Fall 2003 Magazine (PDF) - Department of Accounting & Information ...

Department of Accountingand Information SystemsOutstanding Faculty at the Heartof an Outstanding ProgramIN THIS ISSUEIMPROVING ON IMPACT PROGRAMSBuilding on the M.S.Adding IS Ph.D. ProgramAWARD WINNING FACULTYOUTSTANDING & INVOLVED STUDENTSPwC xTaxD&T Case CompetitionEarning MACPA ScholarshipsDONOR RECOGNITION

Amazing People, Amazing SuccessesIt is with extreme pride that I send you my greetings this year as chairperson of the Departmentof Accounting and Information Systems at Michigan State University. Everywhere I turn, I findaward winning, high achieving individuals! In this newsletter, we provide you with a glimpseof recent successes of our students, faculty, and alumni.Department Chairperson:Tom LinsmeierNewsletter Editors:Dewey WardLynne ZelenskiDepartment Office:N270 Business College ComplexEast Lansing, MI 48824(517) 355-7486www.bus.msu.edu/accDuring this year we have launched a new program (Ph.D. in information systems) and madesignificant strides in updating two other programs (M.S. and Ph.D. programs in accounting).Thus, it is with no surprise that we find a growing number of students enrolling in ourundergraduate, masters and doctoral programs. And these students are making us very proudby, amongst other things, performing well in national case competitions and by winningnational, state and university scholarship competitions.One of the most pleasant discoveries I made during my first eighteen months as DepartmentChairperson is to gain a complete understanding of what a truly outstanding faculty we have.The quality of teaching, research and service provided each year by Department of Accountingand Information Systems faculty is utterly amazing! And to prove to you that this statement isnot just puffery, we provide evidence in this newsletter of some recent facultyaccomplishments. In this past year alone, over two-thirds of our department faculty receivedspecial recognition for their scholarly activities.We also are extremely proud of our alumni. Each year we discover how very well you are doingas accounting and information systems professionals by hearing about the significant positiveimpact you are having on the business profession. The quality of these achievements isillustrated best this year by five of our alumni who received special awards for outstandinglifetime achievements.Finally, we are extremely gratified by the generosity of our alumni and friends. Your fundraising efforts are critical to our successes, providing us with the resources necessary to attractand retain the brightest students and faculty. Due to recent significant cutbacks in statefunding, these resources increasingly make the difference in our ability to educate our studentswell and facilitate many of the wonderful successes described in this newsletter. Thank you verymuch for your support!For each of these reasons, I am proud to be a Spartan. GO STATE!Regards,Tom Linsmeier

Award Winning Faculty Making an ImpactThe heart, the core, the creation and continuity of every highly ranked academic program in the country rests withthe strength of its faculty. Michigan State’s award winning Accounting and Information Systems faculty illustratesthis point perfectly. Accolades collected by our faculty over the year include the following:Bill McCarthy Harrison McKnight Cheri Speier Matt Anderson Sue Haka Joan Luft Brian PentlandBill McCarthy: received the Innovation in Accounting EducationAward from the American Accounting Association (AAA) for TheREA Approach to Teaching Accounting Information Systemsdeveloped at Michigan State, but now used at over 100universities in the USA and overseas. The award, one of fivemajor national awards given by the AAA each year, is intended toencourage innovation and demonstrated improvement inaccounting education, recognizing significant programmaticchanges or a significant activity, concept, or set of materials.Harrison McKnight: received prestigious university recognition bybeing named a 2003/2004 Lilly Teaching Fellow. The LillyFellowship program is an honor recognizing the combinedteaching and research skills of faculty. Harrison’s mentor, a partof the project designed to enhance the Fellow’s teaching skills andexplore new teaching methods, is PricewaterhouseCoopersAuditing Professor Al Arens.Cheri Speier: has worked for more than 10 years with a team ofcross-disciplinary faculty experts to develop a contentmanagement and assessment system that assists instructors in allaspects of teaching courses. The team and the resultingLearningOnline Network with Computer-Assisted PersonalizedApproach (LON-CAPA) were recently awarded the veryprestigious 2003 21st Century Achievement Award by theComputerworld Honors Program.Backed by grants from the Sloan Foundation, the MellonFoundation and the National Science Foundation, the LON-CAPA project has become a distributed Learning ContentManagement and Assessment System serving a total of 12,000students per semester at MSU and well over 23,000 studentssystem-wide.Matt Anderson: received the award for Sustained Effort TowardExcellence in Diversity at the All-University Excellence inDiversity 2003 Recognition and Awards Convocation. This selectaward is given to individuals whose activities advance diversity atMSU and whose efforts foster a culture and environment wherediversity is valued and pluralism is achieved. With his assistanceand influence, the Broad School’s doctoral program in accountinghas recruited more women and minority candidates than anyother program in the college or across the Big Ten.Sue Haka: received the KPMG Gender Issues in AccountingMentoring Award from the American Accounting Association. Inwinning the award, Sue is recognized for demonstratingsignificant mentoring that has affected the lives of women in theaccounting profession. The success of the mentoring is measuredby the levels of achievement of the women mentored. Therecipient must also show longevity in mentoring by documentingsuccessful mentoring activities for at least ten years.Joan Luft: is part of a cross-college team that has received a KPMGFoundation Business Measurement Project grant for roughly$100,000. The project is entitled “Linking Customers, Strategy,and Activities: an Empirical Investigation of the Metrics AlignmentProcess.” The Business Measurement Research Program seeks toadvance knowledge about business measurement and improveinformation for decision making by managers and outsidestakeholders in the 21st century business environment.Brian Pentland: was awarded a one-year, $146,000 grant from theNational Science Foundation Program on Scalable EnterpriseSystems. Brian was co-principal investigator with Moon JungChung and Patrick Kwon, of the MSU College of Engineering.The goal of this project is to develop XML-based tools to supportthe integration of design and manufacturing processes, especiallyin prototype manufacturing.Fall 2003 • Department of Accounting and Information Systems Newsletter 1

Award Winning Faculty (continued)Ranjani Krishnan Kathy Petroni Lynne Zelenski Maryilyn JohnsonTom Linsmeier and Ed Outslay: were asked to testify beforeCongress on corporate accounting scandals. Linsmeier providedcounsel to the House of Representatives on whether FASBstandards were the cause of recent accounting problems atFreddie Mac. He testified before the House Energy andCommerce Subcommittee hearing entitled “FASB DerivativeAccounting Standards”. Tom’s expertise on these issues led tointerviews with Business Week, Wall Street Journal, New YorkTimes, Washington Post, Dow Jones, and TheStreet.com.Outslay testified before the U.S. Senate, commenting on TheJoint Committee of Taxation’s Special Report on Enron. Histestimony regarding the collapse of Enron and other major U.S.companies created a renewed interest in whether there should bemore consistency between measures of book and taxable incomeand whether current accounting rules adequately disclose apublicly traded corporation’s tax status. Ed’s expertise on theseissues led also to interviews with CFO Magazine, the Wall StreetJournal, Dow Jones, and the Washington Post and presentationsbefore the U.S. Treasury.Bill McCarthy: has been working since 2001 with a number of e-commerce standards groups who are interested in adapting hisresearch models to electronic collaboration frameworks. Thisstandards work has included (1) the ebXML (electronic businessextensible markup language) project of OASIS and the UnitedNations, (2) the Business Process Catalog Group, the BusinessCollaboration Patterns and Monitored Commitments Group,and the Business Object Type Library Group of the UnitedNations, (3) the Universal Business Agreement and Contract(UBAC) Project of the European Community and the UnitedNations, (4) the Open-edi Project at the American NationalStandards Institute (ANSI) and the International StandardsOrganization (ISO), and the Semantic Integration Project at theOpen Applications Group (OAG).Joe Anthony, Severin Grabski, and doctoral student Wooseok Choi:received the 2002 European Applied Business ResearchConference’s Best Manuscript Award for their paper, “MarketReaction to E-Commerce Impairments and Website Outages”. Joepresented the paper at the conference in Rothenberg, Germany.Publishing Faculty: For the period ending June, 2002, theDepartment of Accounting and Information Systems facultyranked second in the Big Ten in terms of co-authoredpublications in the top five academic accounting journals.Assisting the Research/Publishing Process: The followingDepartment faculty are current (or served recently as) editors ofmajor journals:Sue Haka: Associate Editor of The International Journal ofAccounting, Past Editor of Behavioral Research in Accounting.Joan Luft: Past Associate Editor of The Accounting Review andEditor of Journal of Management Accounting Research.Mike Shields: Associate Editor of Accounting, Organizationsand Society, and Past Editor of Journal of ManagementAccounting Research.University and College AwardsRanjani Krishnan was named a University Teacher-Scholar awardwinner. These University-wide awards are made to faculty whoearly in their careers have earned the respect of students andcolleagues for their devotion to and skill in teaching. Selectioncriteria include the quality of instruction, contributions to theInstructional Program, promise as a scholar, and provision ofpublic service and outreach.Terence Pitre, doctoral student, was awarded a UniversityExcellence-in Teaching Citation. These awards are made tograduate teaching assistants who have distinguished themselvesby care given and skill shown in meeting their classroomresponsibilities.Kathy Petroni and Joan Luft were recognized at the fall Collegebanquet as 2003 recipients of two prestigious college-wide awards.Petroni was presented with the 2003 John D. and Dortha J.Withrow Teacher Scholar Award in recognition of her superlativeteaching and research record. A new Withrow award category wasinaugurated in 2003 with the presentation of the John D. andDortha J. Withrow Emerging Scholar award. Luft was one of twoin the College to receive this award and was recognized for“contributions in institutional and scholarly activities by an earlycareer faculty member”. In addition, first-year MBA studentschose Petroni as the 2003 Outstanding MBA Professor.Lynne Zelenski received The Richard J. Lewis Quality ofExcellence Award for her efforts on the “Accounting BackstagePass” student recruiting events this past two years. The Award isan annual recognition of the best quality improvement projects oractivities in the Broad School. It is given to individuals who “gobeyond all expectations in furthering the interests of the college.”2 Department of Accounting and Information Systems Newsletter • Fall 2003

