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					FIFTH YEAR ACCOUNTING ACCREDITATION MAINTENANCE REPORT




                Prepared for AACSB International

                                By

           Professors James Largay and Kenneth Sinclair




                    Department of Accounting
                College of Business and Economics
                        Lehigh University




                Address Questions and Inquiries to:

                    Kenneth P. Sinclair, Chair
                    Department of Accounting
                College of Business and Economics
                        Lehigh University
                         621 Taylor Street
                    Bethlehem, PA 18015-3117
                           610.758.3431
                         kps1@lehigh.edu


                        December 8, 2006
                                                                      2


        FIFTH YEAR ACCOUNTING ACCREDITATION MAINTENANCE REPORT

                                                         Table of Contents

I.   Executive Summary ............................................................................................................3
II.  Introduction .........................................................................................................................6
       A. Program Overview ......................................................................................................7
       B. Administrative Structure .............................................................................................7
       C. Degrees Offered ......................................................................................................... 7
III. Situational Analysis ............................................................................................................7
       A. Institutional, Local and National Context of our Program (#40) ................................7
       B. Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis ......................8
       C. Degree Programs, Numbers of Recent Graduates, and Longer-term Success (#33) 10
IV. Mission of the Lehigh University Accounting Program (#31) .........................................11
V. Strategic Management Planning Process (#32) ................................................................12
VI. Assessment Tools and Procedures (#37, #38, #39) ..........................................................14
       A. Direct Assessment of Program Effectiveness ...........................................................14
       B. Indirect Assessment of Program Effectiveness .........................................................16
       C. Managing the Two Introductory Core Courses .........................................................16
       D. Assessment of Teaching Effectiveness .....................................................................17
VII. Financial Strategies ..........................................................................................................18
VIII. New Degree Programs (#42) ............................................................................................19
IX. Faculty Professional Interaction and Relevant Practical Experience (#36) ......................20
X. Tabular Presentation of Faculty Sufficiency and Qualifications (#34, #35, #36) .............20
XI. Conclusion ....................................................................................................................... 21

NOTE: Specific accounting standard numbers appear above in parentheses where we address the
requirements of those standards. Standards #41 (MBA programs with concentrations in
accounting) and #43-#45 (doctoral programs) do not apply.

XII. Appendices

Business Week Rankings ......................................................................................................... A-1
Summary of Lehigh General, Business and Accounting Educational Requirements ............ A-2
Undergraduate Placement Report: Class of 2005 .................................................................. A-3
Current Positions of 1996 and 2001 Lehigh Accounting Graduates ...................................... A-4
Results of Learning Objective Assessment Process ............................................................... A-5
Accounting Department Goals and Needs .............................................................................. A-6
2006 Accounting Department Newsletter ............................................................................... A-7
Accounting Faculty Professional Interaction and Relevant Practical Experience.................. A-8
                                                3


     FIFTH YEAR ACCOUNTING ACCREDITATION MAINTENANCE REPORT

                                 I. EXECUTIVE SUMMARY

In the Preamble to our Mission Statement, the Accounting Department faculty agreed that “the
mission of the Accounting Program is offered with the intent of being recognized as one of a
select group of programs in the United States where an educational experience of the highest
possible quality is obtainable in pursuit of applicable professional requirements.” Thus we are
proud of the recent recognition given to the quality of our program in the Business Week
undergraduate business program rankings.

National Recognition by Business Week Magazine

The university has been evolving, with faculty research and graduate programs being stressed,
and throughout the last decade Lehigh ranked in the mid-to-low 30s among national universities.
Although popular with students and employers, until the recent Business Week rankings the
accounting and undergraduate business programs labored in relative obscurity on the campus.

       The 2006 Business Week national ranking of #9 among undergraduate accounting
       programs raised the profile of the Lehigh accounting program on the campus.
       Similarly, the 2006 Business Week ranking of #18 for the undergraduate business
       program drew attention to the larger unit as well.

We are gratified by this unsolicited independent external recognition of our programs’ quality
and include a copy of the Business Week rankings in Appendix A-1.

Attention to Strategic Plan Objectives and Improvements since our Last Review

Our Strategic Plan lists eleven goals of the Lehigh University Accounting program. Among the
sort of “everyday” goals that we take pride in are that our courses are comprehensive in technical
coverage and reflect real-world developments and technology, that we use out-of-class programs
to enrich the student experience, and that we encourage long-lasting faculty-student relationships
in and out of class. Our long track record of attention to quality curricular and extra-curricular
experiences for our students continues unabated.

Moreover, we believe that Lehigh University’s Accounting Department has made great progress
on other Strategic Plan goals since our last AACSB review. This remainder of this Executive
Summary addresses these accomplishments:

       New flexible three-track undergraduate accounting major program
       New innovative and viable M. S. in Accounting and Information Analysis (MSAIA)
       program now in its sixth year
       Improved research environment with new research active tenure-track colleagues,
       including a full professor, research assistants provided by our MSAIA program, and
       availability of needed databases
       Comprehensive course and program assessment process
                                                4


New Flexible Three-track Undergraduate Accounting Major Program

Our undergraduate major was revised in 2003-04 to consist of (1) a 4-course core taken by all
Accounting majors and (2) a 3-course concentration or “track” that supports career employment
in public accounting, financial services/corporate accounting, or information systems.

The new major replaces the former “one size fits all” requirement, making a solid accounting
core of intermediate financial accounting, cost accounting and accounting information systems—
which the Department believes is great background for many business school students—
attractive to more students. Students build upon this core background with concentrations
designed to accommodate varying employment interests, and that link accounting to related areas
within the college.

One of the three concentrations is for students interested in public accounting assurance and
tax services. This concentration requires additional courses in auditing, taxation, and advanced
financial accounting. A second concentration appeals to students seeking positions at financial
services firms and industrial corporations. Besides the accounting core, two finance courses
are included and a new course in analysis of financial statements serves as the interface between
accounting and finance. We offered this latter course for the first time in Spring 2004. The third
concentration is for students interested in global risk management, a career path that requires
the accounting core plus a course in auditing and two in business information systems.

Innovative and Viable M. S. in Accounting and Information Analysis (MSAIA) Program

Recognizing that the AICPA’s increased educational requirements cannot be accommodated in a
124-credit undergraduate program, in 2001 the Accounting Department implemented a new M.S.
in Accounting and Information Analysis (MSAIA) program that satisfies the so-called 150-hour
requirement in innovative ways.

Now in its sixth year, the Program currently has about 25 full-time students, consisting of a mix
of Lehigh/non-Lehigh students and accounting/nonaccounting majors, some of whom are taking
background courses. The M.S. program includes these six new dedicated core courses with a
healthy blend of accounting and other business topics:

       Corporate Governance and Business Risk
       The Corporate Financial Reporting Environment
       Information Systems Auditing
       Consulting Process and Practice in Professional Accounting
       Professional Issues in Accounting (ethics, negotiation and analyzing cases)
       Analyzing Accounting Information (a capstone course that integrates preceding course
       material and applies it to less-well-structured business problems)

As part of the M.S. development, the Department’s reengineered its accounting MBA electives:
the graduate tax course and the graduate financial statement analysis course.
                                                 5


Improved Research Environment

The Mission of the Accounting Program states that excellence in research is a critical area of
emphasis and we are committed to promoting and supporting high quality discovery-,
integration- and application-based faculty research. Research publications in top-tier accounting
and business journals reflect the intellectual growth of the faculty and enhance the academic
reputation of the Accounting Program. The Accounting Program’s strong focus on faculty
research recognizes the importance of continuous improvement and development of ideas,
research skills, and findings that help faculty incorporate cutting-edge ideas and concepts into the
classroom. This research emphasis is consistent with the CBE’s 2002 Promotion and Tenure
Standards document and Lehigh University promotion and tenure standards.

In addition to acquiring important research databases, such as COMPUSTAT and CRSP, we are
working with a Big-4 firm to obtain the Wharton School’s WORDS database and software for
our use. We recruited Heibatollah Sami as a full professor, an established empirical researcher
with a 20-year record of productivity at Temple University, and hired two other research-active
tenure track faculty out of respected Ph.D. programs.

Recognizing the importance of seminars presented by visiting scholars, an alumnus has for two
years supported visits by Krishna Kumar (George Washington University), Suresh Govindaraj
(Rutgers University), Jere Francis (University of Missouri), Steve Zeff (Rice University), and
Gopal Krishnan (George Mason University). A. Rashad Abdel-khalik (University of Illinois)
will be here in spring 2007.

Comprehensive Course and Program Assessment Process

Following several years of less formal assessment activities, in the 2004-2005 academic year the
Accounting Department formalized a comprehensive process of assessing the learning objectives
for its undergraduate and graduate accounting programs and the courses therein. To directly
assess the effectiveness of our program and courses, we established learning objectives for the
accounting program and each course in it and created a matrix identifying the links between
objectives and courses. We also specified assessment methods, such as exams and projects, that
help achieve each learning objective.

At the end of the semester, each course instructor answered four questions relating to each
objective relating to their course. Here and elsewhere in the process, in the case of multiple-
section courses the course leader consulted with all instructors for that course and was
responsible for supplying the course responses. Then the B.S. and M.S. programs developed
summary reports that answered the four questions for each learning objective.

As to results, the latest reports for each program include a number of suggested changes,
including more discussion of homework problems, changing the type of assignments, use of
actual annual reports in some classes, more ethics applications, more outside readings, changing
the textbook, and finding different ways to motivate students in class.
We also conduct indirect assessments of our program with annual year-end roundtable
discussions including Career Services personnel, representatives of principal employers, and
                                                6

faculty. These discussions occur around the same time as our regularly-scheduled, separate
focus groups involving students from the B.S. and M.S. programs. Changes made to the
program sometimes result from the feedback received in both venues.

The Accounting Department continues to use student evaluations in every course, every semester
and participates 100% in the classroom peer review program started in the continuing review
period. During 2004 the classroom peer review program became more formalized to ensure that
the process was more consistent among faculty in all departments in the College.

                                     II. INTRODUCTION

II. A. Program Overview

The Department of Accounting serves an undergraduate and graduate population, with around 80
UG accounting majors and 25 masters students graduating annually in recent years. Our
undergraduate major was revised in 2003-04 to consist of (1) a 4-course core taken by all
Accounting majors and (2) one of three 3-course concentrations or “tracks” that support career
employment in public accounting, financial services/corporate accounting, or information
systems. The new major is the official requirement for the Class of 2007, although many
accounting majors from earlier classes selected the new major over the old when they had the
option to do so. Our innovative M. S. in Accounting and Information Analysis program began in
2001-2002, featuring six new core courses specifically designed for the program coupled with
four electives in a one-year 30-credit fulltime educational experience.

The new major replaces the former “one size fits all” requirement, making a solid accounting
core—which the Department believes is great background for many business school students—
attractive to more students. Students build upon this core background of intermediate financial
accounting, cost accounting and accounting information systems with concentrations designed to
accommodate varying employment interests, and that link accounting to related areas within the
college.

One of the three concentrations is for students interested in public accounting assurance and
tax services. This concentration requires the accounting core plus courses in auditing, taxation,
and advanced financial accounting. A second concentration appeals to students seeking
positions at financial services firms and industrial corporations.               For some time,
representatives from these companies have sought Lehigh students with a strong accounting
background. External constituencies suggest that a dose of finance strengthens these students
and make them even more attractive. Besides the accounting core, two finance courses are
included and a new course in analysis of financial statements serves as the interface between
accounting and finance. We offered this latter course for the first time in Spring 2004. The third
concentration is for students interested in global risk management who will be responsible for
assessing accounting systems and computer risks that impact the financial statements, and for
evaluating internal controls in place to minimize such risks. This new career path thus requires
the accounting core plus a course in auditing and two in business information systems.
                                                 7

This variety of concentrations attracts students who might not otherwise consider majoring in
accounting at all. Although most accounting majors select the public accounting concentration, a
small but not insignificant number decide to double major in accounting and finance.

The accounting major—new or old—has always been nested within a broad-based liberal arts
and business educational curriculum. Accounting courses seek to achieve stated technical
learning objectives and the general educational objectives of critical thinking, problem-solving
skills and effective communication. Non-accounting learning objectives in the CBE business
curriculum include emphasis on organizational dynamics and cross-functional business
processed. A simple one-page advising sheet summarizing the Lehigh business and accounting
requirements within the context of the New York State 120 and 150-hour options—most of our
students go to work in New York and New York’s 120-hour option vanishes in the summer of
2009—appears in Appendix A-2.

II. B. Administrative Structure

The Accounting Department is one of five within the College of Business and Economics,
headed by a Dean. Professor Ken Sinclair continues to serve as Department chair. Having
served as Accounting chair from 1988-1994, he had Department support for this position
(typically a three-year appointment), when he returned as vice-chair in 1997 (from 1994-1998
the college had two departments, one of which was a Department of Business with vice-chairs
providing leadership) and chair again from 1998 to the present. When the Department began
offering its M. S. in Accounting and Information Analysis in Fall 2001, Professor Jack Paul was
appointed and continues to serve as Director of this program. Kathleen Smith is the department
academic coordinator.

On April 18, 2001 the newly-formed Accounting Advisory Board (AAB) and held its first
meeting. The 10-person membership is quite diverse, consisting of young and old, male and
female, and representatives from the Big 4, financial services, industry, and academia. It
typically meets at least once a year and has a major impact on the Department strategic plan,
curricular initiatives, and fundraising plans. Current chair is Sarat Sethi ’92, portfolio manager
and equity analyst at Douglas C. Lane & Associates.

II. C. Degrees Offered

The accounting department offers a B. S. degree in Business and Economics with a major in
accounting and an M. S. in Accounting and Information Analysis. Both programs are full-time
residential degree programs and are staffed primarily by full-time tenure track faculty.

                               III. SITUATIONAL ANALYSIS

III. A. Institutional, Local and National Context of our Program

Lehigh’s accounting program is well over sixty years old, and established its chapter of Beta
Alpha Psi in the late 1950s. It operates within a university that itself is 140 years old, an
institution that historically stressed the engineering disciplines, and emerged from all-male status
                                               8

in the early 1970s. The breadth, rigor and faculty qualifications of Lehigh’s programs outside
engineering have all been reaching higher levels over the past several decades, and academic
research published in recognized refereed journals is now a requirement for faculty advancement
across the campus.

The university has been evolving, with faculty research and graduate programs being stressed,
and throughout the last decade Lehigh ranked in the mid-to-low 30s among national universities.
Although popular with students and employers, until the recent Business Week rankings the
undergraduate business and accounting programs labored in relative obscurity.

       The 2006 Business Week ranking of #18 nationally raised the profile of the
       undergraduate business program on the campus, and specifically cited the strong
       Lehigh accounting program.
       Accounting itself ranked #9 nationally in the 2006 Business Week rankings of
       undergraduate specialties.

As previously mentioned, copies of both Business Week rankings appear in Appendix A-1.

We are highly gratified by this national recognition of our undergraduate programs in 2006. Part
of this recognition flows from our numerous undergraduate student-oriented activities. Chief
among them is our unique Friday/Saturday Conference on Accounting Professionalism for
junior accounting majors, now in its 15th year.

However, we recognized several years ago, along with many others, that a four-year
undergraduate accounting program alone is unlikely to provide the skills needed for the growing
complexities in public accounting and financial services activities of all kinds. With the advent
of the 150-hour CPA educational requirement in nearby states looming large as the Millennium
approached, we developed a new M.S. program in Accounting and Information Analysis; the
first class entered in 2001. Now beginning its sixth year, we take great pride in this innovative
program with its six specifically-designed dedicated core courses.

III. B. Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis

This SWOT analysis emerged from our strategic planning exercise and is updated as needed.

Strengths

       Program is perceived as one of the top by employers (nationally), and by parents
       (regionally)
       Students offered unrestricted choice of major (little barriers to entry; no quota)
       CBE can control undergraduate curriculum with little interference from the University
       Successful M. S. program in Accounting and Information Analysis enhances reputation
       Availability of unrestricted funds
       Resources exist to support meaningful faculty-student interaction
       Small class sizes primarily taught by full-time tenure-track faculty
                                              9

      Tutors provided by university tutoring service
      Faculty have academic, professional and research credentials
      Unique Junior Year Accounting Conference on Accounting Professionalism
      Adequate facilities (Rauch Business Center)
      Superb existing partnerships with CPA firms
      Loyal alumni
      High-quality students
      Good proximity of campus to major job markets
      Rigor of program (challenging content) and high expectations
      University and accounting firm teaching awards received by faculty

Weaknesses

      Relatively high tuition
      Perceived national academic reputation is low
      Inadequate research support and infrastructure
      Inadequate resources to support M.S. program
      Lack of funds for strategic initiatives
      Inadequate administrative staff (including administrative aide)

Opportunities

      To be a premier professional accounting program in the Nation
      Exposure to other cultures and globalization
      Study abroad/international student internships
      Faculty internships
      Changing nature of CPA Firm services
      Changes in the profession
      New career paths
      Increased quality of research by faculty
      Relationship with non-CPA firms and companies
      Increased alumni support
      Limited number of high-quality private schools with accredited undergraduate programs
      Build on initial departmental newsletter to enhance communication with alumni

Threats

      Accounting profession under scrutiny (actually has increased interest in accounting
      program)
      Tuition gap re competitive public universities perceived to have high quality programs
      Aggressive third tier schools
      Large CPA firm business models hamper growth of M. S. program
      Disconnect between type of student large CPA firms want and their willingness to pay for
      it
      Increased competition for university resources and difficulty of obtaining funding
                                               10

       Increasingly restricted uses of CPA firm funding; firms focus on undergraduate student
       activities rather than financial aid for M.S. students and support of faculty research
       Inadequate faculty staffing threatens program quality
       Gap between professional certification requirements and optimal education programs;
       large CPA firms seem to distance themselves from the 1989 Big 8 White Paper

III. C. Degree Programs, Numbers of Recent Graduates, and Longer-term Success

As stated above, the accounting department offers a B. S. degree in Business and Economics
with a major in accounting and an M. S. in Accounting and Information Analysis (MSAIA).
Graduation statistics from these programs in 2006 and 2005 appear below.

              Program                2006 Graduates                 2005 Graduates
              B. S.                        88                             79
              M. S.                        24                             23

The number of graduating accounting majors increased in the last two years by eleven percent.
We expect further increases in the next two years as there are approximately 105 accounting
majors in both the junior and senior classes.

Accounting students fare very well in the job market. The most recent Undergraduate
Placement Report (2005) in Appendix A-3 shows employment rates pushing 80% in Business
and Economics in recent years, heavily influenced by our successful accounting graduates. For
the five classes that graduated from the MSAIA program, 95% secured employment by
graduation date.

To formally assess how our graduates have fared longer-term, we assembled a list of the 1996
and 2001 accounting graduates and their current positions that appears in Appendix A-4. We
also sought comments by several major employers on their experience with our graduates. Three
employers responded, two with letters and one with a bound Statement of Commitment booklet.
Here are excerpts from those three responses:

       “It is my pleasure, on behalf of Ernst & Young to share with you our firm’s criteria for
       designating a college/university as a National Priority School . . .” “Our experience with
       Lehigh graduates is that within each of these categories [numbers, tenure, flexibility and
       adaptability of recruits, Annual Performance Ratings, values and “doing the right thing”],
       Lehigh alumni are frequently among the highest performers . . .” (Bob Watters, E&Y
       partner)
       “We routinely perform analysis of our human capital to determine where are sourcing our
       best professional talent—key to this analysis is our quality study.” “Lehigh University
       has been designated as a Priority School of PricewaterhouseCoopers for many years,
       owning to its consistent high performance in the quality study.” “Lehigh is a strategic
       source for entry level recruits and the next generation leaders in the firm.” (Griff Welton,
       PwC partner)
       KPMG LLP and Lehigh University have long enjoyed a mutually rewarding
       relationship.” “Because of our strong relationship and the prominent role your program
                                               11

       plays in our hiring goals, Lehigh continues to be designated a National Key School for
       KPMG. This designation also reflects the outstanding quality and size of your
       undergraduate and graduate programs.” (KPMG Statement of Commitment)

      IV. MISSION OF THE LEHIGH UNIVERSITY ACCOUNTING PROGRAM

Preamble

Recognizing the importance of accounting information to the efficient allocation of resources in
the resources in the American economy, the mission of Lehigh University's Accounting Program
is:
    to provide rigorous accounting education that prepares high quality undergraduate and
    graduate students with diverse backgrounds for life-long learning and positions of leadership
    in the business community, and to emphasize faculty research efforts that contribute to the
    body of knowledge in accounting

Consistent with the mission of the College of Business and Economics and Lehigh University,
the mission of the Accounting Program is offered with the intent of being recognized as one of a
select group of programs in the United States where an educational experience of the highest
possible quality is obtainable in pursuit of applicable professional requirements.

Specific Components

Consistent with its intent to be regarded as one of the best professional accounting programs in
the United States, that meets or exceeds applicable professional requirements, the Accounting
Program's mission embodies the following major elements:

       High quality undergraduate program with “tracks” to accommodate students’ various
       career interests
       High quality masters program—MS in Accounting and Information Analysis—that
       builds on our highly-regarded undergraduate program
       Courses in both programs that are comprehensive in technical coverage, reflect real world
       developments and technology, incorporate academic research and case analysis (MS
       program), provide critical success skills for students, and lead to professional
       certifications.
       Contributions to the intellectual growth of accounting theory and practice through
       discovery-, integration- and application-based scholarship, as described in the 1990
       Carnegie Foundation report, Scholarship Reconsidered: Priorities of the Professoriate.
       Support of other CBE graduate programs and executive education initiatives
       Using out-of-class programs to enrich the student experience
       Development of faculty to enable continuous improvement of curriculum content and
       instruction quality
       Development of strong lasting faculty-student relationships in and out of class
       Support of programs that attract high quality students with diverse backgrounds
       Promotion of faculty interaction with academic and professional sectors of the accounting
       profession, business enterprises, and the University community
                                                12



        Development of programs and experiences that enable student placement
        Development of effective two-way communication programs with external stakeholders

Thematic Emphases

Excellence in research is a critical area of emphasis. The Accounting Program is committed to
promoting and supporting high quality discovery-, integration- and application-based faculty
research. Research publications in top-tier accounting and business journals reflect the
intellectual growth of the faculty and enhance the academic reputation of the Accounting
Program. The Accounting Program’s strong focus on faculty research recognizes the importance
of continuous improvement and development of ideas, research skills, and findings that help
faculty incorporate cutting-edge ideas and concepts into the classroom. Thus the Accounting
Program believes that research also contributes to our undergraduate and graduate program
excellence. The research emphasis embodies this excerpt from page 2 of the CBE’s 2002
Promotion and Tenure Standards document:

        Research is evaluated primarily in terms of publications in leading refereed academic
        journals in the faculty member’s area of research or a related area, and such publications
        carry the most weight. However, the assessment of the research and scholarly
        accomplishments of a faculty member is based on the entire portfolio, which may also
        include articles in other respected academic journals, scholarly books and monographs,
        chapters in scholarly books, articles in highly respected practitioner journals, texts and
        other books, published cases, awards that recognize outstanding research, presentations at
        major conferences, invited paper presentations, external grants for supporting research, as
        well as responsibilities as editors, associate editors, and editorial board members of
        respected scholarly journals.

Pursuit of excellence is the hallmark of Lehigh University's Accounting Program. Our
undergraduate and graduate programs seek to instill in students: technical knowledge; business
acumen; work as a virtue and vehicle for service; and the ability to approach all challenges with
confidence and self-discipline. Additionally, the Accounting Program's balance of academic,
professional and student development initiatives enhances students' command of critical career
success factors, including critical thinking, effective communication and interpersonal skills, and
meets or exceeds applicable professional requirements.

                 V. STRATEGIC MANAGEMENT PLANNING PROCESS

The faculty first developed and endorsed its first comprehensive departmental strategic plan in
1996. Since that time the faculty worked with its constituencies to improve upon it. Beginning
in 2002 the new Accounting Advisory Board spent considerable time with the faculty at several
of its meetings making revisions to the plan. Three important changes occurred.

   1.   Because of the importance of faculty research, a separate goal for that item was included
        in the strategic plan for the first time. This change led to new action steps aimed at
        creating a better environment for research.
                                                13

   2.   The goals were prioritized, so that immediate effort could be directed at high priority
        items.
   3.   Perhaps most important, the discussion with the Advisory Board led to several needs
        documents that specify identifying where development support should be directed, such
        as endowed professorships.

At the Department’s faculty retreat in 2003 it officially voted on the revised strategic plan,
identified appropriate action steps, and assigned responsibility for the action steps.

During the 2004-2005 academic year two major strategic planning initiatives occurred that
enabled the Accounting Department to revisit its strategic plan. First, the Office of the Provost
requested a review of each undergraduate program/department as part of its Middle States
Accreditation effort. In addition, the College of Business and Economics (CBE) requested each
department and program to prepare a response to two college vision statements, the mission
statements of both the undergraduate and MBA program, and the role of the department/program
in the success of the college. The purpose of this latter exercise was to provide a means for
individual departments/programs to arrive at their strategic planning as well as offer inputs
toward developing the newest version of the CBE strategic plan, scheduled for summer and fall
2005. Each department completed their analysis by the end of March 2005, voting affirmatively
on both documents.

Middle States Accreditation Effort

Through this activity the Department was able to do the following:

        Reaffirm its mission statement
        Identify the strengths and challenges of the undergraduate accounting program
            o Strengths: talented and dedicated faculty, very good students, excellent
                placement of graduates, and strong relationships with major employers
            o Challenges: to recruit several doctorally-qualified faculty members with strong
                research and teaching skills, including a senior research professor, and to raise
                funds from alumni to support the Accounting Department’s activities and
                initiatives.
        Reduce the program content goals to three: (1) preparing and understanding general
        purpose financial statements for parties outside the firm, (2) using accounting information
        for decision-making inside the firm, and (3) understanding the information systems
        governing the flow of and control over financial information outside the firm

CBE Strategic Planning Effort

As stated, during 2005 the Department provided input to a revised College strategic plan by
issuing a response to several vision statements written by the Dean. This process resulted in the
Department’s strategic plan, including the mission statement along with supporting assumptions
and vision, being changed again, recognizing the increased importance of the M.S. in
Accounting Program and the type of faculty research to be emphasized.
                                              14


                      VI. ASSESSMENT TOOLS AND PROCEDURES

VI. A. Direct Assessment of Program Effectiveness

Following several years of less formal assessment activities, in the 2004-2005 academic year the
Accounting Department formalized a comprehensive process of directly assessing the learning
objectives for its undergraduate and graduate accounting programs and the courses therein. All
participating and supporting accounting faculty in each program participate directly in the
process. This framework was then used for the other programs in the college. During the 2005-
2006 academic year, the Accounting Department conducted this process both semesters.

Assessment Process

Step 1—Establish Program Objectives

During 2004-2005 the Accounting Department reduced its program content learning objectives
to three in the undergraduate program and four in the M.S. program. Only objectives that could
be assessed directly were identified. All full-time faculty in the particular programs endorsed
these program content learning objectives, which are listed below.

Content Objectives:

       Preparing and understanding general purpose financial statements for parties outside the
       firm
       Use of accounting information for decision-making by the firm
       Understanding and assessing the information systems governing the flow of and control
       over financial information inside the firm

In fall 2005 the Department faculty added to this list of three undergraduate program content
learning objectives the nine learning experiences identified in AACSB Accounting Standard #37.

Learning Experience Objectives

       The roles played by accountants in society providing and ensuring the integrity of
       financial and other information
       The ethical and regulatory environment for accountants
       Business processes and analysis
       Internal controls and security
       Risk assessment and assurance for financial and nonfinancial reporting
       Recording, analysis and interpretation of historical and prospective financial and
       nonfinancial information
       Project and engagement management
       Design and application to financial and nonfinancial information and management
       Tax policy, strategy and compliance for individuals and enterprises
                                                15

The department also added three nonaccounting learning objectives—ability to communicate
effectively, an understanding of organizational dynamics, and cross-functional business
processes—that the Accounting program addressed and could measure directly. Our students
also obtain extensive experience with technology in their courses, ranging from requirements
that all assignments be prepared on the computer with Word, Excel or similar software to classes
in the Amols Accounting Computer Lab and the new state of the art Financial Services Lab.

Step 2—Link Individual Courses to each Program Learning Objective

Faculty for each of the two accounting programs respectively met early in Fall 2005 to define
linkages between the individual courses and the stated objectives. Each course should support
one or more of the objectives and learning experiences. Also, each objective needed at least one
course linked to it. A matrix identifying the links was created for each program.

Step 3—Identify the Direct Measures

Faculty then identified direct methods used in their respective courses to achieve a particular
learning objective. Methods include exams, projects, presentations, and homework assignments.
As part of this process, if an instructor could not identify a direct method of assessment, the
matrix in Step 2 was modified. In the case of multiple-section courses, the course leader
consulted with all instructors for that course and was responsible for supplying the direct
measures.

Step 4—Measure Performance

At the end of the semester, each course instructor answered four questions relating to each
objective relating to their course:

   1. To what extent did you achieve this program learning objective? How well were students
      able to perform the task, integrate the knowledge, and demonstrate understanding of this
      objective?
   2. Indicate the method(s) by which your response was measured.
   3. Did you make any changes this semester to better achieve the learning objective, and if
      so, were those changes effective?
   4. In the spirit of continuous improvement, what changes will you make to better the
      understanding of this learning objective?

