni. On Saturday, May 14, 2016, MAcc students had the opportunity to participate in the campuswide commencement ceremony at Camp Randall Stadium and hear from featured speaker and UW–Madison alumnus Russell Wilson. Later in the day, the department hosted a celebration for the graduates and their families at the Wisconsin School of Business. Several faculty members joined Dean François Ortalo-Magné to personally congratulate the new graduates.

The course included several external speakers who engaged the students on a variety of topics, including: • “Internal Control: Perspectives from a CFO.” 2016 Distinguished Alumnus Dan Kelly (BBA ’84, MBA ’85), CFO, American Family Insurance.

The graduating MAcc students demonstrated their gratefulness for their MAcc graduates Ousmane Kabre and Tanner Engmann time as Business Badgers by pledging to give back to the School. With guidance from the UW Foundation, the peer-driven commencement campaign resulted in 75% of MAcc graduates pledging to give back.

• “Financial Accounting Standards Setting and Regulation: Views about Materiality.” 2008 Distinguished Alumnus Tom Linsmeier (MBA ’80, Ph.D. ’85); Kate Konetzke (BBA ’12, MAcc ’13), senior consultant with Deloitte; and Matt Baker (BBA ’14, MAcc ’15), current GASB PTA intern.

• “Material Negative Events: Materiality, Misstatements, Restatements, and Remediation.” Brad Zastoupil (BBA ’04, MAcc ’05), senior manager, national quality organization, PwC. • “Perspectives on ‘Intelligent Disobedience.’” Ira Chaleff, award-winning author and pioneer in the growing field of followership studies.

• “Emerging Governmental Accounting Standards and Current Perspectives about the Importance of Governmental Accounting.” Carla Gogin (BBA ’92), partner, Baker Tilly.

• “Tax Policy and Regulation.” Todd Watchmaker (BBA ’82), KPMG Tax and Lead Relationship Partner with UW–Madison; Matt Lorenz, KPMG Tax Partner; Jason Divine, KPMG Federal Tax Senior Manager.

• “Advanced Issues in Taxation.” Ronald Sonenthal, Deloitte Tax Partner and Chief Operating Officer.

The department welcomes a new group into the two-year graduate-only Master of Accountancy (GMAcc) program.

• “Your Professional Brand, Making Career Choices, and Lifelong Learning.” Dan Langer (BBA ’78), Controller, UW–Madison Accounting Services; Zach Kowaleski (BBA ’08, MAcc ’09), Ph.D. student in the Wisconsin School of Business; Kim Walker, Ph.D. student in the Wisconsin School of Business; Salman Aasi (MAcc ’14), senior analyst, Dispute Consulting, Duff & Phelps; Joe Paskov (BBA ’12, MAcc ’13), Bentall Kennedy.

As we say goodbye to one MAcc class in the spring, we welcome a new class of graduate students each fall. We are excited to welcome 110 new MAcc students in the fall of 2016. Students have the opportunity to take courses in accounting theory, strategic cost management, advanced audit and assurance, and corporate tax in addition to the innovative Capstone course. In addition to the challenging curriculum, 52 MAcc students will help advance the School’s teaching mission by leading introductory accounting courses for students in their first two semesters at WSB.

• “Corporate Governance and the Role of the Audit Committee.” David Gay (BBA ’96), office managing partner at EY. • “Center for Audit Quality: Perspectives.” Cynthia Fornelli, executive director.

8

ACCOUNTING AND INFORMATION SYSTEMS | YEAR IN REVIEW

WISCONSIN SCHOOL OF BUSINESS | TOGETHER FORWARD

9

AWARDS BANQUET

STUDENT GROUP UPDATES

The Department of Accounting and Information Systems, along with the Sigma chapter of Beta Alpha Psi, held the annual awards banquet in September on the UW–Madison campus.

Scholarship recipients and fellowships for the 2016-2017 school year, and outstanding teaching assistants and seniors from the 2015-2016 academic year, were honored. Recognition was also given to the generous organizations and individuals who support the accounting program and its students.

The Douglas Clarke Memorial Teaching Award, awarded to outstanding Ph.D. teaching assistants, was awarded to Eric Condie and Zach Kowaleski (BBA ’08, MAcc ’09).

The Teaching Assistant: Excellence in Teaching Award, awarded to outstanding MAcc teaching assistants, was awarded to Kayta Gruneberg (BBA ’15, MAcc ’16) and Nick Kubsch (BBA ’15, MAcc ’16).

David Fuchs Ryan Gaertner Arin Grossbard Zhi Li Xinrui Ma

The Sigma chapter of Beta Alpha Psi continues its success as a prominent student organization in the Wisconsin School of Business, with members and pledges accounting for approximately 9% of the student body. The Sigma chapter is one of the largest in the world and is very active on campus and in the community. An average of 100 members and pledges attended each of the four professional meetings each semester. Each professional meeting is hosted by a corporate sponsor. To recognize the importance and value of those sponsorships, Beta recognized Todd Watchmaker (BBA ’82), tax partner at KPMG, and David Gay (BBA ’96), audit partner at EY, as Outstanding Alumni of the Sigma Chapter of Beta Alpha Psi. Beyond their professional meetings and on-campus events, the Sigma Chapter recorded more than 700 service hours in the community. From providing free tutoring services to giving blood, preparing tax returns, and providing community cleanup services, Beta truly lived the “Wisconsin Idea.”

Top 10 accounting graduates from the 2015-2016 academic year were recognized for their academic accomplishments: 1.

2.

3.

4.

5.

Beta Alpha Psi

6. Rui Qu 7. Mattie Ramsey 8. Sarah Stang 9. Yanie Sun 10. Rebecca Tiedmann

Beta members visiting accounting firms in Chicago

Institute of Management Accountants Five of the top 10 graduating seniors accept their awards

Dan Kelly (BBA ’84, MBA ’85), CFO at American Family Insurance, was honored as the distinguished accounting alumnus. Dan is a certified public accountant, a licensed insurance agent in Wisconsin, and has earned his Fellow, Life Management Institute (FLMI), and Associate in Customer Service (ACS) designations. He started his career at Arthur Andersen in Milwaukee as a staff auditor. In 1987, Dan joined American Family as a financial analyst in the Controller Division. He was promoted to accounting manager in 1993 and then was named accounting director in 2000. In 2003, Dan moved to the Life/ Health Division as product design director working in operations. Four years later, he returned to the Controller Division as financial analysis director. He was elected vice president of human resources in October 2007 and named chief financial officer/treasurer in July 2011.

Alumnus Dan Kelly

In his acceptance speech, Dan Kelly advised students to get to know faculty, carefully consider coursework, develop leadership and communication skills, network, and have fun! Professionally, Dan shared the importance of selecting a company that fits with each student’s values, being open to feedback, continually learning and developing, and not to being afraid to take risks and move outside of one’s area of expertise. Dan also shared the importance of developing interests outside of work and looking for ways to give back to the community. Dan’s comments were appreciated by all in attendance. It was a wonderful night!

IMA Student Board

The UW–Madison student chapter of the Institute of Management Accountants (IMA) had another busy year fulfilling its commitment to building an inclusive network of business students interested in accounting and finance career paths. In addition to hosting several professional meetings with external company sponsors, students in IMA gave back to the community though several volunteer events, including cleanup events at local parks and trails and volunteering at the Memorial Library book sale. The IMA is also advancing their mentorship program by matching members based on experiences, majors, and expected career paths.

National Association of Black Accountants The UW–Madison student chapter of the National Association of Black Accountants (NABA) continues to develop as a student organization.