New Faculty ColleagueDepartmental AwardsK. Ramesh received a $10,000 curriculum grant from PricewaterhouseCoopers todevelop a new course entitled, “Corporate Governance and Accounting Control”.This important new course is part of last year’s successful revision of the MS inAccounting curriculum.Marilyn Johnson received a $10,000 grant from PricewaterhouseCoopers to supporther research program relating to the ValueReporting revolution, a disclosure effortto fully inform stakeholders about corporate performance.Joan Luft received a $10,000 grant from PricewaterhouseCoopers to support herresearch program relating to cognitive properties of accounting measures, examiningdifferent measures of accounting informativeness depending upon differentpresentation models.Ranjani Krishnan received a $10,000 grant from PricewaterhouseCoopers to supporther research program exploring the effects of non-financial factors such as marketpower, competition, product-mix, and institutional structure on firm performanceand behavior.Ed Outslay was named a Deloitte / Michael Licata Teaching Fellow, which carries anannual stipend of $10,000. This five-year renewable award provides recognition of along history of outstanding teaching efforts for the Department.Department Teaching and Research Honors, 2002-03Brian Pentland received the Faculty Excellence in Research Award.Bill McCarthy received the Roland F. Salmonson Faculty Excellence in Teaching Award.Leadership Roles Making an Impact...New colleague K. Ramesh teachingthe new Corporate Governanceand Accounting Control course.Sue Haka: serves this year as Vice-President: Finance Elect of the AmericanAccounting Association and the next two years as Vice President: Finance.Tom Linsmeier: was immediate Past President of the American AccountingAssociation Financial Accounting and Reporting section for the year 2002-2003.Bill McCarthy: was named Vice-President of the American Accounting Association inAugust, 2001, serving through August, 2003.Mike Shields: served as President of the Management Accounting Section of theAmerican Accounting Association for the year of 2001-2002.The Department welcomes K.Ramesh, appointed this yearas Professor of Accountingand Information Systems.Ramesh obtained his Ph.D.from Michigan State in 1991and wears his green and whitewith great pride! He haspreviously served on the faculties of the business schools atNorthwestern University, the University of Rochester andPennsylvania State University. His research focusesprimarily on the role of accounting and non-accountinginformation in business valuation, the strategic aspects offinancial performance evaluation, and accountingdisclosures by financial institutions. Ramesh’s research hasbeen published in leading academic journals—Journal ofAccounting and Economics, Journal of Finance, and Journalof Accounting, Auditing and Finance. He was a member ofthe Editorial Board of the Accounting Review and currentlyserves as an associate editor of FMA Online.Ramesh has won many accolades for his teachingexcellence including the Michigan State UniversityExcellence-In-Teaching Citation Award, MBA AssociationCore Faculty Excellence in Teaching Award at PennsylvaniaState University, and recognized in the Business Week Guideto Best Business Schools as an outstanding faculty memberat the University of Rochester.Ramesh brings a unique blend of business and academicexperience to our faculty. Prior to returning to MSU, Rameshwas Vice President at two leading economic consultingfirms. During his consulting tenure, Ramesh has workedwith leading law firms, Big-4 audit firms, major corporationsand governmental agencies on various issues includingaccounting for complex transactions, financial reportingfraud, damages estimation in securities litigation, businessvaluation, and antitrust matters. His consulting work hascovered a number of industries including high technology,telecommunications, automobile, construction, energy,steel, shipping, retail, financial services, insurance, sportsfranchises and cooperatives.Given his academic research on financial reporting and hisconsulting background with cases involving financial fraudsand corporate governance issues, Ramesh is an excellent fitfor his first MSU assignment—developing and teaching anew state-of-the-art course on corporate governance andaccounting control for the MS Program.Fall 2003 • Department of Accounting and Information Systems Newsletter 3

Impact Program—Master of Science in AccountingDuring the past year the Department undertook a major effort to revise and improve the Master of Science inAccounting Program. The changes reflect the increased demand for better-qualified students by the profession,feedback from our External Advisory Board, benchmarking with other quality programs and deliberation by our faculty.Brief Description of ProgramThe new program is intended primarily for bright, highlymotivated accounting and finance undergraduate students whowant to complete a masters in accounting in one yearimmediately after their baccalaureate education.The curriculum underwent extensive review. Courses wererevised, new courses were added, and specialty options wererestructured to better meet the demands of the profession andstudents’ career interests. Students select from one of fourspecialty options depending on their career interests and plans.Each option includes 15 credits of required courses and 15elective credits. The options are:Financial Reporting and Assurance Services: For students whoplan to begin their careers in auditing with a CPA firm, as aninternal auditor, or in corporate accounting dealing withfinancial reporting issues.Information Systems: For students who plan to focus theircareers in computer technology and other information systems.Graduates with this option often work as consultants orcomputer audit specialists, with opportunities available inpublic accounting, industry, and government.Management Accounting: For students with a strong interest incorporation planning, control, and decision-making.Graduates with this option aspire to become controllers orchief financial officers of organizations.Taxation: For students who plan to focus their careers in taxation.Opportunities abound for graduates in this track with taxationdepartments in public accounting firms, corporate taxdepartments, the Internal Revenue Service, state and local taxauthorities, bank trust departments, and financial planning firms.Enrollment2000-01 2001-02 2002-03Applicants 114 208 219Enrolled 55 102 129New InitiativesExperienced Faculty Leadership: Al Arens brings 36 years ofacademic experience into his service responsibilities and leadershiprole for the MS Program in Accounting. He is the faculty memberresponsible for all aspects of the program, including• overseeing curriculum issues (chairs MSProgram Curriculum Committee)• developing and implementing strategy andpromotion ideas for the Program• supervising and providing guidance for threeprogram staff members introduced in followingparagraphs of this article• maintaining heavy involvement with recruiting, acceptance, andplacement issues• addressing and resolving ongoing student issues, problems, andconcernsCommunication Center: The Department has established aCommunication Center to be used by MS students with the goalof improving students’ written and oral communication skills.Jennifer Butler Ellis, who has a Ph.D. in Communication, is thefull time director of the Center and has two assistants who alsowork with students in fine-tuning their written and verbalcommunication. The faculty are committed to incorporatingwritten assignments and individual and group presentations intotheir classes in coordination with the Center. The response bystudents to date has been excellent and we are confident that ourgraduates will be more confident and effective communicators as aresult of these efforts.Director of Student Activities, Recruitment and Assessment: JamieMcClintock has been hired to coordinate student recruitmentactivities, assess student satisfaction, and help in the developmentof community among the MS students through professional andsocial activities. Already this fall Jamie has organized severalinformational and camaraderie building activities, including thedevelopment, marketing, and distribution of shirts monogrammedwith the Department and MS Program branding.MS program enrollment has increased significantly in the past twoyears and we are excited to have a large group of bright, energeticand dedicated students. We currently are at full capacity. Althoughpredominantly from Michigan, we have students from severaldifferent states and countries represented in our student body.4 Department of Accounting and Information Systems Newsletter • Fall 2003