Again, in the case of multiple-section courses the course leader consulted with all instructors for
that course and was responsible for supplying the course response to the four questions.

Step 5—Prepare a Summary Report

After all courses reported their results, each of the two programs developed a summary report
that answered the four questions for each learning objective. The summary report listed under
each objective comments from each course to each of the four questions.
                                               16

Step 6—Hold a Faculty Meeting

The final step in the process was a meeting in which faculty discuss the report, and identify (1)
desirable changes in the process and (2) changes to the program as a whole.

Assessment Process Results

Our assessment process indicates that course and program learning objectives are generally
achieved, subject to variation among the students. The assessment process provides a beneficial
formal structure for examining our courses. Each program’s latest assessment reports include a
number of suggested improvements, including:

       more discussion of homework problems—sometimes led by students—to stress the not
       only the “how” but the “why”
       adjusting the type of assignments to emphasize analysis when possible
       use of actual annual reports in some classes to provide real-world linkages
       additional ethics applications and outside readings
       changing the textbook
       finding new effective ways to motivate students in class

These assessment reports appear in Appendix A-5.

VI. B. Indirect Assessment of Program Effectiveness

In addition to the new comprehensive direct assessment of program learning objectives,
Accounting Program faculty and Career Services personnel continue to host a roundtable
discussion at the end of the academic year. To our knowledge, the Accounting Department is the
only Lehigh academic department to conduct such feedback sessions on a regular basis, and has
been doing it since the early 1990s. Attendees included representatives from a variety of firms
that hire Lehigh accounting majors, such as large and smaller CPA firms, financial services
firms, and industry. These sessions helped us to

       develop our new “concentration-based” accounting curriculum
       assess how well Lehigh students fared in the recruiting process
       learn how well Lehigh students performed once they begin work, and
       understand the impact of firms’ pre-recruiting and recruiting strategies at Lehigh.

At the end of each year, the Department also continues to hold regularly-scheduled, separate
focus groups involving students from the undergraduate and graduate programs. Changes made
to the program sometimes result from the feedback received.

VI. C. Managing the Two Introductory Core Courses

The Department strategy is to offer individual sections of approximately 40 students each in the
two introductory core courses in financial (ACCT 151) and managerial (ACCT 152) accounting.
Our faculty strongly support the philosophy of providing more two-way, direct communication
                                                17

between students and faculty that facilitates use of the Socratic method. The faculty believe that
this approach brings about more effective learning and generates more interest in accounting as a
major. With courses having 8-9 sections in the fall (ACCT 151) and spring (ACCT 152), our
challenge is to maintain consistency within the many sections.

To maintain this consistency, the Department continues to use an instructional team for each
course, with leadership normally provided by a senior, tenured faculty member. The process
consists of (1) formulating, reviewing, and modifying the course learning objectives as needed,
(2) selecting a common text and developing a common syllabus, (3) designing common
examinations to test the material covered in the learning objectives, (4) asking students to
complete a formal mid-semester evaluation of faculty, so that mid-course corrections can be
made if needed, (5) making appropriate improvements in the course, and (6) documenting the
above in writing. The first core course, Introduction to Financial Accounting, began this more
formal process in Fall 2003. This model was employed by the instructional team in the second
core course, Introduction to Managerial Accounting, in Spring 2005.

As an example of modifications made in the Introduction to Financial Accounting course, after
the first year of this process, the instructional team selected a new text, which in the following
year proved to be a more effective book. It also (1) modified the content learning objectives by
combining some and reducing the number by two to avoid excessive detail, (2) designed a form
for mid-semester evaluation of faculty to give feedback while time exists to make needed
change, (3) linked exam results on Fall 2003 exams to the Fall 2003 content objectives to satisfy
themselves that these objectives were being tested (the results of that analysis indicated that each
content objective was tested at least twice), (4) decided to cluster open review sessions around
exam times due to low attendance at such sessions at other times, and (5) agreed to have library
resource presentations made in each class to ensure that students received reference information
needed for their group projects.

Because a number of non-tenure-track faculty teach in the two introductory core courses, each
course leader developed policies for instructors and students in these two courses. These
guidelines address course strategy and various instructional components, such as content
determination, expectations about homework, exams, grading, meeting classes, using the
Blackboard software to communicate with students, and student behavior in class. Recently the
Chair and the course leaders developed a summary guideline sheet to be given each semester to
all instructors for these two courses.

VI. D. Assessment of Teaching Effectiveness

The Accounting Department continues to use student evaluations in every course, every
semester. In addition, it continues to participate 100% in the classroom peer review program
started in the late 1990s. During 2004 the classroom peer review program became more
formalized to ensure that the process was more consistent among faculty in all departments in the
College. Specifically, the process now consists of the following steps:

       All tenure-track and non-tenure track faculty must have one peer review each calendar
       year.
                                                18

       No faculty member should evaluate the same instructor more than two years in a row.
       It is the evaluator’s responsibility to ensure that the review includes the following three
       steps: pre-observation consultation, class observation, and post-observation discussion.

The reviewer and the faculty member sign a second form—the Peer Review Completion Form—
and forward it to the department chair.

                               VII. FINANCIAL STRATEGIES

For many years (decades) the Accounting Departments has received financial support from the
“Big 4/5/6/8” international accounting firms and other donors, recently about $70,000 per year.
These funds, plus a modest $25,000 University budget and some new money contributed by
KPMG to support research assistants in our MSAIA program, make up our recurring
discretionary funds. The Department also controls a few other accounts that amount to about
$250,000; some of this is endowment. Other than the acute need for more contributions to
support MSAIA research assistants, this level of support has been adequate for our current
requirements for travel, dues and subscriptions, databases, and the like. But it does not create the
platform needed for movement to the next level.

In April 2003, directly as a result of the Department faculty and advisory board updating out
Strategic Plan, the Department first developed a document entitled Accounting Department
Goals and Needs, which was subsequently endorsed by our Advisory Board. This document is
ambitious and far-reaching, clearly indicating that without substantial new financial support we
are less likely to make the progress we envision in the time frame we envision it. The top two
needs we identified appear below and the latest (2005) version of the entire document appears in
Appendix A-6.

Need 1: Enhance the Faculty Research Environment

              [Highest Priority] Hire Chaired Professor of Accounting: $2,000,000 endowment
              [High Priority] Establish Faculty Research Fund: $200,000 endowment or
              $10,000 yearly contribution per grant
              [High Priority] Create Research Speaker Series: $150,000 endowment or $7,500
              yearly contribution

Need 2: Strengthen the New MS in Accounting Program

              [High Priority] Establish Corporate Sponsorships: $400,000 endowment or
              $20,000 yearly contribution
              [High Priority] Establish Individual Sponsorships: $200,000 endowment or
              $10,000 yearly contribution

We can report progress. Although we have not obtained the funding for the chaired professor,
the University did permit us to hire at the full professor level in 2005. We were fortunate to
recruit Heibatollah Sami as a full professor, an established empirical researcher with a 20-year
record of productivity at Temple University. And we did receive funding in 2004 for the Segal
                                               19

Speaker Series. Even though aimed primarily at students, we were able to engage high profile
academics like Trevor Harris (Morgan Stanley and Columbia University) and Doug Carmichael
(Public Company Accounting Oversight Board and Baruch College) who could both interface
with faculty and have an important message for students.

Then in 2006 we received a one-time $10,000 gift from an alumnus to sponsor visiting scholars.
In 2005/2006 Krishna Kumar of George Washington University, Suresh Govindaraj of Rutgers
University and Jere Francis of the University of Missouri presented papers here and in
2006/2007 Steve Zeff of Rice University, Gopal Krishnan of George Mason University and A.
Rashad Abdel-khalik of the University of Illinois will be here. This donor recently pledged
another $10,000 for 2007/2008 and beyond.

We began sending an Accounting Department newsletter to alumni in 2005 that includes a
specific appeal for contributions. The 2006 newsletter also illustrates progress we are making at
developing better communications with alumni, and appears in Appendix A-7. Concurrently in
2005 our first Lehigh accounting alumni function—a reception at PricewaterhouseCoopers’
office in New York City—took place, followed by a second on October 25, 2006 at Ernst &
Young’s Manhattan office. Well over 100 accounting alumni, plus about 50 students who are
visiting firms’ offices, and virtually all faculty, attended each year. We hope that these
initiatives will eventually produce more departmental financial support from out alumni.

These successes are helpful but do not represent the permanent support needed to more fully
enhance the faculty research environment and strengthen the MSAIA program, although we are
able to continue funding databases like CRSP and COMPUSTAT. So far we have been unable
to focus the resources of successful alumni or the Big 4 firms who aggressively hire our students
on mobilizing financial support to foster the academic developments that benefit their new
Lehigh hires and produce the national recognition we seek.

                             VIII. NEW DEGREE PROGRAMS

New and Innovative Masters in Accounting Program

Recognizing that the AICPA’s increased educational requirements cannot be accommodated in a
124-credit undergraduate program, in 2001 the Accounting Department implemented a new M.S.
in Accounting and Information Analysis (MSAIA) program that satisfies the so-called 150-hour
requirement in innovative ways. For Lehigh students that qualify, the masters and undergraduate
programs interface seamlessly. Background courses may be needed by non-Lehigh accounting
majors. Virtually all graduates of this program end up in meaningful entry-level positions.

Now in its sixth year, the Program currently has about 25 full-time students, consisting of a mix
of Lehigh/non-Lehigh students and accounting/nonaccounting majors, some of whom are taking
background courses. This number is down about 20% from recent years due to the phase-out of
Lehigh’s Presidential Scholars programs and the short-term lack of a 150-hour requirements in
New York and Pennsylvania            In summer 2009, when New York State moves to full
implementation of its 150-hour requirement for CPA licensure, the Department expects
enrollment to get closer to our target level of 30.
                                                20

The M.S. program includes these six core courses with a healthy blend of accounting and other
business topics:

       Corporate Governance and Business Risk
       The Corporate Financial Reporting Environment
       Information Systems Auditing
       Consulting Process and Practice in Professional Accounting
       Professional Issues in Accounting (ethics, negotiation and analyzing cases)
       Analyzing Accounting Information (a capstone course that integrates preceding course
       material and applies it to less-well-structured business problems)

Students could elect one of three optional concentrations: (1) Financial Services, (2) Consulting
and Business Risk Management, and (3) Strategic Cost Management. Limited interest in these
concentrations has caused us to reconsider whether to continue with them, an issue not yet
resolved. MBA courses from other business disciplines and courses from other colleges are
available as electives.

For many years the number and contents of undergraduate accounting courses has been relatively
constant. Thus by offering opportunities for new course development, the M.S. program
opportunities for faculty growth and expanded student educational experiences. As part of the
M.S. development, the Department’s reengineered its accounting MBA electives: the graduate
tax course and the graduate financial statement analysis course.

                  IX. FACULTY PROFESSIONAL INTERACTION AND
                        RELEVANT PRACTICAL EXPERIENCE

Accounting faculty have numerous contacts with professionals, ranging from the almost constant
interaction with Big-4 firm personnel, including their senior executives who visit the campus to
serve as Executives in Residence, to the firms’ accounting faculty symposia and regular
attendance at AAA meetings. Most also have at least some practical experience on an ongoing
basis, either through their own professional practices or other accounting and consulting work,
sometimes with professional organizations. Two especially noteworthy examples are (1) Ken
Sinclair’s role as audit committee chair for a public company, and Parveen Gupta’s recent
appointment as an Academic Fellow in the SEC’s Division of Corporation Finance during 206-
2007. The full range of our faculty’s professional interactions and relevant practical experience
is tabulated in Appendix A-8.

      X. TABLES PRESENTING FACULTY SUFFICIENCY/QUALIFICATIONS

Table 1B examines our use of full-time, participating faculty in teaching, showing that 74% of
our courses are taught by full-time faculty, well above the minimum of 60%. This number
would be even higher if we chose to teach the two introductory accounting courses in large
sections. However, our belief that small sections (35-40 students) produce higher educational
quality as well as bonding between instructors and students leads us to use carefully-selected
part-time adjunct faculty in most of these sections. Please note in section V.C. that both of these
courses are supervised by a senior faculty member. We believe that the #9 Business Week
                                                21

ranking of our undergraduate accounting program validates, at least in part, our use of small
sections in basic courses.
                                      (Table IB Here)

Table II reports the various academic and professional qualifications of our faculty, including
contributions to the literature. Table IIA demonstrates that:

       60% of our instructional effort represents academically-qualified faculty, exceeding the
       50% minimum, and
       100% of our instructional effort is either academically- or professionally-qualified, or
       both, exceeding the 90% minimum.

Again, taking into account our use of carefully-selected professors of practice and part-time
adjunct faculty to staff our small-sized introductory course sections, we feel comfortable that our
faculty portfolio matches the academic and professional requirements driven by our mission.

                                     (Tables II and IIA Here)

                                      XI. CONCLUSION

The Accounting Department believes that this report and the other documents supporting the re-
accreditation effort, demonstrate that we have made significant progress since the last re-
accreditation. Here are some of the high points that we hope the accreditation review team
considers carefully:

       New, flexible three-track undergraduate accounting major program
       New innovative and viable M. S. in Accounting and Information Analysis (MSAIA)
       program now in its sixth year
       Improved research environment with new research active tenure-track colleagues,
       including a full professor, research assistants provided by our MSAIA program, and
       availability of needed databases
       Comprehensive course and program assessment process
       National recognition by Business Week magazine in its ranking of undergraduate
       accounting programs (#9) and undergraduate business programs (#18)

Going forward, we intend to focus on improving faculty research productivity and strengthening
the MSAIA program.
                                                           Table IB: Summary of Faculty Sufficiency
                                                             (Re: Standard 9 - Using Credit Hours)
                                                                         FALL, 2005

              Name                    Participating or        Amount of teaching Amount of teaching
                                     Supporting (P or S)        if P (blank if S)  if S (blank if P)

Accounting Department
 Tenure-track
         Karen Collins                         P                       9
        Parveen Gupta                          P                       9
          James Hall                           P                       6
         James Largay                   P - on sabatical
        Stephen Liedkta                        P                       6
           Erin Moore                          P                       6
           Jack Paul                           P                       6
       Heibatollah Sami                        P                       6
        Kenneth Sinclair                       P                       9
 Professor of Practice/Lecturer
          Paul Gordon                          P                       9
         David Hinrichs                        P                       9




                                                                                                                                                           22
 Adjuncts
          Dan Bayak*                           S                                             9
        Martin Rudolph*                        S                                             9
         Susan Toohey                          S                                             9                               PA/(PA + SA) =
  Total Accounting Department                                         75                     27                                   74%

*By design, the strategy of the Accounting Department is to have individual sections for all accounting courses, including the two introductory courses.
 Adjunct (Support) professors Dan Bayak and Martin Rudolph teach the two introductory courses, both of which are supervised by Participating
 Professor, Paul Gordon.
                                                  TABLE II: (Accounting) Summary of Faculty Qualification, Intellectual Contributions
                                                              And Professional Responsibilities (Re: Standards 2, 9, &10)
                                                                        January 1, 2001 – December 31, 2005
         Name            Highest Earned       Date of First    Percent of    Acad   Prof Qual   Other      Number of Contributions During the Last Five Years             Normal
                         Degree & Year        Appointment         Time       Qual                                                                                       Professional
                                               to School      Dedicated to                                                                                             Responsibilities
                                                              the School’s
                                                                Mission                                  Learning &        Discipline-Based     Contributions to
                                                                                                         Pedagogical         Scholarship           Practice
                                                                                                         Scholarship
                                                                                                        PRJ       OIC      PRJ       OIC         PRJ        OIC

   Daniel Bayak            MBA 1974               1987           75%                  Yes                          2                                                         UG

   Karen Collins           Ph.D. 1988             1990           100%        Yes      Yes                          3         3                                          UG/RES/SER

    Paul Gordon            MBA 1967               2003           100%                 Yes                                                                                  UG/GR

  Parveen P Gupta          Ph.D., 1987            1987           100%        Yes      Yes                          2         3         3                        2            GR

     James Hall            Ph.D. 1979             1979           100%        Yes                                             2         3                            UG/GR, ADM, RES, SER

   David Hinrichs         MS Mgmt of              2004           100%                 Yes                                                                                  UG/GR
                        Technology 2000




                                                                                                                                                                                           23
 James A. Largay III       Ph.D. 1971             1980           100%        Yes      Yes                          2         1         1          2             1      UG/GR/RES/SER

 Stephen L. Liedtka        Ph.D., 1999            1999           100%        Yes      Yes                                    4         2          1             2      UG/GR RES SER
                           (Maryland)
   Erin A. Moore             Completed            2005           100%        Yes      Yes                                              7                                UG,RES,SER
                       requirements for PhD
                         in September 2005
    Jack W. Paul             Ph.D. 1978           1974            100        Yes      Yes                          3         2                    1                     UG/GR; ADM;
                                                                                                                                                                         RES; SER
  Martin Rudolph           MBA 1972               2001           75%                  Yes                                                                                    UG

  Heibatollah Sami         Ph.D. 1984             2005           100%        Yes                                             9        17                                   UG/GR

 Kenneth P. Sinclair    Ph.D. in Business         1972           100%                 Yes                          2                   1                        4     UG/GR; ADM; SER
                       Administration, 1972
   Susan Toohey            MEd, 2005              2004           75%                  Yes                                                                                    UG

Totals                                                                                                            14        24        34          4             9
                                               Table IIA: Calculations Relative to Deployment of Qualified Faculty
                                                                        (Re: Standard 10)
                                                                           FALL, 2005
              Name                      Qualification         AQ Faculty -          PQ Faculty -       Other Faculty -            Qualification Ratios per STD 10
                                      (Academic - AQ,      % of Time Devoted % of Time Devoted % of Time Devoted
                                     Professional - PQ, to Mission (From to Mission (From to Mission (From
                                         Other - O)             Table II)             Table II)           Table II)
                                       (From Table II)
Accounting Department
 Tenure-Track
          Karen Collins                      AQ                     100
         Parveen Gupta                       AQ                     100
           James Hall                        AQ                     100
         James Largay                        AQ                     100
        Stephen Liedtka                      AQ                     100
           Erin Moore                        AQ                     100
            Jack Paul                        AQ                     100
        Heibatollah Sami                     AQ                     100
        Kenneth Sinclair                     PQ                                            100
 Professor of Practice/Lecturer
          Paul Gordon                        PQ                                            100
         David Hinrichs                      PQ                                            100
 Adjunct




                                                                                                                                                                     24
         Daniel Bayak*                       PQ                                            75
        Martin Rudolph*                      PQ                                            75
         Susan Toohey                        PQ                                             75                                              AQ/(AQ + PQ + O) =
Total Accounting Department                                         800                    525                     0                                60%
                                                                                                                                         (AQ + PQ)/(AQ + PQ + O) =
                                                                                                                                                   100%
*By design, the strategy of the Accounting Department is to have individual sections for all accounting courses, including the two introductory courses.
 As a result, there are several instructors in the accounting area, who are not academically qualified but are professionally qualified.
         A-1

BUSINESS WEEK RANKINGS
FIRST-EVER EXCLUSIVERANKINGS I
The McGraw~Hill
              Cornponies




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           A-2

SUMMARY OF LEHIGH GENERAL,
  BUSINESS AND ACCOUNTING
 EDUCATIONAL REQUIREMENTS
                                        Accountlng Majors: Lehigh Graduation Requlrements and
                                       Coursework for New YorkState 150-Hour CPA Requirements


             Specific                                                                                                                                Lehlgh       NYS CPA
        NYS 150 Component        I. UNDERGRADUATE COURSES
                                 College Care                         (57 credlla)
                                                                                                                                                 -Acetg
                                                                                                                                                 Reqmts             Bur. A&S

                                   Engl 1           Composition & tilcrsturc                                                                         3                     3
                                   End2             Composition & Literature I1                                                                      3                     3
            Mathematics            Malh 21(or 75n6) Calculus                                                                                         4                     4
            Economic*              Eco l            Prinripln ofeconomics                                                                            4                     4
                                   Bus l            lnhoduclion to Business                                                                          3                 3
                                  A c n I51         lnhoduction loFinvlsid Accounting                                                                3        3
       Managemen1 Acclg (4)       Acct 152          In'mduction U, Managerial Aeeaunting                                                             3        3
         Computer science         61s111            Managcmcnl Information Systemm                                                                   3                     3
       (Two E w e s required)
                                  Eso 129                 Money & Banking(considcmd sfinancccoume for NYS)                                       3                     3
          Buainess ststislic~     Eco 145                 Slatistical Mcthods                                                                    3                     3
                                  Eso 146                 Applicd Misroeconomico                                                                 3                         3
              Finance             Fin 225                 Burincsr Finance                                                                       3                     3
                                  Law 201                 Legsl Envimnmcnl of Busincra                                                           3                     3
                                  MktZll                  Principles ofMarkcling                                                                 3                     3
                                  Mgt 280                 Mvlagcmcnt ofpeople & Operations                                                       4                     4
                                  Mgt301                  Bvsinc~s  Managcmcnt Polisics                                                          1                     3
                                   or 306                 Enhcprcncurship and Business Policy                                                            I!
                                Major - Core Rqulremanla          ..................
                                                                             (12 crcdlta)
        Fin. Asstg tbmrylprin   Acc1315             Financial Accounting I                                                                       3            3
        Fin. Acctg tharylprin   Asst 316            FinancialAccounting n                                                                        3            3
       Mansgemen1Acslg (4)       Asst 324           Cost A c c ~ ~ n t i n g                                                                     3            3
          Computcrnsicncc       ~     ~11 ~    1   3Accounting Information Systems                                                               3
       (Two courses required)

                                       -
                                Major P u b L AN@ Conrsntratlon...... (9 credits)
       U.S. Fed. T-lion (5)     Asct 307           Fvndamentsls ofFcdml lnsomc Tarstion                                                          3
             Auditing           Acct 320           Fundamentala ofAuditing                                                                       3
       Advanccd Pi. Asstg       Acst 317           Advanced Financial Accounting                                                                 3

                                Altr & Slieoeu                                     (15 r r d l t s )
                                Distribution Rcquircmsnts
            Hummitics            (I) Hvnanitics                                                                                                  3
            Humanities           (2) Humanities                                                                                                  3
           Social ssicncc        (3) S a i d Science                                                                                             3
           Social science        (4) S a i d Scimsc                                                                                              3
             Sisnss              ( 5 ) Scicncc                                                                                                   1

                                Other Non-CBE     ................................ crdils)
                                                                                (33
                                Am & Scicnccs electives

                                Free Eleetlvu            ...
                                                ............ ............ credlts)
                                                                        (4
   Commcrcisl law (UCC)          Law 202                 Businssli Law                                                                           3
                                 Balance of free electives

                                UNDERGRADUATE REQUIREMENT TOTAL                               ...............................   ( 1 4 credit8)
                                n. GRADUATE COURSES
         Awtg Rcscarsb     MSAlA Care C o u n u        .........................
                                                                  (18 rredlts)
        EtbicriPmf. Rsrp.   MACC 401            Pmfeasional Issues in Accounting
        Computerauditing    MACC412             Informalion S p t m s Auditing
                            MACC413             Thc Corporate Financial Reporting Envimnmsnt
                            MACC 420            Consulting P m s s s and Pmcticc in Pmfcssional Accounling
    ElbicriPmf. Rsrp.       MACC 424            Corporate Governance and Buaines* Risk
  Managema1 Acclg (4)       MACC 427            Anslyring Accounting Information for Mgmt & Business Solutions
                           MSAIA Eleetlve Courser               (12 rredlls)
     Buslscctg somm.        MACC 492            Effeclivc Buaincs* Communications                                                                                  I
 Quant mcthods in business GBUS 492             Quantitstivc Mahods in Busiiios
                           Olhsr Elsctives      May insludc huo 300-Icvcl accounting souracs




N&,g
I. All undergredualc major couracs must be bk?n a1 Lehigh. These courass may not be tskm pasa-fail.
2. Far NYS, undcrgradualc accounting courses mull avmgc C or above; graduate sours-: B or abauc.
3. ForupUtdetc rcquircmenb, sonlast lhsNew York State b o d a t 1-518474-3800 orgo tothcir wcbsilc at
                                    For
   bnp:/i~.op.npcd.gov/cpa.hbn. other atahs, go U, hnp://w.nasba.org.
4. Acctg 324 OR combination of Awlg 152 and MACC 427 can be wed lo satisfy managmmt ascQ quiremsnt.
5. GBUS 437 can bs used to s8ti~fythe accounting requir~menl.
                                      lm
                                                                                 /0/06/05
                 ACCOUNTING PROGRAM MAPPING MATRIX

                               Learning                                   Non-technical




                             LEARNING OBJECTIVES
1 . Content Objectives
   a. Preparing and understanding general purpose financial statements for parties
      outside the firm.
   b. Use accounting information for decision-making by the firm.
   c. Understanding and assessing the information systems governing the flow of and
      control over financial information inside the firm.