NABA provides a strong community where WSB students can network with each other and with professionals from external organizations, give back to the community through volunteer events, and grow as young professionals. NABA members enjoyed a fun year with a mix of professional and social events, volunteering at various locations throughout the city of Madison, listening to and discussing TED talks, and more. NABA is supported by the Milwaukee professional chapter and its support and leadership has been invaluable.

NABA members during a visit to KPMG’s Chicago office

10

ACCOUNTING AND INFORMATION SYSTEMS | YEAR IN REVIEW

WISCONSIN SCHOOL OF BUSINESS | TOGETHER FORWARD

11

AWARDS BANQUET

STUDENT GROUP UPDATES

The Department of Accounting and Information Systems, along with the Sigma chapter of Beta Alpha Psi, held the annual awards banquet in September on the UW–Madison campus.

Scholarship recipients and fellowships for the 2016-2017 school year, and outstanding teaching assistants and seniors from the 2015-2016 academic year, were honored. Recognition was also given to the generous organizations and individuals who support the accounting program and its students.

The Douglas Clarke Memorial Teaching Award, awarded to outstanding Ph.D. teaching assistants, was awarded to Eric Condie and Zach Kowaleski (BBA ’08, MAcc ’09).

The Teaching Assistant: Excellence in Teaching Award, awarded to outstanding MAcc teaching assistants, was awarded to Kayta Gruneberg (BBA ’15, MAcc ’16) and Nick Kubsch (BBA ’15, MAcc ’16).

David Fuchs Ryan Gaertner Arin Grossbard Zhi Li Xinrui Ma

The Sigma chapter of Beta Alpha Psi continues its success as a prominent student organization in the Wisconsin School of Business, with members and pledges accounting for approximately 9% of the student body. The Sigma chapter is one of the largest in the world and is very active on campus and in the community. An average of 100 members and pledges attended each of the four professional meetings each semester. Each professional meeting is hosted by a corporate sponsor. To recognize the importance and value of those sponsorships, Beta recognized Todd Watchmaker (BBA ’82), tax partner at KPMG, and David Gay (BBA ’96), audit partner at EY, as Outstanding Alumni of the Sigma Chapter of Beta Alpha Psi. Beyond their professional meetings and on-campus events, the Sigma Chapter recorded more than 700 service hours in the community. From providing free tutoring services to giving blood, preparing tax returns, and providing community cleanup services, Beta truly lived the “Wisconsin Idea.”

Top 10 accounting graduates from the 2015-2016 academic year were recognized for their academic accomplishments: 1.

2.

3.

4.

5.

Beta Alpha Psi

6. Rui Qu 7. Mattie Ramsey 8. Sarah Stang 9. Yanie Sun 10. Rebecca Tiedmann

Beta members visiting accounting firms in Chicago

Institute of Management Accountants Five of the top 10 graduating seniors accept their awards

Dan Kelly (BBA ’84, MBA ’85), CFO at American Family Insurance, was honored as the distinguished accounting alumnus. Dan is a certified public accountant, a licensed insurance agent in Wisconsin, and has earned his Fellow, Life Management Institute (FLMI), and Associate in Customer Service (ACS) designations. He started his career at Arthur Andersen in Milwaukee as a staff auditor. In 1987, Dan joined American Family as a financial analyst in the Controller Division. He was promoted to accounting manager in 1993 and then was named accounting director in 2000. In 2003, Dan moved to the Life/ Health Division as product design director working in operations. Four years later, he returned to the Controller Division as financial analysis director. He was elected vice president of human resources in October 2007 and named chief financial officer/treasurer in July 2011.

Alumnus Dan Kelly

In his acceptance speech, Dan Kelly advised students to get to know faculty, carefully consider coursework, develop leadership and communication skills, network, and have fun! Professionally, Dan shared the importance of selecting a company that fits with each student’s values, being open to feedback, continually learning and developing, and not to being afraid to take risks and move outside of one’s area of expertise. Dan also shared the importance of developing interests outside of work and looking for ways to give back to the community. Dan’s comments were appreciated by all in attendance. It was a wonderful night!

IMA Student Board

The UW–Madison student chapter of the Institute of Management Accountants (IMA) had another busy year fulfilling its commitment to building an inclusive network of business students interested in accounting and finance career paths. In addition to hosting several professional meetings with external company sponsors, students in IMA gave back to the community though several volunteer events, including cleanup events at local parks and trails and volunteering at the Memorial Library book sale. The IMA is also advancing their mentorship program by matching members based on experiences, majors, and expected career paths.

National Association of Black Accountants The UW–Madison student chapter of the National Association of Black Accountants (NABA) continues to develop as a student organization.

NABA provides a strong community where WSB students can network with each other and with professionals from external organizations, give back to the community through volunteer events, and grow as young professionals. NABA members enjoyed a fun year with a mix of professional and social events, volunteering at various locations throughout the city of Madison, listening to and discussing TED talks, and more. NABA is supported by the Milwaukee professional chapter and its support and leadership has been invaluable.

NABA members during a visit to KPMG’s Chicago office

10

ACCOUNTING AND INFORMATION SYSTEMS | YEAR IN REVIEW

WISCONSIN SCHOOL OF BUSINESS | TOGETHER FORWARD

11

ARTHUR ANDERSEN CENTER ACTIVITIES The Arthur Andersen Center supports a wide range of activities in the Department of Accounting and Information Systems. The Center provides an independent source of funding for department activities focused on accounting research, student development, and the accounting profession.

STUDENT RECOGNITION WSB Accounting students continue to perform very well on the Uniform CPA exam.

For the 2015 testing period, UW–Madison ranked fifth in the nation in pass rates for first-time test takers.

The Andersen Center funds The Future is Now, the department’s signature student development event. WSB students interested in exploring academic and professional accounting opportunities attend a two-day event that brings together more than 40 alumni to deliver content in the areas of personal brands, global mindsets, professional competencies, career path exploration, team building, and leadership. The Future is Now is at the center of the department’s efforts to both attract students to the profession and also start them on the path to becoming accounting professionals. More than 100 students attend the event each year.

The Center sponsors a workshop series that invites scholars to present their research in an active 90-minute presentation. Faculty, Ph.D. students, and MAcc students in the Capstone course attend these workshops to learn about cutting-edge accounting research and issues. We typically invite four to six leading accounting scholars per semester and also encourage presentations by our own faculty and Ph.D. students. Outside speakers meet with faculty and students one-on-one and in small groups to discuss research and other professional issues. These small meetings provide great networking opportunities and keep UW–Madison connected to the wider academic community.

Accounting Alumni Earn Prestigious Elijah Watt Sells Awards Andrew Lamers (BBA ’15) and Tom Fine (BBA ’14, MAcc ’15) were recognized by the AICPA as top 2015 CPA exam performers.

The Elijah Watt Sells Award is given to candidates who have obtained a cumulative average score above 95.50 across all four sections of the Uniform CPA Examination and passed all four sections of the examination on their first attempt. A total of 93,742 individuals took the examination in 2015, with 75 candidates meeting the criteria to receive the Elijah Watt Sells Award.

Andrew Lamers

Andrew started his career as an audit associate with Deloitte in Milwaukee in September of 2015. Tom is working with KPMG in Minneapolis as a federal tax associate.

The workshop also serves an important role in recruiting new faculty. Faculty candidates give workshop presentations as part of their on-campus visit. These workshops serve a dual purpose in providing insights into the candidates’ research while also demonstrating their skills as teachers. The workshop was a key ingredient to recruiting Tom Linsmeier to join our faculty.

