Demand and Supply with Tax by nto27318

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									Fall 2007

            A Magazine for Friends of the Tippie College of Business Department of Accounting

                                                                           Demand & Supply:
                                                                        Iowa’s Tax Curriculum
                                                   Bill Travis Named Outstanding Alum
                                                                              Henry B. Tippie College of Business   1
                                                              Accounting FAculty And StAFF
                                                              Amy An
                                                              Ramji Balakrishnan
                                                              Ernst & Young Professor and Director, RSM
                                                              McGladrey Institute of Accounting Education
                                                              and Research

                                                              Joyce E. Berg
                                                              Faculty Advisor, Beta Alpha Psi Pioneer
                                                              Hi-Bred Research Fellow and Interim Director
                                                              Iowa Electronics Markets Institute,

                                                              thomas J. carroll
                                                              M.Ac. Advisor

                                                              daniel W. collins
                                                              Henry B. Tippie Research Chair and Director,
                                                              Ph.D. Program

                                                              douglas V. deJong
                                                              John F. Murray Professor

                                                              cristi A. gleason
                                                              Robert J. Hartman
                                                              Paul Hribar
                                                              Lloyd J. and Thelma W. Palmer Research

                                                              W. Bruce Johnson
                                                              Department Chair and Sidney G. Winter

                                                              Valdean lembke
              Jade Vidal, BBA04, MAc05                        Haidan li
              Senior Audit Associate                          Mary M. Murphy
              KPMG, Minneapolis
                                                              Mark c. Penno
                                                              Soumyo Sarkar Research Fellow
              “I chose accounting after doing well in the
                                                              lynn M. Pringle
              two introductory courses and because it was
                                                              Director, Master of Accountancy Program
              a more specialized program. My classmates
                                                              Sonja o. Rego
              were smart, and it was challenging work, but
                                                              Lloyd J. and Thelma W. Palmer Research
              I quickly realized it was all worthwhile when   Fellow
              beginning my career. Continuing on for the
                                                              Byron Ross
              master’s degree made me more marketable to      Emeritus
              potential employers and gave me a broader
                                                              Albert A. Schepanski
              base of knowledge in the workplace. There’s
                                                              Jean thompson
              always a need for accounting graduates,
                                                              Program Assistant
              especially from The University of Iowa, which
                                                              Richard M. tubbs
              has a reputation as a great program.”

2   The Iowa Ledger
The Iowa Ledger is an annual publication
for alumni and friends of the department
of Accounting, Henry B. tippie college of
Business, the university of iowa.

Lesanne B. Fliehler

Amy (Roach) Belice
Roach Communication Design

Contributing Writers
Lesanne B. Fliehler
Sara Pralle
Amy Schoon
Tom Snee

Contributing Photographers
Ed Kempf
Tom Jorgensen
Linda Knowling                                                          3    Doug DeJong: His Career Has Taken Him Near and Far
Susan McClellen
Mike Schlotterback                                                           Accounting Professor Doug DeJong has never been someone to close the
                                                                             door to opportunities. His career has taken him from the Midwest to the
Department of Accounting Liaison
                                                                             Pacific Rim countries, The Netherlands, and back.
Kay Wheeler
W252 PBB
Phone: (319) 335-0909                                                   14   Demand & Supply: Iowa’s Tax Curriculum Responds to
                                                                             Job Market Demands
We’d love to hear from you!
correspondence may be directed to:                                           Iowa’s tax curriculum has evolved over the past decade to better engage
Bruce Johnson, Chair                                                         and prepare students for careers in accounting. Preparing tax reports and
department of Accounting                                                     complying with tax laws are still important, but the emphasis has shifted to
W252 PBB                                                                     teaching students how taxes affect business decisions in financial markets.
the university of iowa
iowa city, iA 52242-1994
Phone: (319) 335-1048                                                   26   A Reputation for Excellence: Outstanding Accounting
Fax: (319) 335-1956
                                                                             Educators Have Iowa Connections                                                 Five individuals with ties to Iowa have won the American Accounting
                                                                             Association’s prestigious Outstanding Accounting Educator Award. No other
Address Changes                                                              institution has connections to that many winners.
u.S. Mail: Alumni Records, ui Alumni
Association, 100 levitt center for university
Advancement, the university of iowa, iowa
city, iA 52242-1797.                                                         DeparTmenTs
Cover Photo: Newly Remodeled IMU Ballroom.                              2    Letter from the Chair                  21       Faculty news
Photo by Tom Jorgensen.
                                                                        6    The Year in review                     28       alumni notes
the university of iowa prohibits discrimination in employment,
educational programs, and activities on the basis of race, national
origin, color, creed, religion, sex, age, disability, veteran status,
                                                                        18   professional accounting                30       student Life
sexual orientation, gender identity, or associational preference.            Council
the university also affirms its commitment to providing equal
opportunities and equal access to university facilities. For
                                                                                                                    34       Honor roll
additional information, contact the office of Equal opportunity
and diversity, 319-335-0705. 61510/12-07
                                                                                                                                 Henry B. Tippie College of Business   3
Letter from the Chair
   What a year it’s been! I’m thrilled
to be able to share with you the
successes of our students and faculty.
   For example, our undergraduate
and M.Ac. accounting programs
remain quite vibrant, and our
enrollment is strong. And, as figures
show, our students are highly sought
after by employers: 79% of our
May 2007 BBA and 87% of our M.Ac.
students attained employment at
graduation. Some 26% of our BBA
students chose to pursue a M.Ac.
   In addition, our curriculum is
evolving to meet the changing
demands of the accounting
                                         Bruce Johnson with members of the new Student Accounting Advisory Board. (Seated)
profession and the needs of
                                         Amy Pepping, Adam Agnew, Bruce Johnson (department chair), Molly carpenter, christine
employers. You’ll want to read the
                                         Slattery. (Standing) Zach Evett, Beth Mccannon, Ethan Astor. (not pictured) Evan Malcom,
article about how two of our faculty
                                         nathan Stouder, Haley norton.
members—Amy An and Sonja Rego—
have changed their course content to
respond to job market demands (see       accomplishments in this issue’s
page 14). Throughout the curriculum,     Faculty Notes section, and you’ll
our students are receiving greater       want to peruse the new section,
exposure to international accounting     Research Highlights, to learn what
issues and global business practices.    new research is under way.
We also continue to help students           We also are extremely pleased
build exceptional oral and written       that our colleague Erik Lie’s                                            Mission Statement
communication skills.                    (Associate Professor, Finance) path-
                                                                                                                  The national prominence of our
   This past year, our students          breaking research on stock option
                                                                                                                  department stems from the reputation
truly embraced the importance of         backdating received the 2007 Notable
                                                                                                                  for excellence of our programs
community service. Spearheaded by        Contributions to the Accounting
                                                                                                                  and research. A primary goal is to
the members of Beta Alpha Psi, the       Literature Award conferred jointly by
                                                                                                                  provide undergraduate and Master of
Tippie community raised $50,000          the American Accounting Association
                                                                                                                  Accountancy students with a broad and
and constructed a Habitat for            and the American Institute of
                                                                                                                  deep educational experience that will
Humanity house in just 37 days (see      Certified Public Accountants.
                                                                                                                  facilitate their professional growth.
story, page 31). Fifty UI accounting        I hope as you read through this
students provided more than 700          issue you share our pride in all                                         This objective entails providing students
volunteer hours as part of the Beta      we’ve accomplished and strive to                                         with a strong technical foundation in
Alpha Psi VITA program. These efforts    achieve. As alumni and friends of the                                    core accounting competencies; developing
were recognized by the Johnson           Department of Accounting, you’ve                                         their skills in critical thinking, analysis,
County Board of Supervisors for          had a significant impact on helping                                      and communication; and fostering an
their contributions to the social and    us attract top faculty, advance                                          awareness of ethical matters and a sense
economic health of the people of         accounting research and education,                                       of professional integrity and judgment.
Johnson County.                          and excel in the development of                                          We also seek to educate students from
   Our Ph.D. program ranks among         future leaders of the accounting                                         other departments in a manner that
the top 10 in the United States,         profession. I encourage you to find a                                    enables them to become informed users of
according to the Chronicle of Higher     way to re-engage and be a part of the                                    accounting information.
Education’s most recent analysis of      department and the Tippie College,
doctoral research productivity.          for your knowledge and support are                                       In addition, we aim to cultivate
   Our faculty also ranks among          vital to our success.                                                    the future leaders in the academic
the top 10 in research productivity,                                                                              community by training and working
according to Academic Analytics.                                                                                  with doctoral students. Promoting the
In this issue, we highlight the work                                                                              research enterprise, which requires
of Professor Doug DeJong, whose                                                                                   faculty to update their professional
research links teaching and public                                                                                skills continually by participating in the
policy development. In addition,         Bruce Johnson,                                                           creation and dissemination of accounting
the faculty have shared their            Chair                                                                    knowledge, is critical in its own right and
                                                                                                                  in accomplishing our curriculum goals.