2. Learning Experiences
   a. The roles played by accountants in society providing and ensuring the integrity of
      financial and others information.
   b. The ethical and regulatory environment for accountants.
   c. Business processes and analysis
   d. Internal controls and security
   e. Risk assessment and assurance for financial and non-financial reporting
   f. Recording, analysis, and interpretation of historical and prospective financial and
      non-financial information
   g. Project and engagement management
   h. Design and application of technology to financial and non-financial information
      and management
   i. Tax policy, strategy and compliance for individuals and enterprises

3. Non-technical Skills--Lehigh Undermaduate Program skills
   a. Ability to communicate effectively
   b. An understanding of organizational dynamics and cross-functional business
      processes
   c. The ability to think critically
              A-3

UNDERGRADUATE PLACEMENT REPORT:
         CLASS OF 2005
                                   UNDERGRADUATE
                                 PLACEMENT REPORT
                                                                    CLASS OF           2005




                                  E X P LO R I N G C H O I C E S . . . M A K I N G D E C I S I O N S

CAREER SERVICES
Rauch Business Center, STE 484
621 Taylor Street
Bethlehem, PA 18015-3117                                           C A R E E R    S E R V I C E S
Phone: (610) 758-3710
Fax: (610) 758-3706
E-mail: incpp@lehigh.edu
www.lehigh.edu/careerservices
{   Table of Contents
        1     Introduction
              Letters from Kathryn Humphreys, Assistant Vice President
              of Corporate and Foundation Relations and Career Services,
                                                                                                                    As you will see in this report, Lehigh students do very well upon graduation,
                                                                                                                    whether they are starting that first job or going on to graduate school or other
                                                                                                                    opportunities. We are delighted with the placement rates you will find here, but
                                                                                                                    the numbers tell only part of the story.
                                                                                                                    Our mission at Career Services is to educate students not only to find that
                                                                                                                    first job, but to manage their careers over a lifetime. We work very closely
                                                                                                                    with students, faculty members, deans, and alumni to make career knowledge
                                                                                                a vital part of a Lehigh education. Even more importantly, we work with students one-on-one
              and Donna Goldfeder, Director of Career Services                                  to make self-knowledge a vital part of their career decisions.
                                                                                                We take career services to Lehigh students in classes, clubs, and residences. We help students
                                                                                                navigate the interview process with programs ranging from “grip and grin” workshops to resume
    2-3       Career Management:                                                                marathons and salary negotiation advice. We post thousands of job notices and bring in
              Opportunities and Decisions                                                       hundreds of employers to interview students on campus.
                                                                                                These efforts complement the challenging coursework, research, and experiential learning




                                                                                                                                                                                                                            {
                                                                                                opportunities that characterize Lehigh’s academic programs. Students often round out their




                                                                                                                                                                                                         U N D E R G R A D U AT E P L A C E M E N T R E P O R T 2 0 0 5
    4-5       College of Arts and Sciences                                                      strong academic preparation with undergraduate internships, externships, and co-op positions.
              Letter from Anne S. Meltzer, Herbert and Ann Siegel Dean                          Lehigh has a reputation among employers for educating students who are not only well-versed in their
                                                                                                academic fields but also know how to get things done. Alumni credit Lehigh with preparing them for
                                                                                                the careers they have chosen — including careers they might not have foreseen at graduation.
    6 -7      College of Business and Economics
                                                                                                Any time we can help prepare current students for a future neither they nor we can predict,
              Letter from Thomas J. Hyclak, Interim Dean                                        we consider that a good day’s work.
                                                                                                Kathryn G. Humphreys, Ph.D.
    8-9       College of Engineering and Applied Science                                        Assistant Vice President
                                                                                                Corporate and Foundation Relations and Career Services
              Letter from S. David Wu, Dean
                                                                                                                    As Director of Career Services, I am witness each day to the energy and excitement
      10      Top Hiring Employers: Class of 2005                                                                   that surrounds a university like Lehigh. Eager to impress and hopeful of the
                                                                                                                    outcome, students take time out of their busy schedules to talk with our career
                                                                                                                    counselors, network with alumni, and meet with recruiters from across the
      11      Top Hiring Employers: 1995-2005                                                                       nation. And I wonder: will they, as graduates, be assured an even brighter
                                                                                                                    future when they leave South Mountain?
      12      Graduate and Professional School Choices                                          The answer is a resounding yes! With exams and papers all behind them, the young adults who
                                                                                                walk down the steps on graduation day, diploma in hand and cap in the air, are better prepared
                                                                                                than ever before to tackle whatever the world holds for them. The reason: they chose to come to
      13      List of Graduate Schools




                                                                                                                                                                                                                            }
                                                                                                Lehigh, a university that is continually advancing, whether it is renovating facilities like Linderman
                                                                                                Library, adding new technology like the Financial Services Laboratory, or creating new majors like
                                                                                                applied life science and computer science and business.
    Salary and placement data for the Lehigh University Class of 2005 is obtained through a     I am pleased to provide you with this Undergraduate Placement Report for the Class of 2005.
    survey of the students who received Bachelors degrees between January and December          Of note, on-campus recruiting is slightly up, along with internship and co-op listings and the
    of 2005. The survey was conducted January 2005-January 2006 by Career Services.             number of employers who are providing listings. Unsurprisingly, the number of graduates who
    Of the 1,073 bachelor degree recipients, 73% responded to the survey. Typical response to   got their jobs through the web has more than doubled from last year.
    similar surveys conducted at other colleges and universities nationwide is 40-50%.          The pace of progress only quickens, and Lehigh graduates will be right there. Watch them soar.
                                                                                                Donna Goldfeder
    Nationwide comparative salary data used in this report is printed with permission           Director
    of the National Association of Colleges & Employers (NACE), copyright holder.               Career Services




                                                                                                                                                                                                                      1
                                                                                                                                                                                                               Employment Sources
                                                                                                                                                                                                                   All Colleges
                                                                 Career Management:                                                                                                                                    Summer Job, Internship, Co-op
                                                                                                                                                                                                                                   13%

                                                                 Opportunities and Decisions                                                                                   Referral (faculty, alumni, family friend)
                                                                                                                                                                                                                     7%
                                                                                                                                                                                                                                                  Web/Internet
                                                                                                                                                                                                                                                  7%
                                                                                                                                                                                                                                                         Career Fair
                                                                                                                                                                                                            Other                                        4%
                                                                 Opportunities                                                                                                                                2%                                            Classified Ad
                                                                                                                                                                                                                                                            1%
                                                                                                                                                                                          Resume Exchange                                                    Independent Contract
                                                                    “Entry-level hiring is continuing in a very positive growth trend in 2005,” said Brian                                                1%                                                 2%
                                                                 Krueger, President of CollegeGrad.com. “That trend began in 2004 and is accelerating its
                                                                 climb in 2005.” At Lehigh in 2005 graduates made the most of the growth trend in entry-level
                                                                 hiring. Lehigh is very pleased to report 96% of the class of 2005 settled into career-related or
                                                                 further educational opportunities. In addition, starting salaries were comparable to and in
                                                                 most cases greater than the national averages.                                                                                                                 LUCIE
                                                                                                                                                                                                                  (Lehigh On-Line Job Search System)
                                                                    The career process begins early at Lehigh, with many programs designed to give students                                                                      63%
}




                                                                                                                                                                                                                                                                                                            {
                                                                 career-related work experience prior to graduation. Experiential education programs, which
                                                                 include internships, externships and co-ops, are designed so that students at Lehigh can make
U N D E R G R A D U AT E P L A C E M E N T R E P O R T 2 0 0 5




                                                                                                                                                                                                                                                                                         U N D E R G R A D U AT E P L A C E M E N T R E P O R T 2 0 0 5
                                                                 educated decisions about career choices through partnerships with corporations and
                                                                 alumni sponsors.
                                                                    Both students and employers use Lehigh’s LUCIE (Lehigh University Career Information
                                                                 Exchange) program, a web-based job search, resume sharing, and interview scheduling system                                                                Decisions
                                                                 to exchange job search information. In addition, Lehigh continually updates its LUCAN                                                                Placement 2005
                                                                 (Lehigh University Career Advisory Network) database, which consists of over 25,000
                                                                                                                                                                                                                   2005         2004    2003        2002        2001       19951
                                                                 alumni who provide guidance for students making decisions about career paths within
                                                                                                                                                                                   Employed                       55%           57%     57%      54%            60%       64%
                                                                 specific industries.
                                                                                                                                                                                   Further Schooling2             36%           34%     32%      34%            30%       19%
                                                                                                                                                                                   Military & Other3               5%            4%      5%       4%             4%        4%
                                                                                                                                                                                   Still Seeking                   4%            5%      6%       8%             6%       13%
                                                                                                                                                                                   1 1995 shown here to provide benchmarking with last economic downturn.
                                                                                                                                                                                   2 Including Lehigh President’s Scholars, President’s Scholars are honors level students granted
                                                                                                                                                                                     a fifth year at Lehigh.
                                                                                                                                                                                   3 Other includes volunteer, travel, temporary or part-time employment and non-employment by choice.




                                                                                                                                                                                                                     Starting Locations
                                                                                                                                                                                               NEW YORK                                                         31%

                                                                                                                                                                                           PENNSYLVANIA                                              26%
                                                                                 Recruitment Opportunities
{




                                                                                                                                                                                                                                                                                                            }
                                                                                                                                                                                              NEW JERSEY                               16%

                                                                                                              2004-05    2003-04    2002-03   2001-02   2000-01   1994-19951                   MD/VA/DC                   7%
                                                                         Recruiting Organizations 2              227       201       214   257   346                 225                     CALIFORNIA          3%
                                                                                       Interviews              2,753     2,774     2,834 3,126 4,185               3,707                 MASSACHUSETTS          2%
                                                                  Full-time Employment Listings 3              1,961     1,980     1,269 1,434 2,149               1,338                      MARYLAND          2%
                                                                    Employers Providing Listings 4             1,133       936       619 1,002 1,195                684                   CONNECTICUT           2%
                                                                    Internship & Co-op Listings                  712       571       522   604   518                 n/a                   WASHINGTON           2%

                                                                 1 1994-1995 shown here to provide benchmarking with last economic downturn                                                         OHIO        2%
                                                                 2 Includes only employers who conducted interviews on campus
                                                                                                                                                                                       COMBINED OTHER                     7%
                                                                 3 On and off-campus listings
                                                                 4 Includes only employers who conducted interviews off campus
                                                                                                                                                                                                           0      5        10     15     20    25          30     35


                                                                                                                                                                                                        2005 Graduates Reporting Jobs in Each Location


                                                   2                                                                                                                                                                                                                                                                                                 3
                                                                                                                                                                         Major Studied                                    Mean

                                                                 College of Arts and Sciences                                                                            Industry Entered
                                                                                                                                                                                                                         Starting
                                                                                                                                                                                                                          Salary                      Actual Salary Range




                                                                 “Our students have the ability to embrace and lead change.”                                             Humanities                                    $35,270                   45,000 - 27,000
                                                                                                                                                                         Architecture                                  $33,000
                                                                    It has been said that we find ourselves in a world in which the only constant is change.             Building & Construction                       $45,000
                                                                 A Lehigh education in the arts and sciences prepares students for careers wherever their                Education                                     $31,150
                                                                 interests lead them. Our students acquire both the academic and life skills to help them                Entertainment                                 $27,000
                                                                 succeed in the world and lead productive and satisfying lives.                                          Financial Services                            $43,000
                                                                                                                                                                         Social Services                               $30,000
                                                                    According to strategic business futurist Roger E. Herman, “the idea of learning a specialty and
                                                                 staying in one field for an entire career is passé.” As the workplace becomes increasingly              Math & Computer Science                       $43,688                   53,000 - 17,000
                                                                 knowledge-based and service-oriented, employers value skills that transcend discipline-oriented
                                                                                                                                                                         Computer Software & Information Technology    $53,000
                                                                 training—skills such as effective communication, analytical thinking, good judgment, and the            Computer Hardware Equipment                   $50,000
                                                                 ability to continue to learn.                                                                           Education                                     $32,167
                                                                    To manage a career, or several careers, over the course of a lifetime requires a broad range         Financial Services                            $49,000
                                                                 of knowledge, the ability to adapt to changing conditions and, most importantly, the ability
}




                                                                                                                                                                                                                                                                                               {
                                                                 to keep learning—qualities Arts & Sciences students know well. Lehigh’s Office of Career
                                                                                                                                                                         Natural Sciences                              $38,880                   62,000 - 27,000
U N D E R G R A D U AT E P L A C E M E N T R E P O R T 2 0 0 5




                                                                                                                                                                                                                                                                            U N D E R G R A D U AT E P L A C E M E N T R E P O R T 2 0 0 5
                                                                 Services can help students use their preparation to establish and enhance their careers.                Chemicals & Pharmaceuticals                   $62,000
                                                                                                                                                                         Education                                     $27,000
                                                                 Career Services can help students to:
                                                                                                                                                                         Environmental Services                        $27,000
                                                                 • hone job research skills                                                                              Health Services                               $28,000
                                                                 • explore unfamiliar options                                                                            Petroleum & Allied Products                   $50,400
                                                                                                                                                                         Research Organizations                        $27,000
                                                                 • research job and career requirements
                                                                 • work with Lehigh alumni and corporate contacts to secure internships and externships that             Social Science                                $40,559                   95,000 - 20,000
                                                                    combine job research with classroom learning                                                         Accounting (Public)                           $50,250
                                                                 • develop a network of contacts to help with the job search                                             Aerospace                                     $43.900
                                                                                                                                                                         Banking (Commercial)                          $37,500
                                                                 • develop networking skills to use throughout a career
                                                                                                                                                                         Building & Construction                       $45,000
                                                                    Students in the Arts & Sciences are encouraged to explore a wide array of courses and                Communication Services                        $43,000
                                                                 programs and discover a field that captures their hearts and their imaginations. As some of our most    Consulting Services                           $51,500
                                                                                                                                                                         Education                                     $29,875
                                                                 successful alumni will say, satisfying careers come surprisingly often from doing the things we love.   Financial Services                            $43,083
                                                                                                                                                                         Government (State & Local)                    $30,000
                                                                 Anne S. Meltzer                                                                                         Health Services                               $31,000
                                                                 Herbert and Ann Siegel Dean, College of Arts and Sciences                                               Legal Services                                $35,667
                                                                                                                                                                         Protective/Security Services                  $40,000
                                                                                                                                                                         Publishing                                    $50,000
                                                                                                                                                                         Real Estate                                   $66,750
                                                                   Decisions                                                                                             Social Services                               $21,120

                                                                                                        2005      2004       2003        2002        2001
                                                                   Employed                              32%       35%        37%         36%         44%                                    2005 Graduate & Professional School Choices
                                                                   Graduate School                       34%       40%        36%         37%         35%
{




                                                                                                                                                                                                                                                                                               }
                                                                   President’s Scholar                   22%       14%        11%         15%          9%                                              College of Arts & Sciences
                                                                   Military & Other                       6%        7%         7%          5%          5%                                                             Humanities
                                                                   Still Seeking                          6%        4%         9%          7%          7%                                                               10%

                                                                   The top industries hiring Arts and Sciences graduates included:                                                                    Health                        Natural Sciences
                                                                   Education                  Legal Services        Social Services                                                                 Professions                          12%
                                                                                                                                                                                                       32%
                                                                   Financial Services         Health Services       Building & Construction
                                                                   with job functions such as:                                                                                                                                          Law
                                                                   Social Work                Research                    Architectural/Design/Construction                                                                             7%
                                                                   Teaching                   Sales                       Legal Services
                                                                                                                                                                                                 Engineering
                                                                   All Related Arts & Sciences Majors:             Lehigh Average:   $39,439                                                         2%
                                                                                                                                                                                                                                    Social Sciences
                                                                                                                   National Average: $37,8821                                                                                            25%
                                                                   1 As reported by NACE, copyright holder                                                                                                Education
                                                                                                                                                                                                            12%




                                                   4                                                                                                                                                                                                                                     5
                                                                 College of Business and Economics                                                                   Major Studied
                                                                 “Our students have the core and cognitive skills to emerge                                          Industry Entered                      Mean Starting Salary    Actual Salary Range

                                                                  as business leaders.”
                                                                                                                                                                     Accounting                                 $47,672           55,000 - 36,000
                                                                    The College of Business and Economics (CBE) continues to enjoy an excellent reputation for       Accounting (Public)                        $47,767
                                                                 preparing students to obtain gainful employment. There are several reasons why CBE graduates        Banking (Commercial)                       $55,000
                                                                 are attractive to employers.                                                                        Communication Services                     $36,000
                                                                                                                                                                     Consulting Services                        $42,000
                                                                    We depend heavily on our corporate partners to tell us the skill-sets necessary for success in   Financial Services                         $48,813
                                                                 the job market. This input is critical as we develop new interdisciplinary programs and improve
                                                                 existing ones to meet the needs of the global marketplace. Faculty and business people work side-
                                                                                                                                                                     Business Information Systems               $46,538           55,000 - 27,000
                                                                 by-side to identify niche areas that leverage the strengths of the entire University, at the same   Accounting (Public)                        $53,097
                                                                                                                                                                     Computers & Business Equipment             $34,800
                                                                 time providing a competitive edge to our graduates.                                                 Consulting Services                        $35,000
                                                                                                                                                                     Financial Services                         $50,000
                                                                    Every facet of our curriculum acknowledges the importance of blending the theoretical with
}




                                                                                                                                                                                                                                                                            {
                                                                                                                                                                     Health Services                            $27,000
                                                                 practical experience. Facilities such as the Financial Services Laboratory, and programs such as
U N D E R G R A D U AT E P L A C E M E N T R E P O R T 2 0 0 5




                                                                                                                                                                                                                                                         U N D E R G R A D U AT E P L A C E M E N T R E P O R T 2 0 0 5
                                                                 Integrated Business and Engineering (IBE), Computer Science and Business (CSB) and the              Economics                                  $49,840           95,000 - 35,000
                                                                 Entrepreneurship Minor, prepare our students for success in an evolving and complex business        Accounting (Public)                        $48,000
                                                                 environment.                                                                                        Aerospace                                  $43,900
                                                                                                                                                                     Banking (Commercial)                       $40,000
                                                                   I believe we start with excellent students and give them the foundation and framework             Banking (Investment)                       $65,000
                                                                 necessary to enter the job market. They graduate with the immediate skills required to secure       Building Materials & Construction          $35,000
                                                                 employment and the cognitive skills to emerge as leaders in their fields.                           Financial Services                         $42,666
                                                                                                                                                                     Insurance                                  $43,500
                                                                   I am proud of our students and take great pleasure in their successes.                            Real Estate                                $95,000

                                                                 Thomas J. Hyclak                                                                                    Finance                                    $51,658           125,000 - 34,000
                                                                 Interim Dean, College of Business and Economics                                                     Accounting (Public)                        $49,440
                                                                                                                                                                     Automotive & Mechanical Equipment          $44,500
                                                                                                                                                                     Banking (Commercial)                       $55,000
                                                                                                                                                                     Banking (Investment)                       $51,150
                                                                                                                                                                     Consulting Services                        $49,575
                                                                   Decisions                                                                                         Financial Services                         $49,333
                                                                                                                                                                     Household & Personal Care Products         $52,250
                                                                                                        2005      2004      2003      2002        2001               Real Estate                                $92,500
                                                                   Employed                              77%       81%       76%       70%         79%
                                                                   Graduate School                        8%        9%       13%       10%          8%
                                                                   President’s Scholar                    6%        6%        3%        7%          3%               Marketing                                  $40,275           54,000 - 22,000
                                                                   Military & Other                       5%        1%        4%        4%          4%
                                                                   Still Seeking                          4%        3%        5%        9%          6%               Accounting (Public)                        $51,925
                                                                                                                                                                     Automotive & Mechanical Equipment          $51,000
                                                                                                                                                                     Banking (Investment)                       $40,000
                                                                   The top industries hiring Business graduates included:
{




                                                                                                                                                                                                                                                                            }
                                                                                                                                                                     Chemical, Drugs & Allied Products          $49,100
                                                                   Accounting               Banking                                           Insurance              Communication Services                     $29,000
                                                                                                                                                                     Computer Software & Data Processing        $35,000
                                                                   Financial Services       Computers & Business Equipment                    Consulting             Computers & Business Equipment             $36,500
                                                                                                                                                                     Financial Services                         $37,625
                                                                   All Related Business Majors:                Lehigh Average:     $47,970                           Publishing                                 $28,000
                                                                                                               National Average:   $41,1881                          Research Organizations                     $52,500
                                                                   1 As reported by NACE, copyright holder                                                           Third Party Recruiters                     $32,000

                                                                                                                                                                     Supply Chain Management                    $49,845           60,000 - 36,000
                                                                                                                                                                     Accounting (Public)                        $53,650
                                                                                                                                                                     Aerospace                                  $47,950
                                                                                                                                                                     Chemical, Drugs & Allied Products          $49,100
                                                                                                                                                                     Computers & Business Equipment             $50,750
                                                                                                                                                                     Transportation                             $49,300




                                                   6                                                                                                                                                                                                                  7
                                                                                                                                                                                 Major Studied
                                                                 College of Engineering and                                                                                      Industry Entered                             Mean Starting Salary    Actual Salary Range



                                                                 Applied Sciences                                                                                                Chemical Engineering
                                                                                                                                                                                 Chemical, Drugs & Allied Products
                                                                                                                                                                                                                                  $52,776
                                                                                                                                                                                                                                  $52,776
                                                                                                                                                                                                                                                     60,000 - 30,000
                                                                                                                                                                                 Consulting Services                              $54,533
                                                                 “We help our students become visionaries and leaders in                                                         Paper & Wood Products
                                                                                                                                                                                 Petroleum & Allied Products
                                                                                                                                                                                                                                  $50,000
                                                                                                                                                                                                                                  $51,725
                                                                  their chosen paths.”                                                                                           Sci. Equip., Instruments, Medical Supplies       $57,000
                                                                                                                                                                                 Stone, Clay, Glass & Concrete Products           $53,750
                                                                    When students arrive on campus, they are often focused on how they will spend the next four                  Utilities                                        $57,000
                                                                 years at Lehigh. When we greet them in those first days, we are keenly aware of the commitment
                                                                 we have made to provide them with an educational foundation that will serve them for the rest
                                                                                                                                                                                 Civil Engineering                                $45,569            56,200 - 34,560
                                                                                                                                                                                 Architecture                                     $43,000
                                                                 of their lives.                                                                                                 Building Materials & Construction                $48,850
                                                                                                                                                                                 Consulting Services                              $50,000
                                                                    The partnership between the P.C. Rossin College of Engineering & Applied Science and the                     Engineering/Surveying                            $46,933
                                                                 Office of Career Services reinforces our commitment to provide students with the highest caliber                Environmental/Waste Management                   $37,500
                                                                 of education and services, enabling them to shape their futures and realize their ambitions.
                                                                                                                                                                                 Computer Engineering                             $52,958            70,000 - 40,000
                                                                    Lehigh engineering enjoys a remarkable tradition of excellence. At the core of this tradition                Accounting (Public)                              $50,580
}




                                                                                                                                                                                                                                                                                                       {
                                                                 are our people – an internationally renowned faculty and exceptional staff dedicated to the                     Aerospace                                        $52,167
                                                                                                                                                                                 Amusements/ Recreation                           $40,000
U N D E R G R A D U AT E P L A C E M E N T R E P O R T 2 0 0 5




                                                                                                                                                                                                                                                                                    U N D E R G R A D U AT E P L A C E M E N T R E P O R T 2 0 0 5
                                                                 cultivation of a dynamic and intellectually powerful environment, within which our students are
                                                                                                                                                                                 Communication Services                           $51,600
                                                                 challenged to think independently, to innovate, and to lead.                                                    Computer Software & Data Processing              $58,667
                                                                                                                                                                                 Consulting Services                              $55,800
                                                                    We equip our students with top-quality technical and analytical skills and the ability to make               Financial Services                               $52,500
                                                                 wise financial, political, and cultural decisions, allowing them to become the most talented engineering        Government (Federal)                             $55,000
                                                                 innovators and multidisciplinary leaders and thinkers. This educational philosophy allows our
                                                                 students to succeed in a wide variety of interests; not only are our graduates successful as                    Computer Science                                 $47,000            53,000 - 35,000
                                                                                                                                                                                 Aerospace                                        $53,000
                                                                 engineers, but many use their engineering education as the basis for success in business, law,                  Computer Software & Data Processing              $53,000
                                                                 medicine, design, and public policy.                                                                            Consulting Services                              $35,000
                                                                   Great talents and bright minds flourish at Lehigh, as highlighted by the accomplishments of                   Electrical Engineering                           $49,107            57,000 - 31,200
                                                                 our graduates. A sampling of our distinguished alumni demonstrates the many paths that Lehigh                   Aerospace                                        $50,350
                                                                 engineering graduates have followed, including Lee A. Iacocca, James W. Packard of Packard                      Electrical/Electronic Equipment                  $53,500
                                                                 Automobiles, Roger S. Penske, founder of the Penske enterprises, NASA astronaut Terry Hart,                     Financial Services                               $50,000
                                                                                                                                                                                 Utilities                                        $56,000
                                                                 and Dr. William Pierce, inventor of the artificial heart.
                                                                    Lehigh engineers are well-rounded analytical problem-solvers – innovators well-equipped to
                                                                                                                                                                                 Industrial Engineering                           $49,682            58,500 - 42,000
                                                                                                                                                                                 Accounting (Public)                              $50,580
                                                                 succeed among the rigors and advances of modern science and technology in an increasingly                       Aerospace                                        $47,950
                                                                 global and diverse workplace. Some pursue engineering directly, others find novel ways to apply                 Automotive & Mechanical Equipment                $49,167
                                                                 their skills in other fields.                                                                                   Building Materials & Construction                $43,500
                                                                                                                                                                                 Computers & Business Equipment                   $50,750
                                                                   In either case, the Lehigh engineer is forged with intensity and vigor, and ready to take on any challenge.   Consulting Services                              $52,050
                                                                                                                                                                                 Financial Services                               $47,500
                                                                 S. David Wu                                                                                                     Food & Beverage Processing                       $50,000
                                                                                                                                                                                 Household & Personal Care Products               $56,500
                                                                 Dean, P.C. Rossin College of Engineering and Applied Science                                                    Printing                                         $45,000
{




                                                                                                                                                                                                                                                                                                       }
                                                                                                                                                                                 Transportation                                   $47,000

                                                                                                                                                                                 Information Systems & Eng.                       $57,375            60,500 - 55,000
                                                                   Decisions                                                                                                     Accounting (Public)
                                                                                                                                                                                 Consulting Services
                                                                                                                                                                                                                                  $55,000
                                                                                                                                                                                                                                  $59,750
                                                                                                         2005        2004         2003         2002        2001                  Financial Services                               $55,000
                                                                   Employed                               61%         62%          61%          60%         66%
                                                                   Graduate School                        13%         17%          18%          16%         20%                  Mechanical Engineering                           $48,336            56,600 - 31,000
                                                                   President’s Scholar                    18%         11%          13%          12%          8%                  Aerospace                                        $49,420
                                                                   Military & Other                        5%          3%           3%           4%          3%                  Automotive & Mechanical Equipment                $46,789
                                                                   Still Seeking                           3%          7%           5%           8%          3%                  Building Materials & Construction                $45,000
                                                                                                                                                                                 Chemical, Drugs & Allied Products                $53,500
                                                                                                                                                                                 Computer Software & Data Processing              $51,000
                                                                   The top industries hiring Engineering graduates included:                                                     Computers & Business Equipment                   $50,500            Note: In some majors salary data
                                                                   Aerospace                 Electronic Equipment      Building & Construction                                   Electrical/Electronic Equipment                  $52,870            was not provided in sufficient
                                                                   Financial Services        Consulting                Automotive/Mechanical Equip.                              Engineering/Surveying                            $47,500
                                                                                                                                                                                                                                                     numbers to be representative and/
                                                                                                                                                                                 Financial Services                               $48,125
                                                                   All Related Engineering Majors:                   Lehigh Average:   $49,734                                   Government (Federal)                             $38,767            or to preserve anonymity.
                                                                                                                                                                                 Household & Personal Care Products               $56,000
                                                                                                                     National Average: $49,9991                                  Metal & Metal Products                           $42,000
                                                                   1 As reported by NACE, copyright holder
                                                                                                                                                                                 Petroleum & Allied Products                      $56,300
                                                                                                                                                                                 Sci. Equip., Instruments, Medical Supplies       $46,500
                                                   8                                                                                                                             Utilities                                        $51,600                                                        9
                                                                 Employers                                                                                 Top Hiring Employers: 1995-2005
                                                                 Top Hiring Employers: Class of 2005                                                                                                                          GRADS HIRED




                                                                                                                                                           10-YEAR
                                                                                                                                                                                                                       1995-       2000-                   1995-2005




                                                                                                                                                            RANK
                                                                 Includes Employers Who Hired More Than Two BA/BS Graduates
                                                                                                                                                                     EMPLOYER                                          1999        2004             2005     Total
                                                                                                                         GRADS HIRED
                                                                                                                   2005      1995-       2000- 1995-2005    1        Accenture                                          88           42              7       137
                                                                 RANK
                                                                 2005




                                                                        EMPLOYER                                             1999        2004    Total      2        PricewaterhouseCoopers                             46           75              9       130
                                                                                                                                                            3        Ernst & Young                                      37           48             21       106
                                                                 1      KPMG, LLP                                   23        23          52      98        4        KPMG, LLP                                          23           52             23        98
                                                                 2      Ernst & Young                               21        37          48     106        5        Deloitte & Touche                                  31           41              8        80
                                                                 3      PricewaterhouseCoopers                       9        46          75     130        6        Lockheed Martin                                    29           37              7        73
                                                                 4      Deloitte & Touche                            8        31          41      80        7        Merrill Lynch                                      30           29              8        67
}




                                                                                                                                                                                                                                                                                          {
                                                                        IBM Corporation                              8        18          29      55
U N D E R G R A D U AT E P L A C E M E N T R E P O R T 2 0 0 5




                                                                                                                                                                                                                                                                       U N D E R G R A D U AT E P L A C E M E N T R E P O R T 2 0 0 5
                                                                                                                                                            8        IBM Corporation                                    18           29              8        55
                                                                        Merrill Lynch                                8        30          29      67        9        Price Waterhouse1                                  53            0              0        53
                                                                 7      Accenture                                    7        88          42     137       10         Merck & Co.                                       21           24              1        46
                                                                        Lockheed Martin                              7        29          37      73       11        Ingersoll-Rand                                     10           23              6        39
                                                                  9     Ingersoll-Rand                               6        10          23      39                 Whiting-Turner Contracting Co.                     19           19              1        39
                                                                 10     High Performance Technologies, Inc.          5         1           2       8       13        Johnson & Johnson                                  14           18              3        35
                                                                        JPMorgan Chase & Co.                         5         7          15      27       14        Citigroup                                          22           10              2        34
                                                                        Timken Company                               5         4           4      13       15        Black & Decker                                     17           14              0        31
                                                                 13     Boeing Company                               4         5           4      13                 SEI Investments                                    16           13              2        31
                                                                        Clark Construction Group                     4         9           8      21       17        Air Products & Chemicals, Inc.                     12           17              1        30
                                                                        Deutsche Bank                                4         3          13      20                 Rothstein, Kass & Co.                               8           20              2        30
                                                                        Goldman Sachs Group, Inc.                    4         1           6      11       19        Lehigh University                                   8           20              1        29
                                                                        Lehman Brothers                              4         5          10      19       20        Morgan Stanley                                      9           18              1        28
                                                                        Navigant Consulting                          4         5          10      19       21        JPMorgan Chase & Co.                                7           15              5        27
                                                                        The Vanguard Group                           4         4           7      15       22        Coopers & Lybrand1                                 25            0              0        25
                                                                 20     Huron Consulting Group                       3         0           4       7                 Electronic Data Systems (EDS)                      23            2              0        25
                                                                        Johnson & Johnson                            3        14          18      35                 General Motors                                     14           11              0        25
                                                                        Langan Engineering & Environ. Services       3         6          12      21       25        Allied Signal, Inc.                                24            0              0        24
                                                                        Sunoco, Inc.                                 3         4           8      15       26        Northrop Grumman                                    0           22              0        22
{




                                                                                                                                                                                                                                                                                          }
                                                                        United Parcel Service (UPS)                  3         1          15      19                 Raytheon Company                                   15            6              1        22
                                                                                                                                                                     UBS                                                 8           12              2        22
                                                                 Other Employers Hiring More Than One Lehigh Graduate                                      29        Clark Construction Group                            9            8              4        21
                                                                                                                                                                     Langan Engineering & Environ. Services              6           12              3        21
                                                                 Bear Stearns & Co.                              Procter & Gamble
                                                                                                                                                                     Lucent Technologies                                16            5              0        21
                                                                 Bechtel Bettis, Inc.                            Rothstein, Kass & Co.
                                                                                                                                                           32        Deutsche Bank                                       3           13              4        20
                                                                 Boston Engineering Company                      Schering-Plough
                                                                 Citigroup                                       SEI Investments                           33        Lehman Brothers                                     5           10              4        19
                                                                 ExxonMobil Corporation                          Torcon                                              Lutron Electronics Company                         12            6              1        19
                                                                 Interarch Design, Inc.                          The Trane Company                                   Navigant Consulting                                 5           10              4        19
                                                                 Jefferson Hospital                              Turner Corporation                                  United Parcel Services (UPS)                        1           15              3        19
                                                                 KidsPeace                                       UBS
                                                                 L-3 Communications                              Viecore, Inc.
                                                                                                                                                           1Prior to 1998 listed separately. Listed jointly as PricewaterhouseCoopers since 1998.
                                                                 Linen & Things                                  Walgreens