Named for one of the country’s first CPAs, the Elijah Watt Sells Award program was established by the AICPA in 1923. Sells was active in the establishment of the AICPA and played a key role in advancing professional education in the field.

External workshop speakers for the 2015-2016 academic year included: • Lauren Cunningham, University of Tennessee, Knoxville “ The Consequences of Writing Not So Readable Responses to SEC Comment Letters”

• Justin Leiby, University of Florida “ When (and Why) Do People Self-Select into Accounting? Life History Strategies, Socioeconomic Status, and Recessions”

• Tom Linsmeier (MBA ’80, Ph.D. ’85), Financial Accounting Standards Board “ Liability/Equity Classifications and Shareholder Valuation”

• Ken Klassen, University of Waterloo “ Using Textual Analysis to Categorize Ambiguous Accrual Reversals: Identifying Unfavorable Tax Settlements”

• Todd Thornock, Iowa State University “ Performance Tradeoffs in the Face of Change: The Effect of Changing Tasks and Compensation Contracts on Current and Future Performance”

• John Campbell, University of Georgia “ Did Regulation Fair Disclosure Prevent Information Leakage? Direct Evidence from Intraday Volume and Returns”

• Alex Edwards, University of Toronto “Taxes and Peer Effects”

• Dave Weber, University of Connecticut “ The Debt-Equity Choice when Regulatory Thresholds are Based on Equity Values: Evidence from SOX 404”

• John McInnis, University of Texas at Austin “Audit Fees and Interpretive Guidance”

Tom Fine

WICPA Scholarships Two IMAcc students, Madeleine Ramsey and Alexandra Beyer, were honored with scholarships from the Wisconsin Institute of Certified Public Accountants (WICPA) Educational Foundation. The WICPA Educational Foundation recognizes fifth-year students working toward the 150-hour requirement to sit for the CPA Exam.

The award is based on academic achievement, a personal statement, and letters of recommendation. Both students were awarded the LeRoy Schmidt 150-Hour Accounting Scholarship.

Accounting Program Alumna Gwen Jorgensen Wins Olympic Gold The road to gold had a stop along the way at the Wisconsin School of Business for Gwen Jorgensen, who won the gold medal in the triathlon at the 2016 Summer Olympics.

The triathlon consists of a 1.5-kilometer swim, 40-kilometer bike ride, and 10-kilometer run. In the London Olympics in 2012, Jorgensen’s chance at a medal disappeared when she had a flat tire in the bike portion. She finished 38th.

Students participate in a team-building exercise as part of The Future is Now. 12

ACCOUNTING AND INFORMATION SYSTEMS | YEAR IN REVIEW

Students prepare for the second day of The Future is Now conference with a networking breakfast.

After that, she focused on training full time. She left her job at EY in Milwaukee to train and compete internationally. In Rio, Jorgensen finished 40 seconds ahead of silver medalist Nicola Spirig of Switzerland. After winning gold, Jorgensen set her sights on another feat: the 2016 TCS New York City Marathon.

Gwen Jorgensen (BBA '08, MAcc '09) celebrates her Olympic victory in the triathlon. (Icon Sports photo)

WISCONSIN SCHOOL OF BUSINESS | TOGETHER FORWARD

13

ARTHUR ANDERSEN CENTER ACTIVITIES The Arthur Andersen Center supports a wide range of activities in the Department of Accounting and Information Systems. The Center provides an independent source of funding for department activities focused on accounting research, student development, and the accounting profession.

STUDENT RECOGNITION WSB Accounting students continue to perform very well on the Uniform CPA exam.

For the 2015 testing period, UW–Madison ranked fifth in the nation in pass rates for first-time test takers.

The Andersen Center funds The Future is Now, the department’s signature student development event. WSB students interested in exploring academic and professional accounting opportunities attend a two-day event that brings together more than 40 alumni to deliver content in the areas of personal brands, global mindsets, professional competencies, career path exploration, team building, and leadership. The Future is Now is at the center of the department’s efforts to both attract students to the profession and also start them on the path to becoming accounting professionals. More than 100 students attend the event each year.

The Center sponsors a workshop series that invites scholars to present their research in an active 90-minute presentation. Faculty, Ph.D. students, and MAcc students in the Capstone course attend these workshops to learn about cutting-edge accounting research and issues. We typically invite four to six leading accounting scholars per semester and also encourage presentations by our own faculty and Ph.D. students. Outside speakers meet with faculty and students one-on-one and in small groups to discuss research and other professional issues. These small meetings provide great networking opportunities and keep UW–Madison connected to the wider academic community.

Accounting Alumni Earn Prestigious Elijah Watt Sells Awards Andrew Lamers (BBA ’15) and Tom Fine (BBA ’14, MAcc ’15) were recognized by the AICPA as top 2015 CPA exam performers.

The Elijah Watt Sells Award is given to candidates who have obtained a cumulative average score above 95.50 across all four sections of the Uniform CPA Examination and passed all four sections of the examination on their first attempt. A total of 93,742 individuals took the examination in 2015, with 75 candidates meeting the criteria to receive the Elijah Watt Sells Award.

Andrew Lamers

Andrew started his career as an audit associate with Deloitte in Milwaukee in September of 2015. Tom is working with KPMG in Minneapolis as a federal tax associate.

The workshop also serves an important role in recruiting new faculty. Faculty candidates give workshop presentations as part of their on-campus visit. These workshops serve a dual purpose in providing insights into the candidates’ research while also demonstrating their skills as teachers. The workshop was a key ingredient to recruiting Tom Linsmeier to join our faculty.

Named for one of the country’s first CPAs, the Elijah Watt Sells Award program was established by the AICPA in 1923. Sells was active in the establishment of the AICPA and played a key role in advancing professional education in the field.

External workshop speakers for the 2015-2016 academic year included: • Lauren Cunningham, University of Tennessee, Knoxville “ The Consequences of Writing Not So Readable Responses to SEC Comment Letters”

• Justin Leiby, University of Florida “ When (and Why) Do People Self-Select into Accounting? Life History Strategies, Socioeconomic Status, and Recessions”

• Tom Linsmeier (MBA ’80, Ph.D. ’85), Financial Accounting Standards Board “ Liability/Equity Classifications and Shareholder Valuation”

• Ken Klassen, University of Waterloo “ Using Textual Analysis to Categorize Ambiguous Accrual Reversals: Identifying Unfavorable Tax Settlements”

• Todd Thornock, Iowa State University “ Performance Tradeoffs in the Face of Change: The Effect of Changing Tasks and Compensation Contracts on Current and Future Performance”

• John Campbell, University of Georgia “ Did Regulation Fair Disclosure Prevent Information Leakage? Direct Evidence from Intraday Volume and Returns”

• Alex Edwards, University of Toronto “Taxes and Peer Effects”

• Dave Weber, University of Connecticut “ The Debt-Equity Choice when Regulatory Thresholds are Based on Equity Values: Evidence from SOX 404”

• John McInnis, University of Texas at Austin “Audit Fees and Interpretive Guidance”

Tom Fine

WICPA Scholarships Two IMAcc students, Madeleine Ramsey and Alexandra Beyer, were honored with scholarships from the Wisconsin Institute of Certified Public Accountants (WICPA) Educational Foundation. The WICPA Educational Foundation recognizes fifth-year students working toward the 150-hour requirement to sit for the CPA Exam.

The award is based on academic achievement, a personal statement, and letters of recommendation. Both students were awarded the LeRoy Schmidt 150-Hour Accounting Scholarship.