4   The Iowa Ledger
                      Doug DeJong:
                      His Career Has
                      Taken Him Near and Far
Seamlessly linking research with teaching and public policy development

                         Doug DeJong’s career has taken him           for the U.S. Department of Defense
                         from Iowa to Pacific Rim countries,          for all of Southeast Asia.
                         The Netherlands, and back, and his              Returning to the United States,
                         life’s work has seamlessly linked            DeJong worked for several years
                         research with teaching and public            at Price Waterhouse (known as
                         policy development.                          PricewaterhouseCoopers today) in
                            “From my perspective, if you              Chicago before pursuing a Ph.D.
                         choose international experiences,            in accounting from the University
                         you don’t just do one thing,” says           of Michigan, which he received in
                         DeJong, the John F. Murray Professor         1980. And, as luck would have it, an
                         of Accounting. “There’s the research         accounting faculty position was open
                         part, there’s the education part, and        at Iowa that same year, and he was
                         there’s the policy part.”                    hired. Iowa has been his academic
                            His international experiences             home ever since.
                         began as the Vietnam era was coming             “Iowa students are bright and
                         to a close. With a BBA accounting            focused, which makes teaching a
                         degree under his belt and a recent           pleasure as well as a challenge,” he
                         MBA from Iowa, DeJong spent two              says. “In addition, Iowa has a great
                         years in the military assigned to the        research tradition that encourages
                         U.S. Army Audit Agency’s operational         innovation and cross-disciplinary
                         audit staff.                                 research. Both are needed when
                            “It was a super opportunity to put        addressing current research problems
                         my knowledge to work. We reported            and policy questions.”
                         directly to the Secretary of Defense,           DeJong’s research and teaching
                         and our task was to do management            interests include the role of
                         reviews of Army and Department of            information and communication in
                         Defense activities,” he says.                strategic and market settings using
                            DeJong spent two years in the             the methodology of experimental
                         Pacific Rim, primarily Japan, Korea,         economics and U.S. and international
                         Thailand, and Hawaii, reviewing              corporate governance.
                         such things as the negotiations of              His interest in corporate
                         treaties the United States had with          governance really came to the
                         certain Asian countries, military            fore 12 years ago. At the time,
                         communication networks in Korea,             The Netherlands was evaluating its
                         clubs and their casino operations in         academic accounting programs,
                         the Pacific, and foreign procurement         finding that the programs needed

                         Top to bottom: Windmill, DeJong in Holland, Pappajohn Business Bldg., DeJong in Hong Kong

                                                                                       Henry B. Tippie College of Business   5
to change substantially to remain                 “I thought it was terribly important       dividend and trading rights. Voting rights
competitive. Tilburg University invited        to have accounting research done at a         are excluded and held in trusts, which
him to help set up an accounting research      rigorous level in Europe and in Asia as       are favorably disposed toward the existing
group within the CentER for Economic           well,” he says. “On the continent today,      board and management.
Research.                                      The Netherlands is hands down the best,          “If self-regulation had worked,
                                               and they’re competing internationally for     the market pressure on firms would
World-class                                    talent.”
                                                  DeJong returns to The Netherlands
                                                                                             allow shareholders more rights,
                                                                                             such as the ability to elect members
   “The idea was to jump-start their
                                               twice a year in different capacities, which   to board of directors, which would
research in accounting,” DeJong says.
                                               led to his involvement in international       increase accountability and the firm’s
“The university had used the CentER to
                                               research. His research on The Netherlands’    performance,” he says. “We found that
create research groups in economics,
                                               self-regulation initiative in corporate       for the existing firms that were publicly
finance, and marketing, and the last
                                               governance and its implications for           traded before and after the change,
major initiative was accounting. Their
                                               Europe was done with Tilburg faculty          nothing happened. But the market
objective,” he says, “was to create a world-
                                               colleagues Gerard Mertens and Abe de          pressure placed on new initial public
class place for accounting research.”
                                               Jong (both are now at Erasmus University      offerings (IPOs) had some success;
   Intrigued, DeJong set off on leave
                                               in Rotterdam), and their research paper       the new IPOs basically conformed to
from Iowa for a year to help create the
                                               was published in the Journal of Corporate     recommendations of the independent
accounting research group (creating
                                               Finance.                                      commission—fewer take-over defenses,
and implementing a budget, hiring
                                                  “Among the European Union countries,       fewer interlocking directorships, more
faculty, and recruiting and serving
                                               the Dutch had one of the best designed        shareholder rights, and consequently,
as a dissertation advisor to Ph.D.
                                               self-regulation initiatives in corporate      better performance.”
students). Today, the European Economic
                                               governance, which meant both the
Association ranks the CentER for
Economic Research first among all
                                               U.S. and the E.U. keenly followed its
                                               development,” he says. “There were
                                                                                             Royal Ahold debacle
economic research institutes outside                                                           During this same time, as “luck” would
                                               explicit recommendations with careful
North America and the accounting                                                             have it, the large, Dutch multinational
                                               monitoring of the consequences. Its
research group is one of the top research                                                    company, Royal Ahold, “blew up,” DeJong
                                               intent was to look at whether self-
groups outside North America.                                                                says, setting in motion research that
                                               regulation would work,” he says, “to see if
   Not only that, DeJong says, “the                                                          neither DeJong nor his colleagues had
                                               firms would voluntarily give shareholders
first generation of accounting Ph.D.                                                         originally planned to do.
                                               more rights that would translate into
graduates now hold positions at top                                                            Given their background in corporate
                                               better governed and better performing
institutions and companies,” including                                                       governance, the team knew it was a
Michal Matejka (University of Michigan                                                       perfect time to create a case based on
accounting faculty), Maartin Pronk                                                           Royal Ahold’s collapse, to examine, as
(PricewaterhouseCoopers’ valuation             Research results                              DeJong puts it, “why Ahold became the
and strategy group in Amsterdam and               “And the answer, bluntly, was that self-   Enron of Europe.”
London), and Jan Bouwens (Tilburg              regulation did not work,” DeJong says.          They examined the company’s strategy,
University faculty member and                     At the time, Dutch firms were not very     looking at its finances, accounting
chairman of the accounting group).             shareholder friendly, given their extensive   practices, conflicts of interest (which were
This first generation of accounting            take-over defenses. DeJong’s favorite         huge), and paid particular attention to
academics is now prepared to mentor            is “certificates,” which a firm issues to     the company’s investor relations. They
the next generation.                           shareholders that give shareholders           found that:

On the continent today, The Netherlands is hands down the best

6   The Iowa Ledger
There’s one more piece to this story that’s a result                         accounting courses at the MBA and M.Ac. levels. Iowa
of DeJong’s work: he and his Erasmus University                              MBA or M.Ac. students interested in an international
colleagues spearheaded the development of an                                 concentration would spend a semester at Erasmus
exchange program between the two institutions.                               taking at least two international master’s-level courses
Erasmus, recognized as one of Europe’s top business                          and participate in an international business project
programs, and the Tippie College hope to create a                            working directly with a company or organization. Each
unique arrangement between the schools where                                 year one MBA student also would spend a semester in
Erasmus master’s students would take finance and                             Erasmus’ top-rated MBA program.

Iowa’s research tradition encourages innovation and cross-disciplinary research

Accounting class         Flags of the European Union                         Iowa’s Old Capitol                       Dutch Storm Surge Barrier

•Management used its investor relations                   Using their research results, DeJong          Reporting to students in the Executive
to portray the image of a shareholder-                 and his colleagues created a case in a           MBA program at Iowa and International
focused, value-driven firm while                       competition sponsored by the European            Executive MBA students in Hong Kong.
exploiting existing regulation and                     Corporate Governance Institute. It was              “Given the heterogeneity of these
financing methods to grab complete                     so well-received that the European               groups—they’re from the United States
control of the firm.                                   Commission used the case during                  and all over the world—it turns out to
                                                       its deliberations on E.U. merger and             be a nice advantage for me to be able
•Management financed its major
                                                       acquisition policy, and the Dutch                to discuss corporate governance and
expansion with privately placed equity
                                                       regulators used the case in their litigation     financial reporting in Europe and Asia as
that provided the financial institutions
                                                       against Royal Ahold’s management.                well as in the United States,” he says.
with tax exempt dividends in exchange
                                                                                                           Executive MBA students may know all
for management’s de facto control over the
voting rights of the equity.                           Solving the puzzle                               about the particular part of the company
                                                                                                        they work in, “but before long, they
                                                         “Creating the case was a great
•Management exploited the difference                                                                    have to deal with organizational and
                                                       experience from my perspective,”
between Dutch and U.S. accounting                                                                       governance issues within their company,”
                                                       DeJong says, “because I had to look at
standards and disclosure requirements.                                                                  DeJong says. “Through the course work,
                                                       everything—accounting and finance
Even though Ahold was a publicly                                                                        they get a much better feel for how their
                                                       were each a small piece of it, strategy
traded company on the New York                                                                          company works—from top to bottom—so
                                                       was a small piece of it, governance was a
Stock Exchange with U.S. reporting                                                                      they become much more knowledgeable
                                                       small piece of it. I enjoyed seeing how all
requirements, “you couldn’t figure out                                                                  of what the company is about and how to
                                                       pieces of the puzzle fit together. And good
what was going on,” DeJong says. For                                                                    succeed in this environment.
                                                       research should influence teaching,” he
example in 2001, earnings started at                                                                       “Looking back on my experiences
1114 million, restatements under Dutch                                                                 abroad, I’m surprised at how one decision
                                                         For the past two years, DeJong has
accounting standards reduced earnings                                                                   spawned that many research, teaching,
                                                       taught a course in corporate governance
to 750 million, and conformity to U.S.                                                                 and applied policy opportunities,” he
                                                       in the Tippie College’s MBA programs.
accounting standards resulted in a 254                                                                 says. “Flexibility is a good thing.”
                                                       He also teaches Corporate Financial
million loss.