Building On Our StrengthsMS Advising Center in Department:Connie Ross is responsible forprogram admissions, advising oncourse selections, and helpingstudents with any other needs theymay have throughout the program.Connie’s goal is to help students puttogether an academic plan that bestsuits their professional and personalinterests. Having personalized andindividualized advising availablewithin the Department providesadvantages not normally available toMasters students in other programs.Opportunity to complete the CPA exam before graduation: The Michigan CPArequirements enable students to take the exam after completing theirundergraduate degree. With the new computerized exam format, students cantake sections independently. The department has an arrangement withBeckerConviser to customize a review course that is timed appropriately tocomplement the MS coursework. Students can then take the appropriatesection of the CPA exam while the material is fresh in their mind. In this way,students have the option to take all sections of the CPA exam before graduationat a time that is in sync with their class work and the CPA review course.Short summer courses coordinated with CPA firm and industry internships: Toenable students to take only twelve credits per term and leave time for the CPAexam preparation during the regular academic year, the department is offeringintensive short summer courses that leave time for students to complete aneight-week summer internship. This way, students do not miss out on theopportunity to gain valuable professional work experience and earn income tohelp finance their education.Focus on Professional Responsibility: With the changes in the profession, thefaculty is concerned about graduates of the program understanding their ethicaland professional responsibilities. Professional responsibilities are incorporatedinto all courses. In addition, a new course, Corporate Governance andAccounting Control has been added. Topics in the new course include designperspectives of control environments, enterprise-wide risk assessment, controlactivities and monitoring.Above, from top:Jennifer Butler Ellis works with MS students Mike Patterson and Sarah Bakerin the new Communication Center.Jamie McClintock setting up an event with three MS Student Advisory Panelmembers: Laurie Gould, Alicia Benjamin, and Sara McKechnie.Connie Ross advising MS student Sara McKechnie.Feedback from alumni, recruiters, and friends of theDepartment continues to reinforce our image of ahigh quality Masters Program. However, we are neversatisfied. We continually seek to improve. Thefollowing are oft-mentioned key descriptors of ourposition of strength.National rankings: Both the undergraduate and graduateprograms in accounting are consistently ranked among the top10 public universities in the United States.Information Systems offerings: Having the InformationSystems faculty in the Department enables the IS faculty to designcourses relevant to students interested in a career in accounting.High admission standards: High admission standards meancompetent classmates that elevate the level of learning andperformance for everyone, and allow our faculty to teach at thehighest possible level.Large program; unique opportunities: MSU’s Master ofScience in Accounting program is the largest in the state, offeringa large number of different courses, specialization options andelectives. It also attracts many recruiters who are interested in thelarge number of qualified graduates this program produces.30-year tradition: Michigan State University has had asuccessful master’s program in accounting since the early1970s. With time and experience, the program has become astate-of-the-art operation.MBA courses available as electives: The Eli Broad GraduateSchool of Management MBA Program is among the highest rankedprograms in the nation. Selected courses in the MBA program areavailable to masters in accounting students.Large number of recruiters: Our national reputation andexcellent students have resulted in our designation as a “keyrecruiting university” by each of the top ten accounting firms inthe country. We are also a major source of hiring for many otherCPA firms, consulting firms and corporations.Superior placement facility: The Lear Corporation CareerServices Center is a state-of-the-art placement center thatattracts many diverse employers to hire program graduates.Excellent faculty: Full-time permanent faculty, who specialize inthe subject areas of the courses and tracks in which they teach,staff all courses taught in the Program. This faculty enjoys nationalreputations as teachers and researchers.Cost-effective: This program is among the least costly of allBig Ten university masters in accounting programs.Fall 2003 • Department of Accounting and Information Systems Newsletter 5

Scott Dawson Kay Li Edward Li Terrence PitreDoctoral Program Activities and AchievementsThe doctoral program continues tobuild strength as an outstandingprogram at MSU. This year’s notableachievements include:Two students graduating and acceptingAssistant Professor positions: Robin Postontook a position in management informationsystems at the University of Memphis, andElizabeth Connors accepted a position atNortheastern University.Three new students started the programthis Fall.Scott Dawson has a BS in accounting fromMarquette University and an MBA in financefrom the University of Maryland. He is a CPAand his work experience includes auditing forPricewaterhouseCoopers, Controller atManugistics, and Vice-President of Finance atNextlinx Corporation.Kay Li has a BA in English from BeijingForeign Language Institute and an MBA inaccounting and finance from the Universityof Utah. Her work experience includesauditing at China International TravelService (CITS), project manager at LGChemical, and portfolio manager at MonyGroup.Edward Li has a BS and MS in accountingfrom Tsinghua University (China) and anMS in agricultural economics from theUniversity of Illinois at Urbana-Champaign.The students currently in our program continue to be “award winning.” Thefollowing are examples of the successes they’ve achieved.Terence Pitre won the All-University MSU 2003 Excellence in Teaching Citation. Healso has received three fellowships: AICPA Minority Doctoral Fellowship; KPMG-Peat Marwick Foundation Doctoral Fellowship for African Americans, HispanicAmericans, and Native Americans in Accounting; and MSU Minority CompetitiveDoctoral Fellowship.Chang Joon Song won the Department’s doctoral-student research award, andHan Yi won the Department’s doctoral-student teaching award.Angela Andrews has received two fellowships: AICPA Minority Doctoral Fellowship;and KPMG-Peat Marwick Foundation Doctoral Fellowship for African Americans,Hispanic Americans, and Native Americans in Accounting.Christian Mastilak has earned the prestigious and competitive All-University MSUDistinguished University Fellowship.Our students also continue to represent us well at academic events and meetingsaround the country.Min Shen was selected to attend the American Accounting Association’s DoctoralConsortium sponsored by the Deloitte & Touche Foundation. Min is a fifth-yearstudent whose teaching and research interests are in financial accounting. Herdissertation topic is in the area of earnings management.Chang Joon Song was selected to attend the American Accounting AssociationFinancial Accounting and Reporting Section’s first doctoral consortium.Wooseok Choi presented a solo-authored paper at the American Accounting Association’s2003 Annual Meeting. The title of his paper is “Debt Financing and The Value Relevanceof The Balance Sheet and Income Statement: The Role of Bank Dependence”.The program continues to provide our students the opportunity for interaction withhigh profile researchers around the country with regular weekly workshops and thePricewaterhouseCoopers 2003 Summer Research Workshop. Presenters in the weeklyworkshops come from such prestigious institutions as the University of Arizona,Georgetown University, Indiana University, Northwestern University, PennsylvaniaState University, the University of Pittsburgh, Stanford University, and the Universityof Texas. This years’ PwC Summer Workshop was held in August with Professor HarryEvans of the University of Pittsburgh as the invited speaker. His topic was EmpiricallyTesting Economic Models. Harry’s presentations provided an overview of, perspectiveon, and issues related to, strategies for conducting empirical tests of economic theoriesrelated to auditing, managerial accounting, and taxation.For more information about the doctoral program, please visit our website athttp://www.bus.msu.edu/acc/phd/phddesc.html.6 Department of Accounting and Information Systems Newsletter • Fall 2003