Accounting Program Alumna Gwen Jorgensen Wins Olympic Gold The road to gold had a stop along the way at the Wisconsin School of Business for Gwen Jorgensen, who won the gold medal in the triathlon at the 2016 Summer Olympics.

The triathlon consists of a 1.5-kilometer swim, 40-kilometer bike ride, and 10-kilometer run. In the London Olympics in 2012, Jorgensen’s chance at a medal disappeared when she had a flat tire in the bike portion. She finished 38th.

Students participate in a team-building exercise as part of The Future is Now. 12

ACCOUNTING AND INFORMATION SYSTEMS | YEAR IN REVIEW

Students prepare for the second day of The Future is Now conference with a networking breakfast.

After that, she focused on training full time. She left her job at EY in Milwaukee to train and compete internationally. In Rio, Jorgensen finished 40 seconds ahead of silver medalist Nicola Spirig of Switzerland. After winning gold, Jorgensen set her sights on another feat: the 2016 TCS New York City Marathon.

Gwen Jorgensen (BBA '08, MAcc '09) celebrates her Olympic victory in the triathlon. (Icon Sports photo)

WISCONSIN SCHOOL OF BUSINESS | TOGETHER FORWARD

13

GLOBAL MINDSET

ETHICS AND PROFESSIONALISM PROGRAM

With ongoing financial support from the EY Foundation to the WSB, the accounting department continues its focus on the Global Mindset initiative. Students are introduced to cultural and social diversity in business through various activities in the WSB curriculum. From sessions in the introductory accounting courses through the Capstone course offered to master of accountancy students, activities are aimed at addressing the importance of embracing different perspectives in today’s global business environment.

The Howard Carver Ethics and Professionalism Program hosted two featured speakers during the 2015-2016 academic year. For news on the Howard Carver Ethics and Professionalism Program student initiatives and its statement of values, see our website at:

The department had the opportunity to award Global Mindset scholarships to five students this fall. Scholarship support is an integral component of the Global Mindset Leaders Program and is funded as part of the EY donation. The scholarship program will support a variety of students from incoming freshmen to graduate students. Students who receive the Global Mindset scholarships will meet regularly as a group to foster mentoring and community. We are excited to support the following students with a Global Mindset scholarship: • Elishah Fields, direct-admit freshman to WSB

• Nicholas Eufrasio, sophomore business student

• Kyle Studnicka, direct-admit freshman to WSB

• Elijah Mapes, sophomore business student

go.wisc.edu/aisethics

IMAcc students promote ethics throughout the WSB.

• Alexander Nunn, direct-admit freshman to WSB

Carl Kantner Student Global Mindset Experiences Master of Accountancy students Laura Rudolph, Derek Weisman, and Erica Sloan were able to apply their Global Mindset education while completing internships.

Laura Rudolph During an internship with KPMG in Seattle, Laura Rudolph had the opportunity to live for one month in Bangalore, India while working at KPMG’s Global Delivery Center (GDC). Laura learned how her Indian counterparts supported U.S. audit engagement teams, was involved in efforts to increase efficiency and utilization at the GDC, and even met with members of the national audit leadership team. Laura immersed herself in Indian culture through trips to the Taj Mahal and Mumbai.

Derek Weisman Leaving behind his winter internship with KPMG in Boston, Derek Weisman experienced public accounting from the other side of the globe! With a 19-hour time difference and a nearly 60-degree temperature difference from a Boston winter, Derek spent one month living in Auckland, New Zealand. Derek worked for KPMG during the week on an audit of a multinational security company, and took advantage of weekends to explore a new country.

Through bungee jumping off the Kawarau Bridge, riding an ATV on the mountains of Queenstown, touring the Hobbiton movie set, and exploring the Auckland neighborhoods, Derek immersed himself in the culture and experiences of Auckland.

Erica Sloan Erica Sloan was accepted into the Global Student Experience (GSE) program at EY, where she spent the month of July working and living in Melbourne, Australia. During Erica’s internship, she worked in the Assurance Financial Services Office for two different clients, the treasury of one of the largest telecommunications companies in the country and an insurance company. While working in Australia, Erica had the opportunity to directly apply what she had learned about international financial reporting standards. During her free time, Erica had the opportunity to ride on the Great Ocean Road with other interns and see the Twelve Apostles, hold a Koala, and take a trip north to snorkel near the Great Barrier Reef.

14

ACCOUNTING AND INFORMATION SYSTEMS | YEAR IN REVIEW

The Fall 2015 ethics initiatives wrapped up with a group of students promoting ethics to the broader WSB community and planning a public talk from distinguished accounting alum Carl Kantner (B.A. ’66, J.D. ’68, M.S. ’74). Carl gave a talk to an audience of more than 200 WSB students on Thursday evening, December 3. Carl was a tax partner with PwC for many years and held various leadership roles within the firm throughout his career. Upon retiring, Carl worked as a consultant to PwC in the development and teaching of tax courses to PwC managers, seniors, and staff. Carl capitalized on his many experiences as a professional and provided career insights and advice.

Drawing from his experience as a tax partner, Carl’s talk began with a case study in which a company looks to engage in a tax transaction with questionable merit. After providing some baseline technical guidance, Carl charged the students with discussing the case in small groups. Among the discussion points, students were encouraged to discuss both the business and ethical considerations of the proposed transaction and then ultimately decide whether or not the company should follow through with the transaction. It was a lively discussion where students had to consider an issue that was legal, but not ethical.

Carl Kantner engaged a large crowd during his ethics talk with a case study to start the session.

Carl debriefed the case and provided a framework for how students can consider such business issues going forward. Carl wrapped up the session with four personal insights developed throughout his professional career:

1.

2.

3.

4.

Your personal reputation is one of your most important assets.

Never recommend a complex strategy to an unsophisticated client.

Always weigh the risks versus rewards.

Remember: if it seems too good to be true, it probably is.

We truly appreciate the willingness of our alumni to come back to campus and spend time with our students. Carl gave a great talk and shared a lot of personal and professional insights that our students will benefit from as they move forward into their professional careers. Thank you, Carl!

WISCONSIN SCHOOL OF BUSINESS | TOGETHER FORWARD

15

GLOBAL MINDSET

ETHICS AND PROFESSIONALISM PROGRAM

With ongoing financial support from the EY Foundation to the WSB, the accounting department continues its focus on the Global Mindset initiative. Students are introduced to cultural and social diversity in business through various activities in the WSB curriculum. From sessions in the introductory accounting courses through the Capstone course offered to master of accountancy students, activities are aimed at addressing the importance of embracing different perspectives in today’s global business environment.

The Howard Carver Ethics and Professionalism Program hosted two featured speakers during the 2015-2016 academic year. For news on the Howard Carver Ethics and Professionalism Program student initiatives and its statement of values, see our website at:

The department had the opportunity to award Global Mindset scholarships to five students this fall. Scholarship support is an integral component of the Global Mindset Leaders Program and is funded as part of the EY donation. The scholarship program will support a variety of students from incoming freshmen to graduate students. Students who receive the Global Mindset scholarships will meet regularly as a group to foster mentoring and community. We are excited to support the following students with a Global Mindset scholarship: • Elishah Fields, direct-admit freshman to WSB

• Nicholas Eufrasio, sophomore business student

• Kyle Studnicka, direct-admit freshman to WSB

• Elijah Mapes, sophomore business student

go.wisc.edu/aisethics

IMAcc students promote ethics throughout the WSB.