At left: Amsterdam Canal, Iowa windmill, Dutch postage stamp, Mississippi River from Pikes Peak State Park
                                                                                                                           Henry B. Tippie College of Business   7
The Year in review

                        Beta Alpha Psi Update
                          It was a year of remarkable                    OTher COmmunITy SerVICe                      education and by finance professor Erik
                        achievement for the Alpha Pi                        This past year, Beta Alpha Psi            Lie on his options backdating research.
                        chapter of Beta Alpha Psi.                       joined with the Iowa Valley Habitat for         Meet the Firms Night 2006 was the
                                                                         Humanity to undertake Tippie Build,          largest ever, with 29 firms represented
                                                                         the largest community service project        and more than 150 accounting majors
                                                                         ever in the history of the College. BAP      attending.
                           The organization participated in
                                                                         organized and coordinated fund-raising
                        the largest VITA (Volunteer Income Tax
                                                                         and build volunteers. In addition to         reCOgnITIOnS
                        Assistance) program in its history. Teamed
                                                                         fundraising, BAP members built the              The group received Superior chapter
                        with the Johnson County EITC Outreach
                                                                         house from the ground up, acting as          status awarded by International Beta
                        Committee, Beta Alpha Psi members
                                                                         framers, carpenters, painters, roofers,      Alpha Psi, continuing our tradition of
                        reached out to low-income taxpayers
                                                                         aluminum siders, sod layers, and             being recognized as a superior chapter at
                        in the Iowa City area by opening VITA
                                                                         finishers, and they completed the house      the national level.
                        sites at Pheasant Ridge Neighborhood
                                                                         in just 57 days. Fund-raising $50,000 also      The chapter was one of four chapters
                        Center, Lucas Elementary School, and
                                                                         was completed (see story, page 31).          to receive a $2,000 Ernst & Young Diversity
                        Penn Elementary School, in addition to
                                                                            Other community service                   Award at the International Beta Alpha
                        the traditional Iowa City Public Library site.
                                                                         opportunities included making Ronald         Psi convention. (There are 273 chapters
                        Many thanks go to Mitch Billups, BAP vice
                                                                         McDonald House Halloween treat bags          worldwide.) The group will use the funds
                        president, who organized the individual
                                                                         for the kids, making dinners for families    to further diversity efforts. Last year the
                        site coordinators, offered training sessions,
                                                                         in residence at the Ronald McDonald          group worked to increase the numbers
                        and generally pulled it all together. (See
                                                                         House, and supplying grading and             of women taking leadership roles in the
                        profile of Johnathan Williams on page 7.)
                                                                         help lab assistance for introductory         organization and as invited speakers. In
                                                                         accounting courses.                          addition, they hope to meet with other
                                                                                                                      diversity groups on campus to find ways
                                                                         PrOfeSSIOnAl                                 to expand efforts.
                                                                         DeVelOPmenT                                     Four members were recognized as Beta
                                                                                                                      Alpha Psi International Scholars for their
                                                                            Members of Beta Alpha Psi
                                                                                                                      high level of scholarly participation in
                                                                         participated in two professional trips,
                                                                                                                      International Beta Alpha Psi events: Molly
                                                                         focusing on both private accounting
                                                                                                                      Carpenter, Rachel McGuire, MaryAnn
                                                                         (new this year) and public accounting
                                                                                                                      McCartan, and Johnathan Williams.
                                                                         opportunities: McGladrey and John
                                                                                                                         The chapter was recognized at the
                                                                         Deere in the Quad Cities (fall 2006)
                                                                                                                      Tippie College Student Organization
                                                                         and Deloitte and Rockwell Collins in
                                                                                                                      Awards Banquet as the recipient of the
                                                                         Cedar Rapids (spring 2007). In addition,
                                                                                                                      Outstanding Community Service Project
                                                                         members of Beta Alpha Psi also attended
                                                                                                                      award for its work spearheading the
                                                                         the International Beta Alpha Psi annual
                                                                                                                      Tippie Build project.
                                                                         meeting in Chicago, and was one of four
                                                                                                                         Finally, Beta Alpha Psi members
                                                                         chapters to make a presentation about
                                                                                                                      arranged and coordinated Spring Banquet
                                                                                                                      2007, our annual opportunity to celebrate
                                                                            Beta Alpha Psi students had a year
                                                                                                                      the year with current and former Beta
                                                                         of remarkable learning during the
                        Beta Alpha Psi organizes an etiquette                                                         Alpha Psi members, and the firms and
                                                                         organization’s meetings on Tuesday
                        dinner each year. Among the lessons                                                           faculty who support us.
                                                                         nights. This year’s goal was to include
                        learned is which cutlery to use during a         a mix of public and private accounting
                        business luncheon.                               presentations, as well as nonprofits, to
                                                                         more accurately reflect the interests
                                                                         of our students and our corporate
                                                                         constituency. We also tapped into
                                                                         the College’s own resources through
                                                                         presentations by Dean Curt Hunter
                                                                         about the state of business school

  8   The Iowa Ledger
Beta Alpha Psi Officers,
Molly Carpenter, President (fall) & Co-Chair of
  the Tippie Build Steering Committee
Matthew Glendening, Vice President (fall),
  President (spring)
Nathan Stouder, Vice President (spring)
Mary Ann McCartan, Vice President of Reporting
Abby Holland, Assistant Vice President of
  Reporting (fall), Vice President of Reporting
Evan Malcom, Assistant Vice President
  of Reporting (spring)
Rachel McGuire, Treasurer and Leadership
  Council Representative (fall)
Johnathan Williams, Assistant Treasurer (fall),
  Treasurer (spring)                              REMARKABLE
Patrick Barrett, Assistant Treasurer (spring)
Mitch Billups, Vice President of VITA             TAXING
Derek Kimmerle, Vice President of Social
  Activities & Co-Chair of the Tippie Build       Johnathan Williams
  Steering Committee                              mAy 2007 ACCOunTIng grADuATe
Kevin Hansen, Vice President of Service
                                                     Johnathan Williams will remember his college years well because
                                                  of his participation in Beta Alpha Psi activities, especially the
Craig Pfeiler, Vice President of Communications   Volunteer Income Tax Assistance (VITA) program.
Zachary Schrock, Leadership Council                  Sponsored by the Internal Revenue Service, the VITA program
  Representative (spring)                         allows accounting students the chance to complete federal and Iowa
                                                  tax returns for low- to moderate-income taxpayers.
Joyce Berg, Faculty Advisor
                                                     “It was an enjoyable experience to apply what I learned in class
                                                  in a real-world setting,” he says. “At the same time, you’re helping
                                                  people. To be able to relieve people of the anxiety of doing their
                                                  taxes is very rewarding.”
                                                     Last spring, 50 Beta Alpha Psi students volunteered more than
                                                  700 hours, filing 330 sets of tax returns with a total of more than
                                                  $155,000 in Earned Income Tax Credit and $352,000 in federal
                                                  refunds. This was a record high for the Alpha Pi chapter, more
                                                  than doubling the number of returns filed in the previous year. For
                                                  their efforts, they were recognized by the Johnson County Board
                                                  of Supervisors for their contributions to the social and economic
                                                  health of the people of Johnson County.
                                                     In addition, it was the first year they offered electronic filing.
                                                     “Clients were able to receive their refunds faster, and forms were
                                                  easier to complete,” Williams says.
                                                     Unfortunately, the students couldn’t help everyone.
During 2006-07, the Beta Alpha Psi                   “We had to turn some people away because we were so
officers were (back row) Kevin Hansen,            overbooked,” he says. “That was very difficult, but at the same time,
Derek Kimmerle, Patrick Barrett, Nathan           we’re under a certain level of stress to complete the forms as quickly
Stouder, Craig Pfeiler; (front row) Matthew       as possible so we could get to as many people as possible.”
Glendening, Evan Malcom, Abby Holland,
Mitch Billups; (not pictured) Molly
Carpenter, MaryAnn McCartan, Rachel
                                                                                                            Henry B. Tippie College of Business   9
The Year in review