Systems Faculty Help Create New Doctoral Program in Information TechnologyThis fall the Broad School will welcome its firstfour doctoral candidates into a new degreeprogram in Information Technology Management.All the Systems faculty of the Department ofAccounting and Information Systems are part ofthis new interdisciplinary Information TechnologyManagement Program that leverages the expertiseof faculty from many areas of the college for thebenefit of the new major. The Program willparticularly foster cross-disciplinary research fromthe areas of supply chain management, strategy,organization behavior, organization design, andaccounting.Eli Broad Professor Vallabh Sambamurthy says theprogram “will foster cutting-edge research on ITmanagement through collaborative partnershipswith senior IT and business executives in firms,high caliber doctoral students, and focused researchprograms.” The four new doctoral students havethe kind of credentials that will make themsuccessful researchers in this discipline: GMATs inthe 760 range, work experience and field studiesthat demonstrate an understanding of technologyand its impacts, and a commitment to the BroadSchool vision of an organizational approach toinformation technology.Four new students started the program this Fall.Derek Hillison has a Bachelors and an MBA in Information Systems from TheFlorida State University. He has worked as lead programmer and productdeveloper for small business, developing electronic forms solutions andproducing integration packages for laser-printing pre-filled forms frommainframe databases. His research interests are on factors that influence howto effectively adopt and utilize information technologies, particularly smallbusinesses.Brandis Phillips is a graduate of Michigan State University with a B.A. inAccounting and holds an M.B.A. with an emphasis in Finance from theUniversity of Iowa. He is a certified public accountant and has previouslyworked at Verizon Wireless and as a consultant for Andersen Consulting andPricewaterhouseCoopers. He is a member of the National Association of BlackAccountants and a lifetime member of the National Black MBA Association.Pankaj Setia has an MBA in Information Management from ManagementDevelopment Institute (MDI) and Bachelor of Science in Physics fromUniversity of Delhi in India. He has worked for Tata Teleservices Ltd NewDelhi, India, Standard Chartered Bank, New Delhi, and as a BusinessTechnology Consultant with Project-i Solutions. He is interested inresearching the individual and organizational adoption and implementation ofinformation technology.Kris Weick has a BS in Accounting from Guilford College, North Carolina.Kris’ sixteen years of industry experience were focused mainly on theintersection of people and information technology. A significant portion ofthat experience was for vertically integrated paper companies includingWeyerhaeuser, Georgia-Pacific and Rock-Tenn Company. His researchinterests include technology adoption and assimilation, organizationalcognition, and technology strategy.Derek Hillison Brandis Phillips Pankaj Setia Kris WeickFall 2003 • Department of Accounting and Information Systems Newsletter 7

Recognizing the major contributors to the Department of Accounting and Information Systemsand the Eli Broad College of BusinessContributors of $5,000 or more, July 1, 2002 — June 30, 2003*Darryl F. &Sharon M. AllenBrian M. &Laura R. AmbroseAlvin A. &Irene B. ArensCarol J. AshleyWilliam R. &Carol K. BrinkEli H. & Edyth L. BroadCraig D. &Vicki L. BrownKeith R. &Margaret A. BurnsG. Michael &Janet R. CroochWilliam J. &SueAnn CrowleyScott E. &Patricia J. EstonIrwin R. &Arlene EttingerJohn C. &Marlys A. GrayEnoch C. &Nancy J. Jen(In Memory of)Mike LicataMark F. &Vicki L. MatthewsRichard A. &Barbara J. McWhirterDonald E. &Martha L. NeebesRichard A. &Debra B. O’ConnorRichard D. &Deborah L. PatersonMatthew J. &Theresa RizikJohn A. &Linda F. RoszakGlenn S. &Susan E. SchaferRobert S. &Cynthia J. SiegelNot pictured:Marjorie Sells CarterDonna L. CoallierJames M. & Kathleen M. CorneliusErnest L. & Elizabeth NicolayThomas P. & Linda S. NotarainniRoger M. & Kim L. PitzerHelene A. & Michael PredhommeDonald J. PuglisiRaymond S. & Barbara M. SchmidgallMillard E. Smith &Ann MorgersonRaymond G. &Lois B. SpinolaJeffrey K. &Christine Willemain8 Department of Accounting and Information Systems Newsletter • Fall 2003

Recognizing the major contributors to the Department of Accounting and Information SystemsContributors of $2,500 to 4,999, July 1, 2002 — June 30, 2003*Contributing companiesAltria Group, Inc.Andersen FoundationPaul M. &Brenda K. BalasElba F. &Judith M. BaskinJames J. Jr. &Sharon BonsallPaul J. &Linda A. BrazdaBaxter International FoundationBDO Seidman LLPBeckerConviserBlack & Decker CorporationComericaCrowe Chizek & Company LLPDaimlerChrysler Corporation FundJeffrey S. &Lynda W. ClarkJulie A. ErhardtRichard J. &M. Jacquelyn FinebergMichael L. &Lisa A. HerrintonDeloitte & Touche LLPDelphi CorporationEli Lilly and Company FoundationErnst & Young LLPFord Motor Company FundGeneral Mills FoundationGeneral Motors CorporationHoward T. &Sherry T. HooverRobert G. &Carol A. MayScot A. &Elisabeth W. MorrisonRandall L. &Margaret A. TavierneGoldman, Sachs FundGrantham, Mayo, VanOtterloo & Co., LLCGTEKPMG LLPMicrosoft CorporationMTS Systems CorporationNorthwestern Mutual Life Insurance CompanyKenneth A. &Ann K. ThelenNancy J. &Stephen P. VellaJames H. &Susan L. WallPacific Mutual Life Insurance CompanyPlante & Moran, LLPNot pictured:Martin Louis ClemensRonald P. & Eileen M. EcksteinDaniel C. MaherMarc T. McCurryPricewaterhouseCoopers LLPShell Oil Company FoundationSPX FoundationFall 2003 • Department of Accounting and Information Systems Newsletter 9

Recognizing the major contributors to the Department of Accounting and Information SystemsContributors of $1,000 to $2,499, July 1, 2002 — June 30, 2003*Carolyn H. &William B. AndrewsDouglas R. &Janice K. BajorKathryn M. &Thomas H. BeneshGeorge E. BorelShaun G. &Kathy BuckleyWilliam J. &Toni Kay BufeGary W. BurnsDaniel J. &Bette H. ChurchThomas D. &Nancy T. ChurchGerald W. &Coralie K. CieslinskiJames M. DelaneyWilliam A. &Jane R. DittmoreCarmine &Wendy L. GuerroEric J. HespenheideNot pictured:Mark E. &Marcia A. HooperSandra G. & the lateRobert J. LindbergPeter L. Jensen &Mary A. McGovernThomas J. Linsmeier& Frances J. MalloyMatthew L. McCollHerbert W. &Mary A. McLachlanJeffrey F. &Nancy E. MengelRandall S. AltmanJanet G. AsheMilan E. & Karen M. BelansTroy R. BiddixJoseph R. CarabellMichael A. & Susan A. CarlinCharles R. CiuniPeter C. DahlbergKendall B. FoxWolfgang E. GieseckeSusan GillChristopher T. & Carie J. HattoMark C. HunterMichael J. & Marilyn KnilansMark G. & Lori L. L’EsperanceStephen K. & Sara L. LatreilleRobert J. & Christine LauxRaymond W. & Kim S. LombardiDavid S. & Jeanne F. McCartneyNancy A. McCortElizabeth A. & Terrence M. MeterJames P. & Nancy A. O’RilleyJay & Gail PearlsteinBrock E. & Katherine L. PlumbMarjorie L. & David F. PowersJeff E. & Kristen L. SmithJoseph C. &Kathleen V. MurphyMargaret I. &Richard M. TangheJack L. &Barbara J. OttoGlenn A. TestHerbert D. &Judith A. PatriarcheAlbert A. Jr. &Willa L. ThiessMichael D. &Janet S. ShieldsJohn F. &Cathy H. Walsh IIIHarold M. &Lois M. SollenbergerRoger E. &Laura M. WilkinsonKenneth J. &Stacy E. StaneckiLawrence S. &Rona WizelBradley D. &Cheryl G. Stevens* Report is based upon actual contributionsreceived during the fiscal year as reportedby University Development.10 Department of Accounting and Information Systems Newsletter • Fall 2003