• Alexander Nunn, direct-admit freshman to WSB

Carl Kantner Student Global Mindset Experiences Master of Accountancy students Laura Rudolph, Derek Weisman, and Erica Sloan were able to apply their Global Mindset education while completing internships.

Laura Rudolph During an internship with KPMG in Seattle, Laura Rudolph had the opportunity to live for one month in Bangalore, India while working at KPMG’s Global Delivery Center (GDC). Laura learned how her Indian counterparts supported U.S. audit engagement teams, was involved in efforts to increase efficiency and utilization at the GDC, and even met with members of the national audit leadership team. Laura immersed herself in Indian culture through trips to the Taj Mahal and Mumbai.

Derek Weisman Leaving behind his winter internship with KPMG in Boston, Derek Weisman experienced public accounting from the other side of the globe! With a 19-hour time difference and a nearly 60-degree temperature difference from a Boston winter, Derek spent one month living in Auckland, New Zealand. Derek worked for KPMG during the week on an audit of a multinational security company, and took advantage of weekends to explore a new country.

Through bungee jumping off the Kawarau Bridge, riding an ATV on the mountains of Queenstown, touring the Hobbiton movie set, and exploring the Auckland neighborhoods, Derek immersed himself in the culture and experiences of Auckland.

Erica Sloan Erica Sloan was accepted into the Global Student Experience (GSE) program at EY, where she spent the month of July working and living in Melbourne, Australia. During Erica’s internship, she worked in the Assurance Financial Services Office for two different clients, the treasury of one of the largest telecommunications companies in the country and an insurance company. While working in Australia, Erica had the opportunity to directly apply what she had learned about international financial reporting standards. During her free time, Erica had the opportunity to ride on the Great Ocean Road with other interns and see the Twelve Apostles, hold a Koala, and take a trip north to snorkel near the Great Barrier Reef.

14

ACCOUNTING AND INFORMATION SYSTEMS | YEAR IN REVIEW

The Fall 2015 ethics initiatives wrapped up with a group of students promoting ethics to the broader WSB community and planning a public talk from distinguished accounting alum Carl Kantner (B.A. ’66, J.D. ’68, M.S. ’74). Carl gave a talk to an audience of more than 200 WSB students on Thursday evening, December 3. Carl was a tax partner with PwC for many years and held various leadership roles within the firm throughout his career. Upon retiring, Carl worked as a consultant to PwC in the development and teaching of tax courses to PwC managers, seniors, and staff. Carl capitalized on his many experiences as a professional and provided career insights and advice.

Drawing from his experience as a tax partner, Carl’s talk began with a case study in which a company looks to engage in a tax transaction with questionable merit. After providing some baseline technical guidance, Carl charged the students with discussing the case in small groups. Among the discussion points, students were encouraged to discuss both the business and ethical considerations of the proposed transaction and then ultimately decide whether or not the company should follow through with the transaction. It was a lively discussion where students had to consider an issue that was legal, but not ethical.

Carl Kantner engaged a large crowd during his ethics talk with a case study to start the session.

Carl debriefed the case and provided a framework for how students can consider such business issues going forward. Carl wrapped up the session with four personal insights developed throughout his professional career:

1.

2.

3.

4.

Your personal reputation is one of your most important assets.

Never recommend a complex strategy to an unsophisticated client.

Always weigh the risks versus rewards.

Remember: if it seems too good to be true, it probably is.

We truly appreciate the willingness of our alumni to come back to campus and spend time with our students. Carl gave a great talk and shared a lot of personal and professional insights that our students will benefit from as they move forward into their professional careers. Thank you, Carl!

WISCONSIN SCHOOL OF BUSINESS | TOGETHER FORWARD

15

ETHICS AND PROFESSIONALISM PROGRAM

NEW FACULTY INTRODUCTION

Spring Ethics Symposium The Department of Accounting hosted a public talk and Q&A session with Ira Chaleff, award-winning author and pioneer in the growing field of followership.

Ira’s talk centered around the theme of his new book, Intelligent Disobedience, which was published in the spring of 2015 and awarded a medal in the business ethics category of the Axiom Book Awards. Ira set up his message by talking about guide dogs and shared his insights about how guide dogs are first taught to be extremely obedient and follow orders when given. Then, the sight dogs receive a higher level of training. Sight dogs are taught to intelligently disobey orders if such orders would cause harm to their owner or others around them. Ira argues that if dogs can intelligently disobey bad orders, humans can too!

Ira challenged students to consider their views on authority and perceived authority by giving many examples of when a person would simply obey a “bad” order because the person giving the order had some power. Ira emphasized that it often does not matter if a leader is giving a “bad” order, but rather how we react to it. For this, he provided some steps we can all work through to arrive at the best outcome when faced with an ethically questionable order: 1.

2.

3.

4.

5.

6.

Howard Carver, second from left, traveled to Madison for the Spring Ethics Symposium featuring a talk by Ira Chaleff, center.

Observe the risk of the situation Pause the action—take a breath, do not simply react Resist obeying simply on impulse “Counter pull”—take swift, corrective action if needed Find a safe and better alternative—do not just disobey, but provide an alternate solution Execute!

Ira had a powerful message for the 250 students and faculty in attendance, which was well received as evidenced by a robust Q&A session after the formal talk. The annual spring ethics symposium is made possible by a generous endowment from Howard Carver, a retired partner from EY. The evening was even more special as Howard was able to attend the talk and meet with Ira.

Thomas Linsmeier, Accounting Standard Setter and Leading Scholar, Joins WSB Accounting Faculty Thomas Linsmeier, a leader in the areas of financial reporting and disclosure who has spent the last decade serving on the board responsible for setting accounting standards for U.S. public and private companies and not-for-profit organizations, joined the faculty of the Wisconsin School of Business this fall as professor and the Ragatz Distinguished Chair in Accounting.

First appointed to the Financial Accounting Standards Board (FASB) in July 2006, Linsmeier was reappointed to a second term in 2011. From 1999 to 2006, he was a professor and chair of the Department of Accounting and Information Systems at Michigan State University. In addition to being recognized as an award-winning teacher and researcher, Linsmeier is a prominent scholar in the area of accounting for financial instruments, derivatives, and risk management. His research has explored the role of accounting information in securities markets, including the usefulness to investors of fair value and market risk management disclosures, and the economic effects of accounting standards.

“I am excited to be joining the faculty of the Wisconsin School of Business at the University of Wisconsin– Madison in the fall of 2016,” says Linsmeier, an alumnus of the School. “I look forward to learning together with my outstanding colleagues in the accounting department and using my experiences in the standard-setting arena to bring context to my research and teaching.”

François Ortalo-Magné, Albert O. Nicholas Dean of the Wisconsin School of Business adds, “Tom Linsmeier is a leading scholar in the field of accounting for financial instruments, risk management, and hedging, and his research has direct implications for standard setting. With 10 years of experience as a member of the FASB, Tom is the perfect scholar to help us redefine the partnership between public research universities and the business community. And best of all, Tom is a Badger! We are thrilled to welcome him back home.”

Linsmeier received his Ph.D. and MBA from the University of Wisconsin–Madison and his Bachelor of Business Administration from the University of Wisconsin-Milwaukee. From 1994 to 1997, he served as academic fellow and special consultant to the Office of the Chief Accountant at the U.S. Securities and Exchange Commission (SEC), where he was responsible for developing financial reporting disclosure rules related to the market risk inherent in derivatives and other financial instruments. He also served as chairman of the Financial Accounting Standards Committee and president of the Financial Accounting and Reporting Section of the American Accounting Association. Linsmeier is a certified public accountant.