                       Professional Program Update
                       Undergrad enrollment                             enrollment. (Our five-year average has          a M.Ac. degree by awarding Keith and
                          Enrollment in the Tippie College of           been approximately 50 students.) Last year      Helen Dunn Accounting Scholarships
                       Business surpassed last year’s record high,      we posited that the decline was due to          and M.Ac. surcharge funds to deserving
                       increasing from approximately 1,650              our accounting majors choosing to remain        applicants.
                       students to approximately 1,730 students.        as undergraduates and double major to
                       About 315 or 18.3% are accounting                earn the requisite 150 hours to become          cUrrent StUdentS
                       majors, a slight percentage increase over        certified as a CPA. Given our second
                                                                                                                           On a positive note, the quality of our
                       the prior year. (The departmental high was       straight enrollment decline, we formed
                                                                                                                        current M.Ac. enrollment has never been
                       334 students in fall 2004.) The department       task committees to examine altering the
                                                                                                                        higher. Both the average bachelor’s GPA
                       continues to attract quality students; the       cost/benefit for a typical M.Ac. student and
                                                                                                                        and average Graduate Management
                       average GPA of students who entered the          to examine whether our recruiting efforts
                                                                                                                        Admission Test (GMAT) scores are
                       program this fall was 3.41. This is reflective   are targeting the right audience. We also
                                                                                                                        at record highs: 3.63 and 646 (82nd
                       of the department’s high admission               conducted a comprehensive review and
                                                                                                                        percentile), respectively.
                       criteria. Entering the Professional Program      analysis of M.Ac. applications for the fall
                       in Accounting requires 3.00 cumulative           2007 semester.
                                                                           Our findings indicate that the current       2007 exit SUrvey
                       and UI GPAs; whereas, 2.75 cumulative and
                       UI GPAs are required for all other majors in     decline in M.Ac. enrollment is highly              Survey data indicated that approx-
                       the College.                                     correlated with the 38% decline two years       imately 80% of our undergraduates
                                                                        ago in undergraduate enrollment. Not only       were employed at graduation, with 63%
                                                                        was fall 2005 undergraduate enrollment          choosing public accounting. Twenty-six
              Program Fall 2007
                                                                        down, but approximately 40% of that             percent of these students indicated that
                       enrollment                                       cohort dropped out of the Professional          they intended to pursue a M.Ac. degree.
                          Fall 2007 enrollment in the M.Ac.             Program in Accounting. Furthermore, very        (There is some double-counting, in that
                       Program is 32 students, a decline of nearly      few students in the fall 2005 junior cohort     many of these prospective M.Ac. students
                       26% from the fall 2006 enrollment and a          who double-majored or who graduated             had already accepted permanent
                       decline of nearly 42% from the fall 2005         and did not double-major would have             employment offers after internships.)
                                                                        qualified for the M.Ac. Program due to their    Eighty-seven percent of the M.Ac.
                                                                        GPAs. (One must have a 3.00 cumulative          graduates were employed at graduation,
                                                                        GPA to be admitted to the University’s          with 95% going into public accounting.
                                                                        Graduate College.) In sum, the significant      Relative to students who enter the
                                                                        decline in our M.Ac. enrollment was not         accounting profession after earning a
                                                                        due to students electing to double-major.       BBA degree, the starting salary for a M.Ac.
                                                                        The fall 2007 decline was a function of a       graduate was only about $500 greater.
                                                                        reduced applicant pool. (For fall 2007, there   The failure of public accounting firms
                                                                        was a 35% decline in domestic applications      to place a value on a graduate degree
                                                                        to the M.Ac. Program.)                          versus simply adding 30 more hours
                                                                           The task committees’ recommendations         of undergraduate education is another
                                                                        include continued focus on increasing           factor adding to the difficulty of M.Ac.
                                                                        the number of undergraduate majors,             recruitment.
                                                                        thus increasing the potential pool of
                                                                        M.Ac. applicants. (Fall 2006 undergraduate      grADuATe PrOgrAm
                                                                        admissions were up 52% over fall 2005
                                                                                                                        nATIOnAlly reCOgnIzeD
                                                                        undergraduate admissions; however,
                                                                        undergraduate admissions are down                  In the 2008 edition of America’s Best
                                                                        approximately 15% in fall 2007.) In addition,   Graduate Schools published by U.S.
                                                                        we have implemented more personalized           News & World Report, Iowa’s graduate
                       our VitA student volunteers filed 330 sets
                                                                        recruiting and admission processes. The         accounting program tied for 15th among
                       of returns this year, more than doubling the
                                                                        M.Ac. director and the M.Ac. advisor            public universities and tied for 26th
                       number of returns filed in the previous year.
                                                                        are meeting one-on-one with qualified           overall. Graduate rankings were based
                                                                        undergraduates about the competitive            on ratings by business school deans and
                                                                        advantages and improved skill sets that a       directors of AACSB accredited master’s
                                                                        M.Ac. degree affords. And importantly, we       programs.
                                                                        are able to reduce the cost of obtaining

  10 The Iowa Ledger
                                                                                       Beta Alpha Psi
                                                                                          Beta Alpha Psi, the professional accounting
                                                                                       fraternity, is open to all accounting majors who
                                                                                       have been admitted to the tippie college of
                                                                                       Business and have met grade-point and service
                                                                                       requirements. As a member of Beta Alpha Psi,
                                                                                       students have the opportunity to network
                                                                                       with accounting professionals through regular
                                                                                       presentations and field trips, develop leadership
                                                                                       skills, and take part in community service
                                                                                          this past year, the following companies
                                                                                       volunteered their time to interact with Beta
                                                                                       Alpha Psi members and present information on
                                                                                       various topics (in parentheses). We thank them

                                                                                       deloitte (international Accounting Standards)
                                                                                       Ernst & young (communication/teamwork Skills)
                                                                                       global Protocol inc. (navigating the Business
Remarkable                                                                             Reception/Business dinner Social intelligence)

Dedication                                                                             institute of internal Auditors (careers in internal

Emily Klinefelter                                                                      internal Revenue Service (careers in the iRS)

ACCOunTIng m.AC. CAnDIDATe                                                             John deere (Measuring Value creation at John
   Despite the long hours, Emily           2004 Women’s World Invitational
Klinefelter has managed to balance         Tournament in Taiwan. In addition,          KPMg (Professional Etiquette)
school work with a successful boxing       she has just received her professional      Mcgladrey & Pullen (Business Valuations)
career.                                    boxing license and is about to begin
                                                                                       Pepsico (Supply chain Finance)
   Klinefelter, who graduated in 2006      her professional career.
with a BBA degree in marketing,               “My priority, though, has always         Pricewaterhousecoopers (Business Ethics)
is currently enrolled in the M.Ac.         been that school is first. The most
                                                                                       Rockwell collins (Private Accounting)
Program, hoping to one day contribute      important thing in the long run is to
to her family’s business as an             keep my grades up,” she says. “Second       Weitz corp. (Public Partner to Private Executive/
accountant.                                to that, boxing takes precedence.           Being a cEo)
   “Actually, I wasn’t ready to go to      Somehow I’ve managed to do both.”
                                                                                       Wells Fargo Audit & Security (internal Audit
work following graduation,” says the          Her approach to her academic
Iowa City native, “and I love business,    studies and boxing are similar, she
so I decided to study accounting.”         says.
   In addition to time in the classroom,      “In accounting, one little mistake
                                                                                       AdditionAl tHAnKS go to the businesses that
Klinefelter spends 15-20 hours a week      will throw everything off balance,
                                                                                       hosted office and plant tours during field trips
in boxing practice, and that hard          so you must pay great attention to
work and determination have paid           detail,” she says. “In boxing, one little   this year. these were:
off. She recently won the 119-pound        mistake can get you knocked out,
weight class to win a gold medal at        or may cost you the fight. In both          John deere and Mcgladrey (fall, Quad cities)
the Pan American Games in Buenos           accounting and boxing, mediocrity is        Rockwell collins and deloitte (spring, cedar
Aires, Argentina, last summer. It was      not enough; instead you must strive
her second international competition,      for perfection.”
having won gold at 110 pounds at the

                                                                                                               Henry B. Tippie College of Business 11
The Year in review

                 Ph.D. Program Update
                   The past year has been another                  his senior year. Matt’s research interests
                 successful year for the Iowa Ph.D.                are in the capital markets area with special
                 Program in terms of recruitment,                  emphasis on executive compensation.
                 student accomplishments, and
                 placements.                                       PlACemenTS
                                                                       Four of the program’s students completed
                 new Ph.D. STuDenTS                                their degrees and have accepted positions
                                                                   at other universities. Brad Badertscher and
                    In spite of keen competition for qualified
                                                                   Jeff Burks completed their doctoral degrees
                 candidates for doctoral studies, we were
                                                                   in May and both joined the accounting
                 successful in recruiting two highly qualified
                                                                   faculty at Notre Dame University where
                 students into our program, bringing the total
                                                                   they will be teaching financial accounting.
                 number of students in our program to 11.
                                                                   clayton Forester will complete his degree
                    xiaoli tian joins us having completed
                                                                   this fall and has joined the faculty at the
                 her B.S.B. and master’s degree in accounting
                                                                   University of Minnesota. Huishan Wan
                 from the University of Minnesota. Xiaoli also
                                                                   graduated in May and accepted a position at
                 completed three years of study at Guizhou
                                                                   California State University-East Bay. We wish
                 University for Nationalities in China. While at
                 the University of Minnesota, Xiaoli received
                                                                   all four of these graduates the very best as     Ph.D. graduates Jeff Burks, Clayton Forester,
                                                                   they embark on their academic career.            Huishan Wan, and Brad Badertscher.
                 several academic awards for her outstanding
                 classroom performance. Her research
                 interests are in the empirical capital market     hOnOrS AnD reCOgnITIOnS                             Finally, we want to express a sincere thank
                 area with special emphasis on financial              Ph.D. student rong Zhao received a            you to alumni and friends who contributed
                 statement analysis and valuation.                 Deloitte Foundation Doctoral Fellowship          to the Ph.D. Support Fund over the past
                    matthew glendening received his                Award, one of five awarded nationally. We        year. This fund helps cover expenses related
                 undergraduate degree in accounting in May         also congratulate John mcinnis for receiving     to recruitment of new students as well as
                 2007 from The University of Iowa where he         the Mary L. Collins Memorial Fellowship.         provides support to current students for
                 received several academic honors, including       This award is given to the doctoral student      research, journal subscriptions, and travel.
                 the department’s Outstanding Junior               who, by a vote of the faculty, has made the      Anyone wishing to contribute to this fund
                 Accounting Student Award. In addition, Matt       greatest contribution to the accounting          may do so by sending a check to the
                 received several scholarship awards and           research workshops throughout the past           department and designating “Ph.D. Support
                 served as Beta Alpha Psi president during         year.                                            Fund” as the area you wish to support.