                                 10                                                                                                                                                                                                                                    11
                                                                       0.8



                                                                   0.6



                                                                  0.4



                                                                 0.2



                                                                 0.0




                                                                             Graduate and Professional                                                                  Graduate Schools Matriculated to in 2005
                                                                                                                                                                        Partial Listing
                                                                             School Choices
                                                                                                                                                                        University of Alabama                     Miami University of Ohio
                                                                                                                         All Colleges                                   Albany Medical School                     University of New Hampshire
                                                                                                                                                                        American University Law School            New York College of Osteopathic Medicine
                                                                                                                    Education     Business
                                                                                                                      11%
                                                                                                                                                                        Arcadia University                        New York University
                                                                                                                                    7%
                                                                                                                                             Other (or Unknown)
                                                                                                                                             3%                         Boston University                         New York Medical School
                                                                                                                                                  Natural Sciences      Boston University Medical School          University of North Carolina (Chapel Hill)
                                                                                                                                                  8%
                                                                                                                                                                        Brandeis University                       North Carolina State University
                                                                                           Engineering                                                                  Brown University                          University of Notre Dame
}




                                                                                                                                                                                                                                                                            {
                                                                                                                                                                                                                                                                            {
                                                                                              21%
                                                                                                                                                      Law
                                                                                                                                                                        Benjamin Cardozo Law School               Ohio State University
U N D E R G R A D U AT E P L A C E M E N T R E P O R T 2 0 0 5




                                                                                                                                                                                                                                                                 U N D E R G R A D U AT E P L A C E M E N T R E P O R T 2 0 0 5 }
                                                                                                                                                                                                                                                                 U N D E R G R A D U AT E P L A C E M E N T R E P O R T 2 0 0 4 }
                                                                                                                                                      8%
                                                                                                                                                                        University of Chicago                     Oregon State University
                                                                                                                                                                        University of Colorado                    University of Oregon
                                                                                                                                                                        Columbia University                       University of Pennsylvania
                                                                                                                                                  Humanities &
                                                                                                                                                  Social Sciences       Columbia University Medical School        University of Pennsylvania College
                                                                                                                                                       17%
                                                                                                                                                                        Cornell University                           of Optometry
                                                                                                    Health Professions
                                                                                                           25%                                                          Cornell Law School                        University of Pennsylvania Law School
                                                                                                                                                                        University of Delaware                    Pennsylvania State University

                                                                             • 36% of the respondents from the Class of 2005 chose to attend graduate or                Drexel University College of Medicine     Philadelphia College of Osteopathic Medicine
                                                                               professional school.*                                                                    Duke University School of Law             Pratt Institute
                                                                                                                                                                        Emerson College                           Purdue University
                                                                             • 87% of the Lehigh Class of 2005 who applied to allopathic (M.D.) medical schools
                                                                               with grade point averages (GPAs) of 3.48 or better were accepted. The national average   Emory University                          University of Rochester School of Medicine
                                                                               for acceptance of applicants with a 3.48 or better in those programs was 45%.                                                      Rutgers University
                                                                                                                                                                        University of Florida
                                                                             • Nationwide 67% of the Class of 2005 who applied to Law School were accepted to           Fordham University School of Law          Rutgers University School of Law- Newark
                                                                               one or more schools. At Lehigh the acceptance rate for seniors was 76%.                  George Washington University Law School   Seton Hall University
                                                                                                                                                                        University of Georgia                     SUNY – Albany
{




                                                                               *This 36% includes Lehigh President’s Scholars                                           Indiana State University                  Syracuse University School of Medicine
                                                                                                                                                                        Jefferson Medical College                 Temple University
                                                                                                                                                                        Johns Hopkins University                  Temple University School of Medicine
                                                                                                                                                                        Lehigh University                         Temple University Dental School
                                                                                                                                                                        University of Maryland                    Thomas Jefferson University
                                                                                                                                                                        Massachusetts Institute                   UMDNJ – New Jersey Medical School
                                                                                                                                                                           of Technology (MIT)                    UMDNJ – Robert Wood Johnson
                                                                                                                                                                        University of Michigan                    Yale University




                                 12                                                                                                                                                                                                                                                     13
               A-4

CURRENT POSITIONS OF 1996 AND 2001
 LEHIGH ACCOUNTING GRADUATES
SORT NAME                    CLASS POSITION
ALLEX. SUSANNE J               1996
ANGELLI. JOSEPH E              1996
                               1996                                                 Strategic InrigM                   New York
                               1996 Asrociate
                               1996 Special Pmjactr Manage!                         The Mentor Network                 BOIlO"
-               - -            1996
BLOOM. ASHLEY B                1998 Pnridenl                                        A l l e y Barren Conrulting, Inc   B o w Raton
BO.RQ-E  E ZABETn
          .           .        1998                                                 The Blue Roam                      Cambridge
CA-DER M A T l n E N G         1996 Dsrlvstlvss Trader                              111 Bmadway                        New York
CAMPBE..  A.REhE               1998 V l m Prssldsnt                                 Morgan Stanley Dean Witter         West Conrhohocken
CASTEh R CnARD S               19% Manager. A 8 ~ ~ r a n w I A d v 1 ~ 0 r ySNCS
                                                                        BUS         Emrt 6 Young                       Philadelphia
CHACHARONE. MELETIOS D         1996 A s s ~ ~ ~ a t e l L a w e r                   Glickmm Sugarmm Kneeiand &         Womder
                               1996 senior ~ a n a g e r                            KPMG LLP                           Phlladelphla
                               1996 Vice Prerldem. CAO Equity Cspilsl Management    Lehman Brothers. Inc.              New York
                               1996 ~
                                ..
CLEMENT. SUSAN A               1996                                                 Quest Oiagnolliu                   Lyndhurd
D'AMBROS 0 M.CnAE. R           1996 Doctoral Sludenl(Muric Composltlon)             Unlverslty 01 Cincinnati           Cincinnati
D EFEhDERFERCRENS S A WI L     1996 Amuntard                                        Cunis specially Papen              Milford
D RKES STEPnEh K               1996 V i m President                                 DRsdner Klelnwon Warrerrtein       Chicago
€2
--0 AhSKV CnR,STOPnER          1998 Diredor Mergers a A c q ~ i ~ i t l o n r       ACE Asrsl Management               New York
FANELLI JOSEPH P               1996 Sr. Manager                                     KPMG LLP                           Philadelphia
                               1996 Contract Soecislbn                              PEO EIS. PM DCS-P                  FOn Monmouth
                               1996
                               1996 Acting V i m President                          Bank of New York                   New Yolk
        -    .
            .-                 1996 Financial Analvnl                               Firn USA Bank                      Wiimington
GELFAND LORI S

                                                                                    Drucker 6 Swccehi, P.C.            Philadelphia
                                                                                    Uniryr Corporation                 Blue Bell
        -   -                                                                       Marma Gund Bund & Dzera LLC        New York
HASKINS AKITO J                                                                     Fleet Bank                         New York
                               1996    Controller                                   Eastern Research Inc               Moorestown
                               1996    Aririoclate                                  Won Block Schorr & Soiio Cohe      Philadelphia
        -                      1996    Produdion                                    PLlrDmOUnl pictures                LO3 Mgeles
HUNTER JEFFREY R               1996    Ooaml~anrManager                             Humer Door Service Inc             Maple Shade
                               1996    idilarl~ccauntait
                               1996    controller                                   Goldman Sachr                      NBW York
                               1996    Integration Consultant                       Primavela Systems, Inc             Bala Cynmd
                               1996    Psnner - COO                                 M b r i k Trading. LLC             New York
                               1996    Vice President. Controller                   Kallir. Philipr. Ross              New York
                               1996    Vice President                               JDK Management Co Inc              Bloomsburg
    -       -  .
. . . .. ., . . ...            1996    Dental Student
M A G W O L O . CARRISE M      1996
MAMOUNAS. EFTEHIA J            1996
                               1996
                               1996    Anamey                                       Deloine & Touche, LLP              MCLean
                               1996                                                 Fred Gellar Electrical             Long lrland

MOYER. LISA o                   1996   Accounting Satlware Consulting               App .eo Systems Asroc ales nc      Murryrville
O'SHAUGHNESSY. RYAN J           1998   ~ccounlant                                   AMETEK .AM0 E-ECTR C               Mission
PANAGAKO. PETER J               1996   Vice President, Investment                   SETORE F.....
                                                                                     ..
                                                                                    . . . .. nancal..                  Waitham
PLASKON. LYDIA A                1996   Senior Accountino Manaaef                    EOS Panners L.P.                   New Yolk
POLICARPO. MICHAEL D I1                                                             Gsnmore Globle lnvertmentr         Wart Conrhohocken
                                1996 Dlrsctol of Sales Planning                     FOXBroadwsling Company             New YOrk
                                1996 Vica President                                 LLR Pannars Inc.                   Phlladeiphla
                                1996 Senior Tax department
                                1996
                                                                                    Tallman. Huddarr 6 Sorrantino      Allentown
SAFT, ADAM H
SCHAFER. KRlSTlAN J
SERiNA. JAMES V JR.
SEYBERT, JOHN T                                                                     Rivkin. Radler. Krsmer. LLP        Uniondale
SHIN. JEANS                     1996                                                Deut~chl)B ~ n k                   New Y o h
SNOW. TARAA                     1996 Associate Finanm Manager                       Unilever                           TmmbUll
SOWERS, HEATHER R               199e
TAYLOR LAURAA                   1996 director of operation~l~onlroller              Jibe. Inc                          Tamp
                                1996
                                1996                                                Vishay Intsnschnology. Inc.
                                1996
                                1996 Pmdud Manager                                  B & G Foods, lnc
                                1996 Pmdud Manager. Consumer Sedion                 N3085
WALSH. JAMES C
YOST, BRIAN D                                                                       Agere Systems Inc.                 Allentown
ZANiNELLi. MITCHELL G                                                               Dsloitte & Touche                  San Franccrco
ARNOLD. ELLEN B
                               2001
                               2001
-.                             2001 Accountant                                      KPMG Peal Mawick                   Philadelphia
BOWERSOX. MARSHA J             2001 Associate, International Tar                    LaGuardis Community College        Long lrland City
BRICHTA, REBECCAA
BUSCHMANN, VANESSA M
       BONNYA
BUSTIN -.                                                                        Emst 8 Young                          New York
BYRNES DONALD J JR
                        2001   Auditor
                        2001   Assmiate                                          KPMG, LLP
                        2001
                        2W1
DEERY. CHRISTOPHER E    2001   Captain                                           1901 Market Street                    Philadelphia
                        2001   Analyst                                           ACCenture                             New York
                        2001   AccOuntanl                                        Ems1 8 Young                          New YOrk
          .   ---       2Wt                                                      Ern618 Young                          New YOrk
GASPAR MICHAEL P        2001

                                                                                 250 W. PTan                           Baltimore
                                                                                 Rothetein K a r r & Co                Roeeland


HASKINS, ZURIEL L       2001
HILLMAN, JOSHUA E       2001   Accountant, Pmpeny Accounting                      Merck & CO, Inc                      Whitehouse Statlon
HOOPS, CHERYL E         2001   Assistant Projen Manager. Alliance Services Division
JAIN. MARK              2001   Staff 11                                           Ernst& Young                         New York
JANES, BRIAN K          2001
LEV-HAR, OSHRY R        2001
LICATA, DAVID M         2001   CPA
LIDDELL, MICHAEL D      2001   Analyst                                           Goldman Sechr                         New York
LIN. WEI-CHUN           2001


                                                                                 KPMG                                  Baltimore

                                                                                                                       New York
MIN, EUGENE             2001
OESS. STEPHEN C         2001   Associate Accounten1                                                                      ~.
                                                                                 P r i ~ e w ~ t e r h o ~ ~ ~ C o ~ p ~ New YOrk
PAGEL. AMY M            2001   ~tan~ccountant                                    Rolhsteiln, Kaaa & Company              Roseland
POPE. ANDREA M          2001   Invertmen1 Anslyst                                BBR Pannera                             New York
                        2001                                                     Sony Corporation Of America             Pack Ridge
                        2001   ~lan~cc~untent                                    88 Perimeter Center East                Atlanla
                        2001   CPA                                               InterpubiicGmup                         New York
                        2001   Pmjen Manager
                        2001   Sr. Associate, AudiVRisk Advisory Srvcd           KPMG                                  New York
                        2001   Accoumsnt                                         AXA Equitable                         New Yolk
                        2001   Accoumlng Manager                                 O~~bleClick Inc.                      New YOrk
                        2001   Tax Conrunant                                     Emstand Young                         New York
                        2001   Vice Prerident                                    JP Morgan                             New York
                        2001   Associate - Matrimonial & Burinear Valuation Group
                                                                                 Vests Development Gmup                New York
                                                                                 Ernst 8 Young LLP                     New Yolk
                                                                                 Cmwn Cork & Seal Inc                  Philadelphia

                        2001 Audit Senior                                        Oeioine 8 Touche                      Philadelphia
                                                                                 75 Rockefeller Center                 New Yolk
                                                                                 KPMG                                  Shon Hills
                                                                                 LeBcauf Lamb Greene end MacRae        New YOrk
VARDARO. CHRISTOPHERA                                                            Oslolne 8 Touche                      JeriCho
             A-5

RESULTS OF LEARNING OBJECTIVE
     ASSESSMENT PROCESS
                                                                                                     May 26, 2006
                                LEHIGH UNIVERSITY
                       UNDERGRADUATE ACCOUNTING MAJOR
               ASSESSMENT OF LEARNING OBJECTIVES—SUMMARY REPORT
                                   SPRING 2006



 Learning Objective: 1A—Preparing and understanding general purpose financial statements for
 parties outside the firm.


1. To what extent did you achieve this program learning objective? How well were students able to
   perform the task, integrate the knowledge, and demonstrate understanding of this objective?

Accounting 151—Intro to Financial Accounting (Paul Gordon)
   • Learning objective achieved.
   • Students performed well on tests as well as in delivering their group project. The latter was an
       analysis of the financial statements of a public company including comparative analysis to a
       competitor or industry standard.

Accounting 311—Accounting Information Systems (James Hall)
   • The importance of internal controls is discussed in each chapter and each lecture as they pertain to
       SAS78, the COSO model and SOX, etc. The student’s attention is constantly drawn to the need for
       fundamental controls over systems and processes. Several projects relate specifically to these issues and
       the students perform well with them.

Accounting 315—Financial Accounting I (Erin Moore)
   • Very well. The results of examinations, homework review, and in-class discussions indicate that the
       students have demonstrated the ability to prepare and understand general purpose financial statements.

Accounting 316—Financial Accounting II (Karen Collins)
       Student understanding of the material covered varied. The majority of the students comprehended most of
       the material very well. However, about 15% had difficulty with the material.

Accounting 317—Advanced Financial Accounting (Heibatollah Sami)
   • Achieve this objective about 90% (done very well)
   • Using raw data, students were able to complete a consolidation worksheet leading to consolidated
       financial statements.

Accounting 318—Analysis of Financial Statements (James Largay)
       The entire course deals with understanding general purpose financial statements and using data
        therein to assess profitability and risk. Subject to variations among students, this objective is fully
        achieved.

2. Indicate the method(s) by which your response was measured.

Accounting 151—Intro to Financial Accounting (Paul Gordon)
   • Examination question on preparation and analysis of financial statements, including ratio analysis, i.e.
       Exam 1 Problem 4.
   • Group project required detailed analysis of financial statements of a public company.
                                                        2
Accounting 311—Accounting Information Systems (James Hall)
   • In class quizzes, exams 1 & 2, home work assignments, and internal control cases were used to implant a
       controls orientation in students. In addition, students write group term cases in which they embed control
       issues into the business scenarios and then provide remedial actions.

Accounting 315—Financial Accounting I (Erin Moore)
   • Examination 1: Problems 7, 9, 10, 11, 13
   • Examination 2: Problems 1 and 2
   • Final Examination: Problem 15
   • Homework assignments
       In-class discussions

Accounting 316—Financial Accounting II (Karen Collins)
       Primarily through three examinations: examination 1, 2 and the final. Comprehension of the material
       was also measured through homework and the ability to respond to questions during class.

Accounting 317—Advanced Financial Accounting (Heibatollah Sami)
   • Exercises, problems and exams were used in Accounting 317.
   • Also, students were provided examples that they had to complete.

Accounting 318—Analysis of Financial Statements (James Largay)
       Completion and discussion of daily out-of-class assignments; Exam 1, Problems 1 and 5; group financial
       statement analysis term project.

3. Did you make any changes this year to better achieve the learning of this objective, and if so, were those
   changes effective?

Accounting 151—Intro to Financial Accounting (Paul Gordon)
   • Distributed annual report (New Brunswick Scientific Company, Inc.) to use as real life example in class.

Accounting 311—Accounting Information Systems (James Hall)
   • I redesigned the course to focus on internal controls from the SOX perspective. Based on exam and quiz
       responses the change was effective.

Accounting 315—Financial Accounting I (Erin Moore)
   • First time teaching this course.

Accounting 316—Financial Accounting II (Karen Collins)
       I added some additional handout materials on the most difficult topics. This helped, but still there were
       some students who continued to have difficulty with the material.

Accounting 317—Advanced Financial Accounting (Heibatollah Sami)
   • No, this was my first time teaching this course at Lehigh University.

Accounting 318—Analysis of Financial Statements (James Largay)
       Yes. I varied problem assignments from prior years, and worked through and carefully explained solution
        transparencies as I sensed that students needed to be led very slowly through some solutions. I believe
        those changes were effective.

4. In the spirit of continuous improvement, what changes will you make to better the understanding of
   this learning objective.
                                                         3

Accounting 151—Intro to Financial Accounting (Paul Gordon)
   • Make more specific use of the annual report distributed to students in the area of financial statement
       format and presentations as well as calculations of financial ratios.

Accounting 311—Accounting Information Systems (James Hall)
   • N/A

Accounting 315—Financial Accounting I (Erin Moore)
       I am considering adding an annual report analysis element to the course.

Accounting 316—Financial Accounting II (Karen Collins)
   • Next year, I plan to change the order of the chapters covered. Going by the order of the text, the first
       four chapters (covered on the first exam) are appreciably easier than later chapters. Some students
       became overconfident of their ability to learn the material. They were surprised when they had
       difficulty in the later chapters.

Accounting 317—Advanced Financial Accounting (Heibatollah Sami)
   • I would try to cover, at least, one new chapter in Governmental Accounting to introduce the students
       to financial statements for governmental organizations.

Accounting 318—Analysis of Financial Statements (James Largay)
       To increase student focus and my eye contact, I will cluster the students—which only use about 1/3 of
       the seats—in the middle two rows of the classroom. I am also considering changing texts to bring
       new ideas/approaches and a new set of problems for which solutions are not widely available.



 Learning Objective: 1B—Use accounting information for decision-making by the firm.



1. To what extent did you achieve this program learning objective? How well were students able to
   perform the task, integrate the knowledge, and demonstrate understanding of this objective?

Accounting 152—Intro to Managerial Accounting (John W. Paul)
       The objective evidence and conversations with students indicate that students were proficient in their
        understanding of the role of accounting information in decision making.

Accounting 307—Fundamentals of Federal Income Tax (Stephen L. Liedtka)
       Based upon the quantitative evidence described below, as well as
       discussions with students both during and outside of class, I am confident that Accounting 307
       achieves this objective at a high level. The typical student is able to recognize the importance of
       accounting information and make optimal tax-related decisions given that information.

Accounting 324—Cost Accounting (David Hinrichs)
   • Students exhibited significant progress in expanding their ability to utilize accounting information
       including the identification of the relevant information required.

2. Indicate the method(s) by which your response was measured.

Accounting 152—Intro to Managerial Accounting (John W. Paul)
   • Hourly exams
                                                         4
    •   Final exam
    •   Homework assignments
    •   Class discussions
    •   Cases

Accounting 307—Fundamentals of Federal Income Tax (Stephen L. Liedtka)
       The following four exam questions directly assess student progress in meeting Objective 1b

                Midterm Short-answer Question #5, Part “a” (3 points)
                Midterm Short-answer Question #6 (5 points)
                Final Exam Short-answer Question #3 (5 points)
                Final Exam Short-answer Question #5 (5 points)

         Standard: Average student earns 12.6 out of 18 possible points (70%)
         Actual (For a random sample of 10 of my 28 students): 80.56%

Accounting 324—Cost Accounting (David Hinrichs)
   • Examination questions, homework assignments, case study and group budgeting project.
   • Comprehensive Final Exam which retested key material which was addressed in 3 prior exams during
       the semester.

3. Did you make any changes this year to better achieve the learning of this objective, and if so, were those
   changes effective?

Accounting 152—Intro to Managerial Accounting (John W. Paul)
       Each semester we modify problems and presentation, ask different questions to assure students
        understand the material. To be specific, a case focused on key organizational decisions.

Accounting 307—Fundamentals of Federal Income Tax (Stephen L. Liedtka)
   • I did not make any large-scale changes related to this course objective. I did, however, make numerous
        small adjustments to my lectures and other course content related to each of my learning objectives,
        including this one. As evidence that my changes are successful on an overall level, I note that I was able
        to significantly increase the amount of content covered in my course for the 2005-2006 academic year
        without any noticeable drop in overall student grades.

Accounting 324—Cost Accounting (David Hinrichs)
       This was the first semester I taught this particular course at Lehigh.

4. In the spirit of continuous improvement, what changes will you make to better the understanding of
   this learning objective.

Accounting 152—Intro to Managerial Accounting (John W. Paul)
       Increase the number of examples taken from current business news.

Accounting 307—Fundamentals of Federal Income Tax (Stephen L. Liedtka)
       Over the summer, I intend to create roughly 5 pages of self-study material that will convey objective
       information (e.g. basic tax rules) not adequately covered in the course textbook. This will allow me to
       remove the basic objective material from my lectures, and thus will allow me to spend more time
       fostering the development of critical thinking skills, including those related to developing tax strategies
       and making business decisions.

Accounting 324—Cost Accounting (David Hinrichs)
   • Expand Socratic approach and use of case studies which integrate multiple topical areas.
                                                        5



 Learning Objective: 1C—Understanding and assessing the information systems governing the flow of
 and control over financial information inside the firm.


1. To what extent did you achieve this program learning objective? How well were students able to
   perform the task, integrate the knowledge, and demonstrate understanding of this objective?

Accounting 311—Accounting Information Systems (James Hall)
   • The importance of internal controls is discussed in each chapter and each lecture as they pertain to
       SAS78, the COSO model and SOX, etc. The student’s attention is constantly drawn to the need for
       fundamental controls over systems and processes. Several projects relate specifically to these issues and
       the students perform well with them.

Accounting 320—Fundamentals of Auditing (Susan Toohey)
   • No major changes for this objective as the students have done well with the assessments in the past.
   • One additional case study was assigned.

2. Indicate the method(s) by which your response was measured.

Accounting 311—Accounting Information Systems (James Hall)
   • In class quizzes, exams 1 & 2, home work assignments, and internal control cases were used to implant a
       controls orientation in students. In addition, students write group term cases in which they embed control
       issues into the business scenarios and then provide remedial actions.

Accounting 320—Fundamentals of Auditing (Susan Toohey)
   • Graded case.

3. Did you make any changes this year to better achieve the learning of this objective, and if so, were those
   changes effective?

Accounting 311—Accounting Information Systems (James Hall)
   • I redesigned the course to focus on internal controls from the SOX perspective. Based on exam and quiz
       responses the change was effective.

Accounting 320—Fundamentals of Auditing (Susan Toohey)
   • Yes, provided the students with real life case scenario.

4. In the spirit of continuous improvement, what changes will you make to better the understanding of
   this learning objective.

Accounting 311—Accounting Information Systems (James Hall)
   • N/A

Accounting 320—Fundamentals of Auditing (Susan Toohey)
   • None
                                                       6


 Learning Objective: 2A—The roles played by accountants in society providing and ensuring the
 integrity of financial and other information



1. To what extent did you achieve this program learning objective? How well were students able to
   perform the task, integrate the knowledge, and demonstrate understanding of this objective?

Accounting 151—Intro to Financial Accounting (Paul Gordon)
   • Achieved objective through discussion and homework assignments. Objective was to introduce
       subject for the first time to students.

Accounting 320—Fundamentals of Auditing (Susan Toohey)
   • No major changes for this objective as the students have done well with the assessments in the past.
   • As this area was working very well, no changes were made.

2. Indicate the method(s) by which your response was measured.

Accounting 151—Intro to Financial Accounting (Paul Gordon)
   • Class discussion of homework assignments related to role of accountants as well as integrity of
       financial statements.

Accounting 320—Fundamentals of Auditing (Susan Toohey)
   • Class discussion of case study, exam essays

3. Did you make any changes this year to better achieve the learning of this objective, and if so, were those
   changes effective?

Accounting 151—Intro to Financial Accounting (Paul Gordon)
   • For spring 2006, we added end-of-chapter case problems from text for certain chapters that deal with
       ethics in accounting issues and the role of accountants. Cases discussed in class with students
       presenting their viewpoints.

Accounting 320—Fundamentals of Auditing (Susan Toohey)
   • No

4. In the spirit of continuous improvement, what changes will you make to better the understanding of
   this learning objective.

Accounting 151—Intro to Financial Accounting (Paul Gordon)
       N/A

Accounting 320—Fundamentals of Auditing (Susan Toohey)
   • None



   Learning Objective: 2B—The ethical and regulatory environment for accountants.


1. To what extent did you achieve this program learning objective? How well were students able to
   perform the task, integrate the knowledge, and demonstrate understanding of this objective?
                                                        7

Accounting 151—Intro to Financial Accounting (Paul Gordon)
   • Achieved objective through discussion and homework assignments. Objective was to emphasize the
       importance of the subject for students.

Accounting 307—Fundamentals of Federal Income Tax (Stephen L. Liedtka)
   • Based upon the quantitative evidence described below, as well as discussions with students both
       during and outside of class, I am confident that Accounting 307 achieves this objective at a high level.
       The typical student understands and can apply a large range of tax regulations; understands the
       process through which those regulations evolve; and understands both the legal and ethical
       considerations related to decision-making in a tax context.

Accounting 315—Financial Accounting I (Erin Moore)
   • Good. The results of examinations and in-class discussions indicate that the students have a general
       understanding of the ethical and regulatory environment for accountants.

Accounting 316—Financial Accounting II (Karen Collins)
       I was successful in achieving this program objective.

Accounting 317—Advanced Financial Accounting (Heibatollah Sami)
   • Not very well, only about 40% (mostly regulatory environment)
   • Given the nature of the course, students were able to answer question regarding the regulatory
       environment, especially, in the international context.

Accounting 320—Fundamentals of Auditing (Susan Toohey)
       No major changes for this objective as the students have done well with the assessments in the past.
       As this area was working very well, no changes were made.

2. Indicate the method(s) by which your response was measured.

Accounting 151—Intro to Financial Accounting (Paul Gordon)
   • Class discussion of homework assignments related to the ethical and regulatory environment for
       accountants.

Accounting 307—Fundamentals of Federal Income Tax (Stephen L. Liedtka)
       The following four exam questions directly assess student progress in meeting Objective 2b

                Midterm Short-answer Question #3 (5 points)
                Midterm Short-answer Question #7 (5 points)
                Final Exam Short-answer Question #4 (5 points)
                Final Exam Multiple Choice Question #19 (2 points)

         Standard: Average student earns 12.6 out of 18 possible points (70%)
         Actual (For a random sample of 10 of my 28 students): 78.82%

Accounting 315—Financial Accounting I (Erin Moore)
    • Examination 1: Problem 2
    • In-class discussions

Accounting 316—Financial Accounting II (Karen Collins)
       Ethical and regulatory issues were regularly discussed in class. Student understanding of and
       appreciation for ethical and regulatory issues in the accounting profession were measured by student
       participation in discussions on these topics.
                                                         8



Accounting 317—Advanced Financial Accounting (Heibatollah Sami)
   • An essay question, on one of the exams, was used to measure student understanding of the regulatory
       environment from an international prospective.

Accounting 320—Fundamentals of Auditing (Susan Toohey)
       Quizzes, exam, class discussion, executive who spoke with students

3. Did you make any changes this year to better achieve the learning of this objective, and if so, were those
   changes effective?

Accounting 151—Intro to Financial Accounting (Paul Gordon)
   • Added cases (problems from text) to allow students more actual discussion of this topic.

Accounting 307—Fundamentals of Federal Income Tax (Stephen L. Liedtka)
       The most substantial adjustment I made related to this objective was the addition of a 25-minute class
       discussion of the issues surrounding KPMG’s acknowledged involvement in abusive tax shelters.
       In addition, I made numerous small adjustments to my lectures and other course content related to each of
       my learning objectives, including this one. As evidence that my changes are successful on an overall
       level, I note that I was able to significantly increase the overall amount of content covered in my course
       for the 2005-2006 academic year without any noticeable drop in overall student grades.