16

ACCOUNTING AND INFORMATION SYSTEMS | YEAR IN REVIEW

WISCONSIN SCHOOL OF BUSINESS | TOGETHER FORWARD

17

ETHICS AND PROFESSIONALISM PROGRAM

NEW FACULTY INTRODUCTION

Spring Ethics Symposium The Department of Accounting hosted a public talk and Q&A session with Ira Chaleff, award-winning author and pioneer in the growing field of followership.

Ira’s talk centered around the theme of his new book, Intelligent Disobedience, which was published in the spring of 2015 and awarded a medal in the business ethics category of the Axiom Book Awards. Ira set up his message by talking about guide dogs and shared his insights about how guide dogs are first taught to be extremely obedient and follow orders when given. Then, the sight dogs receive a higher level of training. Sight dogs are taught to intelligently disobey orders if such orders would cause harm to their owner or others around them. Ira argues that if dogs can intelligently disobey bad orders, humans can too!

Ira challenged students to consider their views on authority and perceived authority by giving many examples of when a person would simply obey a “bad” order because the person giving the order had some power. Ira emphasized that it often does not matter if a leader is giving a “bad” order, but rather how we react to it. For this, he provided some steps we can all work through to arrive at the best outcome when faced with an ethically questionable order: 1.

2.

3.

4.

5.

6.

Howard Carver, second from left, traveled to Madison for the Spring Ethics Symposium featuring a talk by Ira Chaleff, center.

Observe the risk of the situation Pause the action—take a breath, do not simply react Resist obeying simply on impulse “Counter pull”—take swift, corrective action if needed Find a safe and better alternative—do not just disobey, but provide an alternate solution Execute!

Ira had a powerful message for the 250 students and faculty in attendance, which was well received as evidenced by a robust Q&A session after the formal talk. The annual spring ethics symposium is made possible by a generous endowment from Howard Carver, a retired partner from EY. The evening was even more special as Howard was able to attend the talk and meet with Ira.

Thomas Linsmeier, Accounting Standard Setter and Leading Scholar, Joins WSB Accounting Faculty Thomas Linsmeier, a leader in the areas of financial reporting and disclosure who has spent the last decade serving on the board responsible for setting accounting standards for U.S. public and private companies and not-for-profit organizations, joined the faculty of the Wisconsin School of Business this fall as professor and the Ragatz Distinguished Chair in Accounting.

First appointed to the Financial Accounting Standards Board (FASB) in July 2006, Linsmeier was reappointed to a second term in 2011. From 1999 to 2006, he was a professor and chair of the Department of Accounting and Information Systems at Michigan State University. In addition to being recognized as an award-winning teacher and researcher, Linsmeier is a prominent scholar in the area of accounting for financial instruments, derivatives, and risk management. His research has explored the role of accounting information in securities markets, including the usefulness to investors of fair value and market risk management disclosures, and the economic effects of accounting standards.

“I am excited to be joining the faculty of the Wisconsin School of Business at the University of Wisconsin– Madison in the fall of 2016,” says Linsmeier, an alumnus of the School. “I look forward to learning together with my outstanding colleagues in the accounting department and using my experiences in the standard-setting arena to bring context to my research and teaching.”

François Ortalo-Magné, Albert O. Nicholas Dean of the Wisconsin School of Business adds, “Tom Linsmeier is a leading scholar in the field of accounting for financial instruments, risk management, and hedging, and his research has direct implications for standard setting. With 10 years of experience as a member of the FASB, Tom is the perfect scholar to help us redefine the partnership between public research universities and the business community. And best of all, Tom is a Badger! We are thrilled to welcome him back home.”

Linsmeier received his Ph.D. and MBA from the University of Wisconsin–Madison and his Bachelor of Business Administration from the University of Wisconsin-Milwaukee. From 1994 to 1997, he served as academic fellow and special consultant to the Office of the Chief Accountant at the U.S. Securities and Exchange Commission (SEC), where he was responsible for developing financial reporting disclosure rules related to the market risk inherent in derivatives and other financial instruments. He also served as chairman of the Financial Accounting Standards Committee and president of the Financial Accounting and Reporting Section of the American Accounting Association. Linsmeier is a certified public accountant.

16

ACCOUNTING AND INFORMATION SYSTEMS | YEAR IN REVIEW

WISCONSIN SCHOOL OF BUSINESS | TOGETHER FORWARD

17

FACULTY RECOGNITION Professor R.D. Nair Named to WEDC Board Governor Scott Walker appointed R.D. Nair, professor of accounting and information systems at the Wisconsin School of Business, to the board of directors of the Wisconsin Economic Development Corporation (WEDC), effective July 1, 2016. At the board meeting held at the University of Wisconsin-Stevens Point, Nair was also named chair of the Audit Committee, of which he had been a member since 2014.

R.D. is a CPA and has been on the faculty of the Wisconsin School of Business since 1978, where he teaches primarily at the graduate level in the Wisconsin Executive MBA Program and the master of accountancy program, for which he serves as faculty director. R.D. was the executive director of the Wisconsin School of Business’s Center for International Business Education and Research from 1998 to 2004, where he was responsible for obtaining $2.5 million in federal funding. He also has served as chair of the Department of Accounting and Information Systems, senior associate dean, and interim dean at the Wisconsin School of Business.

“I’m grateful to Governor Walker for the appointment,” says R.D. “I look forward to the opportunity to serve on the WEDC Board and to help the agency fulfill its mission of creating opportunities for Wisconsin businesses and communities.”

Rob Misey Rob Misey, lecturer in the advanced tax curriculum, hosts a continuing legal education (CLE) program “Legal Ethics as Shown on TV and in the Movies.” The program was honored as the most outstanding CLE program at the Montreal fall meeting of the American Bar Association Section of International Law. Additionally, the twelfth edition of his book, Federal Taxation: Practice and Procedure has recently been published by CCH.

Tom Linsmeier Tom Linsmeier received the Lifetime Service Award from the Financial Accounting and Reporting Section of the American Accounting Association.

Karla Johnstone Karla Johnstone was awarded the University of Wisconsin–Madison, Wisconsin School of Business Erwin A. Gaumnitz Distinguished Research Award, the WSB’s top research award, in May of 2016.

Karla Johnstone was nominated for the Wade and Bev Fetzer Fellowship for Study in China.

During the spring of 2016, Karla was a member of a UW–Madison delegation that traveled to China (Beijing, Shanghai, and Hong Kong). In addition to delegation activities, Professor Johnstone gave research workshops at Tsinghua University and the Chinese University of Hong Kong and visited culturally relevant sites in all three cities.

Professor Emeritus Larry Rittenberg Professor Emeritus Larry Rittenberg was recognized as 2016 outstanding contributor for the article, “Internal Audit in the Crosshairs,” published in the June 2015 issue of Internal Auditor. The article has been cited for its outstanding quality, clear presentation of ideas, practicality, and relevance to the continuing practice of internal auditing.

Emily Griffith A Bright Side to Client Accountability: Accountability to the Client Enhances the Quality and Independence of Auditor Judgment when Accuracy Goals Are Primed by Emily Griffith, University of Wisconsin–Madison; Kathryn Kadous, Emory University; and Donald Young, The Georgia Institute of Technology was one of four proposals selected for the Center for Audit Quality and the auditing section of the AAA Access to Audit Personnel award.

18

ACCOUNTING AND INFORMATION SYSTEMS | YEAR IN REVIEW

Russell Epp Russell Epp was recognized during the May 2016 annual Wisconsin School of Business awards ceremony, receiving the Mabel W. Chipman Outstanding Academic Staff Teaching Award.