                                                                          meeT The fIrmS nIghT 2006
                                                                          organized annually by           Archer daniels Midland      Kraft Foods
                                                                          members of Beta Alpha             company (AdM)             latta, Harris, Hanon &
                                                                          Psi, Meet the Firms night       AEgon insurance group         Penningroth, llP
                                                                          is a career fair specifically   Becker cPA Review           Mcgladrey & Pullen
                                                                          for accounting majors. it       cardinal Health             national Futures
                                                                          provides an opportunity         caterpillar inc.              Association
                                                                          for students to learn           clifton gunderson llP       nykiel, carlin & co., ltd.
                                                                          more about the firms            conAgra Foods               Pella corporation
                                                                          and about accounting            deloitte                    Pepsico-Qtg (Quaker,
                                                                          careers. Many companies         Ernst & young llP             tropicana, gatorade)
                                                                          that participate also           general Mills               Principal Financial group
                                                                          participate in mock             grant thornton              Pricewaterhouse-
                                                                          interviews with students.       greatAmerica                  coopers
                                                                          A very big thank you to         Hni corporation             Rockwell collins, inc.
                                                                          all the organizations that      John deere                  Suby, Von Haden &
                                                                          made the 2006 Meet              Kaplan test Prep &            Associates, S.c.
                                                                          the Firms night such a            Admissions                Wells Fargo
                                                                          success:                        KPMg llP                    Werner Enterprises

  12 The Iowa Ledger
Zhejia Ling

   A turn of events and a chance encounter with          seminars, which is a move from course work to
an Iowa faculty member drew Zhejia Ling to Iowa’s        active research, Ling says. When finished, they
Ph.D. program in accounting.                             take the accounting comprehensive exam and
   Ling served as an interpreter for Professor Doug      begin working on a dissertation. Ling is currently
DeJong in an MBA accounting course he was                interested in the role of individual CEOs in
teaching in Beijing during spring 2005. Ling’s           corporate performance, accounting choice, and
professor was to interpret for him, but she had to       disclosure practices.
attend a conference and needed a substitute. Her           Students don’t serve as teaching assistants in
professor, Ling says, knew she’d been applying to        their first semester in the program, Ling says,
Ph.D. programs at U.S. universities and had been         “which gives you time to get adjusted to the
studying English very hard.                              program and the environment.” They do, though,
   “It was my first time doing interpretation,” Ling     serve as a research assistant in that first semester.
says. “I’m so glad my professor thought I could
handle it and asked me to do it for her.”
   In addition to acting as the interpreter, Ling also
helped the executives work on their financial case
assignment and graded their case analysis reports.
Ling says that after working for DeJong, he talked
with others in the department about her, and they
encouraged her to submit an application, even
though it was late in the admission process.
   “My ability to work with non-accountant
executives and to explain how accountants look
at financial problems showed Professor DeJong
that I have the abilities and skills to be a good
teacher,” Ling says. “He thought I could be a good
Ph.D. candidate and the faculty in the department
wanted to know more about me, so I applied
formally. Professor DeJong told me that the
department ‘wants to give you every opportunity to
become the best international researcher that you
can be.’ I was so moved and encouraged.”
   Ling, who received bachelor’s and master’s
degrees from Renmin University of China in
Beijing, worked as an intern in an accounting
firm and as a research assistant in the World Bank
Group prior to enrolling at Iowa. Her first year here,
she says, was difficult.
   “It was my first time out of the country, and
I suppose there was still a bit of a language
problem,” she says. “The course work is hard, but
I’ve learned how to learn and communicate, which
is what you need to do to survive in the program.           Since the second semester of her first year in
The faculty and other Ph.D. students in the              the program, Ling has been an instructor for
department are especially helpful.”                      two sections of the undergraduate Managerial
   Iowa’s Ph.D. program takes five years to complete.    Accounting course. It’s an experience, she says, that
The first two years, students take a set of courses      she enjoys.
in economics, statistics, and courses in a chosen           “I like teaching,” she says. “I find that although
minor area (such as economics, finance, or               I’m not a native speaker, students understand me
psychology, depending on the student’s research          well. Being a teacher gives me the opportunity
interest). A minor comprehensive exam is taken at        to have a positive impact on students’ lives,” says
the end of the second year. Accounting seminars          Ling, whose parents are both teachers. “I hope my
in the second and third years introduce students         professional and academic experiences will benefit
to current research topics. Students begin working       my students as well.”
on their second-year paper while taking these
The Year in review

                          RSM McGladrey Institute of
                          Accounting Education and Research
                            The McGladrey Institute                    nATIOnAl SPeAker SerIeS
                          fosters excellence in accounting                In October 2006, the institute hosted the sixth annual RSM McGladrey Speaker Series.
                          education and research at The                As in past years, the event had a large audience of more than 250 people, including
                          University of Iowa by encouraging            undergraduate accounting and M.Ac. students, faculty, RSM McGladrey personnel, and
                          and participating in the creation            guests from the business community. This year’s talks focused on financial literacy. The
                          and dissemination of knowledge               speakers, Gary Previts, associate dean at Case Western Reserve University, and Mike
                          in the academic, business, and               Thomas, director (Personal Wealth Management), RSM McGladrey, used a combination
                          government communities. The                  of slides and handouts to emphasize the need to begin saving early and offered tips
                                                                       for managing your money. The PowerPoint presentations for both presentations and
                          institute continues to serve as
                                                                       a webcast are on the institute’s web site:
                          a vital resource for accounting
                                                                       mcglad.html. A quiz on financial literacy, modeled after the popular game show
                          education and research                       Jeopardy! rounded out the evening. Our own Lynn Pringle emceed the quiz with grace
                          opportunities at The University of           and wit. The quiz (at proved popular,
                          Iowa.                                        and underscored the need for education about managing personal finances.

                          SIDney wInTer leCTure                                                                       mIDweST reSeArCh
                             On October 12-14, 2006, the institute        reSeArCh wOrkShOPS                          COnferenCe
                          hosted the biannual Sidney Winter                  The institute continues to host            During June 2007, the institute hosted
                          Lecture Series, named in honor of the           the department’s weekly research            the Midwest Research Conference, an
                          former college dean who provided                workshop series, which provides an          event that brought together faculty and
                          exemplary leadership to the department          unmatched opportunity for faculty           doctoral students from nine participating
                          and the College for many years. Professor       and doctoral students to interact           universities. The Ohio State University,
                          Slemrod, Paul W. McCracken Collegiate           with leading-edge thinkers. Last            University of Minnesota, Purdue University,
                          Professor of Business Economics and             year, more than 20 national and             and Iowa contributed speakers for this
                          Public Policy at the Ross School of             international scholars presented            year. More than 40 people participated,
                          Business at the University of Michigan          their current research. As part of this     making the event a big success.
                          and an international authority on tax           series, Professor Stanley Baiman of         Conference details are at
terry Shevlin
                          policy, kicked off the event with a broad       the Wharton School, University of           edu/accounting/outreach/midwest07.
                          perspective on tax research. This was           Pennsylvania, delivered the Clarence        html.
                          followed by an insightful presentation by       Tow Lecture. Details can be found
                          Professor Terry Shevlin, Paul Pigot-PACCAR      at            reSeArCh grAnTS
                          Professor of Business Administration            outreach/workshop.cfm?Sem=073.
                                                                                                                      AnD SuPPOrT
                          at the University of Washington and
                          past editor of the Accounting Review.                                                          The institute supported the research
                                                                          Stanley Baiman of the
                          The presentation next day by Professor                                                      efforts of several Iowa accounting faculty
                                                                          Wharton School
                          Edward Maydew, Hoffman Distinguished                                                        members and doctoral students by
                          Professor at the University of North                                                        purchasing data, providing programming
                          Carolina, showcased a graduate of our                                                       support, and by giving summer stipends.
                          Ph.D. Program. The following presentation                                                   Work supported by the institute is
                          by Brad Badertscher, who received                                                           presented at the weekly workshop series
                          his Ph.D. this year, underscored the                                                        and has resulted in several publications.
Joel Slemrod              department’s continuing tradition of
                          excellence. For a detailed program and
                          copies of the papers and presentations,

     14 The Iowa Ledger
Remarkable                                            public accounting and auditing realms, and what
                                                      an IT auditor does on a day-to-day basis.”
Volunteer                                                Miller says students are generally knowledgeable
                                                      about what’s happening in the field because

Brandon Miller                                        professors keep them aware of current trends and
BBA 2003, ernST & yOung                                  “When we visit, we’re helping them see
                                                      the application of their theoretical learning,
   Brandon Miller is no stranger to the Tippie        answering questions like ‘What does that really
College of Business and the Department of             mean when you start your career?’ or ‘How do you
Accounting. Although it’s not part of his job         use that in your daily work life?’”
description with Ernst & Young, returning to             New to his presentation this year is an IT general
the College to meet with current students is an       control case presentation, which he created for
important part of his career.                         his company and for Felker’s class specifically.
   Miller, a senior information systems auditor       Students are required to read the 20-page case and
with Ernst & Young in Des Moines, graduated with      answer questions in advance of their visit. Through
a BBA in accounting and management information        the case and discussion in class, students learn the
systems in 2003. Along with other colleagues, he      relationship between IT controls and a financial
returns to campus each semester to speak with         statement audit and why IT controls are important
students at organizations like Beta Alpha Psi         for accounting and MIS majors to understand.
and Business & Technology Association, attend            “IT controls are tested on the CPA exam and
career fairs, and present in Kevin Felker’s Applied   are a significant part of audit methodology,” he
Information Systems course, sharing information       says, “yet not a lot of time is spent discussing this
about careers in public accounting, what he does      in class. I enjoy showing students the relevance
in his position, and job opportunities at Ernst &     of it and encouraging them to consider this as a
Young.                                                career.”
   “We talk a lot about what a public accounting         Miller, who minored in computer science, first
firm does and specifically what an IT auditor         learned about IT auditing through a career fair.
does,” he says. “We explain the current work             “I’d never heard of IT auditing,” he says. “It
environment, what new regulations and standards       wasn’t something I intended to do, but it certainly
that are coming out that are applicable to the        is the perfect marriage of my degrees.”