Accounting 315—Financial Accounting I (Erin Moore)
   • First time teaching this course.

Accounting 316—Financial Accounting II (Karen Collins)
       No

Accounting 317—Advanced Financial Accounting (Heibatollah Sami)
   • No, this was my first year teaching this course at Lehigh University.

Accounting 320—Fundamentals of Auditing (Susan Toohey)
       No

4. In the spirit of continuous improvement, what changes will you make to better the understanding of
   this learning objective.

Accounting 151—Intro to Financial Accounting (Paul Gordon)
   • For fall 2006, we will again identify specific problems that address the integrity of financial
       information.

Accounting 307—Fundamentals of Federal Income Tax (Stephen L. Liedtka)
       I spent disproportionately too much time explaining the complicated tax issues related to the KPMG tax
       shelters relative to the learning objectives achieved. In the future, I will introduce more simplistic, but
       analogous examples to highlight the relevant regulatory and ethics concepts. I will continue to discuss the
       KPMG situation as well, but will limit my discussion to the most general issues involved.

Accounting 315—Financial Accounting I (Erin Moore)
   • The discussion of the current regulatory environment for accountants in the text is limited. This
       semester, I supplemented the information in the text with additional lecture time spent in this area.
                                                        9
        Going forward, I will consider providing the students with supplemental reading materials on the
        Sarbanes Oxley Act.

Accounting 316—Financial Accounting II (Karen Collins)
       Next spring when I teach the course again, I plan to require that students write an “issues” paper on an
       ethical or regularly topic.

Accounting 317—Advanced Financial Accounting (Heibatollah Sami)
   • None

Accounting 320—Fundamentals of Auditing (Susan Toohey)
       None



 Learning Objective: 2C—Business processes and analysis.



1. To what extent did you achieve this program learning objective? How well were students able to
   perform the task, integrate the knowledge, and demonstrate understanding of this objective?

Accounting 152—Intro to Managerial Accounting (John W. Paul)
       The objective evidence and conversations with students indicate that students were proficient in of a
       firm’s business processes and relevant analyses.

Accounting 311—Accounting Information Systems (James Hall)
       Students solve several cases as HW that requires an analysis of business processes. This is a substantial
       project, and all students demonstrated at least a basic competence. Failing this objective would prevent
       the student from continuing further in the course.

Accounting 320—Fundamentals of Auditing (Susan Toohey)
       No major changes for this objective as the students have done well with the assessments in the past.
       As this area was working very well, no changes were made.

2. Indicate the method(s) by which your response was measured.

Accounting 152—Intro to Managerial Accounting (John W. Paul)
       Homework assignments
       Hourly exams
       Final exam
       Class discussions
       Cases

Accounting 311—Accounting Information Systems (James Hall)
       See above. Cases and HW assignments are used to assess the student’s command of this material. In
       addition the group term project provides students with the opportunity to be creative in designing
       processes in their chosen business.

Accounting 320—Fundamentals of Auditing (Susan Toohey)
       Quizzes, exam, class discussion, 3 case studies

3. Did you make any changes this year to better achieve this learning objective, and if so, were those
   changes effective?
                                                        10
Accounting 152—Intro to Managerial Accounting (John W. Paul)
       Each semester we modify problems and presentation, ask different questions to assure students
       understand the material. To be specific, a case focused on the production process and related accounting
       issues of a real-world firm.

Accounting 311—Accounting Information Systems (James Hall)
       Yes – Students were required to structure their analysis of case process and controls in a format consistent
       with SOX recommendations.

Accounting 320—Fundamentals of Auditing (Susan Toohey)
       No

4. In the spirit of continuous improvement, what changes will you make to better the understanding of
   this learning objective.

Accounting 152—Intro to Managerial Accounting (John W. Paul)
       Modify the case assignment to include more breadth, different questions.

Accounting 311—Accounting Information Systems (James Hall)
       N/A

Accounting 320—Fundamentals of Auditing (Susan Toohey)
       None



    Learning Objective: 2D—Internal controls and security.



1. To what extent did you achieve this program learning objective? How well were students able to
   perform the task, integrate the knowledge, and demonstrate understanding of this objective?

Accounting 311—Accounting Information Systems (James Hall)
       As noted in response 1C, controls are a central theme of the course, everything revolve on this issue.

2. Indicate the method(s) by which your response was measured.

Accounting 311—Accounting Information Systems (James Hall)
       Out of class homework, exams, and in-class quizzes

3. Did you make any changes this year to better achieve the learning of this objective, and if so, were those
   changes effective?

Accounting 311—Accounting Information Systems (James Hall)
       Yes – refocused the course on SOX and the COSO model.

4. In the spirit of continuous improvement, what changes will you make to better the understanding of
   this learning objective.

Accounting 311—Accounting Information Systems (James Hall)
       N/A
                                                        11


 Learning Objective: 2E—Risk assessment and assurance for financial and non-financial reporting.



1. To what extent did you achieve this program learning objective? How well were students able to
   perform the task, integrate the knowledge, and demonstrate understanding of this objective?

Accounting 311—Accounting Information Systems (James Hall)
       This was addressed in 3 frames……identifying risk, addressing it, planning for it. Yes – students
       were able to recognize systems risks at a top level.

2. Indicate the method(s) by which your response was measured.

Accounting 311—Accounting Information Systems (James Hall)
       In-class discussion, text book readings, exam questions and the final term project.

3. Did you make any changes this year to better achieve the learning of this objective, and if so, were those
   changes effective?

Accounting 311—Accounting Information Systems (James Hall)
       Yes- focused on post 9/11 and SOX issues (physical security, disaster recovery planning, business
       continuity planning, etc.)

4. In the spirit of continuous improvement, what changes will you make to better the understanding of
   this learning objective.

Accounting 311—Accounting Information Systems (James Hall)
       N/A



    Learning Objective: 2F—Recording, analysis, and interpretation of historical and prospective financial
    and non-financial.



1. To what extent did you achieve this program learning objective? How well were students able to
   perform the task, integrate the knowledge, and demonstrate understanding of this objective?

Accounting 151—Intro to Financial Accounting (Paul Gordon)
       The entire course deals with this objective and was achieved. Students demonstrated this through
       daily classes.

Accounting 152—Intro to Managerial Accounting (John W. Paul)
       The objective evidence and conversations with students indicate that students were proficient in their
        understanding of how financial and nonfinancial information support the management of a firm.

Accounting 315—Financial Accounting I (Erin Moore)
   • Very well. The results of examinations, the financial reporting analysis case, homework review, and in-
       class discussions indicate that the students have demonstrated the ability to record, analyze and interpret
       historical financial information.
                                                        12
Accounting 316—Financial Accounting II (Karen Collins)
       Most students understood the material, although about 15% had difficulty.

Accounting 317—Advanced Financial Accounting (Heibatollah Sami)
   • Achieve this objective 100% (very well).
   • Students were able to solve examples provided by the instructor, exercises and problems.

Accounting 318—Analysis of Financial Statements (James Largay)
       This course focuses on the analysis and interpretation of historical and prospective financial information.
        We do very little of recording accounting events, and do not deal much with nonfinancial information.
        In my opinion, the portions of the learning objective that relate specifically to this course were well-
        achieved.

Accounting 324—Cost Accounting (David Hinrichs)
   • Project, case study and exam results taken as a whole indicate a proficiency in the development and
       interpretation of information required for effective management decision making.

2. Indicate the method(s) by which your response was measured.

Accounting 151—Intro to Financial Accounting (Paul Gordon)
       Problem assignments completed daily.
       Group projects report.
       Examinations (e.g. Exam 1, Problem 5; Exam 2, Problem 5, etc.)

Accounting 152—Intro to Managerial Accounting (John W. Paul)
       Homework assignments.
       Hourly exams.
       Final exam.
       Class discussions
       Cases

Accounting 315—Financial Accounting I (Erin Moore)
   • Examinations
   • Financial reporting analysis case
   • Homework review
   • In-class discussions

Accounting 316—Financial Accounting II (Karen Collins)
       Examinations (two examinations and a final), in-class discussions, homework.

Accounting 317—Advanced Financial Accounting (Heibatollah Sami)
   • Exercises, problems and exams were used in Accounting 317.
   • Also, students were provided examples that they had to complete.

Accounting 318—Analysis of Financial Statements (James Largay)
        Completion and discussion of daily out-of-class assignments; examination questions such as Exam
        1, Problem 2; Exam 2, Problems 1 and 7; Final Exam, Problem 5; group financial statement analysis
        project.
        The project requires a detailed comparative financial analysis of two companies in the same industry
        (15 pages plus exhibits), and is far more extensive than the introductory project required in ACCT
        151.
                                                        13
Accounting 324—Cost Accounting (David Hinrichs)
   • Examination questions, homework assignments and group project on budgeting.
   • Comprehensive Final Exam which retested key material which was addressed in three prior exams
        during the semester.

3. Did you make any changes this year to better achieve the learning of this objective, and if so, were those
   changes effective?

Accounting 151—Intro to Financial Accounting (Paul Gordon)
       Used annual report (provided to students) to emphasize material in more depth throughout the semester.

Accounting 152—Intro to Managerial Accounting (John W. Paul)
       No major changes from last semester.

Accounting 315—Financial Accounting I (Erin Moore)
   • First time teaching this course.

Accounting 316—Financial Accounting II (Karen Collins)
       I prepared additional handouts on the more complex topics.

Accounting 317—Advanced Financial Accounting (Heibatollah Sami)
   • No, this was the first time I was teaching this course at Lehigh University.

Accounting 318—Analysis of Financial Statements (James Largay)
       Yes. I varied problem assignments from prior years, and worked through and carefully explained solution
        transparencies as I sensed that students needed to be led very slowly through some solutions. I believe
        those changes were effective.

Accounting 324—Cost Accounting (David Hirnichs)
       This was the first semester I taught this particular course at Lehigh.

4. In the spirit of continuous improvement, what changes will you make to better the understanding of
   this learning objective.

Accounting 151—Intro to Financial Accounting (Paul Gordon)
       Although learning objectives were achieved, we have selected a new textbook for Fall 2005. We selected
       the Kimmel, Weygandt text which we consider to be more useable for students.

Accounting 152—Intro to Managerial Accounting (John W. Paul)
       Increase examples taken from current business news.

Accounting 315—Financial Accounting I (Erin Moore)
   • I am considering adding an annual report analysis element to the course.

Accounting 316—Financial Accounting II (Karen Collins)
       I plan to have some in-class quizzes to get earlier feedback on student understanding of complex
       materials.

Accounting 317—Advanced Financial Accounting (Heibatollah Sami)
   • I would try to cover, at least, one new chapter in Governmental Accounting to introduce the students
       to recording transactions, analyzing and interpreting the financial statements for governmental
       organizations.
                                                       14
Accounting 318—Analysis of Financial Statements (James Largay)
       To increase student focus and my eye contact, I will cluster the students—which only use about 1/3
        of the seats—in the middle two rows of the classroom. I am also considering changing texts to bring
        new ideas/approaches and a new set of problems for which solutions are not widely available.

Accounting 324—Cost Accounting (David Hinrichs)
   • Expand Socratic approach and use of case studies which integrate multiple topical areas.



   Learning Objective: 2G—Project and engagement management.



1. To what extent did you achieve this program learning objective? How well were students able to
   perform the task, integrate the knowledge, and demonstrate understanding of this objective?

Accounting 311—Accounting Information Systems (James Hall)
       This topic was dealt with less thoroughly than process and controls; the objective, however, was met.
       Students demonstrated their understanding in exams questions.

Accounting 320—Fundamentals of Auditing (Susan Toohey)
       Satisfactory
       Able to apply knowledge through activities in #2.

2. Indicate the method(s) by which your response was measured.

Accounting 311—Accounting Information Systems        (James Hall)
       Exams and in-class quizzes.

Accounting 320—Fundamentals of Auditing (Susan Toohey)
       Quizzes
       Class participation based on reading
       Exams
       Case Study

3. Did you make any changes this year to better achieve the learning of this objective, and if so, were those
   changes effective?

Accounting 311—Accounting Information Systems (James Hall)
       Yes – this topic was addressed as an element of SDLC and program change procedures.

Accounting 320—Fundamentals of Auditing (Susan Toohey)
       Added in-class activities on work papers and audit evidence – yes.

4. In the spirit of continuous improvement, what changes will you make to better the understanding of
   this learning objective.

Accounting 311—Accounting Information Systems (James Hall)
       N/A

Accounting 320—Fundamentals of Auditing (Susan Toohey)
       N/A
                                                         15


 Learning Objective: 2H—Design and application of technology to financial and non-financial
 information and management.



1. To what extent did you achieve this program learning objective? How well were students able to
   perform the task, integrate the knowledge, and demonstrate understanding of this objective?

Accounting 311—Accounting Information Systems (James Hall)
       This is a key component of the course. Students are required to redesign manual and low level
       technology processes to include advanced technology.

2. Indicate the method(s) by which your response was measured.

Accounting 311—Accounting Information Systems (James Hall)
       Exam question, HW assignments and three process/internal control cases are used to assess student’s
       ability.

3. Did you make any changes this year to better achieve the learning of this objective, and if so, were those
   changes effective?

Accounting 311—Accounting Information Systems (James Hall)
       Yes – I spent more time going over the solution to the cases in class.

4. In the spirit of continuous improvement, what changes will you make to better the understanding of
   this learning objective.

Accounting 311—Accounting Information Systems (James Hall)
       More review of homework problems will take place next semester.



Learning Objective: 2I—Tax policy, strategy and compliance for individuals and enterprises.



1. To what extent did you achieve this program learning objective? How well were students able to
   perform the task, integrate the knowledge, and demonstrate understanding of this objective?

Accounting 307—Fundamentals of Federal Income Tax (Stephen L. Liedtka)
       Accounting 307 is the primary course that meets this objective and does so at an extremely high
       level. This assessment is based, in part, upon the quantitative evidence described below, but also
       on strong, positive feedback from employers and alumni in the tax field. Upon completing the
       course, the typical Accounting 307 student has an advanced understanding and ability to apply
       knowledge related to tax policy, strategy and compliance.

2. Indicate the method(s) by which your response was measured.

Accounting 307—Fundamentals of Federal Income Tax (Stephen L. Liedtka)
       I assess the tax policy and tax strategy elements of this objective via the exam questions listed as part
       of learning objectives 2b and 1b, respectively. I assess the tax compliance aspect of this learning
       objective via the following six exam questions:
                                                         16

        Tax Compliance for Business-related Income and Expenses:
              Midterm Multiple Choice Question #5 (2 points)
              Final Exam Short-answer Question #7 (5 points)
              Final Exam Short-answer Question #8 (5 points)

        Tax Compliance for Personal (Non-business) Income and Expenses:
              Midterm Short-answer Question #2 (5 points)
              Midterm Short-answer Question #4 (5 points)
              Final Exam Multiple Choice Question #15 (2 points)

         Standard: Average student earns 16.8 out of 24 possible points (70%)
         Actual (For a random sample of 10 of my 28 students): 79.17%

3. Did you make any changes this year to better achieve the learning of this objective, and if so, were those
   changes effective?

Accounting 307—Fundamentals of Federal Income Tax (Stephen L. Liedtka)
         Each semester, I make numerous adjustments to my lectures, exams and assignments based upon
         student questions, comments, exam results, etc. As one example, several students came to me during
         the Spring 2005 semester with the same question regarding the tax treatment of income earned abroad.
         I thus revised that section of my lectures and did not receive any similar questions during the 2005-
         2006 academic year. Other evidence regarding the effectiveness of my changes is found in the fact that
         I am able to increase the amount of course content every academic year without any noticeable drop in
         overall student grades.

4. In the spirit of continuous improvement, what changes will you make to better the understanding of
   this learning objective.

Accounting 307—Fundamentals of Federal Income Tax (Stephen L. Liedtka)
         Over the summer, I intend to create roughly 5 pages of self-study material that will convey objective
         information (e.g. basic tax rules) not adequately covered in the course textbook. This will allow me to
         remove the basic objective material from my lectures, and thus will allow me to spend more time
         fostering the development of critical thinking skills, including those related to developing tax strategies
         and making business decisions.



   Learning Objective: 3A—Ability to communicate effectively.


1. To what extent did you achieve this program learning objective? How well were students able to
   perform the task, integrate the knowledge, and demonstrate understanding of this objective?

Accounting 151—Intro to Financial Accounting (Paul Gordon)
       Objective achieved

Accounting 152—Intro to Managerial Accounting (John W. Paul)
       The objective evidence and conversations with students indicate that students became more proficient
        in their communication skills over the course of the semester.

Accounting 307—Fundamentals of Federal Income Tax (Stephen L. Liedtka)
       Accounting 307 entails significant classroom discussion, which leads to improved oral
       communication skills. In addition, each student must write a 5-6 page research paper. An English
                                                        17
        Department doctoral student assigns a writing grade to each paper, which accounts for 25% of the
        overall project grade. In addition to the quantitative evidence provided below, evidence that
        Accounting 307 leads to improved written communication skills is evidenced by the fact that five
        of my students have each won a prestigious “Williams Award” for writing excellence from
        Lehigh over the past five years for their Accounting 307 papers.

Accounting 311—Accounting Information Systems (James Hall)
       Written communications were achieved. Limited emphasis was placed on verbal communications.

Accounting 315—Financial Accounting I (Erin Moore)
   • Good. The results of examinations, the financial reporting analysis case, homework review, and in-class
       discussions indicate that the students have demonstrated the ability to communicate effectively.

Accounting 316—Financial Accounting II (Karen Collins)
       Students actively communicated in class. However, because I did not assign any essay questions or
       papers, I did not obtain a measure of written communication.

Accounting 317—Advanced Financial Accounting (Heibatollah Sami)
   • Achieve this objective about 90% (done very well)
   • Students were able to effectively prepare two comprehensive reports on their group projects (WSJ merger
       and acquisition project and a research paper regarding an issue of interest to accountants) and answer
       essay questions on the exams.
   • Students also did very well expressing themselves during class discussions.

Accounting 318—Analysis of Financial Statements (James Largay)
       Although the course worked on ability to communicate effectively in connection with the subject matter,
       cannot say that the result was completely encouraging.

Accounting 320—Fundamentals of Auditing (Susan Toohey)
       No major changes for this objective as the students have done well with the assessments in the past.
       As this area was working very well, minor changes were made.

Accounting 324—Cost Accounting (David Hinrichs)
   • Students did very well in terms of the quality and content of their written and oral presentations
       related to their group projects.

2. Indicate the method(s) by which your response was measured.

Accounting 151—Intro to Financial Accounting (Paul Gordon)
       Class participation, especially related to daily homework assignments.
       Group project required to be presented in class; i.e., analysis of financial statements of a public company.

Accounting 152—Intro to Managerial Accounting (John W. Paul)
       Through use of the Socratic method in class discussions and group project presentations.

Accounting 307—Fundamentals of Federal Income Tax (Stephen L. Liedtka)
         I require each Accounting 307 student to write a 5-6 page research paper. An English Department
         Doctoral student assigns a writing grade to each paper, which accounts for 25% of the overall
         project grade.
         Standard: Average student earns a writing grade of 17.5 points out of 25 possible points (70%).
         Actual (For a random sample of 10 of my 28 students): 83.00%
                                                        18
Accounting 311—Accounting Information Systems (James Hall)
       The group project explored this area. From time to time, in-class exercises offered the students the
       opportunity to verbally present their teams solutions.

Accounting 315—Financial Accounting I (Erin Moore)
   • Examinations
   • Financial reporting analysis case (written assignment)
   • Homework review
   • In-class discussions

Accounting 316—Financial Accounting II (Karen Collins)
       Oral communication skills were measured by student participation in class discussions. Written
       communication skills were not assessed.

Accounting 317—Advanced Financial Accounting (Heibatollah Sami)
   • Essay questions on the exams, written reports for group projects, and participation in the class
       discussions.

Accounting 318—Analysis of Financial Statements (James Largay)
       Written and oral presentation of financial statement analysis term project: my response is based
        mostly on the group term project in which each student participated in the writing of the paper and in
        the 30-minute in-class presentation. The oral presentations were generally well done but the papers
        were not well written. Students’ abilities to orally communicate in class are uneven but are better
        than their written communications.

Accounting 320—Fundamentals of Auditing (Susan Toohey)
       Journal articles and discussion, case studies and discussion, discussion of pending litigation and
       making sense of what was happening from an audit perspective.

Accounting 324—Cost Accounting (David Hinrichs)
   • Class discussion, written and oral presentation of group projects.

3. Did you make any changes this year to better achieve the learning of this objective, and if so, were those
   changes effective?

Accounting 151—Intro to Financial Accounting (Paul Gordon)
       Provided more precise guidance on what was expected of students in preparing and delivering their
       written and oral reports.

Accounting 152—Intro to Managerial Accounting (John W. Paul)
       No significant changes.

Accounting 307—Fundamentals of Federal Income Tax (Stephen L. Liedtka)
       The most substantial adjustments I made related to this objective were (1) more frequent reminders to my
       students that I take the writing portion of their paper grades seriously (especially during Spring 2006) and
       (2) the provision of information regarding an on-line writing guide for students. I do think the warnings
       had an impact as evidenced by the fact that my writing grader assigned significantly fewer grades of
       “below average” than in previous semesters and no grades of “unacceptable.”

Accounting 311—Accounting Information Systems (James Hall)
       No
                                                        19
Accounting 315—Financial Accounting I (Erin Moore)
   • First time teaching this course.

Accounting 316—Financial Accounting II (Karen Collins)
       No

Accounting 317—Advanced Financial Accounting (Heibatollah Sami)
       No, this was the first time teaching this course at Lehigh University.

Accounting 318—Analysis of Financial Statements (James Largay)
       I did not make any changes this year (see also #4).

Accounting 320—Fundamentals of Auditing (Susan Toohey)
       Reference to ongoing cases in the audit profession.

Accounting 324—Cost Accounting (David Hinrichs)
       This was the first semester I taught this particular course at Lehigh

4. In the spirit of continuous improvement, what changes will you make to better the understanding of
   this learning objective.

Accounting 151—Intro to Financial Accounting (Paul Gordon)
       None planned.

Accounting 152—Intro to Managerial Accounting (John W. Paul)
       Add supplemental materials dealing with effective communications. Have students write memos with
        regard to cases. Have student team’s present cases.

Accounting 307—Fundamentals of Federal Income Tax (Stephen L. Liedtka)
       In the future, I intend to provide information to help students understand the differences between
       professional and creative writing.

Accounting 311—Accounting Information Systems (James Hall)
       N/A

Accounting 315—Financial Accounting I (Erin Moore)
   • N/A.

Accounting 316—Financial Accounting II (Karen Collins)
       Next spring when I teach the course, I plan to require that students write a paper (which will be
       evaluated in part on how well it is written).

Accounting 317—Advanced Financial Accounting (Heibatollah Sami)
       None

Accounting 318—Analysis of Financial Statements (James Largay)
       Realistically, I do not think I can make any viable changes in ACCT 318 that will improve students’
       writing skills. The term papers contained a few errors on the technical material but many more
       expositional/stylistic errors. Students need instruction and practice (with feedback) on writing clearly and
       effectively. I could emphasize the importance of written communication more—along with all the other
       things I am emphasizing—and will consider a shorter writing assignment earlier in the course to identify
       students that really need help. As long as the enrollment cooperates in Spring 2007 I will pursue this.
                                                       20
Accounting 320—Fundamentals of Auditing (Susan Toohey)
       More real life experiences to discuss

Accounting 324—Cost Accounting (David Hinrichs)
   • Increase content on how-to aspects of effective oral and written communication of group project and
       case results via supplemental resources and classroom discussion.



 Learning Objective: 3B—An understanding of organizational dynamics and cross-functional business
 processes.



1. To what extent did you achieve this program learning objective? How well were students able to
   perform the task, integrate the knowledge, and demonstrate understanding of this objective?

Accounting 311—Accounting Information Systems (James Hall)
       This course teaches how a company operates. Students are interested in hearing what actually
       happens in the real world.

2. Indicate the method(s) by which your response was measured.

Accounting 311—Accounting Information Systems (James Hall)
       In-class quizzes, exam questions and HW.

3. Did you make any changes this year to better achieve the learning of this objective, and if so, were those
   changes effective?

    Accounting 311—Accounting Information Systems (James Hall)
       No

4. In the spirit of continuous improvement, what changes will you make to better the understanding of
   this learning objective.

Accounting 311—Accounting Information Systems (James Hall)
       N/A



 Learning Objective: 3C—The ability to think critically.



1. To what extent did you achieve this program learning objective? How well were students able to
   perform the task, integrate the knowledge, and demonstrate understanding of this objective?

Accounting 151—Intro to Financial Accounting (Paul Gordon)
       Learning objective achieved.

Accounting 152—Intro to Managerial Accounting (John W. Paul)
       The objective evidence and conversations with students indicate that students improved their critical
        thinking skills as they related to the use of accounting information to support the operations of a
        business.
                                                          21

Accounting 307—Fundamentals of Federal Income Tax (Stephen L. Liedtka)
       Accounting 307 meets this objective at a high level. Classroom discussions, homework
       assignments and examinations all ensure that students frequently develop and apply their critical
       thinking skills.

Accounting 311—Accounting Information Systems (James Hall)
       Yes—to some extent. Once again, the students’ general lack of “business savvy” made this more difficult
       to get across.

Accounting 315—Financial Accounting I (Erin Moore)
   • Very well. The results of examinations, the financial reporting analysis case, homework review, and in-
       class discussions indicate that the students have demonstrated the ability to think critically.

Accounting 316—Financial Accounting II (Karen Collins)
       This learning objective was successful for most students.

Accounting 317—Advanced Financial Accounting (Heibatollah Sami)
   • Achieve this objective 75% (better than average)
   • Students were able to demonstrate their ability by solving examples, exercises and problems.

Accounting 318—Analysis of Financial Statements (James Largay)
       I believe the objective of getting the students to think critically was achieved. ACCT 318 focuses on
        analysis and interpretation, not on memorization.

Accounting 320—Fundamentals of Auditing (Susan Toohey)
       No major changes for this objective as the students have done well with the assessments in the past.
       As this area was working very well, no changes were made.

Accounting 324—Cost Accounting (David Hinrichs)
       Students exhibited growth in this area over the course of the semester.
       As an example, results of their third group project reflected their ability to effectively relate
       organizational change issues to the challenges of management accounting.

2. Indicate the method(s) by which your response was measured.

Accounting 151—Intro to Financial Accounting (Paul Gordon)
       Examination
       Class discussion on homework assignments
       Group project

Accounting 152—Intro to Managerial Accounting (John W. Paul)
       Use of Socratic method, cold calling, and asking students to explain not only the accounting, but also
       the business meaning of the item in the problem. For example when products are sold in a
       merchandising company, there are two distinct business events. We ask what those events are and
       also ask the students to explain what physically happens at the company. This type of question
       addresses the two overarching objectives of the course: (1) to understand the operations of a
       company, and (2) to understand how to account for those operations. Students became much better at
       answering these questions as the semester progressed. Students are evaluated on the basis of their
       participation in class.

Accounting 307—Fundamentals of Federal Income Tax (Stephen L. Liedtka)
       The following two exam questions directly assess student progress in meeting Objective 2b:
                                                        22
                Midterm Short-answer Question #1 (5 points)
                Final Exam Short-answer Question #6 (5 points)

         Also, I require each Accounting 307 student to write a 5-6 page research paper due during the last
         class of the semester. Directions for the assignment specifically require each student to (1)
         determine the applicability of classroom material to his/her setting and (2) incorporate original
         analyses and conclusions. I will assess each student’s success in completing these requirements
         based upon a 1-20 scale. (20 points)

         Standard: Average student earns 21 points out of 30 possible points (70%)
         Actual (For a random sample of 10 of my 28 students): 81.83%

Accounting 311—Accounting Information Systems (James Hall)
       In addition to the homework problems, all exams included at least one “analysis” question where students
       had to analyze facts, data associated with a business scenario and then recommend a solution, correction,
       etc.

Accounting 315—Financial Accounting I (Erin Moore)
   • Examinations
   • Financial reporting analysis case
   • Homework review
   • In-class discussions

Accounting 316—Financial Accounting II (Karen Collins)
       In-class discussions, homework, and examinations. The topics that were most helpful in developing
       student’s critical thinking skills were the following: Earnings per share, deferred taxes, pensions, and
       leases.

Accounting 317—Advanced Financial Accounting (Heibatollah Sami)
   • Exercises, problems and exams were used in Accounting 317.
   • Also, students were provided examples that they had to complete.

Accounting 318—Analysis of Financial Statements (James Largay)
       I use the Socratic Method in class whereby I try to get students to explain the topic or the problem
        assignment, and to comment critically on data presented to them. Also, Exam 1, Problem 3; Exam 2,
        Problem 2; and Final Exam, Problem 1 are questions of an interpretive nature.
       The term project asks for students’ assessments of the companies they chose to analyze, not just for them
        to report the results.

Accounting 320—Fundamentals of Auditing (Susan Toohey)
       Journal articles and discussion, case studies and discussion, discussion of pending litigation and making
       sense of what was happening from an audit perspective.

Accounting 324—Cost Accounting (David Hinrichs)
   • Examination questions, homework assignments and case study.

3. Did you make any changes this year to better achieve the learning of this objective, and if so, were those
   changes effective?