WISCONSIN SCHOOL OF BUSINESS | TOGETHER FORWARD

19

FACULTY RECOGNITION Professor R.D. Nair Named to WEDC Board Governor Scott Walker appointed R.D. Nair, professor of accounting and information systems at the Wisconsin School of Business, to the board of directors of the Wisconsin Economic Development Corporation (WEDC), effective July 1, 2016. At the board meeting held at the University of Wisconsin-Stevens Point, Nair was also named chair of the Audit Committee, of which he had been a member since 2014.

R.D. is a CPA and has been on the faculty of the Wisconsin School of Business since 1978, where he teaches primarily at the graduate level in the Wisconsin Executive MBA Program and the master of accountancy program, for which he serves as faculty director. R.D. was the executive director of the Wisconsin School of Business’s Center for International Business Education and Research from 1998 to 2004, where he was responsible for obtaining $2.5 million in federal funding. He also has served as chair of the Department of Accounting and Information Systems, senior associate dean, and interim dean at the Wisconsin School of Business.

“I’m grateful to Governor Walker for the appointment,” says R.D. “I look forward to the opportunity to serve on the WEDC Board and to help the agency fulfill its mission of creating opportunities for Wisconsin businesses and communities.”

Rob Misey Rob Misey, lecturer in the advanced tax curriculum, hosts a continuing legal education (CLE) program “Legal Ethics as Shown on TV and in the Movies.” The program was honored as the most outstanding CLE program at the Montreal fall meeting of the American Bar Association Section of International Law. Additionally, the twelfth edition of his book, Federal Taxation: Practice and Procedure has recently been published by CCH.

Tom Linsmeier Tom Linsmeier received the Lifetime Service Award from the Financial Accounting and Reporting Section of the American Accounting Association.

Karla Johnstone Karla Johnstone was awarded the University of Wisconsin–Madison, Wisconsin School of Business Erwin A. Gaumnitz Distinguished Research Award, the WSB’s top research award, in May of 2016.

Karla Johnstone was nominated for the Wade and Bev Fetzer Fellowship for Study in China.

During the spring of 2016, Karla was a member of a UW–Madison delegation that traveled to China (Beijing, Shanghai, and Hong Kong). In addition to delegation activities, Professor Johnstone gave research workshops at Tsinghua University and the Chinese University of Hong Kong and visited culturally relevant sites in all three cities.

Professor Emeritus Larry Rittenberg Professor Emeritus Larry Rittenberg was recognized as 2016 outstanding contributor for the article, “Internal Audit in the Crosshairs,” published in the June 2015 issue of Internal Auditor. The article has been cited for its outstanding quality, clear presentation of ideas, practicality, and relevance to the continuing practice of internal auditing.

Emily Griffith A Bright Side to Client Accountability: Accountability to the Client Enhances the Quality and Independence of Auditor Judgment when Accuracy Goals Are Primed by Emily Griffith, University of Wisconsin–Madison; Kathryn Kadous, Emory University; and Donald Young, The Georgia Institute of Technology was one of four proposals selected for the Center for Audit Quality and the auditing section of the AAA Access to Audit Personnel award.

18

ACCOUNTING AND INFORMATION SYSTEMS | YEAR IN REVIEW

Russell Epp Russell Epp was recognized during the May 2016 annual Wisconsin School of Business awards ceremony, receiving the Mabel W. Chipman Outstanding Academic Staff Teaching Award.

WISCONSIN SCHOOL OF BUSINESS | TOGETHER FORWARD

19

RESEARCH GRANTS, PUBLICATIONS, AND PRESENTATIONS Karla Johnstone received the Foundation for Auditing Research, Amsterdam, Research Grant for “Professional Skepticism Profiles, Effects on Audit Processes and Outcomes, and the Moderating Role of Audit Firm Culture.” October 2016– September 2019.

J.L. Gissel and K.M. Johnstone. “Information sharing during auditors’ fraud brainstorming: Effects of psychological safety and auditor knowledge.” Auditing: A Journal of Practice & Theory. (Forthcoming, 2017) S.A. Dennis and K.M. Johnstone. “Contemporary fraud brainstorming practices: Evidence from the field.” Accounting Horizons. (Forthcoming, 2016) S. Kim, W. Green, and K.M. Johnstone. “Multi-disciplinary teams and biased evidence processing: Implications from the greenhouse gas emissions assurance setting.” Auditing: A journal of Practice & Theory. (Forthcoming, 2016)

Along with colleagues Dan Lynch and Fabio Gaertner, Stacie Laplante was awarded a 2016-17 WARF grant from the University of Wisconsin for “Determinants and Consequences of the Location Decision for Intellectual Property: Evidence from Third Party Licensing Agreements.” In April, Stacie served as a faculty expert at the University of San Diego’s fourth Annual Transfer Pricing Symposium. She also discussed “Taxes, Investors, and Managers: Exploring the Taxation of Foreign Investors in U.S. REITS” by Margot Howard, Kathryn Pancak, and Doug Shackelford at the Journal of the American Tax Association annual meeting in Orlando.

Dereck Barr-Pulliam received a WARF Grant related to a study designed to fill a knowledge gap in the current auditing literature related to auditors’ use of specialists when they evaluate reported values of fair value measurements (FVMs) in the financial statements. While current research focuses on auditors’ ex post integration of information provided by specialists into their audit documentation and assessments of FVMs, this study takes an ex ante approach whereby the researchers delve into the “black box” of FVMs. Dereck Barr-Pulliam received the IAASB/IAAER/ICAS Research Grant. The International Association for Accounting Education and Research (IAAER) and The Institute of Chartered Accountants of Scotland (ICAS) issued a call for research proposals under the Informing the IAASB Standard-Setting Process program. The program supports research directed at informing the International Auditing and Assurance Standards Board’s (IAASB) decision process in relation to future topics to be addressed. Ours was one of two research teams to be awarded £20,000 under this program. More than 20 proposals from around the world were submitted. This study will complement the study funded by the WARF Grant by also surveying valuation specialists around the globe. The grant also comes with in-kind support that will assist us in gaining access to valuation professionals at accounting firms annually inspected by the PCAOB across the globe.

Dereck Barr Pulliam was invited to present a paper at the 2016 International Symposium on Auditing Research (Singapore) entitled “The Effect of Auditor Expertise on Fair Value-Related Financial Reporting Quality” which is co-authored

by Stephani Mason (DePaul University) and Helen Brown-Liburd (Ph.D. ’03) (Rutgers University). The paper examines the impact of auditor expertise on fair value-related financial reporting quality during the global financial crisis of 2008. The authors develop a measure of fair value specialization and use two measures of financial reporting quality—firm use of a one-time election to reclassify financial assets to avoid significant losses and discretionary accruals.

Emily E. Griffith, Kathryn Kadous, and Donald Young “How Insights from the “New” JDM Research Can Improve Auditor Judgment: Fundamental Research Questions and Methodological Advice.” AUDITING: A Journal of Practice & Theory: May 2016, Vol. 35, No. 2, pp. 1-22.

Kubick, Thomas R.; Lynch, Dan; Mayberry, Michael A.; and Omer, Thomas C. “The Effects of Regulatory Scrutiny on Tax Avoidance: An Examination of SEC Comment Letters.” The Accounting Review. (Forthcoming) Dan Lynch, with co-authors Miles Romney, Bridget Stomberg, and Daniel Wangerin (Ph.D. ’11), was invited to present “Trade-Offs between Tax and Financial Reporting Benefits: Evidence from Taxable Acquisitions” at the 2016 KPMG University of North Carolina Tax Symposium.