$500 — $999George L. & Sandra BurkittLarry R. Cooley & Cathy E. Gaber-CooleyGregory A. & Judith D. CoursenWilliam J. & Tami L. CoyneBarry E. & Cherry L. CushingPatricia M. DerryGeorge A. & Diane M. FoxRichard M. & Eleanore J. GabrysTammy & Archie HoebeckePaul A. JanellJerome M. & Rosanne JonckheereJoseph M. & Lenora G. KaufmanJill Dempster LicataKathryn R. & Richard L. LudwigPatrick J. & Carol S. MansfieldMichael T. & Joyce A. MarciniakDavid S. NathanRichard J. & Lori J. NoechelKathy Ruby Petroni & Thomas R. PetroniWilliam J. & Ann C. RauwerdinkJohn J. ReinhartRobert W. & Joan R. ReinhartJosephine C. Salmonson (In Memoryof Roland Salmonson)Stanley D. & Nancy L. SleightL. Bradley & Susan G. ThompsonWilliam R. & Wendy A. WhiteJennifer A. & Kenneth J. WilliamsNorman A. & Marilyn WiseRobert M. Jr. & Jessica M. WoolleyJoseph J. & Christine R. Yarabeck$250-$499Seymour L. & Patricia M. AdlerMatthew J. & Connie M. AndersonLaurence S. & Jean M. AppelMark F. Asman & Patricia A. EssexDouglas G. & Peggy A. BohrerMichael S. BrackenridgeDavid B. BrowerTimothy A. & Jessica A. BurkhardtStephen L. & Kathleen A. BuzbyJeffrey M. & Leah A. DavidsonRobert J. & Lynette M. DavisonGordon D. & Shirline F. DurkeeKenneth R. & Deborah L. EdmondsTaras P. & Sharon M. FilasKimberlee A. FosterMichael D. & Tricia L. FosterE. Patrick & Gretchen A. FoxDeborah L. Schmidt-Fuhs & Eric D. FuhsSeverin V. & Sharon S. GrabskiSusan F. & Clifford H. HakaJoan M. HoeferJeffery A. & Patty IrwinMichael J. & Laurie KlechaRobert W. KoehlerRandal A. KoningDouglas J. & Tina M. KrizanicMark T. & Lori D. LachowiczRichard C. & Olivia H. LoweJoan L. Luft & Michael S. SeadleKeith R. MannorNancy Gagnon MeconiGeorge D. MerrittRobert M. & Martha J. PalmerSusan B. & Lawrence E. PerlinVern C. & Sheila M. PowellMelissa A. & Eric G. RothertBrian K. & June E. RudyGlen R. & Joann SandersonHarold S. Soper IIIGregory D. & Susan M. TaylorMark D. & Christina C. TorresAnita L. VanhallJon A. & Kathleen M. WalgrenRichard P. WeberScott A. & Sherri K. WilleJon A. & Marcia R. Woods IIRobert R. & Cheryl L. Wyman$100-$249Larry C. & Michele A. AndrewsKenneth K. & Theresa K. BankaDaniel W. BargyJennifer B. & Ryan BarishJohn R. BebesDennis L. & Terry J. BogardLisa BokovoyJames A. & Elizabeth A. BoldtDaniel W. & Margaret L. BrodbeckGary E. & Ronda S. BussaJoseph P. Hogue & Leslie A. ButkowskiRobert G. ByelichScott D. & Kathryn A. CaranoTricia K. CasariStephen D. & Janet L. CheaneyTrudy K. & Peter C. Chiaravalli IIIBenjamin S. Neuhausen & Madeline CohenJennifer A. CurtisRichard E. & Dolores C. CzarneckiThomas P. & Jeanne-Marie E. DalyTimothy R. & Linda A. DankoffDiane H. DavidsonJana DeanBruce R. DelbecqMary Beth DolohantyRenee M. DoryPaul E. DunhamNancy M. & James DykhouseMarvin R. & Marilyn A. EckerleBrian J. & Nancy EfrusyMichael C. & Tracey L. EwingWilliam H. & Joan L. FalkDavid B. FarberMichael J. & Christina K. FerlandEric V. & Lisa FormbergJeffrey D. & Katherine A. FreyMichael J. GibsonMolly GoikeDavid L. & Renee R. HealyKris HeinzmanLori A. & David H. HelisekRachel G. HolmanFrederick T. HondzinskiPatrick A. & Marlyce K. HoranJay R. JohnsonAndrew J. & Heidi L. KernGlen J. KleinDonald J. Sr. & Julia M. KleinJack G. KoenigsknechtKevin E. & Deidre M. KrauseMariann G. KriegerCathy L. & Keith E. KunkelRobert F. & Stacy L. LongJulie A. & Todd M. LoseeTodd R. ManevalFredric R. & Melissa MarriaRobert T. & Pamela A. McIntoshJanes C. & Nancy A. McKeownCary R. & Cynthia MiklesMarilee G. & Jeffrey L. MillerHoward MillsJames L. Jr. & Barbara L. MitchellJames H. & Diane R. MonnierAnne L. Chandler & John W. MooreBrian D. & Carol MyrickEric E. & Christine R. NielsonLawrence J. & Kimberly B. OberstJeffrey D. & Rene D. OlsonWayne A. PahssenRonald J. & Shirley A. PattenPatrick M. & Vicki L. PattonVincent P. & Patricia M. PavlakLisa E. & Alfred J. Pietrinferno IIIEvelyn J. PietrinfernoKaren L. & Nicholas J. PyettSrini RamegowdaRobert H. & Agnes V. RaymondChristine M. RebhKenneth Y. RosenzweigConstance L. RossSteven R. & Elizabeth V. RustThomas L. Schellenberg &The Honorable Joan E. YoungMarvin J. & Marcia K. SchultzChristopher M. & Laura A. ScottLarry P. SeeseDavid S. & Heather A. SimmetLaurie SolotorowParvez R. & Becky SopariwalaRobert T. & Wendi K. SpagnuoloKelly E. Sinclair-Springer & Randy SpringerDennis C. Regan & Ellen M. StrandCarter C. & Doris R. StrongMichael J. & Michele M. SwartzMaya R. TelangKathryn S. VanderMolenPhillip J. & Christine A. VarvatosRichard D. & Amy C. VogtGregory R. & Tricia WalthornJames O. WardCarl S. & Sharon A. WarrenFrank E. & Louise WatsonCorinne S. Asher & Lester H. WeitmanDonald P. WheelerJon C. & Heidi M. WhitemanMichelle C. WilliamsThomas D. WolfAllan R. & Virginia P. WrightOther ContributionsRebecca A. AshburnRobert C. & Margaret W. AveryTom J. & Deborah M. BeattyMatthew K. & Kristy J. BeckerKimberly A. BinderMarta L. & James T. BirchfieldMark W. BriningKatie CichowskiPaul E. & Angela EdwardsGeorge W. & Laura I. FernsTimothy J. ForresterMargaret M. GarenJoan M. GaretyJennifer M. GreeleyDiana A. HarrisBrian & Carrie HindmonMark W. & Sharon D. JahnkeScott J. McQuillanTimothy L. & Juanita OeschCarol A. PlonkaJames M. & Suzanne J. ReinhartPaige E. RichardsonArthur R. Jr. & Nancy P. SietingJohn VanderMeiden IIIKari S. & Richard J. VanDeverEduardo VazMark W. & Lynn A. VothDavid L. & Susan L. WellsDonald W. Jr. & Jean M. YoungJonathan S. BrussSeth K. ParkerAlan & Natalynn ReinsteinJill R. & Denis E. WillsFall 2003 • Department of Accounting and Information Systems Newsletter 11