Accounting 151—Intro to Financial Accounting (Paul Gordon)
       None

Accounting 152—Intro to Managerial Accounting (John W. Paul)
                                                         23
        Continue to improve on the Socratic method, for example, by changing the scenario and asking “what if “
        questions. For example, when reviewing the fixed overhead volume variance, asked “What would it
        mean, from an operations standpoint, if the variance were positive instead of negative?”

Accounting 307—Fundamentals of Federal Income Tax (Stephen L. Liedtka)
       The most substantial adjustment I made related to this objective was the creation of a self-study guide for
       students on the topic of certain job-related expenses. This allowed me to shorten my discussion of basic
       objective facts and to increase the class time spent critically analyzing the relevant laws and their
       potential applications. Students clearly appreciated the more lengthy discussion, and were able to
       generate extremely insightful comments and questions.

        In addition, I made numerous small adjustments to my lectures and other course content related to each of
        my learning objectives, including this one. As evidence that my changes are successful on an overall
        level, I note that I was able to significantly increase the overall amount of content covered in my course
        for the 2005-2006 academic year without any noticeable drop in overall student grades.

Accounting 311—Accounting Information Systems (James Hall)
       More in-class time devoted to this.

Accounting 315—Financial Accounting I (Erin Moore)
   • First time teaching this course.

Accounting 316—Financial Accounting II (Karen Collins)
       Prepared additional handout materials.

Accounting 317—Advanced Financial Accounting (Heibatollah Sami)
   • No, this was the first time teaching this class at Lehigh University.

Accounting 318—Analysis of Financial Statements (James Largay)
   • No changes were needed and none were made.

Accounting 320—Fundamentals of Auditing (Susan Toohey)
       No

Accounting 324—Cost Accounting (David Hinrichs)
       This was the first semester I taught this particular course at Lehigh.

4. In the spirit of continuous improvement, what changes will you make to better the understanding of
   this learning objective.

Accounting 151—Intro to Financial Accounting (Paul Gordon)
       None planned

Accounting 152—Intro to Managerial Accounting (John W. Paul)
       Modify assignments to include more complex problems/cases.

Accounting 307—Fundamentals of Federal Income Tax (Stephen L. Liedtka)
       Over the summer, I intend to create roughly 5 pages of self-study material that will convey objective
       information (e.g. basic tax rules) not adequately covered in the course textbook. This will allow me to
       remove the basic objective material from my lectures, and thus will allow me to spend more time
       fostering the development of critical thinking skills, including those related to developing tax strategies
       and making business decisions.
                                                       24
Accounting 311—Accounting Information Systems (James Hall)
       N/A

Accounting 315—Financial Accounting I (Erin Moore)
   • I am considering adding an annual report analysis element to the course.

Accounting 316—Financial Accounting II (Karen Collins)
       I plan to give some quizzes to get feedback on the ability of students to master complex topics (as
       the topics are being taught – not just prior to an examination).

Accounting 317—Advanced Financial Accounting (Heibatollah Sami)
   • Assign more challenging exercises and problems.

Accounting 318—Analysis of Financial Statements (James Largay)
       To increase student focus and my eye contact, I will cluster the students—which only use about 1/3 of
        the seats—in the middle two rows of the classroom. I am also considering changing texts to bring
        new ideas/approaches and a new set of problems for which solutions are not widely available.

Accounting 320—Fundamentals of Auditing (Susan Toohey)
       No

Accounting 324—Cost Accounting (David Hinrichs)
   • Expand Socratic approach and use of case studies which integrate multiple topical areas.
                            LEHIGH UNIVERSITY
                    COLLEGE OF BUSINESS AND ECONOMICS
                    ASSESSMENT OF LEARNING OBJECTIVES
                   CONTINUOUS IMPROVEMENT WORKSHEET
                                       SUMMARY

Program: MSAIA                                 Semester Reviewed:         Spring, 2006

Completed by: _____J.W. Paul______________ Date Completed: __5/23/06__________




                                 MSAIA PROGRAM MAPPING MATRIX
                                         CORE COURSES

                                           Program Learning Objectives
                        MACC Core
                         Courses     LO1         LO2       LO3           LO4
                          M401        X
                          M412        X                      X           X
                          M413        X           X
                          M420        X                      X           X
                          M424        X           X          X           X
                          M427        X           X          X


                                     Learning Objectives

               LO1    Gain an understanding of business challenges and
                      processes in a global environment with a clear awareness
                      of corporate responsibilities and ethics.

               LO2    Understand the role of accounting in providing
                      information for capital market decisions and tools for
                      business solutions.

               LO3    Gain an understanding of business risk and controls from
                      several perspectives including advising, assurance,
                      managerial, and information processing.

               LO4    Master the process of managing professional engagements
                      relating to advisory, auditor risk management, and
                      attestation responsibilities.
                                                   2

Learning Objective (e.g., L01):    L01                      Course MACC 413, 427


1. To what extent did you achieve this program learning objective? How well were students able
   to perform the task, integrate the knowledge, and demonstrate understanding of this objective?

   MACC 413
   Students were thoroughly sensitized to (1) their professional responsibilities and (2) corporate
   ethical challenges, in a global environment. That they had integrated these issues was evident to
   me when they presented their term projects. Thus the course achieved objective L01.

   MACC 427
   As a capstone course, MACC 427 revolves around understanding business challenges and
   processes. We use case studies, primarily Harvard Business School cases, as a vehicle for
   learning the material. Several cases, including the Asea Brown Boveri, Compagnie du Froid, and
   Western Chemical Corporation, deal with international issues. Students write up the cases. Some
   cases are individual assignments; others are worked on as a team effort. Students’ class
   discussions of these cases demonstrated an excellent grasp of the issues.


2. Indicate the method(s) by which your response was measured.

   MACC 413
   The course emphasizes corporate responsibilities and ethical challenges from day 1 when we
   begin discussing information asymmetry and its implications in public reporting and internal
   contracting. Classroom discussion and out-of-class assignments in these areas are particularly on
   point: economic consequences and positive accounting theory, game-theoretic approaches to
   public reporting issues, executive compensation, earnings management and standard-setting. An
   accounting professor in Canada is the author of the principal text in the course, and naturally
   provides somewhat of an international flavor.

   Although the financial reporting environment in the U.S. is the principal focus of this course, the
   three classes taught by KPMG professionals tied the course materials to the international business
   environment and the international financial reporting standards (IFRS).

   Exam questions reinforced points made in the classroom discussion and several of the term
   projects dealt with corporate responsibilities and ethical challenges. Students were quite
   conversant with the issues.


   MACC 427
   We use cases to discuss the issues. In addition, student understanding is assessed by means of a
   mid-term examination that tests the students’ understanding of specific cases, as well as a final
   examination. The final exam consists of a case that the students have not seen before. Students
   are required to apply the various concepts they have learned throughout the semester to this cases
   study.
                                                  3

3. Did you make any changes this year to better achieve the learning of this objective, and if so,
   were those changes effective?

   MACC 413
   No changes needed or made, other than changing most out-of-class assignments.

   MACC 427
   Yes. I reduced the number of cases to be able to focus more effort on the remaining cases. For
   example, I had each team present their draft of a profit plan for a small book publisher (the Walker
   and Company case). Additionally, I had a guest speaker provide a session on Forensic Accounting to
   provide students a better understanding of corporate responsibilities and ethics. The changes were
   effective in increasing students’ awareness of these topics.


4. In the spirit of continuous improvement, what changes will you make to better the
   understanding of this learning objective?

   MACC 413
   I will continue to vary the assignments so that any old answers that are out cannot be used. And I
   discovered some slides and readings on the global financial reporting environment I used a few years
   ago and will try to work some of these into the course.

   MACC 427
   I plan to expand the New Horizons case that to incorporate additional topics dealing with
   corporate responsibilities and ethics.
                                                    4

Learning Objective (e.g., L01):    L02                       Course MACC 413, 427


1. To what extent did you achieve this program learning objective? How well were students able
   to perform the task, integrate the knowledge, and demonstrate understanding of this objective?

   MACC 413
   Understanding the role of accounting in providing information for capital market decisions is the
   principal objective of this course and was largely achieved—not all students performed equally
   well. Students demonstrated their understanding every day in class. Topics such as executive
   compensation relate to the use of accounting information in (internal) business decisions.

   MACC 427
   An important part of the MACC 427 course relates to understanding the role of accounting in
   providing information for capital market decisions and tools for business solutions. Case studies
   of significant import for this objective include the Policy Management Systems and New Horizons
   cases. Both of these cases deal with the impact of internal management decisions on capital
   markets’ understanding of the companies involved. Student discussions of these cases indicated
   that students had an excellent grasp of the issues

2. Indicate the method(s) by which your response was measured.

   MACC 413
   The course emphasizes the role of accounting in capital market decisions from day 1 when we
   begin discussing the role of public reporting in addressing information asymmetry, accounting
   under ideal conditions and what happens when conditions are not ideal. Classroom discussion
   and out-of-class assignments in these areas are particularly on point: certain and uncertain ideal
   conditions, efficient securities markets, economic consequences and positive accounting theory,
   international financial reporting standards, earnings management, and standard-setting.

   Exam questions reinforced points made in the classroom discussion and several of the term
   projects dealt specifically with capital market issues, such as conservatism in accounting,
   earnings management in volatile industries, and executive stock compensation. Students
   demonstrated high comfort levels with capital market issues in their oral presentations and written
   project assignments.


   MACC 427
   Cases studies, mid-term examination question, final exam. As an example, a question on the mid-
   term exam posed the following:

   Describe how PMSC’s (Policy Management Systems) accounting policies and business practices
   relate to the crisis faced by the company. Compare and contrast the efficient market hypothesis
   and the incomplete revelation hypothesis. Relate these two hypotheses to PMSC’s financial
   reporting practices and the company’s ensuing problems.
                                                    5

3. Did you make any changes this year to better achieve the learning of this objective, and if so,
   were those changes effective?

   MACC 413
   I adopted the 4th edition of the textbook which contained updated discussions of published research on
   course topics, and new assignment material.

   MACC 427
   Yes. I introduced topics that integrate accounting and finance, namely EVA and market value added.
   The changes were effective in increasing students’ awareness of these topics.


4. In the spirit of continuous improvement, what changes will you make to better the
   understanding of this learning objective?

   MACC 413
   I think the course is pretty well organized and successful at meeting this primary objective.
   However—and this relates to L01 as well—as long as the class fills only about half the classroom
   seats, I need to cluster the students in the middle two rows. This will facilitate my own eye contact
   and will help keep them more focused on the classroom experience.

   MACC 427
   I will present a further integration of finance topics to show the linkage between internal
   management strategy and the external capital markets. I plan on using a financial strategy matrix
   to integrate EVA, an internal performance measure, with market value added, an external, or
   capital markets, metric.
                                                   6



Learning Objective (e.g., L01):   L03                       Course MACC 427


1. To what extent did you achieve this program learning objective? How well were students able
   to perform the task, integrate the knowledge, and demonstrate understanding of this objective?

   MACC 427
   MACC 427 incorporates performance measurement and control systems. The text, by Robert
   Simons, is entitled, Performance Measurement and Control Systems for Implementing Strategy.
   Student discussions of the various cases dealing with this topic indicated that students gained an
   excellent grasp of the issues.


2. Indicate the method(s) by which your response was measured.

   MACC 427
   Cases studies, mid-term examination question, final exam. The final exam consists of a case that
   the students have not seen before. Students are required to apply the various concepts concerning
   performance measurement and control systems to this case study.


3. Did you make any changes this year to better achieve the learning of this objective, and if so,
   were those changes effective?

   MACC 427
   Yes. I reduced the number of cases to be able to focus more effort on those remaining. In this way, we
   were able to focus more attention on four types of performance measurement and control systems:
   diagnostic control systems, beliefs systems, boundary systems—including internal controls, and
   interactive control systems. The changes were effective in increasing students’ awareness of these
   types of control systems.


4. In the spirit of continuous improvement, what changes will you make to better the
   understanding of this learning objective?

   MACC 427
   I plan on expanding the New Horizons case to incorporate additional topics dealing with business
   risk.
                                                  7

Learning Objective (e.g., L01):   L04                     Course Not assessed this semester


1. To what extent did you achieve this program learning objective? How well were students able
   to perform the task, integrate the knowledge, and demonstrate understanding of this objective?

   N/A

2. Indicate the method(s) by which your response was measured.

   N/A

3. Did you make any changes this year to better achieve the learning of this objective, and if so,
   were those changes effective?

   N/A

4. In the spirit of continuous improvement, what changes will you make to better the
   understanding of this learning objective?

   N/A
         A-6

ACCOUNTING DEPARTMENT
   GOALS AND NEEDS
      LEHIGH UNIVERSITY
COLLEGE OF BUSINESS & ECONOMICS

   ACCOUNTING DEPARTMENT
       GOALS & NEEDS

             2005
                            ACCOUNTING DEPARTMENT OVERVIEW
Current Accomplishments

The combination of a strong curriculum, outstanding faculty and talented students has made Lehigh’s Accounting
Department a key source of new professionals for Big Four public accounting firms and many global and financial
firms. As part of this strong partnership between the Department faculty and accounting professionals, the
Department ensures that its program is current and up-to-date.

The curricular goal is to offer courses comprehensive in technical coverage, integrated, reflect real world
developments and advances in technology, and provide critical success skills for students. In the past few years,
three recent external developments in accounting has generated opportunities and challenges to Lehigh’s Accounting
Department: (1) increased educational requirements for Certified Public Accountants, the so-called 150-hour rule, (2)
increased range of employment opportunities, and (3) financial reporting frauds (e.g., Enron, WorldCom and others).

Importantly, the increased educational requirements cannot be accommodated in a 124-credit undergraduate
program. The Accounting Department developed a new masters program in accounting and information analysis that
satisfies the new requirements in innovative ways; for students that qualify, the masters and undergraduate programs
interface seamlessly. The Department revised the undergraduate major to consist of (a) a 4-course core taken by all
majors and (b) one of three 3-course “tracks” that support career employment in public accounting, financial
services/corporate accounting, or information systems. Courses addressing corporate financial reporting, systems,
and auditing highlight the negative consequences of these scandals, the ethical and governance issues involved, and
regulatory responses such as new accounting standards and the Sarbanes-Oxley Act of 2002.

Besides the curricular aspects of the program, several outside-of-class activities make students aware of important
issues facing the accounting profession. The Department has run for well over a decade a one-of-a-kind “Conference
on Accounting Professionalism, a weekend-long event that exposes students to the profession, Lehigh’s accounting
faculty and other students. The Accounting Club, catering to sophomores and juniors, brings students directly to
sources of employment through several trips and other activities. Beta Alpha Psi, the accounting honor society,
brings professionals to campus to speak on important technical topics. In addition, the Department brings leaders in
the profession to interact with students and faculty through its own Segal Speakers Series.

The results are terrific. Recruiters designate Lehigh’s Accounting Department a “key school.” Accordingly, during the
sophomore year professional firms provide on-site summer and winter leadership programs and externships to
acquaint students with career opportunities. Junior accounting majors typically participate in well-paid summer
internship programs that lead to employment upon graduation. Lehigh’s Office of Career Services reports that the
number of accounting majors having internships is near 70%, and the five-year employment average of students self-
reporting their post-graduation plans is close to 100%, the best on campus. Lehigh accounting alumni hold leadership
positions in a wide range of careers, including partners at international CPA firms, chief financial officers at major
industrial companies, management consultants, investment bankers and analysts, presidents of their own companies,
and attorneys.

Looking Ahead

The Accounting Department, with the aid of its advisory board, has undergone a systematic strategic planning
exercise, including a continuous improvement process to address initiatives relating to curriculum, faculty
development, and student learning and experiences. Consistent with the University and College vision and the
Department’s own strategic plan, the critical need today is to move Lehigh’s Accounting Department to the next level
and enhance its national reputation.

The Department has also worked closely with its advisory board to identify critical priorities and needs. With the ultimate
goal of enhanced reputation in mind, the faculty and the advisory board members identified four high priority needs: (1)
enhancing the faculty research environment, (2) strengthening the new MS in Accounting and Information Analysis
program, (3) improving our communications with alumni and other stakeholders, and (4) generating external funding to
achieve all its goals.
               ACCOUNTING PROGRAM ADVISORY COMMITTEE


NAME                             AFFILIATION
Timothy Armstrong ‘91            Vice President—Accounting Policy
                                 Freddie Mac

Robert Brown ‘78                 Partner
                                 PricewaterhouseCoopers LLP

Allan Frank ‘76                  President
                                 Answerthink, Inc.

Christopher Lovasz ‘94           Senior Manager
                                 Deloitte & Touche LLP

David Martin ‘69                 Partner
                                 KPMG LLP

Robert Parry ‘79                 Professor of Accounting
                                 Kelley School of Business
                                 Indiana University

Sarat Sethi, ‘92                 Portfolio Manager/Equity Analyst
                                 Douglas C. Lane & Associates

Stephen Smith ‘81                Executive Vice President/CFO
                                 Elizabeth Arden

Bob Watters ‘85                  Partner
                                 Ernst & Young

Janet Williams, ‘85              Franchise Controller
                                 Personal Products Company
                                 Johnson & Johnson Consumer Products Company
         LEHIGH UNIVERSITY ACCOUNTING DEPARTMENT GOALS

1. To offer courses that are comprehensive in technical coverage,
   integrated, reflect real world developments and technology, and
   provide critical success skills for students, and that lead to
   professional certifications.

2.   To continue to grow and improve our masters program—MS in
     Accounting and Information Analysis—that builds on our highly-
     regarded undergraduate program.

3.   To promote and support faculty research efforts that result in top tier
     accounting and business publications.

4.   To support other CBE graduate programs and executive education
     initiatives.

5. To complement students' classroom experiences by promoting
   out-of-class programs that create awareness of professional issues,
   develop critical career success skills and foster personal
   development.

6. To develop faculty in a manner that encourages the continuous
   improvement of both curriculum content and quality of instruction.

7. To develop strong and long-term faculty-student relationships in and
   out of the classroom.

8.   To attract high quality accounting majors with diverse backgrounds.

9. To promote faculty interaction with the academic and practicing
   sectors of the accounting profession, business enterprises, and the
   University community.

10. To develop programs and experiences that result in student
    placement in challenging, upwardly mobile professional employment
    opportunities.

11. To establish systematic, effective two-way communication with
    external stakeholders that raises the Accounting Program’s visibility
    and helps us achieve our goals.
                  PROPOSALS TO ADDRESS IDENTIFIED NEEDS


Need 1: Enhance the faculty research environment

            [Highest Priority] Hire Chaired Professor of Accounting: $2,000,000 endowment
            [High Priority] Establish Faculty Research Fund: $200,000 endowment or $10,000
            yearly contribution per grant
            [High Priority] Create Research Speaker Series: $150,000 endowment or $7,500
            yearly contribution


Need 2: Strengthen the new MS in Accounting Program

            [High Priority] Establish Corporate Sponsorships: $400,000 endowment or $20,000
            yearly contribution
            [High Priority] Establish Individual Sponsorships: $200,000 endowment or $10,000
            yearly contribution


Need 3: Improve communications with alumni and other stakeholders [High Priority]

            This is currently being addressed by the Accounting Department


Need 4: Generate external funding to achieve all its goals [High Priority]

            Faculty Development
            Research Data Sets
            Software
            Department Website Development
            Other Communications
            Etc.
       Endowed
        Chair in
      Accounting


                                          ENDOWED CHAIR IN ACCOUNTING
                                            [Highest Department Priority]

                              The cost of attracting highly skilled scholars/teachers has increased
                              dramatically over the last five years. When combined with existing
                              college funds, an endowed chair provides the prestige and support
                              necessary to attract faculty who might otherwise go to another
                              institution.

                              Lehigh University envisions the College of Business and Economics
                              as a national leader in providing advanced education for integrated,
                              interdisciplinary, market-based niche programs that fulfill distinct
                              needs for both undergraduate and graduate business students. As
                              employers demand diverse skills and qualities, Lehigh is preparing
                              graduates by offering joint degree programs, certificate programs,
                              distance education and on-line options, and a life-long commitment
                              to learning beyond the MBA and MS programs. The faculty member
 “Scholarship is extremely
 important and critical to    who fills this endowed chaired position will provide the leadership to
 improving our academic       attain these ends.
 reputation.”
 -- Accounting Program        While the Department has improved significantly in the research
 Strategic Plan               area, it has not yet attained the visibility needed to be recognized as
                              a first-rate research reputation. Our internal analysis shows a need
                              for another senior faculty member. In addition, the increased
                              visibility of such a person should enable the accounting faculty to
                              attract more external funding.

                              Minimum Funding Requirement: $2,000,000 endowment



Kenneth P. Sinclair
Professor of Accounting and
Chair
Dept of Accounting
Rauch Business Center #37
621 Taylor Street
Bethlehem, PA 18015
610-758-3431
kps1@lehigh.edu
   Faculty Research
         Fund


                                               FACULTY RESEARCH FUND
                                                    [High Priority]

                              Promotion and support of faculty research efforts enhance the
                              academic reputation of the accounting program. The emphasis on
                              quality research that is published in top tier accounting and business
                              journals is expected to increase our academic reputation and
                              maintain it in the years to come. Enhanced research productivity
                              will in turn attract top quality faculty to Lehigh’s Accounting
                              Department, enrich our academic programs and enable us to
                              continue our tradition of excellence. Quality research, when added
                              to our current strengths at the teaching and curriculum level, will
                              enable us to attain a national reputation as a leader in accounting
 “Quality research, when      education and research.
 added to our current
 strengths at the teaching    Providing support for faculty research is an essential element of
 and curriculum level, will
                              enhancing research productivity. This follows from benchmarking
 enable us to attain a
 national reputation as a     with peer group institutions and current trends in hiring. While new
 leader in Accounting         faculty members are automatically provided summer support for two
 education and research.”     years, remaining faculty need to be provided such support as well.
 -- Accounting Program
 Strategic Plan               Research funding frees up faculty members from teaching and
                              allows them to focus on their research projects. While faculty
                              members actively engage in research throughout the year, the
                              summer is considered an ideal block of time when projects are
                              brought to completion.

                              The presence of summer funding for research is also expected to
                              lead to successful hiring of new faculty members, who are
                              increasingly looking for an environment where summer research
                              funding is available beyond the first two years of the contract.
                              Finally, such funding is a critical enabler for the Accounting
                              Department’s effort to boost research productivity and enhance its
                              national reputation.
Kenneth P. Sinclair
Kenneth P. Sinclair
Professor of Accounting and   Funding Requirement: $200,000 endowment or $10,000 yearly
Professor of Accounting and
Chair
                              contribution per grant
Chair
Dept of Accounting
Dept of Accounting
Rauch Business Center #37
Rauch Business
621 Taylor StreetCenter #37
621 Taylor PA 18015
Bethlehem,Street
Bethlehem, PA
610-758-3431 18015
610-758-3431
kps1@lehigh.edu
kps1@lehigh.edu
     Speaker Series



                                              RESEARCH SPEAKER SERIES
                                                   [High Priority]

                              A regular speaker series is a necessary component of a research
                              environment that the Accounting Department is seeking to create.
                              Research speakers series are found at all programs with national
                              reputations. A speaker series will bring in reputed scholars from
                              other national universities to Lehigh, allowing our faculty to interact
                              with the best academic minds.

                              Our faculty will be able to respond to their research as well as
                              discuss their own work with such distinguished speakers. This will
                              lead to the creation of the right environment that will lead to learning
 “Our strategy is to
                              and enhanced research productivity. The presence of a speaker
 develop high quality
 undergraduate and            series is also expected to lead to successful hiring of new faculty
 graduate programs that       members, who are increasingly looking for a research environment
 enable us to be leaders,     that includes regular interaction with reputed speakers from other
 not followers. Part of our   Universities.
 strategy includes a focus
 on high quality faculty
 research that enhances
                              Funding Requirement: $150,000 endowment or $7,500 yearly
 our academic                 contribution
 reputation.”
 -- Accounting Program
 Strategic Plan




Kenneth P. Sinclair
Professor of Accounting and
Chair
Dept of Accounting
Kenneth P. Sinclair
Rauch Business Center #37
Professor Street
621 Taylorof Accounting and
Chair
Bethlehem, PA 18015
Dept of Accounting
610-758-3431
Rauch Business
kps1@lehigh.eduCenter #37
621 Taylor Street
Bethlehem, PA 18015
610-758-3431
kps1@lehigh.edu
    M.S. Program in
     Accounting &
 Information Analysis
                                      STRENGTHENING THE M.S. PROGRAM IN
                                    ACCOUNTING AND INFORMATION ANALYSIS
                                                [High Priority]

                               In 2001-02, the Accounting Program successfully launched the M.S.
                               in Accounting Program. The M.S. program is seen as a necessary
                               component of our quest for national reputation, as all major
                               accounting programs have a graduate accounting program. The
                               M.S. Program has seen a substantial increase in the number of
                               students in its second year. However, there is a need to reach out
                               more to non-Lehigh students and those beyond our immediate
                               geographical area.

                               The M.S. Program is differentiated in several ways. Lehigh faculty
“An important element of       partner with business professionals in developing and teaching core
the Accounting Program’s       courses. The focus of the Program is on technology and business
mission is the support and     solutions. Subject matter includes some additional accounting and
continuous improvement         important business topics, including negotiation and consulting.
of the MS in Accounting
Program.”
-- Accounting Program          Talented students from across the nation are needed to establish
Strategic Plan                 and enhance the national reputation of the Program. Access to
                               scholarship funds to attract such students is a critical need. In
                               addition to attracting high quality students, such scholarships allow
                               us to deploy them as research assistants for faculty members.
                               Students gain insights into cutting edge accounting issues, and
                               faculty meet their research goals and enhance our reputation for
                               scholarship.

                               Lehigh alumni are encouraged to rally support from their respective
                               organizations as well as seek individual support for the cause.

                               Funding Requirement:
                               -- Corporate Sponsorships of M.S. Program: $400,000
                                  endowment or $20,000 yearly contribution
                               -- Individual Sponsorships of M.S. Program: $200,000
                                  endowment or $10,000 yearly contribution
 Kenneth P. Sinclair
Kenneth P. Sinclair
 Professor of Accounting and
Professor of Accounting and
 Chair
Chair
 Dept of Accounting
Dept of Accounting
 Rauch Business Center #37
Rauch Business Center #37
 621 Taylor Street
621 Taylor Street
 Bethlehem, PA 18015
Bethlehem, PA 18015
 610-758-3431
610-758-3431
 kps1@lehigh.edu
kps1@lehigh.edu
     Operational
      Funding

                                               OPERATIONAL FUNDING
                                                   [High Priority]

                            Operational funding is critical for the survival and continued
                            improvement of the Accounting Department, including the
                            enhancing the faculty research environment, strengthening the new
                            MS in Accounting and Information Analysis program, improving our
                            communications with alumni and other stakeholders, and generating
                            external funding to achieve all its goals.

                            More specifically, operational funding will allow us to enhance the
                            following areas:

                            •   Faculty development: includes training, travel to conferences
                                to present papers and learn about teaching and/or technological
                                advances.
                            •   Research data sets: includes purchase and maintenance of
“An important strategy is       databases that are required in research. Increasingly, faculty
to develop external             candidates are asking for such support to be guaranteed as part
sources of financial            of their contracts.
support to enhance
progress toward             •   Computer hardware: includes the replacement of faculty
achieving Accounting            computers
Program goals.”             •   Accounting lab: includes future need to upgrade the hardware
-- Accounting Program           and software in the dedicated Accounting Program computer lab
Strategic Plan                  for our undergraduate and M.S. students.
                            •   Software: includes software required for teaching special
                                courses as well as those needed for research.
                            •   Accounting web page: creation and maintenance of a high
                                quality Accounting Program web page that facilitates
                                communication and interaction with stakeholders.
                            •   External communication: development and maintenance of
                                other communication programs with students and alumni.