                                                                                                  Henry B. Tippie College of Business 15
                        Iowa’s Tax Curriculum
              Responds to Job Market Demands
                        Say the word “taxes” to most         despite the fact that tax is one of    decade. Typical tax education
                     people, and then watch their            the most popular specialties for       of years ago focused mainly
                     reaction. A wince? A grimace? An        students in the Tippie College of      on preparing tax reports and
                     audible groan?                          Business.                              complying with tax laws. Those
                        And why not? The word                   “The main goal is to get them       remain important areas of focus,
                     represents some entity taking your      interested and engaged. I want         but emphasis has shifted to
                     money, often after you have spent       them to come to class, to lean         teaching students how taxes affect
                     hours deciphering tax codes and         forward in their seats and listen      business decisions in financial
                     laws and frantically filling out page   a little closer,” says Sonja Rego,     markets.
                     after page of documents to meet a       assistant professor and Lloyd J.         Today’s tax students are trained
                     midnight filing deadline.               and Thelma W. Palmer Research          not just how to prepare tax forms,
                        Benjamin Franklin forever linked     Fellow. “It’s not about memorizing     but how to solve complex tax
                     it with the ultimate negativity,        for a test. It’s about understanding   problems, notes Rego, who was
                     saying, “In this world nothing is       concepts, applying them to real-life   hired seven years ago to develop
                     certain but death and taxes.”           scenarios, and preparing for careers   and teach the graduate-level course
                        Even accounting students, for        after graduation.”                     Taxes and Business Strategy.
                     whom number-crunching becomes              To better engage and prepare          The innovative course—one
                     a beloved way of life, can find         students, the tax curriculum at        of only about 15 like it around
                     embracing taxes a challenge—            Iowa has evolved over the past         the country—aims to develop

16 The Iowa Ledger
a student’s ability to identify,      its impact on other parties. The       and present their findings                  Students present
understand, and evaluate tax-         class also spends a significant        professionally, as they would to an         information
planning opportunities. The class     amount of time exploring tax           actual client.                              about the tax
develops a conceptual framework       issues from current events, relying       The change in the tax curriculum         implications of
                                                                                                                         Enron’s downfall in
for evaluating how tax rules affect   on the Wall Street Journal and other   is most evident in Rego’s course,
                                                                                                                         Sonja Rego’s class.
financial decisions, then the         publications as much as any            but it extends to the other tax             Professor Rego is
framework is applied to various       textbook.                              courses offered by the department—          seated at far left.
types of financial decisions,            “Today we have many open            Introduction to Federal Taxation,
including savings vehicles,           discussions about much more            Advanced Tax Topics, and Tax
business entity choice, executive     serious and deeper issues than ever    Research.
compensation, capital structure,      before. We’ve moved far beyond            Intro to Tax, the undergraduate
financial statement analysis,         simply how we are applying tax         course required of all accounting
international tax planning,           rules,” says Rego, who emphasizes      majors, has long been seen as an
mergers and acquisitions, and         to her students the importance         introduction to individual taxes,
estate and gift planning.             of honing their communications         with some business issues thrown
   Students choose tax shelters       skills as well as their accounting     in for good measure. However,
they find interesting and write       prowess. She requires that they        lecturer Amy An has branched
about them, showing a basic           work well in teams, write clear        out over the years to include more
understanding of the shelter and      and concise research papers            class projects dealing with business

                                                                                                             Henry B. Tippie College of Business 17
                             tax issues. An even greater shift to     covered in the introductory course.
                             business tax in the introductory         Both courses are now taking a
                             course is in development.                business focus to more adequately
                                No matter what she’s teaching,        prepare students for their first job
                             she tends to grab students’              after graduation.
                             attention.                                 Because many Iowa graduates
                                For example, one class project        excel and land top-notch first jobs in
                             introduced students to their             large cities, Rego says, they need all
                             clients, “Arnold and Maria               the advanced training they can get
                             Schwarzenterminated,” and took           ahead of time to be ready for real-life
                             them through a roller coaster ride       challenges.
                             of tax law scenarios. The couple           “We’re responding to job market
                             was the lucky caller to a local radio    demands,” Rego says. “It’s a trend
                             station and won a complete set of        that has been happening across the
                             Pilates equipment—students had           country over the past 10 years. We’ve
                             to figure out what to do with that       found we have so many students
                             from a tax standpoint. In another        who need business taxation skills
                             development, Arnold suffered an          right away that we must give them
                             unfortunate Oktoberfest celebration      the tools to be successful.”
                             bench-pressing mishap and racked           Austin David used every one of
                             up some medical bills and disability     those tools his education at Iowa
                             payments that needed to be dealt         provided him when he went to
                             with by the tax experts.                 work for KPMG in Denver after he
                                The projects also included            graduated.
                             more substantive issues for                David, who earned a B.A. in
                             students to address, such as             accounting in 2004 and a M.Ac.
                             discussing the pros and cons of the      degree in 2005, credits his tax
                             Schwarzenterminateds’ possible           education at Iowa for not only
                             new business ventures.                   helping him thrive at his first
                                Professor An also encourages          job, but shine so brightly that
                             students to try for extra credit         one of his clients stole him away.
                             points at the end of each semester       He became tax manager for KRG
                             by creating tax-related lyrics for       Capital Partners LLC, a private
                             popular songs by such artists as         equity investment firm in Denver, in
                             Justin Timberlake and the Pussycat       October 2006.
                             Dolls, and performing them in              “What our profession needs is
                             groups in front of their classmates.     individuals with analytical thinking
                             During the semester, she offers          skills, and that’s what Iowa’s
                             her own wacky tunes, such as “The        program produces,” David says. “No
                             Passive Hokey Pokey” and “We All         two tax situations are identical,
                             Want to Be Accountants” (to the          nothing’s cookie-cutter. We’ve
                             tune of “We Wish You a Merry             learned to analyze, to apply the law,
                             Christmas”).                             and serve clients well.
                                Even though she has fun with            “Sonja’s class projects actually
                             her students, An says her classes        mirrored what I saw when I first
                             are demanding, and she expects           went to work, and I’m still doing tax
                             students to regard her as a manager      returns and using skills I learned
                             and each other as colleagues.            in my first tax class,” he continues.
                                “It’s what is expected in the         “The courses are innovative, and

Even though she has fun      business world. We’re trying to
                             develop their professional skills,” An
                                                                      the faculty itself makes the Iowa tax
                                                                      education truly great.”

with her students, An says
                             says.                                      Another course, Tax Research,
                                The second tax course, Advanced       helps students develop the
                             Tax Topics, is also taught by Rego       framework to understand the

her classes are demanding.   and is known for delving into hard-
                             core business taxation issues not
                                                                      basics of tax law. It helps them
                                                                      grasp the fundamental basics of
Although business
                                        earned income tax credit and more      senior tax manager for Deloitte Tax
                                        than $350,000 in refunds were          in Chicago.
                                        claimed this year through the VITA       Tone, who graduated with a B.A.

tax is important,                       program.
                                           Joyce Berg, associate professor,
                                                                               in accounting from Iowa in 1996,
                                                                               helps lead Deloitte’s recruiting

individual tax has                      Pioneer Hi-Bred Research Fellow,
                                        and Beta Alpha Psi faculty advisor,
                                                                               efforts at Iowa and praises the
                                                                               faculty’s ability to give students the

not been left behind.
                                        says she has been impressed by how     technical knowledge they need to
                                        the student volunteers have grown.     succeed. As important, he says, is
                                           “They learn how to communicate,     the need to teach students the art
taxes for individuals, partnerships,    really listen to, and respond to       of building and nurturing long-
and corporations, and tackle the        clients. That’s important, no matter   standing relationships with clients.
more than 10,000 new pages of tax       what area of work students are           Iowa’s tax curriculum and the
regulations that have cropped up
since 2000, says instructor Kevin
   Trout, who has 25 years of
experience in accounting and
finance, taught his first Tax
Research course last summer.
   Trout aims to focus on the
“practical”—projects that cover
what a student will be likely to use
in a tax practice during his or her
first five years. The goal is not to
have them memorize law but to
“know how to get their hands on
information when they need it,” he
   Although business tax is
important, individual tax has not
been left behind. In fact, one Tippie
program growing in size and scope
is Volunteer Income Tax Assistance
(VITA), coordinated by the college’s
Beta Alpha Psi chapter.
   This year the VITA program
teamed up with the Johnson County
EITC Outreach committee to help
expand VITA’s reach into the
community. About 50 accounting
students volunteered this year,
providing free assistance to help       going into,” Berg says. “Plus, the     faculty teaching it seem poised to
low-income individuals in the           program is engaging them in the        take tax education to the next level,
community file their income tax         community in a way that the firms      Tone says.
returns. That number is up from 32      looking to hire our students want        “The people I recruit from Iowa
volunteers in 2006. The number of       to see.”                               are all stars. They have drive, top
returns filed was up this year to 330      And that’s the ultimate goal:       communication skills, and a strong
from 159.                               preparing students for employment      entrepreneurial spirit. And the
   The program allows students to       in the real world. Iowa already has    instructors embody what Iowa is
put what they’ve learned in class       a strong reputation for producing      supposed to be—they are caring,
to practical use, while helping         graduates who can excel in the         compassionate, and dedicated,” he
Johnson County promote an               business world; the enhancements       says. “Iowa’s programs will continue
outreach campaign to educate the        being made to the tax curriculum       to grow and help prepare the best
public about the earned income          will surely send that reputation       students to be among the best tax
tax credit. More than $155,000 in       soaring higher, says Wolfe Tone,       professionals around.”