20

ACCOUNTING AND INFORMATION SYSTEMS | YEAR IN REVIEW

Thomas J. Linsmeier. “Revised Model for Presentation in the Statement(s) of Financial Performance: Potential Implications for Measurement in the Conceptual Framework.” Accounting Horizons. (Forthcoming)

WISCONSIN SCHOOL OF BUSINESS | TOGETHER FORWARD

21

RESEARCH GRANTS, PUBLICATIONS, AND PRESENTATIONS Karla Johnstone received the Foundation for Auditing Research, Amsterdam, Research Grant for “Professional Skepticism Profiles, Effects on Audit Processes and Outcomes, and the Moderating Role of Audit Firm Culture.” October 2016– September 2019.

J.L. Gissel and K.M. Johnstone. “Information sharing during auditors’ fraud brainstorming: Effects of psychological safety and auditor knowledge.” Auditing: A Journal of Practice & Theory. (Forthcoming, 2017) S.A. Dennis and K.M. Johnstone. “Contemporary fraud brainstorming practices: Evidence from the field.” Accounting Horizons. (Forthcoming, 2016) S. Kim, W. Green, and K.M. Johnstone. “Multi-disciplinary teams and biased evidence processing: Implications from the greenhouse gas emissions assurance setting.” Auditing: A journal of Practice & Theory. (Forthcoming, 2016)

Along with colleagues Dan Lynch and Fabio Gaertner, Stacie Laplante was awarded a 2016-17 WARF grant from the University of Wisconsin for “Determinants and Consequences of the Location Decision for Intellectual Property: Evidence from Third Party Licensing Agreements.” In April, Stacie served as a faculty expert at the University of San Diego’s fourth Annual Transfer Pricing Symposium. She also discussed “Taxes, Investors, and Managers: Exploring the Taxation of Foreign Investors in U.S. REITS” by Margot Howard, Kathryn Pancak, and Doug Shackelford at the Journal of the American Tax Association annual meeting in Orlando.

Dereck Barr-Pulliam received a WARF Grant related to a study designed to fill a knowledge gap in the current auditing literature related to auditors’ use of specialists when they evaluate reported values of fair value measurements (FVMs) in the financial statements. While current research focuses on auditors’ ex post integration of information provided by specialists into their audit documentation and assessments of FVMs, this study takes an ex ante approach whereby the researchers delve into the “black box” of FVMs. Dereck Barr-Pulliam received the IAASB/IAAER/ICAS Research Grant. The International Association for Accounting Education and Research (IAAER) and The Institute of Chartered Accountants of Scotland (ICAS) issued a call for research proposals under the Informing the IAASB Standard-Setting Process program. The program supports research directed at informing the International Auditing and Assurance Standards Board’s (IAASB) decision process in relation to future topics to be addressed. Ours was one of two research teams to be awarded £20,000 under this program. More than 20 proposals from around the world were submitted. This study will complement the study funded by the WARF Grant by also surveying valuation specialists around the globe. The grant also comes with in-kind support that will assist us in gaining access to valuation professionals at accounting firms annually inspected by the PCAOB across the globe.

Dereck Barr Pulliam was invited to present a paper at the 2016 International Symposium on Auditing Research (Singapore) entitled “The Effect of Auditor Expertise on Fair Value-Related Financial Reporting Quality” which is co-authored

by Stephani Mason (DePaul University) and Helen Brown-Liburd (Ph.D. ’03) (Rutgers University). The paper examines the impact of auditor expertise on fair value-related financial reporting quality during the global financial crisis of 2008. The authors develop a measure of fair value specialization and use two measures of financial reporting quality—firm use of a one-time election to reclassify financial assets to avoid significant losses and discretionary accruals.

Emily E. Griffith, Kathryn Kadous, and Donald Young “How Insights from the “New” JDM Research Can Improve Auditor Judgment: Fundamental Research Questions and Methodological Advice.” AUDITING: A Journal of Practice & Theory: May 2016, Vol. 35, No. 2, pp. 1-22.

Kubick, Thomas R.; Lynch, Dan; Mayberry, Michael A.; and Omer, Thomas C. “The Effects of Regulatory Scrutiny on Tax Avoidance: An Examination of SEC Comment Letters.” The Accounting Review. (Forthcoming) Dan Lynch, with co-authors Miles Romney, Bridget Stomberg, and Daniel Wangerin (Ph.D. ’11), was invited to present “Trade-Offs between Tax and Financial Reporting Benefits: Evidence from Taxable Acquisitions” at the 2016 KPMG University of North Carolina Tax Symposium.

20

ACCOUNTING AND INFORMATION SYSTEMS | YEAR IN REVIEW

Thomas J. Linsmeier. “Revised Model for Presentation in the Statement(s) of Financial Performance: Potential Implications for Measurement in the Conceptual Framework.” Accounting Horizons. (Forthcoming)

WISCONSIN SCHOOL OF BUSINESS | TOGETHER FORWARD

21

ADVISORY BOARD

Department of Accounting and Information Systems Advisory Board Members

Isabel Bartos* Senior Internal Auditor Douglas Dynamics, Inc.

Neil Lonergan* Managing Director Grant Thornton LLP

Steven Carter* Vice President and Corporate Controller SC Johnson & Son, Inc

Tim Mattke* Executive Vice President and CFO MGIC Investment Corporation

Robert J. Cottingham* Partner Wipfli LLP

Derek Matzke* Assurance Partner BDO

Dianne Dubois* Managing Partner, Northern California Hardesty, LLC

Amy Mutziger* Assistant Corporate Controller Johnson Controls

Wayne Ehlert* Partner and Regional Risk Leader Baker Tilly Virchow Krause, LLP

Jason Schultz Director Northwestern Mutual Investment Management Company

Katherine Feucht* AERS Partner Deloitte David Gay* Partner EY

Todd Watchmaker* Partner KPMG LLP Ray Wilson Partner PwC

* Alumni

22

ACCOUNTING AND INFORMATION SYSTEMS | YEAR IN REVIEW

ADVISORY BOARD

Department of Accounting and Information Systems Advisory Board Members

Isabel Bartos* Senior Internal Auditor Douglas Dynamics, Inc.

Neil Lonergan* Managing Director Grant Thornton LLP

Steven Carter* Vice President and Corporate Controller SC Johnson & Son, Inc

Tim Mattke* Executive Vice President and CFO MGIC Investment Corporation

Robert J. Cottingham* Partner Wipfli LLP

Derek Matzke* Assurance Partner BDO

Dianne Dubois* Managing Partner, Northern California Hardesty, LLC

Amy Mutziger* Assistant Corporate Controller Johnson Controls

Wayne Ehlert* Partner and Regional Risk Leader Baker Tilly Virchow Krause, LLP

Jason Schultz Director Northwestern Mutual Investment Management Company

Katherine Feucht* AERS Partner Deloitte David Gay* Partner EY

Todd Watchmaker* Partner KPMG LLP Ray Wilson Partner PwC

* Alumni

22

ACCOUNTING AND INFORMATION SYSTEMS | YEAR IN REVIEW

DEPARTMENT OF

ACCOUNTING & INFORMATION SYSTEMS

STAY IN TOUCH TERRY WARFIELD

KRISTEN FUHREMANN

Department Chair PwC Professor in Accounting terry.warfield@wisc.edu 608-262-1025

Director of Professional Programs in Accounting kristen.fuhremann@wisc.edu 608-262-0316