Kenneth P. Sinclair
Professor of Accounting
and Chair
Dept of Accounting
Rauch Business Center #37
621 Taylor Street
Bethlehem, PA 18015
610-758-3431
kps1@lehigh.edu
           A-7

2006 ACCOUNTING DEPARTMENT
        NEWSLETTER
                   Department of

AccountingNews
College of Business and Economics                                                                                         Fall 2006




A Message from the Accounting Chair
by Kenneth P. Sinclair, Professor of Accounting

                 Business Week Ranks Lehigh Undergraduate Business Program #18 in U.S.
As chairperson of Lehigh’s Accounting Department, I am               • “The accounting department is unbelievable at Lehigh.
very pleased to be a part of the second issue of this annual             The accounting major is given every opportunity in the
newsletter. It begins with the exciting news from the                    book to network.”
Business Week ranking of undergraduate business pro-                 •   “The accounting department has an annual accounting
grams, discussed in more detail below.                                   conference where they bring in firms to meet with stu-
We thank Jim Largay for preparing this newsletter and                    dents and recruit them. Lehigh makes very good efforts
KPMG LLP for covering composition, printing and mail-                    at connecting us with firms and alumni who will help
ing costs. My comments and the articles that follow give                 us when we graduate.”
you a sense of what happened in the 2005-2006 academic               •   “The accounting program at Lehigh is one of the high-
year to ensure the continued success of your Accounting                  est respected, if not the highest respected, university by
Department’s programs. The newsletter also mentions                      the Big 4 accounting firms. The education that we
upcoming events in which you may wish to participate.                    receive is superior to most kids graduating from any
                                                                         other 4-year college or university. They prepare us to
Business Week Ranking. The May 8, 2006 issue of                          the best of their ability and the Lehigh network of busi-
Business Week magazine included its first-ever ranking of                ness professionals is outstanding.”
undergraduate business programs. Business Week’s
methodology placed Lehigh University’s College of                    When surveyed students assigned a letter grade to the
Business and Economics undergraduate business pro-                   business subjects they were taught, accounting at Lehigh
gram at #18 in the United States! This ranking is partic-            scored higher than the average of the top 10 ranked UG
ularly significant because it reflects quantitative measures         business programs.
of academic quality, student and recruiter impressions,
starting salary and other factors, instead of being based on         Improving Communications with Alumni.
perceptions of faculty and deans.                                    Lehigh accounting alumni have been as loyal and proud
                                                                     of their degree as any group on campus. In fact, whenever
Business Week bases its ranking, in part, on surveys of
                                                                     they are called upon to participate in a professional pro-
more than 100,000 business students and 2,000 recruiters,
                                                                     gram at Lehigh, they rarely refuse. They are constantly
and consists of five parts: student survey (30 percent);
                                                                     returning to campus for Accounting Department events,
recruiter survey (20 percent); starting salaries (10 percent);
                                                                     including the annual Accounting Conference, Accounting
MBA feeder schools (10 percent); and academic quality
                                                                     Club and Beta Alpha Psi events, and recruiting activities.
(30 percent). The academic quality measure incorporates
five unique measures of program quality and student                  Nevertheless, Accounting faculty and our Accounting
engagement, and is weighted as heavily as the student sur-           Advisory Board decided to do more to communicate with
vey. Please visit bwnt.businessweek.com/bschools/under-              alumni. Thus in August 2005 the department mailed its
graduate/06rankings/ for more details.                               first departmental newsletter to over 3,100 Lehigh
Your Accounting Department is proud of the overall 18th              accounting alumni around the world. We thank Ernst &
place ranking and is particularly pleased by these com-              Young LLP for financing the 2005 newsletter. You will
ments about the accounting program, the first of which               be pleased to learn, as we were, that Lehigh’s Accounting
appeared in the ranking itself:                                      Department is the first department in the College of
• “New financial services lab and strong accounting program          Business and Economics and one of a very few depart-
  are impressive, but recruiting is too accounting-focused.”         ments across the University to publish a newsletter. As

                                                                                                              Continued on page 2
                                                                 1
From the Accounting Chair
Continued from page 1

expected, the newsletter was very well received. We plan             Association’s annual Innovation in Accounting Education
to issue our newsletter at least annually.                           Award in San Francisco at the association’s 2005 annual
                                                                     meeting. See the related articles below.
Another first was this year’s Accounting Alumni
Reception at PricewaterhouseCoopers’ office in New                   Extracurricular Activities. Both the Accounting
York. Virtually the entire accounting faculty and approx-            Club and Beta Alpha Psi continued during this academic
imately 50 junior accounting majors, who visited firms in            year to offer a number of activities. The Accounting Club
the city during the day, joined approximately 120 Lehigh             catered more to sophomores and juniors, introducing stu-
accounting alumni. The reception also was a major suc-               dents to sources of employment with field trips and other
cess, and like the newsletter, we plan to make the alumni            activities. Our chapter of Beta Alpha Psi, the accounting
reception an annual event. The upcoming alumni recep-                honor society, brought professionals to campus to speak
tion will be at Ernst & Young’s office in New York on                on important technical topics. A major annual department
Wednesday, October 25, 2006. We hope to see you there.               initiative, our one-of-a-kind “Conference on Accounting
                                                                     Professionalism,” was held for the 14th year. The week-
Undergraduate Curriculum. The new accounting
                                                                     end-long Accounting Conference is a hallmark student
major, with three alternative concentrations, now applies
                                                                     activity that addresses the accounting profession and
to all accounting majors entering their senior year. The
                                                                     brings students, faculty, and professionals together. The
results of the new program are terrific from an educa-
                                                                     William N. Segal & Andrew P. Segal Endowed
tional and marketing perspective:
                                                                     Accounting Speaker Series brought to campus Cynthia
• It makes the solid core of accounting, which we believe
                                                                     Cooper, well-known for her role in uncovering fraud at
   is a terrific background for many business school stu-
                                                                     WorldCom—to date the largest fraud in history. Named
   dents, attractive to more students. The experience so far
                                                                     Time Magazine’s 2002 “Person of the Year”, she is the
   suggests that the new major attracts more students to
                                                                     president of Cynthia Cooper Consulting. Ms. Cooper
   accounting. In the past two years the number of new
                                                                     interacted with faculty and students, and lectured in vari-
   accounting majors increased 20 percent to approxi-
                                                                     ous classes. For the fifth consecutive year the Becker
   mately 100 students.
                                                                     CPA Review program was offered on campus during the
• It allows students to build upon the core background with
                                                                     spring semester, with 53 students participating.
   concentrations designed to accommodate different employ-
   ment interests. Many students interested in financial serv-       Placement, Internships and Leadership
   ices now major in accounting, including some finance              Programs. The results continue to be outstanding, as
   majors that double major to acquire the accounting skills         placement for accounting majors nears 100 percent. In the
   that make them more effective and more marketable.                latest University Undergraduate Placement Report, Class
• By offering opportunities for new course development,              of 2005, the Big 4 CPA firms were the four top recruiters
   it creates opportunities for faculty growth and improved          at Lehigh. And the top 25 recruiters included financial
   student educational experiences. The classroom experi-            services firms: Merrill Lynch, JP Morgan Chase,
   ence has improved with the addition of students with              Deutsche Bank, Goldman Sachs, and Lehman Brothers;
   different backgrounds. Students with a finance back-              industrial firms: IBM, Ingersoll-Rand, Johnson &
   ground, and Computer Science and Business majors,                 Johnson; and consulting firms: Navigant Consulting and
   are taking more accounting courses. Moreover, we have             Huron Consulting, all of which actively recruit Lehigh’s
   a new course in Analysis of Financial Statements,                 accounting majors. Many junior accounting majors obtain
   taught by Jim Largay, which is particularly appropriate           well-paid summer internship programs that lead to
   for students interested in financial services.                    employment upon graduation. A somewhat new phenom-
                                                                     enon for sophomores are summer leadership programs in
Masters Degree Program. Now completing its fifth
                                                                     which CPA firms expose students on-site and at clients to
year, the M.S. in Accounting and Information Analysis
                                                                     opportunities in accounting. Firms now formally inter-
(MSAIA) program graduated 24 students in 2006.
                                                                     view Lehigh students on campus for these nonpaying
Placement is virtually 100 percent. Professor Parveen
                                                                     leadership positions that typically lead to internships.
Gupta’s MSAIA course, Corporate Governance and
Business Risk, received the American Accounting                                                            Continued on page 3
                                                                 2
From the Accounting Chair
Continued from page 2

Faculty Additions. The department is very pleased that two tenure-track faculty with strong research credentials,
Professor Heibatollah Sami and Assistant Professor Erin Moore, joined us in Fall 2005. The Department also added David
Hinrichs, a very capable full-time lecturer. During the 2005-2006 academic year, a thorough process to generate a highly
qualified, diverse pool of candidates enabled us to hire William Zhang, a new Ph.D. from the University of California–
Irvine. Professor Zhang joins Lehigh’s Accounting Department in Fall 2006. He is an empirical capital markets researcher
with great potential, and will oversee the auditing area that was previously headed up by an adjunct professor.

What’s Inside. This newsletter includes these features:
• Tauck Scholar Interns in London
• 2005-2006 Faculty Activities and Research
• Celebrating Five Years of Our MSAIA Program
• Accounting Majors Dominate Sorority Leadership
• More on Masters Program Course That Received National Award
• Student Club Officers and Advisory Board Members
• An Alumnus Reflects on Lehigh’s Accounting Program
• Upcoming Events and Participation Information
• Would You Like to Help?


 Tauck Scholar Interns in London
 By Matt Wisser (BS May 2006, MSAIA expected May 2007)

 Last summer I received a wonderful opportunity to work           also working in London, which helped alleviate some
 abroad with PricewaterhouseCoopers. Accounting stu-              of the uncertainty produced by my new surroundings.
 dents who completed their junior year often find them-           Additionally, I met a great group of people living in
 selves working as interns during the summer with a firm          my residence building, with whom I still keep in
 and regional location of their choice. However, through          touch today. They helped me get acquainted with the
 the CBE’s Tauck Scholarship program, with the assis-             city and made me feel right at home. With the hand-
 tance of the Accounting Department, I was able to intern         ful of people I had with me, I took advantage of my
 for two months with PwC in London, England. This pro-            time spent abroad by doing various things, such as
 duced the most exciting summer of my life.                       exploring the magnificent landmarks of London’s
                                                                  enduring royalty, attending plays and musicals in the
 The Tauck Scholarship allows four students in the CBE to         lavish theatres, and visiting areas outside of the city
 work with faculty to obtain an international internship in       such as Paris and the English countryside.
 a city of their choice, with all expenses paid for by the
 scholarship. Once I was notified of my selection as one of       I also had a great time working with PwC during my
 the four recipients, Accounting Department Chair Ken             two-month stay. My associates and supervisors will-
 Sinclair eagerly helped me to find an internship. After          ingly went the extra mile to help me understand the
 telling him that I preferred to work with PwC in London,         work I was doing, and its significance to the entire
 he made a few phone calls and within a week, I was con-          project. The work was challenging at times, but this
 tacted by a recruiter from the London office who accepted        only led to satisfaction once I completed it. I also got to
 me into the program and provided me with all the relevant        know some of my fellow interns by working with them
 details to ensure that I would have an enjoyable and pro-        in the office and by socializing with them at out-of-
 ductive time during my stay in the United Kingdom.               office events. The people I became friends with were
                                                                  really one of the highlights during my stay in London.
 Because I had never traveled by myself outside of the            I truly appreciate the opportunity that was given to me,
 United States, let alone lived in another country, I was a       as I had a great summer filled with learning, fun, and
 bit timid about the whole experience that lay ahead of           meeting new people each and every day.
 me. Fortunately, two other Tauck Scholar recipients were

                                                              3
2005-2006 Faculty Activities and Research
                                                                             research studies in the Journal of Management Information Systems
Karen M. Collins, Ph.D. (Virginia Polytechnic Institute), CPA,
                                                                             (with Jim Hall) and Cost Management, and has articles accepted and
                                                                             forthcoming in Communications of the ACM (with Jim Hall) and
Associate Professor; financial accounting; kmc0@lehigh.edu; teaches
Intermediate Accounting and coordinates the college’s freshman-level
                                                                             Computers and Operations Research; Steve’s research with Jim Hall
Introduction to Business course; students gain a perspective on busi-
                                                                             has been praised for being the first to establish a relationship between
ness by studying Nike and developing a business plan for a fictitious
                                                                             managerial self-interest and IT outsourcing decisions.
company; received an Innovation in Teaching Award for the course
from the Middle Atlantic Association of Colleges of Business                 Erin A. Moore, Ph.D. (University of Massachusetts), CPA, Assistant
Administration; Karen wrote an Introduction to Business textbook for         Professor; financial accounting; eam205@lehigh.edu; presented her
Prentice-Hall, to be released in January 2007.                               work on managerial discretion and pension accounting at the Northeast
                                                                             Regional American Accounting Association Meeting in April 2006 and
Paul N. Gordon, MBA (University of Wisconsin), CPA, Professor of
                                                                             the AAA’s National Meeting in August 2006; her coauthored research
Practice; financial accounting, consulting; png3@lehigh.edu; serves as
                                                                             study, “Evaluating the Robustness of Market Anomaly Evidence,” was
theAccountingDepartment representative on the CBE’s Undergraduate
                                                                             accepted and is forthcoming in Advances in Quantitative Analysis of
Core Curriculum Committee and coordinated the multi-section intro-
                                                                             Finance and Accounting.
ductory financial accounting course (Accounting 151) in Fall 2005.
                                                                             Jack W. Paul, Ph.D. (Lehigh University), CPA, Professor; managerial
Parveen P. Gupta, Ph.D. (Pennsylvania State University), Frank L.
                                                                             accounting and auditing; jwp1@lehigh.edu; Director of M.S. in
Magee Associate Professor; financial accounting, corporate gover-
                                                                             Accounting and Information Systems program; maintains an active CPA
nance; ppg0@lehigh.edu; published Control Deficiency Reporting:
                                                                             license in Florida and membership in the AICPA and AAA; recent pub-
Review and Analysis of Filings During 2004 (Financial Executives
                                                                             licationsinclude“ImplementingPCAOB Auditing Standard 2 on Audits
Research Foundation), Sarbanes-Oxley: A Practical Guide to Imple-
                                                                             of Internal Control,” The CPA Journal (May 2005) and “Does the
mentation Challenges and Global Response (Risk Books), “Making
                                                                             ‘Management Approach’ Contribute to Segment Reporting Trans-
Sarbanes-Oxley Work: Reducing Cost, Increasing Effectiveness,”
                                                                             parency?” (with Jim Largay), Business Horizons, July/August 2005.
International Journal of Disclosure and Governance; on leave in 2006-
2007 as an Academic Fellow in the Division of Corporation Finance,           Heibatollah Sami, Ph.D. (Louisiana State University), Mercy
U.S. Securities and Exchange Commission.                                     Professor; financial accounting; hes205@lehigh.edu; published in
                                                                             Auditing: A Journal of Practice & Theory, November 2005; presented
James A. Hall, Ph.D. (Oklahoma State University), Associate
                                                                             papers at the 2005 Annual Meeting of the AAA, the 2006 Journal of
Professor; accounting information systems; jah0@lehigh.edu; Co-
                                                                             Contemporary Accounting and Economics Symposium, the 2006
director of Computer Science and Business program.
                                                                             AnnualCongressoftheEuropeanAccounting Association, and the 2006
David J. Hinrichs, MS in Management of Technology (Lehigh Uni-               British Accounting Association Annual Conference; editorial board
versity), Lecturer; financial and managerial accounting; djh404              service for Advances in Accounting and Gadjah Mada International
@lehigh.edu; served as faculty advisor to the eight teams of Lehigh          Journal of Business; served on the AAA Financial Accounting and
students participating in PricewaterhouseCoopers’ “xACT” case study          Reporting Section’s Best Dissertation Award Committee.
competition in Fall 2005, displaying their practical knowledge and
                                                                             Kenneth P. Sinclair, Ph.D. (University of Massachusetts), Professor
presentation skills; coped with creative team names such as The FIFO
                                                                             and Department Chair; cost and managerial accounting; kps1
Five, Accounting Legionnaires, and The Price and His Ladies (?).
                                                                             @lehigh.edu; had a busy year serving as department chair, teaching cost
James A. Largay III, Ph.D. (Cornell University), CPA, Professor;             accounting and directing the re-accreditation efforts of the Accounting
financial reporting and statement analysis; jal3@lehigh.edu; published       Department and the College of Business and Economics; the recipient
“Has SFAS 133 Made Derivatives Reporting More Transparent? A                 of several teaching and service awards, the University honored Ken this
Look at the Dow-Jones 30” (with Susan Hamlen), Journal of                    year with Lehigh’s Robert and Christine Staub Faculty Award; joined
Derivatives Accounting, September 2005; “Does the ‘Management                the Board of Directors of Lannett Company, a manufacturer of generic
Approach’Contribute to Segment ReportingTransparency?”(withJack              pharmaceuticals, and serves as Chair of theAudit Committee.
Paul), Business Horizons, July/August 2005; and “Standard Costing
                                                                             William Sanjian Zhang, Ph.D. (University of California at Irvine);
Systems,” a chapter in the Handbook of Cost Management, 2nd Ed.,
                                                                             Assistant Professor; auditing and financial accounting; wsz206
Wiley, 2005; was quoted in The Wall Street Journal, Dow-Jones
                                                                             @lehigh.edu; presented “Tightening Credit Standards: Fact or Fiction?”
Newswires and CFA Magazine.
                                                                             (with Charles Shi and Phillipe Jorion) at the 2005 AAA Annual Meeting
Stephen L. Liedtka, Ph.D. (University of Maryland), CPA, Assistant           and at three other conferences; Bill teaches our undergraduate auditing
Professor; federal income taxation; sll7@lehigh.edu; published               courses.

                                                                         4
Celebrating Five Years of our M.S. in Accounting and
Information Analysis (MSAIA) Program
In May 2006 we celebrated the fifth graduating class of our         edge for the long haul, consistent with our intent to add
innovative M.S. in Accounting and Information Analysis              long-term value not obtainable from firm training pro-
(MSAIA) program as 24 masters students received their               grams or from many university-level evening programs.
diplomas. These students started the program early in               The courses use case studies to integrate accounting skills
August 2005 with Professional Issues in Accounting, an              and business knowledge essential to professional success
introductory course consisting of three “skill-set” mod-            and appreciation of the broader context. Four business
ules—(1) case analysis, (2) negotiation, and (3) ethics—            electives round out students’ programs.
given in three consecutive Friday-Saturday sessions. This
format frees up a time slot during the academic year that           Class Composition. Table 1 reports the composition
enables students to take a CPA review course and allows             of the Class of 2005-06. Twenty-four students graduated
summer internships or other full-time work.                         in May and four took background courses. Moreover,
                                                                    Table 1 shows the many undergraduate majors repre-
Students take three core courses in the fall: Information           sented—only slightly more than half are undergraduate
Systems Auditing, Consulting, and Corporate Governance              accounting majors. This diversity adds considerable rich-

Financial Reporting Environment, and Analyzing
and Business Risk. In the spring, they take The Corporate           ness to the MSAIA educational experience because stu-
                                                                    dents from other majors and backgrounds introduce a
Accounting Information for Management and Business                  variety of viewpoints in class. The flavor of the program
Solutions. Each of the six core courses augments the stu-           is also enhanced because nearly half of the students are
dents’ repertoire of skills and provides a wealth of knowl-         not Lehigh undergraduates, thus more variety.

                                                                    Employment. There is a high demand for our students. By
                                                                    graduation, typically 95 percent are employed. Table 2
                           Table 1
                                                                    summarizes five years of employment statistics. Although
            Composition of MSAIA Class of 2005-06                   a large majority of students join public accounting firms,
                                    Totals            Percent       primarily the Big 4, a significant number of students go
    Lehigh                                                          to work at larger regional firms. Fortuitously, we found a
     Accounting               13                                    niche for our international students. Many of these stu-
     Finance                         1                              dents find employment with firms that need employees
     Information systems             1                              with bilingual skills. These firms often have clients
     LU Rossin Engineering           1                              whose native language is not English, providing a ready
                  LU Total                       16    57%          market for our bilingual graduates. One student, whose
    International                                                   native language is Japanese, went to work in a Big 4
     Arts and sciences               1                              office having Honda as a client. In addition to public
     Computer science                1
                                                                    accounting, we also placed students in investment bank-
     Education                       1
                                                                    ing and private corporations.
     Business & economics            3
     Engineering                     2
                                             8
                                                                    Research Assistants. The generosity of KPMG
      Total International
                                                                    alumni enables the program to provide a small number of
    Other Domestic Colleges                                         research assistantships (RAs) to MSAIA students. With
     Accounting                2                                    research becoming more important at Lehigh, RAs prove to
     Engineering                     1                              be invaluable resources in helping accounting faculty
     MIS                             1
                                                                    increase their research productivity, primarily by collecting
      Total Other Colleges                   4
                                                                    and analyzing data. Research assistants are an absolute
             Non-LU Total                        12    43%          necessity in any research environment because they help
        Percent accounting    54%                                   faculty and are instrumental in attracting research-active
         Total students                          28                 accounting faculty, such as Heibatollah Sami, who joined
                                                                    us in 2005.

                                                                                                            Continued on page 6
                                                                5
MSAIA
Continued from page 5

The Future. As we look ahead to 2007
and beyond, we expect the number of                                              Table 2
                                                                       MSAIA Employment Statistics
MSAIA applicants to increase somewhat
                                                                  Students Employed at Date of Graduation
as New York and Pennsylvania implement
their 150-hour educational requirements.                                              Class
                                                                     2001-02 2002-03 2003-04 2004-05 2005-06 Overall
However, except for the fin-ancial aid pro-
                                                Graduated               7      22      22      23      24     98
vided by the KPMG funding, we are
                                                Not seeking employment 0        1       0       1       2      4
unable to match the scholarships and            Seeking employment      7      21      22      22      22     94
tuition reductions offered by our competi-      Employed                7      21      20      21      20     89
tor schools. We are working to obtain           Percent employed at
more outside funding for scholarships and       graduation            100%    100%     91%     95%     91%    95%
additional research assistants that will
attract increasing numbers of highly talented
students.


 Accounting Majors Dominate Sorority Leadership
 By Marissa Tringali (BS expected May 2007)

 Leadership has always been a characteristic that defines        sorority president.” Mary worked this summer (2006)
 Lehigh accounting majors. But in 2006, this character-          at Deutsche Bank. Danielle Trifiolis, president of
 istic is more prominent than ever.                              Delta Gamma, added, “Having this on my resume has
                                                                 been invaluable. I have been able to demonstrate dur-
 Currently there are eight sororities at Lehigh, all of          ing interviews that I possess qualities other than strong
 which are self-governed. Presidents are responsible for         academics.” She interned at Ernst & Young in the sum-
 numerous tasks, including keeping in close contact with         mer of 2006.
 their sorority’s national organization, maintaining good
 relations with the University, and assuring that members        Other sorority presidents, including Aileen Sobaru
 abide by and fulfill university and national obligations.       (Alpha Chi Omega), Marissa Tringali (Pi Beta Phi),
 So you must be asking yourself, “What on earth does             and Lauren Hopkins (Alpha Phi), interned at Ernst &
 this have to do with accounting?”                               Young, PricewaterhouseCoopers, and Huron Consulting,
                                                                 respectively. Gamma Phi Beta president Karilyn
 Believe it or not, six of the eight sororities on campus        Anderson was selected to be a Tauck Scholar this year,
 are led by accounting students! Even though there are           a prestigious opportunity to obtain a summer intern-
 more than 60 majors offered at Lehigh, 75 percent of            ship at PricewaterhouseCoopers in London. (See Matt
 sorority presidents come from one major: accounting. It         Wisser’s article in this newsletter, “Tauck Scholar
 seems that accounting students have taken the women’s           Interns in London.”)
 Greek leadership scene by storm.
                                                                 All in all, Lehigh’s accounting students are signaling
 All six of these sorority presidents have already either        they have much more to offer than their intelligence
 secured an internship, were accepted to a study abroad          and professional skills. In fact, these women consis-
 program, or found another significant summer opportu-           tently demonstrate to their accounting professors and
 nity. Mary Rita Bustin, president of Alpha Omicron Pi,          to their peers that they possess in abundance the quali-
 noted, “Having such an enormous leadership position             ties that will take them far in life: determination,
 gave me something to talk about during interviews.              intelligence, and leadership.
 Almost every recruiter asked me about my position as



                                                             6
More on Masters Program Course That Received National Award
Passage of the Sarbanes-Oxley Act of 2002 changed the                 • Students then examine corporate governance under var-
structure and process of corporate governance for public                ious theoretical frameworks such as the agency theory,
companies in the United States. The roles and responsibilities          transaction cost theory and stakeholder perspectives.
of executives, corporate directors, and assurance profession-
                                                                      Students learn the conflicts that each perspective presents
als also changed. In Lehigh’s M.S. in Accounting and
                                                                      and recognize the incentives that motivate organizational
Information Analysis (MSAIA) program, Professor Parveen
                                                                      participants to act or not to act in ethical ways. Students
Gupta’s Corporate Governance and Business Risk course
                                                                      also learn the role of the board committees that act as
(MACC 424) addresses the new environment in unique ways.
                                                                      checks on senior management and contribute to the long-
The 2005 issue of Department ofAccounting News mentioned
                                                                      term well-being of an organization.
that the course received the coveted American Accounting
Association2005Innovation in Accounting Education Award.              • Topics  such as executive compensation are co-taught
                                                                        with a former CEO of a small local company.
This annual award recognizes innovative coursework that
demonstrates unique educational benefits and is adapt-                We contrast his perspective on corporate governance and
able by other educational institutions or to other situa-             his compensation package with those of “Chainsaw” Al
tions. Previous recipients of the award include such                  Dunlap at Sunbeam. This comparison helps students
national figures as Robin Cooper of Emory University,                 understand how senior executive teams’ obsession with
James Loebbecke, former Touche Ross partner and                       share price maximization can lead to dysfunctional behav-
University of Utah professor, Gary Holstrum, Associate                ior and corporate governance system breakdowns. Video-
Chief Auditor and Director of Research at the Public                  tapes on notorious fraudulent financial reporting scandals,
Company Accounting Oversight Board (created by the                    such as Pharmor and WorldCom, enable student groups to
Sarbanes-Oxley Act), and Andrew Bailey, Jr., former                   dissect the governance breakdowns in these failures. We
Deputy Chief Accountant in the Office of the Chief                    also stress the Sarbanes-Oxley Act (2002), and the growing
Accountant, U.S. Securities and Exchange Commission.                  influence of audit committees on the veracity of public
                                                                      companies’ financial reporting.
Employing innovative content and pedagogy, this award-
winning course integrates ethics, corporate governance, busi-         • Students then tackle issues related to enterprise-wide
ness risk and internal control to help students understand how          risk management.
these components affect the integrity of corporate financial          One critical component of good governance is being con-
reporting. Because ethical behavior is the foundation for             fident that the board of directors has a clear understanding
good governance and functions as a soft control to mitigate           of the risk profile of their organization. Without completely
the risks of misstated financial statements, the course begins        understanding the risk portfolio retained by their company,
by discussing values and ethical decision making.                     the board cannot maximize shareholder value. When there
• Students use case studies to learn how to make principle-           is excessive retained risk, sub-par performance eventually
  based choices, and become aware that every decision or              creates temptations for fraudulent financial reporting.
  choice made has consequences.                                       Students master risk management in two concurrent ways.
                                                                      In the classroom they learn to identify, measure, analyze
The Parable of Sadhu case demonstrates that moral dilem-
                                                                      and prioritize business risks in real-life case studies like the
mas abound and that professionals cannot avoid them. The
                                                                      Titanic and Canadian Canoe tragedies. Students find that
first step in grasping the moral dilemma involves clearly
                                                                      understanding the primary and core activities of a business
understanding the situation through one’s own eyes, and
                                                                      helps them learn how to prioritize various risks, because
not relying on others’ accounts of the facts and pressures.
                                                                      every entity operates with a limited set of resources.
Anonymous voting technology captures students’ responses
to the various case questions, ensuring that students fear-           • As we develop these skills in the classroom, students con-
lessly debate and discuss a wide spectrum of choices and                currently work in teams on a “real-life” company from the
opinions. Cases expose students to the ethics of the individ-           Lehigh Valley area and conduct a “live” risk assessment.
ual professional, corporate ethics in a capitalistic system,          MSAIA students have provided business strategy and risk
and the ethics of the capitalistic system itself. Students rec-       assessment services to more than two dozen small- and
ognize that as assurance professionals the “shareholder” is           medium-size companies. These field projects provide a
their client, and their very important work facilitates effi-         real-life environment for them to practice skills learned in
cient capital allocation in U.S. capital markets.                     the classroom. The projects also offer students the opportu-
                                                                  7                                             Continued on page 8
Award-Winning Masters Course
Continued from page 7
nity to sharpen soft skills in project management, oral              The course ends with a debate and discussion of the book,
communication, writing, time management, and the like.               The Corporation: Pathological Pursuit of Profit and Power.
Feedback from clients has been extremely positive on the             Throughout the semester students must regularly read either
work that our MSAIA student teams performed under                    The Wall Street Journal or the Financial Times. They post
Professor Gupta’s close supervision.                                 their reactions to a news item of current interest for the
The course concludes with an introduction to control                 weekly topic under discussion. This assignment seeks to
models, including the COSO 1992 and the ERM models                   inculcate in students a lifelong learning habit. Overall, this
issued by the Committee of the Sponsoring Organiza-                  reading-intensive course is run in a seminar-style format that
tions (COSO) of the Treadway Commission that investi-                encourages students to accept responsibility for their own
gated fraudulent financial reporting. Students learn to              learning. We are all proud of our colleague Parveen Gupta
link the controls to the risks faced by an organization and          for creating this course and rising to the top in the national
use various risk models to ensure that as an assurance or            competition that produced the award.


Accounting Student Group Officers in 2006-2007
consulting professional they completely map the risks.