Significant Donor Recognition of MSU QualityArthur H. Carter ScholarshipThe Arthur H. Carter Scholarship was recently initiated at Michigan State via thedissolution of a trust established by Marjorie Sells Carter – the daughter of oneof the founding partners of Deloitte, Haskins, and Sells. The initial gift creatingthis endowment benefiting the accounting and information systems program atMichigan State is slightly over $480,000.Historically, this scholarship was administered by the Carter trust, with awardsbeing made to students from accounting programs across the nation. The trusteesrecently were required by law to dissolve the trust, and when deciding what to dowith the corpus, chose to distribute the funds to establish endowments in ArthurH. Carter’s name at the four schools which had been the most successful over theyears in competing for the funds. Michigan State was one of those schools.Income from the Arthur H. Carter Scholarship endowment will provide funds“to be used for scholarships at Michigan State University for education in the fieldof accounting.”Deloitte / Michael Licata EndowmentMike Licata’s dedication to Michigan State University, its accounting program,and the profession is exactly how legends are made. Mike, the DeloittePartner-In-Charge for Tax Services, was a graduate of and strong contributor toMichigan State University. He led the recruiting efforts at MSU and wassignificantly involved in fundraising. Some years ago, Mike led Deloitte inestablishing an endowed professorship in MSU’s Department of Accounting.Long before his time, however, Mike passed away after a battle with cancer in1998. His memory lives on through the Deloitte / Michael Licata Endowment.To recognize the ongoing inspiration Licata provides for MSU, Mike Carlin,partner with Deloitte, and his team have led an ongoing effort to grow theendowment beyond its original purpose of providing funds for the DeloitteProfessorship (currently held by Kathy Petroni), to one that can supply funds forboth students and faculty support, including naming Ed Outslay the Deloitte /Michael Licata Teaching Fellow. Furthermore, as a joint decision of thedepartment and the firm, the Deloitte endowment has been designated to carryLicata’s name in perpetuity.Carlin knows that something extra is needed to further Licata’s work. “Had hebeen given the chance, this is surely something Mike would have wanted tooversee personally,” said Carlin.Scott EstonScott and PatriciaEston, both 1978graduates of theaccounting program,have generouslypledged $250,000to support theCampaign for MSU.Half of this amountwill be added to thecorpus of the Scott and Patricia Eston EndowedScholarship in Accounting. The remainder willbe divided between the Accounting andInformation Systems Department and theBroad Leadership Society, providing funds fornew priorities for department and collegeleadership.“I’ve made a conscious decision to get a lot moreinvolved with Michigan State over time,developing a feeling of real ownership in theseprograms” said Scott Eston. “I know there is aneed for investment from the alumni. I havegreat confidence in both Tom Linsmeierand Bob Duncan (dean of the business school),and their vision of the future of business andaccounting education and programdevelopment at MSU.”Scott was recognized with the accountingdepartment’s Alumni of the Year award in thespring of 2000. He is currently the ChiefOperating Officer and Chairman of theExecutive Committee for Grantham, Mayo, VanOtterloo & Co. LLC (GMO) in Boston. Priorto joining GMO in 1997, he was a seniorpartner with Coopers & Lybrand LLP.With numerous gifts from partners, colleagues, and other interested donors, theDeloitte / Michael Licata Endowment has grown from about $220,000 shortlyafter Licata’s death to a principle of roughly $650,000 today.12 Department of Accounting and Information Systems Newsletter • Fall 2003

Alumnus of the Year –Craig BrownPricewaterhouseCoopers FacultySupport FundProvided with an opportunity to seekfunding available to key relationshipschools, department chairman TomLinsmeier developed a concept of askingthe PwC Foundation to support facultydevelopment with annual support fromthe firm. The organization has shown itsdedication to MSU through two gifts tothe Department of Accounting andInformation Systems. With a $120,000pledge in December 2002, the Foundationmade a commitment to fund four $10,000faculty research and teaching grants ineach of the next three years.Then, in an effort led by John Roszak (’66,’67), a senior partner in the Detroit office,a select partners group decided to makeadditional gifts to MSU in the amount of$180,000 to create thePricewaterhouseCoopers Faculty SupportFund in Accounting and InformationSystems. The fund is designed to supportfaculty research and teaching and otherprogrammatic needs of the Department,and fully endows the concept initiated bythe gift from the PwC Foundation. Alongwith Roszak, contributors include PaulBalas (’79), Mike Burwell (’86), MarkMatthews (’79), Richard Paterson (’73,’74), and Matt Rizik (’78, ’79) —- alsopartners of the firm.“This gift will continue to ensure that MSUwill be able to attract only the mostoutstanding scholars for its faculty,” saidRoszak. “Clearly, we as a firm have aninterest in Michigan State continuing tohave a world-renowned faculty. But from thepartners contributing to the endowment,the gift is very much from our hearts. Wewant to ensure that MSU’s accountingprogram remains among the very best.”Craig Brown is the founder of Keelers Ridge Associates,a private equity firm investing in entrepreneurialorganizations with a focus on sports, marketing, andtechnology. Previously, Craig’s experience has included23 years in the advertising industry. He was a principalexecutive in the advertising industry’s three largest andmost defining mergers, including the merger of Bcom3into the Publicis Groupe S.A., now one of four global firms dominating the advertisingindustry. The new Publicis Groupe represents clients such as Procter & Gamble, GeneralMotors, and Nestlé, and operates in 109 countries and employs over 35,000 people.Craig attended Michigan State University before beginning his career as an auditor atArthur Andersen & Co. After spending eight years at Arthur Andersen, he joined D’ArcyMacManus Masius in 1980 as vice president and treasurer. In 1983 he was promoted toexecutive vice president and chief financial officer and was one of the principal architectsof the 1985 merger between Benton & Bowles and D’Arcy MacManus Masius, theadvertising industry’s first “mega-merger.” Craig moved to New York as part of the mergerto become the worldwide chief financial officer of the newly merged entity, D’ArcyMasius Benton & Bowles.Craig spent 10 years as chief financial officer of D’Arcy Masius Benton & Bowles and wascredited with developing the Company’s global business practices and supportorganization, restructuring its balance sheet and expanding the Company through morethan 100 individual acquisitions and mergers. In 1996 he led the transformation of theCompany into the MacManus Group, a multi-brand communications holding companyand served as its vice chairman and chief operating officer and chief financial officer.In 1999, Craig played an integral role in the merger of The MacManus Group with TheLeo Burnett Group to form the Bcom3 Group and was named as its president and chiefoperating officer. This merger represented the largest combination of its kind in theadvertising industry. As Bcom3’s president and chief operating officer, Craig led thetransformation of the Group’s organization, management practices and business processesto public company standards in anticipation of public ownership.Craig is a certified public accountant in the state of Michigan, a member and previouschairman of the Fiscal Control Committee of the American Association of AdvertisingAgencies, and a member of both the American Institute of Certified Public Accountantsand the Michigan Association of Certified Public Accountants. Craig serves on theCapital Campaign Advisory Board of the Broad School of Management at MichiganState University. He is also on the Board of Totality Corporation, serves on the Board andis the treasurer for the Partnership for Drug Free America, and also served for six years asNational Board Chairman and Treasurer of Youth Power, formerly Just Say No,International, the Reagan administration’s response to the drug problem in America.Craig is a Board member of the Baseball Factory, a firm specializing in playerdevelopment and college placement for high school athletes. He is also a principal ownerof the Capital City Bombers, the Columbia, South Carolina Class A affiliate of the NewYork Mets.Craig and his wife Vicki, also an MSU graduate, have three children and live in Wilton,Connecticut. He is an avid runner and golfer and a devoted Spartans fan.Fall 2003 • Department of Accounting and Information Systems Newsletter 13