                                                                                                               Henry B. Tippie College of Business 19
Professional Accounting Council

                                                                Professional Accounting Council 2007-2008
                                                                John Briggs                 John Hill                     Jason Rogers

   Council Members                                              Sr. Vice President,
                                                                Chief Financial Officer
                                                                & Treasurer
                                                                                            Arthur Weimer
                                                                                            Faculty Chair,
                                                                                            Professor of Accounting
                                                                                                                          Deere & Company
                                                                                                                          Waterloo, Iowa

   Offer Counsel                                                Hy-Vee, Inc.
                                                                West Des Moines, Iowa
                                                                                            Indiana University
                                                                                            Bloomington, Ind.             Thomas Rotherham
                                                                                                                          Managing Partner

   and Support                                                  Jennifer Burrowes
                                                                Senior Manager and
                                                                Director Cross-Industry
                                                                                            Christopher Hoffman
                                                                                                                          of Client Services
                                                                                                                          Grant Thornton LLP
                                                                                                                          Chicago, Ill.
      At its two meetings this past year, the Professional      Research                    Chicago, Ill.
   Accounting Council (PAC) deliberated two issues of           Accenture                                                 David Sandstead
   great importance to the profession and our programs:         Chicago, Ill.               Kimberly Kane                 Director of Sales—
                                                                                            Internal Control Specialist   Retirement Services
   professional ethics training practices and how to            Chris Cox                   The Boeing Company            Principal Financial Group
   infuse more ethics content into our curriculum; and a        Vice President & Chief      Chicago, Ill.                 Lombard, Ill.
   roundtable discussion on achieving diversity.                Accounting Officer
      Representatives from the University, College, and         AMC Entertainment, Inc.     Daniel Koestner               Joel Schmidt
                                                                Kansas City, Mo.            Partner                       Chief Audit, Ethics, &
   Northeast College Readiness Program each described                                       Ernst & Young, LLP            Compliance Officer
   their past student diversity enhancement efforts.            Susan Davis                 Des Moines, Iowa              Alliant Energy
   Panelists also provided suggestions regarding diversity      Partner                                                   Cedar Rapids, Iowa
                                                                McGladrey & Pullen, LLP     Laura Newinski
   initiatives within the Department of Accounting. The                                                                   Holly Ashbaugh-Skaife
                                                                Des Moines, Iowa            PAC Chair
   PAC also grappled with the question of how we might                                      Partner                       Associate Professor,
   better prepare our accounting students for success in        Scott Erickson              KPMG                          Accounting Information
                                                                Audit Partner               Minneapolis, Minn.            Systems
   culturally diverse employment settings.                      Deloitte & Touche, LLP                                    University of Wisconsin
      The PAC is our strongest link to the professional         Minneapolis. Minn.          Brek Peterson                 Madison, Wis.
   accounting community. PAC members are business                                           Director, Supply Chain
   leaders who support excellence in accounting
                                                                James Gilbertson            Finance                       B. Kent Swaim
                                                                Chief Financial Officer     Pepsico-Quaker Tropicana      PAC Treasurer
   education. Members are drawn from public accounting,         Dimex                       Gatorade Division             President & CEO
   private industry, the government and not-for-profit          Brooklyn Park, Minn.        Chicago, Ill.                 The Economy Advertising
   sectors, and academia. Most PAC members are                                                                            Company
   graduates of our programs, and all have a demonstrated
                                                                                            James Pratt                   Iowa City, Iowa
                                                                                            Senior Vice President
   and sustained interest in the department’s success.                                      & CFO
      PAC members meet twice each year on campus to                                         Hills Bank & Trust Co.
   discuss issues confronting the accounting profession,                                    Hills, Iowa
   the department, and the Tippie College of Business.
   The PAC is an important sounding board for curriculum
   improvement initiatives and helps ensure that our
   graduates are equipped with the skills and knowledge
   employers require today.
      The PAC is financed entirely by contributions from
   active and sustaining members. Financial support from
   PAC members has helped fund first-year accounting
   scholarships and our writing program.
      All of us who are associated with the Department of
   Accounting at Iowa owe each of the current and former
   PAC members a tremendous debt of gratitude.

      In 2007-2008, we’ll celebrate the 25th anniversary
   of the PAC. We hope you will attend the celebration
   scheduled for April 24-25, 2008, when we recognize
   the important contributions PAC members have made
   to the success of our programs. Details regarding this
   important celebration will be sent to you in February

                                                             Laura Newinski and Tom Rotherham share a laugh dring the April PAC meeting.
                                                             Joel Schmidt looks on.
   20 The Iowa Ledger
Why I Serve
  “My PAC membership can be
directly attributed to my gratitude for
the quality education I received while
in the doctoral program at Iowa. In
particular, Professor Dan Collins’
dedication in mentoring doctoral
students over many years has had a
profound influence on the lives and
careers of many academics, including
  “Dan’s legacy at Iowa is captured
in this lineage of Ph.D. grads who
have gone on to enjoy success in their
academic careers and are leaving an
imprint on the lives of the students
they help groom for careers in
John W. Hill
Arthur M. Wiemer Chair
and Professor of Accounting
Kelley School of Business, Indiana University

   “I am grateful for the terrific
education I received at The University
of Iowa and feel fortunate to be able
to give back. I believe the PAC can
help the Accounting Department
continue to improve this already very
strong program and prepare students
for the many kinds of finance and
accounting careers available to them.”
Brek Peterson
Director Supply Chain Finance - Hot Fill
Quaker Tropicana Gatorade
Division of PepsiCo

  “When I was approached about                    “Careers are about having an               Last spring’s PAC meeting included
serving on the Professional Accounting          impact on your profession, not just          an information session on the
Council, my first reaction was—how                                                           department’s outcomes assessment
                                                through client interactions, but by
                                                                                             plan and a discussion on ethics in
much time will this take away from              having a ringside seat as young people       accounting education. PAC members
my client work? After two years of              begin their careers.                         provided suggestions about how
active participation, I look forward              “Taking on the tough issues and            the department might expand and
to the meetings and phone calls to              forging paths beyond your own is             enhance coverage of business ethics
share ideas, observations from other            an immensely satisfying part of my           and the ethical responsibilities of
                                                                                             professional accounting.
experiences, and the deep wisdom of             role. My worth as a professional is
PAC members and faculty.                        not in my personal accomplishments,
  “Bringing together a wide range of            but is measured by the impact and
experiences as the PAC does, always             influence that I had on those that come
produces a better outcome.”                     after me.”
Christopher J. Hoffman                          Susan L Davis
Partner, PricewaterhouseCoopers                 Assurance Partner, McGladrey & Pullen, LLP

                                                                                                        Henry B. Tippie College of Business 21
Professional Accounting Council
                                                                  models, internship programs, and       problem-solving strategies of
                                                                  the career opportunities awaiting      accounting to all aspects of his
                                                                  them after graduation.                 leadership responsibilities.
                                                                    Joel grew up on a farm in Jackson       Joel sees his new role on
                                                                  County outside Spragueville, Iowa.     the Professional Accounting
                                                                  In 1985 he graduated from Iowa         Council as a win-win situation
                                                                  with a BBA in accounting. Upon         for University students and his
                                                                  graduation, he worked in Chicago       company. Alliant Energy, like
                                                                  as a staff accountant with Arthur      many companies, is going to face
                                                                  Andersen & Co. After three years of    a large amount of retirement in
                                                                  public accounting in Chicago, he       the next two decades, and the
                                                                  decided to move closer to family       generation currently in school
                                                                  and accepted a job at what was IE      needs to fill these voids. Joel
                                                                  Industries (predecessor to Alliant     sees his connection with the
                                                                  Energy).                               University as a way to stay in
                                                                    Joel started out as a senior staff   touch with new graduates’ needs
                                                                  accountant at Alliant Energy           and desires from the workplace.
                                                                  Corporation, a public utility          He is also eager to show students
                                                                  holding company with operating         the “significant opportunities in
                                                                  revenues of $3.2 billion last year     store for them as Iowa’s economy
                                                                  and total assets of more than          evolves with biotechnology and
                                                                  $7.7 billion (year-end 2005).          renewable energy.” And, he hopes
                                                                  However, he soon realized that         to encourage students to remain
                                                                  business development and               loyal to the Midwest and to foster
                                                                  leadership were his true interests.    development and leadership here
                                                                    Joel traveled extensively            in Iowa.
                                                                  coordinating business development         Joel is currently the chief audit
                                                                  work and strategic analysis in         and risk officer, responsible for
                                                                  South America, Asia, Africa, and       all strategic risk management,
                                                                  New Zealand. He graduated from         insurance, and internal audit
          Remarkable                                              The University of Iowa’s evening       activities for Alliant Energy. He