Beta Alpha Psi (the accounting honor society) and the Accounting Club serve our students by arranging with various firms to pres-
ent professional and recruiting-related programs. Beta Alpha Psi is open to junior and senior accounting majors who meet certain
academic requirements, while the Accounting Club targets sophomores and juniors but serves all students interested in accounting.
Here are the 2006-2007 officers and faculty advisors of these groups (email addresses in parentheses; all followed by @lehigh.edu).
Office                                              Beta Alpha Psi                                  Accounting Club
President                                           Sheri Uslander (shu3)                           Ryan Howard (rjh204)
Vice President                                      Tom Gilbert (trg4)                              Janice Archibald (jla304)
Secretary                                           NA                                              Ben Condon (bec204)
Corresponding Secretary                             Jim Mulherin (jjmc)                             NA
Reporting Secretary                                 Ashley Rifkin (acr6)                            NA
Treasurer                                           Jenna Richman (jlre)                            Chris Shane (cms204)
Editor                                              Alison Uhlik (aeu2)                             Tess Wilson (tew3)
Webmaster                                           NA                                              Courtney Smith (cos204)
Faculty Advisor                                     Karen Collins (kmc0)                            Ken Sinclair (kps1)

Accounting Program Advisory Board Members in 2006-2007
Formed several years ago, the Advisory Board serves as a sounding board and idea generator for the Accounting
Department, and works with us on development initiatives and in making our case to the Lehigh University administration.
Here are the current members.
Timothy Armstrong ‘91                Vice President/Accounting Policy, Freddie Mac
Allan Frank ‘76                      President, Answerthink, Inc.
Christopher Lovasz ‘94               Senior Manager, Deloitte & Touche LLP
David Martin ‘69                     Partner, KPMG LLP
Robert Parry ‘79                     Professor of Accounting, Indiana University (Bloomington, IN)
Sarat Sethi ‘92 (Chair)              Portfolio Manager/Equity Analyst, Douglas C. Lane & Associates
Stephen Smith ‘81                    Executive Vice President/CFO, Elizabeth Arden
Bob Watters ‘85                      Partner, Ernst & Young LLP
Griffith Welton ‘88                  Partner, PricewaterhouseCoopers LLP
Janet Williams ‘85                   Personal Products Co. Franchise Controller, Johnson & Johnson Consumer Products Co.
                                                                8
An Alumnus Reflects on Lehigh’s Accounting Program
alum, who took the road less traveled. Joe Rubin ‘81,
It’s “All in the Cards” for this hugely successful Lehigh         of the Commercial Mortgage Securities Association. More
                                                                  recently, he penned the landmark study, The Impact of
majored in accounting and finance. Unlike many of his             Operational Efficiency on Profitability: A White Paper for
contemporaries who also devoted their entire careers to           the Commercial Mortgage Lending Industry.
the accounting profession, Joe never sat for the CPA
exam and never provided auditing or accounting serv-              Joe traces his interest in accounting to his first Lehigh
ices. Instead, he earned his MBA from The Wharton                 accounting course, taught in an engaging and enthusiastic
School and joined the consulting and advisory services            manner by Emeritus Professor Jim Hobbs. Today, when we
practice at Kenneth Leventhal & Company, the leading              stress the importance of good teaching and positive instruc-
firm focused on the real estate industry. Joe became a            tor/student relationships at Lehigh, we mirror Joe’s view
partner at Leventhal in 1992 and, after Leventhal merged          about the importance of the instructor in the educational
with Ernst & Young in 1995, Joe continues to serve                process. Looking ahead, even with the dramatic changes in
clients, taking on various leadership roles in the real           the accounting profession brought on by several major cor-
estate advisory practice while working at the firm’s              porate scandals, and the Congressional response in the
headquarters building in New York City.                           Sarbanes-Oxley Act of 2002, Joe remains positive about
                                                                  the future of professional accounting. He believes that
During his years at Leventhal and Ernst & Young, Joe              although these changes caused much anxiety in the market-
designed strategies, organizational structures and busi-          place, the new rules on advisory services in accounting
ness processes to improve the efficiency and profitability        firms improved engagement discipline and enhanced the
of real estate operations, and performed due diligence to         quality of work. Joe states that “now the work product and
support his client’s transactions. He believes that               the quality control are even more rigorous.” His advice to
accounting provides a discipline that serves him well in          others in the transaction world is to “always focus on qual-
his many finance-related activities. In particular, his           ity work, always bring value to a client and be willing in
Lehigh accounting training helps him to approach due              transactions to say ‘no, you shouldn’t do this.’ ”
diligence engagements with his eyes wide open and to
apply the “smell test.” Joe’s role in the firm enables him        Joe still adheres to the basic principles instilled in him
to advise a wide range of real estate industry participants       during his days at Lehigh, working with professors and
including REITs, private real estate owners, home-                serving as a student representative on the Board of
builders, lenders, service firms and government agencies.         Trustees. On the Board he had the opportunity to meet
In addition to strategic planning and business process            and learn from corporate business leaders. Joe says, “You
improvement, his work includes identifying the risks and          must always focus on the facts of the transaction and
opportunities of all types of real estate transactions,           bring honesty and integrity to whatever you do.”
including debt and equity financing, and mergers and
                                                                  One of Joe’s fondest Lehigh memories was Halloween in
acquisitions. Joe also has extensive experience in com-
                                                                  1978, when he and 54 housemates donned elaborate hand-
mercial mortgage finance, specializing in credit analysis
                                                                  painted placards and became a human deck of cards com-
and due diligence for the industry’s leading lenders.
                                                                  plete with jokers and the instruction card. “Making the cos-
Joe’s professional accomplishments include leading the            tumes and shuffling around the Hill was my first real lesson
team that authored the Resolution Trust Corporation’s             in teamwork,” he says. Although Joe’s travels kept him from
Asset Due Diligence Manual that set the standard for real         his 25-year LU reunion, he strives to support Lehigh in
estate transaction due diligence and the valuation of non-        every way he can. Joe lives in Manhattan with his wife,
performing loans. He was a pioneer in the commercial              Corinne, and his two daughters, Rebecca and Alyssa. You
mortgage-backed securities industry and sits on the board         can reach Joe Rubin at joseph.rubin@ey.com.




                                                              9
             Mission of the Lehigh University Accounting Program
           Recognizing the importance of accounting information to the efficient allocation of resources in the
                          American economy, the mission of Lehigh’s Accounting Program is:
       To provide rigorous accounting education that prepares high-quality undergraduate and graduate students
  with diverse backgrounds for lifelong learning and positions of leadership in the business community, and to empha-
                  size faculty research efforts that contribute to the body of knowledge in accounting.

        Consistent with the mission of the College of Business and Economics and Lehigh University, the mission
      of the Accounting Program is offered with the intent of being recognized as one of a select group of programs
       in the United States where an educational experience of the highest possible quality is obtainable in pursuit
                                         of applicable professional requirements.



Upcoming Events
Accounting Department Research Series: Friday, September 15, 2006
The Fall semester presenter is Stephen A. Zeff, the Herbert S. Autrey Professor of Accounting at Rice University. A pol-
ished and energetic speaker, Steve’s knowledge of the public accounting profession and the influence of politics on accounting
standard-setting may be unsurpassed. He largely developed the “economic consequences” literature that examines why
accounting information not accompanied by direct cash flow effects can affect security prices. The paper Steve will present
is “Political Lobbying on Accounting Standards—National and International Experience.” Tentative start time is 11:00 am.

You are invited to the Friday, September 15 presentation.
Contact information: Kathy Smith (kcs0@lehigh.edu, 610.758.3451)

15th Annual Conference on Accounting Professionalism: October 13-14, 2006
This weekend-long conference for junior accounting majors is unique among accounting departments. Students learn about
accounting professionalism, career opportunities in accounting, networking with business professionals, and how to
improve leadership, team-building, oral communication and interpersonal skills.

You are invited to the Friday, October 13 reception, panel discussion and dinner.
Contact information: Kathy Smith (kcs0@lehigh.edu, 610.758.3451)

New York City Area Accounting Alumni Reception: Wednesday, October 25, 2006
Back by popular demand is this year’s New York Accounting Alumni Reception in the “Café” overlooking Times Square at
Ernst & Young’s office, 5 Times Square, New York, NY 10036. We will be joined by approximately 50 junior accounting
majors who will have visited firms in the city during the day. In the evening you can meet the students and reconnect with
other New York City area accounting alumni, and with faculty. Tentative start time is 6:30 pm.

You are invited to the October 25 reception.
Contact information: Kathy Smith (kcs0@lehigh.edu, 610.758.3451)

Segal Speaker Series Public Address: To Be Arranged
Our 2005 guest was Cynthia Cooper, the 2002 Time Magazine “Person of the Year” who helped expose the massive
WorldCom financial reporting fraud. This year’s public address is scheduled for the Spring semester. We will get the word
out when the date, time and speaker are confirmed.

You will be invited to the public address!
                                                             10
 Would You Like to Help?
 We begin by thanking those who responded to our 2005 appeal for financial support; we appreciate your generosity.
 The Accounting Department continues to positively impact the professional lives of students and graduates. We take great
 pride in the fine education and preparation for professional accounting offered at Lehigh. Despite our solid current rep-
 utation, your Accounting Department aspires to be nationally recognized as one of the handful of top professional
 programs in the United States. To move us to this next level, we worked closely with our Advisory Board and identi-
 fied two critical priorities beyond continuous improvement in the undergraduate program: (1) enhance the faculty
 research environment and (2) strengthen the M.S. in Accounting and Information Analysis program.
 Accounting Department activities, and the University as a whole, benefit from donations by alumni, friends, and employ-
 ers. Donations add to the University’s budget allocation and help support faculty and course development by funding
 travel to professional meetings and research conferences, and databases like COMPUSTAT (financial reporting) and
 CRSP (stock prices). All gifts, large or small, uphold the people and programs that make Lehigh exceptional. In 2004
 Lehigh launched the $500 million “Shine Forever” campaign, with a focus on building academic endowment and increas-
 ing annual Lehigh Fund giving. (Visit www.lehigh.edu/giving for details.)
 Because continued success of our M.S. program is critical to becoming nationally recognized, a priority is to financially
 support exceptional students in the program who will serve as research assistants (RAs) for faculty members. It now takes
 $5,000 to fund a half-time RA for 5 hours per week over the academic year. We need your help. Contributions to the
 department of any amount will assist us in becoming nationally recognized, are welcome and are highly valued.
 Designating Gifts
 When making a contribution to support Lehigh’s Accounting Department, please designate the gift as “restricted to the
 Accounting Department” on your check, transmittal letter, or on the form below. If you or your employer (matching
 gifts) do not indicate “restricted,” the gift will not go to the Accounting Department, and we will not even know about it.
 Gifts of $1,000 and more are recognized with membership in the University’s Asa Packer Society.


Contribution to the Department of Accounting
Name __________________________________________________ Class Year: BS _________________ MS ________________

Street Address ______________________________________________________________________________________________

City, State, ZIP ______________________________________________________________________________________________

Total Amount of Gift Restricted to Accounting Department: $ _________________________________________________________

Designated for: Faculty Development: $ _____________ M.S. Program: $ ______________ General Dept. Needs: $ ____________

Name of employer for Matching Gift ____________________________________________________________________________

Employer Address ___________________________________________________________________________________________

Check Enclosed? _____ If not, expected date of payment ___________________________________________________________

Credit Card: MC ______________ VISA ______________ Card Number _____________________________________________

Expiration Date _____________________________ Name on Card __________________________________________________

Signature __________________________________________________________________________________________________

                         Again, Thank You Very Much—Your Gift Is Greatly Appreciated!
                                                             11
Department of Accounting News



       Rauch Business Center
       621 Taylor Street
       Bethlehem, PA 18015-3117




We’d like to hear from you:
Please take a minute to update us on your activities. You may send your information via e-mail, fax, or snail mail to:
Lehigh University
Department of Accounting
Rauch Business Center
621 Taylor Street
Bethlehem, PA 18015-3117
email: Kathy Smith (kcs0@lehigh.edu); Fax: 610-758-6429

Name:____________________________________________________________________________________________

email or snail address: _______________________________________________________________________________

News about you and your professional work: _____________________________________________________________

_________________________________________________________________________________________________

_________________________________________________________________________________________________

_________________________________________________________________________________________________

_________________________________________________________________________________________________

Any other comments you wish to share: _________________________________________________________________

_________________________________________________________________________________________________

_________________________________________________________________________________________________
              A-8

ACCOUNTING FACULTY PROFESSIONAL
   INTERACTION AND RELEVANT
      PRACTICAL EXPERIENCE
                                                                                                         12-16-05
                                    ACCOUNTING DEPARTMENT
                           INTERACTION AND RELEVANT WORK EXPERIENCE
                                JANUARY 1,2001 -DECEMBER 31,2005


7
Bayak, Daniel
                                 Professional Interaction
                         16 CPE's for Tax Forums 2004 and 2005
                         sponsored by Lehigh U. and PlCPA
                                                                                Relevant, Practical Experiences
                                                                              Private practice CPA
                                                                              Instructor of Becker CPA Review Course
                         2 CPE's at IMA meetings                              2003,2004
                         Organized the Tax Forums in 2004 and 2005
                         at Lehigh University. This annual event is
                         attended by 70-100 CPA's and attorneys.
                         CPA's receive 8 hours and attorneys receive
                         6 % hours of continuing education credit
                         8 CPE's at Educator's conference in Las
                         Vegas in 2004
                         Attended the Lehigh University Department of
                         Accounting Conferences in Accounting
                         Professionalism, 2001-2005
Collins, Karen           Developed and update annuallv c o m.~ a n v
                                                                 .            Professionallv certified: CPA
                         case on Nike (used in lntroducion to                 Consultant to members of the senior
                         Business course and Explorinq Business text          executive team of Fortune 500 company
                         to be published by Prentice-Hall in August           on understanding financial reporting
                         2006).                                               (2001 and 2002)
                 1       Bring approximately 100 business
                              -                                           I
                 I1                                                       I
                                ~~




                         professionals to campus annually to
                         participate in the Introduction to Business
                         course that I coordinate                         I
                         Attend professional programs offered by

                                                                          I
r
                         KPMG and PWC (2003 and 2004)

Gordon, Paul          June 2004                                               Until June 2002, partner in the Assurance
                         KPMG Symposium for Accounting Faculty                Practice of KPMG LLP. (see resume)
                                                                              Professionally certified: CPA




                                                                          I
Gupta, Parveen           I Auditors, Professional Issues Committee,           Analysis of lnternal Control Disclosures
                         2005-08.                                             Under Sections 3021404: Lessons for
                         Member Program Advisory Board, National              lnternal Audit," (April 2005), 16Ih~ n n u a l
                         Association of Corporate Directors,                  Super Strategies Audit Best-Practices
                         Philadelphia Chapter, 2004-06.                       Conference, MIS Training Institute, Las
                                                                              Vegas, Nevada.
                         Member, IIA Lehigh Valley Chapter Academic
                         Relations Committee, 2003-04.                        "Auditing Executive Compensation," (April
                                                                                                    l
                                                                              2005), 1 6 ' ~ n n u aSuper Strategies Audit
                         Member, Education Committee, Financial
                         Executives International, 2001-2003.
                         Vice President, Lehigh Valley Chapter,
                                                                          I   Best-Practices Conference, MIS Training
                                                                              Institute, Las Vegas, Nevada.
                                                                              "Collaborating with Great University
                         lnstitute of lnternal Auditors, 2001-02, 2005-       lnternal audit Programs," (with Kurt
                         06.                                                  Reding and Glenn Sumners) (April 2005),
                         Board Member, Risk Management and                    16'%nnual Super Strategies Audit Best-
                         Governance Board (formerly the CoCo Board)           Practices Conference, MIS Training
                         of the Canadian Institute of Chartered               Institute, Las Vegas, Nevada.
                         Accountants, 2001-03.                                "SEC Material Weakness Reports: What
                                                                              are the Real Control Problems?"
                                                                              (September 2004), Enterprise Risk
                                                                              assessment and Control Self Assessment
                                                                              Conference, Institute of lnternal Auditors.
                                                                              Las Vegas, Nevada.
                                                                        "Sarbanes-Oxley and the lnternal
                                                                        Auditor," (November 2002), Lehigh Valley
                                                                        Chapter o f Institute of lnternal Auditors,
                                                                        Allentown, Pennsylvania.
                                                                        "Best Practices in Risk Assessment,"
                                                                        (February 2001), Lehigh Valley Chapter o f
                                                                        Institute o f lnternal Auditors, Allentown,
                                                                        Pennsylvania.
Hall, James       Frequent trips to Prague and Budapest to meet         I run the Lehigh in PraguelBudapest
                  with managing partners of the Big 4 to discuss        internships in AIS with PWC, Deloitte,
                  research and internship opportunities                 E&Y, and many other private and public
                  Attended E&Y's Professor Day to discus the            firms.
                  direction of AIS education                            CPA review course
                                                                        Research in: IT outsourcing, IT controls,
                                                                       Sarbanes-Oxley implications for IT
Hinrichs, David    Member, AlCPA                                    2001-2003
                   Member, Financial Executives Networking             Manager Financial Planning &
                   Group                                               Controls
                                                                       Information Technology
                                                                       Bethlenem Steel Corporat on
                                                                       Bethlehem, PA
                                                                       Treasurer, St. Timothy Lutheran Church
                                                                       Allentown, PA


                                                                        lnternal Consultant
                                                                        Information Technology
                                                                        International Steel Group
                                                                        Bethlehem, PA; Richfield, OH
                                                                        Treasurer, St. Timothy Lutheran Church
                                                                        Allentown, PA


                                                                        Interim CFO; Finance Committee of
                                                                        Board of Trustees
                                                                        Lehigh Carbon Community College
                                                                        Schnecksville, PA (Jan -June)
                                                                        Treasurer Northeastern PA Synod
                                                                        Evangelical Lutheran Church in America
                                                                        Wescosville, PA (June - Present)



Largay, James      Regular participant at American Accounting           Professionally Certified: CPA
                   Association annual meetings.                         Maintained books of account and
                   Participant in Trueblood Seminar for                 prepared federal, state and local tax
                   Professors (2005)                                    returns and quarterly reports for a C
                   Participant in SEC Financial Reporting and                              -
                                                                        corporation (2001 2005)
                   Corporate Governance Conference at                   Worked with reporters writing on complex
                   California State University, Fullerton (2005)        accounting issues leading to
                   Participant in Pricewaterhousecoopers                quotes in 9 articles in Dow-Jones
                   Accounting Symposia (2001,2002,2004)                 Newswires, The Wall Street Journal and
                                                                        other major newspapers (2002-2005).
                   Participant in American Accounting
                   AssociationlFinanciaI Accounting Standards           As Editor of /Accounting Horizons1 I
                   Board Financial Reporting Issues conferences         regularly worked on articles
                   (2001,2002)                                          involving standard-setting and other
                                                                        professional accounting issues
                   Regular participant at NE PA FEI Chapter
                                                                        (2001-2003).
                   meetings until it was merged with Philadelphia
                   1      Chapter (2001, 2002)
                          Numerous meetings with practicing
                          professionals
                   I
Liedtka, Stephen       Professional Affiliations

                              Certified Public Accountant, Virginia
                              Member, American Accounting
                                                                                 .   Staff Accountant, KPMG Peat
                                                                                     Marwick, Washington, D.C. Office
                              Association.                                           (January 1993 - June 1994).
                              Member, Institute of Management
                              Accountants.

                       Attendance of continuinq professional                  Developinq and presentinq continuinq
                       proqrams                                               professional education activities

                              Coordinator, Lehigh UniversitylPlCPA                   Coordinator, Lehigh UniversitylPlCPA
                              Annual Tax Forum (Spring 2000 -Spring                  Annual Tax Forum (Spring 2000 -
                              2004). This annual event is attended by                Spring 2004). This annual event is
                              100+ CPAs, attorneys, and other                        attended by 100+ CPAs, attorneys,
                              professionals. CPA participants receive 8              and other professionals. CPA
                              hours of continuing education credits.                 participants receive 8 hours of
                                                                                     continuing education credit.
                              I obtain a minimum of 45 continuing
                              education credits every three years as                 Presenter, "Advanced lnternet Tax
                              required for all Virginia CPAs who do not              Research." Lehigh University/PICPA
                              practice public accounting.                            Annual Tax Forum (November 2001).

                       Research-Related lnteraction                                  Presenter, "Internet Tax Research."
                                                                                     Lehigh University/PICPA Annual Tax
                              Financial statement audit research: Jack               Forum (January 2001).
                              Paul and I received a $21,000 grant from
                              PricewaterhouseCoopers(PWC) to
                              investigate the efficiency of financial
                              statement audits. We have worked with
                                                                          1   3. Other Professional Education
                                                                                                                              1
                              top PWC professionals and will continue                Instructor, Becker CPA Exam Rev~ew
                              to do so until the project is complete in              Program (2002)
                              2006.

                              Airline Research: lnteraction with the   4. Research-Related lnteraction
                              former chair of a major US airline was
                              essential to my completion of my sole-          Financial statement audit research:
                              authored study "Using the Analytic              Jack Paul and I received a $21,000
                              Hierarchy Process to Balance Airline            grant from PricewaterhouseCoopers
                              Industry Performance Measures," which is        (PWC) to investigate the efficiency of
                              forthcoming in Cost Manauement.                 financial statement audits. We have
                                                                              worked with top PWC professionals
                                                                              and will continue to do so until the
                       Other Professional lnteraction                         project is complete in 2006.
                                                                          I
                              Guest speakers: Once per semester, I                   Airline Research: lnteraction with the
                              host a non-academic guest speaker in my                former chair of a major US airline was
                              classes. Past speakers have included                   essential to my completion of my
                              accounting firm partners, IRS                          sole-authored study "Using the
                              representatives, and Mary Ellen Withrow                Analytic Hierarchy Process to
                              (the former Treasurer of the United                    Balance Airline Industry Performance
                              States).                                               Measures," which is forthcoming in
                                                                                      Cost Management.


                       Miscellaneous: As have other accounting faculty,       5. Other relevant, practical
                       I have attended dozens of lunches, dinners and         experiences
                       other meetings with leading professionals. Last
                       month, for example. I attended a presentation by               Lehigh University Coordinator,
                       Cynthia Cooper (the Worldcom whistleblower) at                 Volunteer Income Tax Assistance
              Lehigh and traveled with my fellow accounting        Program, Community Action
              faculty to New York City for a reception with        Committee of the Lehigh Valley
              alumnilprofessionals at PricewaterhouseCoopers.      (CACLV) (Fall 2004 -present).

                                                                   Balanced Scorecard Project Leader,
                                                                   Accounting Program Advisory
                                                                   Committee (2001). I took the lead in
                                                                   developing a "Balanced Scorecard"
                                                                   performance management system for
                                                                   the accounting department. I
                                                                   subsequently led a three hour session
                                                                   with key accounting professionals and
                                                                   other alumni designed to highlight
                                                                   accomplishments, shortcomings and
                                                                   needs of Lehigh's accounting
                                                                   department.

Moore. Erin        2003
                      Attended and served as a discussant at    BeckerConviser CPA Review Course
                      the Northeast Regional American           Instructor, January 2001-Summer 2001
                      Accounting Association Meeting,
                      Stamford, CT.

                   2004
                      Attended and served as a discussant at
                      the Northeast Regional American
                      Accounting Association Meeting,
                      Albany, NY.

                      Attended the American Accounting
                      Association national meeting, Orlando,
                      FL.

                   2005
                                                in
                      Attended and partic~pated the
                      American Accounting Assoc~ation-
                      Financial Accounting and Reporting
                      Section Doctoral Consortium, San
                      Diego, CA.

                      Attended the American Accounting
                      Association-Financial Accounting and
                      Reporting Section mid-year meeting,
                      San Diego, CA.

                      Attended and presented at the American
                      Accounting Association national
                      meeting, San Francisco, CA.

                      Attended and served as a discussant at
                      the Northeast Regional American
                      Accounting Association Meeting,
                      Tarrytown, NY.

                      Served as an ad-hoc reviewer for the
                      Financial Accounting and Reporting
                      section of the American Accounting
                      Association's Northeast Regional
                      Meeting.

                      Member of the American Accounting
                      Association's Northeast Regional
                      Meeting Steering Committee.
                     Attended and presented at the Accounting            Maintained books of account and
                     Conference on Professionalism                       prepared Federal, state, and local returns
                     Attended IMA meetings                               for S corporation
                     Recruited practitioners to partner with our MS
                     Program

                  2002
                                                                         Maintained books of account and
                     Attended and presented at the Accounting
                                                                         prepared Federal, state, and local returns
                     Conference on Professionalism
                                                                         for S corporation
                     Program speaker at IMA chapter meeting
                     Management Accounting Section Mid-Atlantic
                     Regional Director


                     Attended and presented at the Accounting            Maintained books of account and
                     Conference on Professionalism                       prepared Federal, state, and local returns
                     Attended IMA meetings                               for S corporation

                  2004
                     Attended and presented at the Accounting
                     Conference on Professionalism
                     Attended IMA meetings
                     Attended PWC university

                  2005
                     Attended and presented at the Accounting
                     Conference on Professionalism
                     Attended IMA meetings

Rudolph, Martin      Every day of the last 40 years                   Rudolph, Palitz LLPlLLC IRSM
                                                                      McGladrey, Inc.

                                                                      1974 to 2005 Director, Litigation Support
                                                                      Services

                                                                         In this position, I was responsible for the
                                                                         development of computerized audit
                                                                         programs, quality control manual, and
                                                                         administrative procedures that have
                                                                         enabled the Firm to administer more than
                                                                         300 class action settlements. I personally
                                                                         have been responsible for the
                                                                         administration of more than 150
                                                                         settlements, including the Nasdaq Market-
                                                                         Makers Antitrust Settlement, which
                                                                         distributed a $1 Billion settlement fund to
                                                                         more than 1.6 million class members. I
                                                                         also have extensive experience as a
                                                                         forensic accountant and expert witness.

                                                                      2001 to 2005 Director. Tax

                                                                         In this capacity, I am responsible for tax
                                                                         planning, research and compliance for a
                                                                         wide range of public and privately owned
                                                                         business and individual clients of the fifth
                                                                         largest public accounting firm in the
                                                                         United States.
                                                                      Rudolph, Palitz LLClRSM McGladrey, Inc.

                                                                      1990 to 2001 Managing Partner

                                                                         In this position, I oversaw all of the
                                                                         professional services rendered by the
                                                                         Firm. During my tenure, the Firm grew by
                                                                         five hundred percent and we completed a
                                                                         merger with the fifth largest firm in the
                                                                         world.
Sami, Heibatollah   Attended the Annual Meetings of the
                    American Accounting Association every year.
                    Attended the Annual Congress of the
                    European Accounting Association since 2001.
                    Attended the 13Ih~ s i a nPacific Conference on
                    International Accounting Issues in 2001
                    Attended the Asia-Pacific Journal of Accounting
                    and Economics Symposium 2002.
                                  '
                    Attended the 3 Annual Conference of Asian
                    Academic Accounting Association in 2002.
                    Attended the 2005 British Accounting
                    Association Annual Conference.
                    Attended the Lehigh University Department of
                    Accounting Conference in Accounting
                    Professionalism in 2005.
                    Participated in a one day trip to New York City
                    with students to visit the offices of Merrill
                    Lynch, D 8 T, and PWC.
                    Participated in a one day continuing
                    professional education sessions during the
                    2005 Annual Meeting of the American
                    Accounting Association.
Sinclair, Kenneth   lnvited participant in the Ernst 8 Young             Board of Directors member, Lannett
                    Symposium, two-day conference, Summer                Company, Inc., Summer 2005-present
                    2005                                                 lnstructor in the Accounting Careers
                    lnvited participant in the KPMG Symposium,           Awareness Program, taught oral
                    two-day conference, Summers 2005,2004,               communications skills and program
                    and 2003                                             summary, Summer, 1999-2003
                    lnvited participant in the PWC Symposium,            lnstructor in the lacocca Institute's Global
                    two-day conference, Summers 2005 and 2004            Village program, taught "The Art of
                    Presented "How to Attract Accounting Majors"         Determining and Communicating Cost
                    at the American Accounting Association               Information," Summers 1999-present
                    Accounting Program Leaders Group, Spring             Course Coordinator and lnstructor,
                    2000 and 2002; also "Relationship with               Becker CPA Review course, Spring 2002-
                    Employers," Spring 2004                              present
                    As Accounting Club faculty advisor brought           lnstructor for the accounting component
                    students at least twice an academic year to          (Accounting 108) in the
                    visit a Big 4 CPA firm and a financial services      Biopharmaceutical certificate program,
                    firm, 2001-present                                   Summer 2000-2001
                    Plan and attend annually Lehigh's Accounting         Developed with Lehigh's Enterprise
                    Conference for Accounting Professionalism            Systems Center a CD Rom case using
                    Attend annually the Accounting Program               Golden Technologies; used in Industrial
                    Leaders Group meeting                                Engineering 398, Manufacturing
                                                                         Problems, Spring 2002 and Accounting
                    Regularly bring practitioners to campus
                                                                         324, Fa11 2002
Toohey, Susan   Board of Governors member, lnstitute of        Merck Pharmaceuticals, Inc., Manager of
                Internal Auditors, Lehigh Valley Chapter   1   lnternal Auditing 2001-2003
                Member lnstitute of lnternal Auditors          lnternal Audit Consultant- 1998-2001
                Member Association of Certified Fraud          City Auditor, City of Las Vegas 1995-1998
                Examiners                                      Director of lnternal Audit, The Nature
                                                               Conservancy, Arlington, VA-1990-1995
                                                               Director of lnternal Audit, Children's
                                                               National Medical Center 1987-1989
                                                               Director of lnternal Audit, Sibley Memorial
                                                               Hospital 1985-1987

				
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