External Advisory BoardThe External Advisory Board had a fullagenda once again this year providing adviceand feedback to the Department. Boardmembers reviewed the new Master of Sciencein Accounting curriculum, provided input ondepartmental and college strategic initiatives,met with students to get their perspectives ontrends in the accounting profession, andlearned about the capital campaign project.The Department would like to extendgratitude to Board members completing theirservice this past year. A special thank you toShaun Buckley, Bill Stewart, and IreneTanghe for their commitment to MichiganState University and invaluable input to theDepartment.2003-2004 External Advisory BoardMembers are:Randall Altman, Brunswick CorporationKay Benesh, Deloitte & Touche, LLPJames Bradow, Ernst & Young, LLPFrank Brod , The Dow Chemical CompanyDonna Coallier, PricewaterhouseCoopers, LLPRon Eckstein, Plante & Moran, PLLCScott Eston, Grantham, Mayo, Van Otterloo & Co., LLCVincent Foster, Main Street Mezzanine Fund, LPKelly Francis, General Motors CorporationMichael Herrinton, Ernst & Young, LLPMark Hooper, Andrews Hooper & Pavlik, PLCMike Kennedy, Ernst & Young, LLPBill Kinney, University of Texas at AustinElizabeth Meter, KPMG, LLPEddie Munson, KPMG, LLPLawrence Oberst, BDO Seidman, LLPMarjorie Powers, Ford Motor CompanyMarjorie Simmons, Duce Simmons AssociatesNancy Vella, Deloitte & Touche, LLPRoger Wilkinson, retired, Michigan State UniversityJames Wirth, BASE Consulting Group, Inc.Joel Wittenberg, Kellogg CompanyEight Michigan State Students Win MAFScholarshipThe Michigan Accountancy Foundation (MAF), a non-profit organization thatpromotes excellence in accounting education while attracting the best and the brightestto the accounting profession, named 13 Michigan college students as recipients of itsMAF Fifth/Graduate Year Scholarship. The Foundation supports accountingeducation in an effort to lead students into the CPA profession. It is affiliated with theMichigan Association of Certified Public Accountants (MACPA) and assists studentsin funding their education, particularly the fifth year necessitated by the 150-Hourrequirement to become a CPA, and educators in their research on attracting studentsto accounting.Michigan State students received eight of the 13 MAF scholarships given in the 2003inaugural year for the award. No other school in Michigan received more than one.Recipients of the award receive $4,000 each to help fund their fifth/graduate year ofcollege. The Michigan State winners are Sarah Baker, Clifford Bracy, Amanda Elya,Tameka Gee, Scott Hilliard, Derek Huffman, Adam Nordyke, and TimothyThompson. Congratulations to all!!The award winners were formally recognized in May at the MACPA Regional AdvisoryCouncil meeting in Lansing. The photo of selected scholarship recipients includesAmanda Elya and Scott Hilliard (2nd and 3rd from the right). The student group isflanked on the ends by MAF President Stephen Epstein (right) and MAF Past PresidentJames F. Peters, Sr. (left).Jennifer Szott wins $4,000PepsiCo ScholarshipJennifer Szott, a junior, was one of 250 selected from 1,900applicants to receive prestigious scholarships in the amountof $4,000 from the PepsiCo Foundation ExCEL GrantProgram. Jennifer, who is also a member of the HonorsCollege, has been active in the Accounting Club since herfreshman year. Last spring and this fall she has served as the VP of Membership andwill assume the role of President in the spring of 2004. Jennifer has also been active inthe VITA program. Congratulations Jennifer!!14 Department of Accounting and Information Systems Newsletter • Fall 2003

College and University Awards for Accounting AlumniIn recent award ceremonies, several alumni of theDepartment of Accounting and Information Systems werehonored by the Eli Broad College of Business and theUniversity. Glenn S. Schafer received an Honorary Doctoratefrom the University. Gary C. Valade received a Broad CollegeOutstanding Alumni Award, while Darryl F. Allen, Eli Broad,and Craig D. Brown received University DistinguishedAlumni Awards.Glenn S. Schafer: After rising throughexecutive ranks at several firms, Glennjoined Pacific Life Insurance Companyin 1986 as vice president for corporatefinance. In 1992 he was elected seniorvice president and chief financial officerand in 1995 was elected president. Aspresident, he set a goal of increasing thecompany’s size and reputation, and through his leadership, ithas become one of the largest and most prestigious financialservices companies in the world. Glenn has provided invaluablenew ideas for the Department of Accounting and InformationSystems and helped develop a strategic plan for the Eli BroadCollege of Business that resulted in a major improvement in thecollege’s national reputation.Gary C. Valade: Currently executive vice president andmember of the Board of Management for DaimlerChryslerCorporation, Gary is responsible for global procurement andsupply. He previously served as executive vice president andchief financial officer. He joined Chrysler in 1968, and holdsa Bachelor of Science in Engineering and an MBA with anemphasis in Accounting from MSU.Darryl F. Allen: A private equity investor with Allen Ventures, LLC,Darryl received his bachelor’s degree in Accounting in 1965. Hebegan his career as an audit manager with Arthur Andersen & Co.He joined Aeroquip Corp., a subsidiary of Libbey-Owens-FordCo., and in 1986 was named chief executive officer of Libbey-Owens-Ford. He held this position for 13 years, guiding thecompany through a series of acquisitions that resulted in thesuccessor company Aeroquip-Vickers, purchased by Eaton Corp. in1999. Throughout his career, he has served on the boards of avariety of non-profit organizations, with a special emphasis onhealth care systems and related issues. Allen also is a member of thecorporate boards at Milacron, Inc., and Fifth Third Bancorp. Heserved as president of the Eli Broad College of Business AlumniAssociation in 2000.Eli Broad: Founder of The Broad Foundation and chairman of theboard of AIG SunAmerica Inc., one of the nation’s largest issuers offixed and variable annuities and guaranteed investment contracts,Eli received his bachelor’s degree in Accounting in 1954. He cofoundedKaufman and Broad in 1957 and built it into one of thenation’s leading homebuilders. Later he developed SunAmerica intoone of the nation’s most successful retirement savings businesses.He is also a board member of American International Group Inc.,a leading U.S.-based international insurance and financial servicescompany. An avid supporter of higher education, Eli and his wife,Edythe, endowed The Eli Broad College of Business and The EliBroad Graduate School of Management at MSU in 1991, andrecently established a special endowment for The Eli and Edythe L.Broad Dean of Business.Craig D. Brown: A 1973 accounting graduate, was honored with the2003 University Distinguished Alumni Award. In 2003, theDepartment also named him Alumnus of the Year. For moreinformation on Craig, please see the separate Alumnus of the Yeararticle in this newsletter.Fall 2003 • Department of Accounting and Information Systems Newsletter 15

Student AwardsAccounting 201 Teaching Assistant of the Year: Matthew PikosAccounting 202 Teaching Assistant of the Year: Mike PattersonFSA Student Achievement Award: Erick MaroldDaniel Collins Accounting Research Award: Richard RobrahnAccounting Club Outstanding Member of the Year: Li LiBeta Alpha Psi Outstanding Member of the Year: Travis SchmidtNational Association of Black AccountantsOutstanding Member of the Year: Berkeley Cobb2003 Department Scholarship/Fellowship WinnersBeckerConviser: Alex Calderone, Michelle SlaterBDO Seidman LLP: Alex Calderone, Carly Gregg, Adam NordykeD. Jean Sanders Beck: Jennifer Abbott, Haley Anderson, Kelli Bashore, GiselleDanielsonWilliam and Carol Brink: Julie Black, Liang Chen, J. Randall Gottschalk, LauraGould, Melissa Nuss, Kristy Roeder, Timothy Thompson, Timothy Weiss, Afsari ZeshawnDaniel J. and Bette H. Church: Brent FraneyDaniel Collins Accounting Research Award: Richard RobrahnCrowe Chizek and Company LLP: Nicholas Gazos, D. Veronica RozelleDeloitte & Touche LLP: Sarah Baker, Scott Hilliard, Michael McMahon, JasmineMomin, Jennifer Szott, Elizabeth Thelen, Matthew TrzemzalskiThe Dow Chemical Company: John DobrowolskiErnst & Young LLP: Paul Anderson, Chad Arthur Anga, Clifford Bracey, MatthewDarragh, Laura DeLano, Derek Huffman, Stephanie Lane, Li Li, Karen Ann Ly, CorinneMassa, Kei Chung Ng, Jacqueline Van Baal, Robert WilsonScott and Patricia Eston: Tyler Myhan, Katherine WiseFSA Student Achievement Award: Erick MaroldGardner M. and Pauline A. Jones: James Harbaugh, Michele VanWormerKPMG LLP: Keith Pfeifle, Tiffany PhillipsWilliam C. and Delrose Marlene Martino: Najoung Kim, Michael J. PattersonJames E. McCartney: Matthew Cole, April Dickey, Bradley Ebenhoeh, Mandy Elya,Tameka Gee, Josh GosencaPlante & Moran LLP: Matthew Pikos, Richard Pinnock, Raeshell Roberts, KristinaStoiljkovic, Cristina WuerthPricewaterhouseCoopers LLP: Michael Dery, Michael Dickman, Olga Vasylyera,Jennifer Wein, Abbey Wilson, Laura Wright, Yuan ZhangFrank N. Sidoti: Kimberly Krueger, David Oberst, Steven Puidokas, Nicole Putt, MadihaRizwan, Nathan Roller, Michael Schmansky, Michael Scott, Frank Sesi, Sarah Sherlock,Andrea Sobanski, Thomas Stadelman, Matthew StrzempekConstance Richards Smith: Alice Pahk Ahrum, Carolyn Bowden, Matthew Cantwell,Kari Duffey, Sara McKechnieCecil R. and Beatrice M. Upham: Amanda Handrich, Jamie Holzhausen, TimothyJackson, Julie Koivisto, Kristin Kramer, Suzanne Kroeplin, Mary Makovic, KimberlyManifold, Kevin Marold, John Morgan, Leah Van AukerRoger E. and Laura Hamill Wilkinson: Teri Marie HansonDeloitte MSU Student CaseCompetitionIn November 2003, MSU students and faculty and Deloittepersonnel kicked off the annual renewal of the Student CaseCompetition. The 2002-2003 competition set a new recordfor student participation. Thirty-six students competed on 7teams for the chance to attend the national competition inScottsdale, Arizona in April.The competition requires student teams to present theirresolution of a current financial reporting research case to apanel of three Deloitte partners and the faculty coordinatorserving as judges. Topics included compensation issues,business combinations, revenue recognition and derivatives.Students work in teams of 4-6, assisted by an MSU studentadvisor, an MSU faculty advisor, and a manager or seniormanager from Deloitte serving as the practice advisor.Students make a formal presentation of the case and theirproposed solutions, and then respond to questions posed bythe judges.The winning MSU team included Yunis Altahami, RyanBailey, Bryan Benjamin, Noel Pierce, and James Harbaugh,student advisor Jasmine Momin, Jeff Bartholomay fromDeloitte and Professor Kathy Petroni. Tom Linsmeier filledin as faculty adviser for Kathy at the national competition.Although the team did not finish first in Scottsdale, theyrepresented MSU extremely well and gained substantialeducation benefit from the experience.Student participation for the 2003-2004 competition,already underway, will likely surpass last year. Special thanksto Professor Joe Anthony for his hard work as FacultyCoordinator of the MSU participation in the Competitionand to Deloitte for supporting this outstanding opportunityfor our undergraduate Accounting program students.Left to right: Kathy Petroni, Jasmine Momay, Jeff Bartholomay,Yunis Altahami, Ryan Bailey, Brian Benjamin, James Harbaugh,and Noel Pierce.16 Department of Accounting and Information Systems Newsletter • Fall 2003

Center staff includes: Carl Matter,Jennifer Butler Ellis and Amber Ferris.National Finalist Team (left to right) Rick Robrahn,John Tondreau, Rick Berry (PwC North AmericanTax Leader), Mary Makovic, Nick Schunck,Michael Scott, and Faculty Advisor Dick WeberDepartment Adds Centerfor Accounting BusinessCommunicationMSU Team Selected as Finalist inPwC xTAX CompetitionThe PricewaterhouseCoopers xTAX (extremeTax) Competition was initiated last fallwith roughly 600 students from over 20 colleges and universities around the countryparticipating. The case assignment required the student teams to develop a tax strategythat promotes economic growth for a fictional nation. The project was based upon a taxpolicy engagement undertaken by PwC’s Washington National Tax Service practice. Itrequired the students to learn to succeed as a team and use their cognitive (analytical)and interpersonal (presentation) skills to solve real-world business problems. To succeed,the teams had to focus on critical thinking, accounting and tax practice realities, teambuildingexercises, effective solutions development, and effective presentationtechniques.An MSU team won the local competition and then, based upon a videotape of their localpresentation submitted to the PwC national office, was chosen as one of five nationalfinalists. These national winners received a $10,000 award and an expense paid trip toWashington D.C. in the spring to make a presentation before PwC’s Washington NationalTax Service practice, as well as several national tax authorities in government and theprofession. The finalist teams also got the opportunity to participate with PwC’s Washingtontax group to learn about how national and international tax policies are developed.The MSU team included sophomores Mary Makovic and Michael Scott, junior JohnTondreau, and master’s students Rick Robrahn and Nick Schunck. Accounting facultyDick Weber and Ed Outslay served as faculty advisors for the team and workedsubstantially to help guide the students, give good advice on persuasive presentations,and be enthusiastic supporters of the team. Their duties included meeting several timeseach with all of the MSU groups in the local competition, helping the groups preparetheir presentations, and attending the final competition.Michigan State is happy that PricewaterhouseCoopers is conducting the xTAXcompetition again this year. In fact, meetings began on October 24 and the current yearcompetition is well under way. Thanks PwC for this great contribution to tax educationfor MSU students.To address an ever-increasing need to improvestudents’ communication skills, the Department hasadded a significant student support function in theCenter for Accounting Business Communication.The Center is modeled after the more familiarwriting/communication centers or labs that exist inmany other colleges and universities around thecountry. However, those centers are usually in theDepartments of English or Communication. OurCenter for Accounting Business Communication isdifferent in that it is discipline-specific, with a focuson developing both the written and oralcommunication skills of students in theDepartment’s M.S. in Accounting program (currentsize 129 students).Jennifer Butler Ellis has been appointed as theinitial Director of the Center. She holds a PhD inCommunication and is off to a great start inbuilding the Center. She will provide the academicfoundation/ vision for the Center, work with facultyand students to promote use of the Center, as wellas hire and oversee the Center’s staff (initiallycomprised of two graduate assistants withexpertise in written and oral communication skills).The Center develops best practices guidance forwriting and presentations, tutors students as theyprepare written reports, tapes and reviewsstudents’ presentations, and provides gradingsupport for faculty assigning written projects andformal presentations in the classroom. Toaccomplish the vision for the Center, the Directorwill collaborate with department faculty and othercommunication experts in the university as well aswith business professionals. Funding also isavailable to facilitate benchmarking with the bestcommunication centers in the nation, includingvisitation to other leading centers, when desirable.Fall 2003 • Department of Accounting and Information Systems Newsletter 17

Outslay a “Hit” in the CommunityAs a long time faculty member in the Department of Accounting and Information Systems, EdOutslay gives 110% to each and every task he’s asked, and agrees, to do. But, he does this not onlyfor MSU, but in other avenues of his life as well.For the past nine years, Ed has volunteered time during baseball seasons to serve as an assistantcoach for the East Lansing High School varsity baseball team. During the seasons, this hasamounted to about 25 hours per week; obviously a labor of love.For his efforts, Ed was nominated this year and received the AFLAC National Assistant Coach ofthe Year award. AFLAC created the award to “pay tribute to the unsung heroes of American sport:assistant coaches.” The recipients are assistant coaches who give unselfishly, but receive littlerecognition. Criteria for the award includes longevity, knowledge, long-term success, specialcontributions to the school and/or community, and overcoming obstacles.While there are in excess of 300,000 high school and college assistant coaches in the country,AFLAC honors roughly 500 of these with the award. In a similar, but separate, consideration, TheMichigan High School Baseball Coaches Association also selected Ed for their Assistant Coach ofthe Year award for 2003. Ed is a baseball enthusiast. His love for the game and his commitmentto the community have not gone unnoticed.On the CoverDepartment of Accounting and Information Systems faculty and staff: seated (left to right) LynneZelenski, Bruce Bettinghaus, Sev Grabski, Brian Pentland, Steve Dilley, Diane Bautista, MarilynJohnson, K. Ramesh, Joe Anthony and Jennifer Butler Ellis.This spring the department celebratedRon Marshall’s retirement. Being a Spartanbasketball fan, he was presented with seasontickets and a team autographed basketball.Standing (left to right) Harold Sollenberger, Joyce Hengesbach, Ranjani Krishnan, Cheri Speier,Connie Ross, Sue Haka, Ed Outslay, Dewey Ward, Al Arens, Charlie Bokemeier, Bill McCarthy,Matt Anderson, Dick Weber, Dave Farber, V. Sambamurthy, Patty Geller, Fred Jacobs, NancyLankton, Tom Linsmeier, Harrison McKnight, Jamie McClintock, Mike Shields, AmandaStevens, Joan Luft, and Kathy Petroni.Nonprofit Org.U.S. PostagePAIDEast LansingMich.Permit No. 21The Eli Broad College of BusinessDepartment of Accounting and Information SystemsMichigan State UniversityN270 North Business ComplexEast Lansing, Michigan 48824-1122