          Leadership                                              MBA-PM program in 1998 and was
                                                                  named managing director, China
                                                                                                         recently completed the Assoc-
                                                                                                         iation of Business and Industry’s
                                                                  Alliant Energy International.          Leadership Iowa Program.
          Joel Schmidt                                              Joel has been with Alliant for       Selecting 40 professionals each
          PrOfeSSIOnAl ACCOunTIng COunCIl                         18 years and has moved through         year, this program promotes
                                                                  multiple careers within the            leadership within the state,
            From Iowa farm boy to international                   company. Although staying with         instilling passion in current and
          businessman to local industry leader, Joel Schmidt      one company for so long is rare,       emerging leaders and fostering a
          has achieved professional and personal success          Joel says, “I’ve experienced many      high level of civic engagement. In
          since his education at The University of Iowa.          professional challenges and            addition, Joel serves on the Board
            And as one of the newest members of the               organizational changes within          of Governors for the Heartland
          Accounting Department’s Professional Accounting         the company. From international        Chapter of Institute of Internal
          Council, he hopes to show the University’s current      business development to mergers,       Auditors, Board of Directors
          students all that’s awaiting them after graduation      whenever I’ve wanted a change, the     and Executive Committee of
          day. As chief audit and risk officer with Alliant       people at Alliant have provided it.”   Alzheimer’s Association of East
          Energy in Cedar Rapids, Joel says he wants to open        While no longer a public             Central Iowa, and is very active in
          “others’ eyes to the opportunities within our state.”   accountant, Joel is quick to point     his son’s Boy Scout troop.
            The council is made up of distinguished               out what a solid foundation his           He and his wife, Sandra Pitts
          Accounting Department alumni and serves as a            accounting degree has given him.       Schmidt (fellow 1985 graduate),
          valuable resource for both department faculty and         “Accounting is the language of       have one son (Nathan, 15) and one
          students. This important line of communication          business and gives me the ability to   daughter (Laura, 11). They love to
          with industry professionals has allowed the             converse with all disciplines within   travel and in the past few years
          department to develop curriculum that accurately        the industry,” he says.                the family has been to Alaska,
          reflects the needs of major accounting firms.             He also admits that he applies       Yellowstone, Utah, and Europe.
          Students also benefit from direct access to role        the thought processes and

  22 The Iowa Ledger
                                                                                                                        Faculty News

Ryan Wilson
Joins Iowa Accounting Faculty
   Who quacks like a Duck, growls           His wife, Nicole, is finishing up her
like a Husky, and loves jelly            Ph.D. in psychology at the University
doughnuts? It’s the newest member        of Washington, hoping to complete it
of our Hawkeye accounting family,        by summer or fall 2008.
Ryan Wilson.                                Prior to becoming a doctoral
   Wilson joined us in August            student, Wilson spent four years
2007 after completing his Ph.D.          with PricewaterhouseCoopers LLP as
in accounting at the University          a Certified Public Accountant. In the      Ryan Wilson, newest accounting faculty
of Washington in Seattle (aka            department, he will be teaching the        member
the “Huskies”). He also holds            undergraduate financial reporting
bachelor degrees in accounting and       and analysis course required of all        a predictive model for identifying
economics from the University of         finance majors in the Tippie College.      active tax shelter firms. The study
Oregon (aka the “Fighting Ducks”).          Wilson’s research examines the          also documents an important link
   “I am a huge fan of the Oregon        interplay between income taxation,         between active tax sheltering,
Ducks football and basketball            financial reporting practices, and         corporate governance, and
teams,” says the Eugene, Ore., native,   capital markets. His doctoral thesis,      shareholder wealth.
“although I am also becoming a           for example, investigates firm               In a co-authored paper on
Hawkeye fan.”                            characteristics associated with the        the “Economic Consequences
   Not one to be just an armchair        use of questionable tax shelters by        of Increasing the Conformity in
quarterback, Wilson also enjoys          corporations. Using a sample of            Accounting for Uncertain Tax
golf, although, he says, “my game        firms identified ex post as having         Benefits,” Wilson investigates the
has been in rapid decline since I        participated in questionable tax           stock price reaction to key events
returned to graduate school.”            shelters, the study develops and tests     surrounding the FASB’s issuance
                                                                                    of Interpretation No. 48. The new
                                                                                    accounting rule, known as FIN 48,
                                                                                    released in July 2006, requires firms
                                                                                    to use a more restrictive approach to
                                                                                    recognizing benefits associated with
                                                                                    uncertain tax positions. The research
                                                                                    documents a stock price decline
                                                                                    on key dates with the decline most
                                                                                    pronounced among firms identified
                                                                                    as aggressive corporate tax avoiders.
                                                                                    On the other hand, investors
                                                                                    responded positively to firm’s FIN 48
                                                                                    disclosures regarding the extent of
                                                                                    uncertain tax benefits.

                                                                                                              Henry B. Tippie College of Business 23
Faculty News
                                          U.S. Senate Investigation
                                          Cites Gleason Research
                                             A U.S. Senate subcommittee investigating          companies pre-
                                          several corporations for allegedly violating         vailed against the
                                          federal tax law is reportedly looking at             IRS,” Gleason said.
                                          numerous companies that were identified in              The largest
                                          research by a UI accounting professor.               reserve was by
                                             Cristi Gleason, assistant professor of            Merck, which had        Cristi Gleason
                                          accounting, worked with colleagues at                a reserve equal to
                                          the University of Texas and University of            16.6% of overall assets. By contrast, GE’s
                                          Pennsylvania to track the effects of a new           reserve amounted to 1% of assets, and AT&T’s
                                          accounting rule on corporate earnings.               to 2%.
                                             The rule, called FIN 48, was adopted in              Gleason said this is important because
        Faculty                           January and requires companies to publicly           losing a tax challenge at audit might
        Recognitions                      disclose the amount they’re holding in               significantly reduce a company’s income
           two tippie faculty have
                                          reserve to pay in the event the IRS audits and       and cash holdings if the firm does not have
        been recognized by the            successfully challenges a deduction or credit        adequate reserves, making the company less
        American Accounting               the company claimed on a prior year’s tax            appealing to investors. She said the reserves
        Association (AAA) for their       return. Before the new rule, tax reserves were       also provide a window into the executives’
        research contributions.           not public information.                              estimation of their company’s own tax risk,
        cristi gleason, assistant            Gleason’s research examined the tax               which is information investors can use to
        professor of accounting,          liabilities at 100 large companies that were         affect share price.
        is a co-recipient of the          newly disclosed by FIN 48 and found many                The Senate Permanent Subcommittee
        2007 American taxation            companies had set aside large amounts of             on Investigations has requested at least 30
        Association (AtA)                 money to pay tax challenges. As of Jan. 1, those     companies—including Merck—to provide
        Manuscript Award for the
                                          companies had set aside $78 billion for tax          additional information on these reserves and
        article “last chance Earnings
                                          challenges.                                          details of other past tax arrangements, the
        Management: using the tax
        Expense to Meet Analysts’            “These reserves are about 2% of assets,           Wall Street Journal reported in September.
        Forecasts.” erik lie, associate   and so could materially affect earnings if
        professor of finance,
        received the Joint AicPA/
        AAA notable contributions
        to Accounting literature
        Award for his research on                                      Tom Carroll Recognized
        stock option backdating.                                           tom carroll, a lecturer in the          “This professor has made the
           in addition, ryan                                            department of Accounting, is the        accounting program what it should
        Wilson, assistant professor                                     recipient of the 2007 gilbert P.        be—tough.”
        of accounting, received                                         Maynard teaching Award, given at           “His intimidation and challenging
        the Best Paper Award                                            last spring’s Beta Alpha Psi banquet.   work assignments forced me to work
        from the Journal of
                                                                        He also received the award in 2003.     harder than usual.”
        the American taxation
                                                                           the annual award, established           “The skills I learned from trying to
        Association conference
                                                                        in 1982, fosters proficiency and        tackle the seemingly impossible cases
        for research on “Examining
                                                                        dedication of accounting faculty to     and exams will help me greatly in the
        investor Expectations
                                                                        accounting instruction. Each year,      future.”
        concerning tax Savings
        on the Repatriation of                                          students submit faculty nominations        “Although I earned my first C of my
                                          Tom Carroll
        Foreign Earnings under the                                      to a selection committee, which         college career in this professor’s class, I
        American Jobs creation Act                                      then selects an award recipient who     learned the most in his above all others.”
        of 2004” (with co-authors                                       best exemplifies the standards and         carroll joined the accounting
        Mitch oler and terry                                            qualities of Professor Maynard.         faculty in 1989. carroll received his
        Shevlin).                                                          the following were comments          BBA in accounting in 1979 from
                                                                        made by his students on their           the university of notre dame and
                                                                        nominating forms:                       a Ph.d. in accounting from the
                                                                                                                university of Michigan in 1988.

   24 The Iowa Ledger
A Sampling of Current Faculty Research
Spending Patterns with                  backdating. CEOs of backdating          What Can We Learn About                  The Earnings Forecast
Lapsing Budgets: Evidence               firms seem to receive higher            Uncertain Tax Benefits from              Accuracy, Valuation Model
from U.S. Army Hospitals                levels of pay than their non-           FIN 48?                                  Use, and Price Target
                                        backdating counterparts, and                                                     Performance of Sell-Side
ramJi BalakriSHnan, nAoMi                                                       criSti gleaSon, JEnniFER
                                        this excess compensation has a
SodERStRoM, And tiM WESt                                                        Blouin, lilliAn MillS, And               Equity Analysts
                                        negative association with future        StEPHAniE SiKES
   How does the practice of                                                                                              criSti a. gleaSon, W. BrUce
                                        firm performance. The evidence
reverting unused funds (known as                                                   FIN 48 “Accounting for                JoHnSon, and Haidan li
                                        is consistent with backdating
“budget lapsing”) affect spending                                               Uncertainty in Income Taxes”                Does earnings forecast
                                        firms having greater agency
patterns? Data from 31 army                                                     standardizes the accounting for          accuracy and valuation model
                                        problems that negatively affect
hospitals over a five-year period                                               uncertain tax benefits and requires      use influence the profitability
                                        shareholder value.
reveals that hospital administrators                                            companies to disclose their tax          of analysts’ price targets?
tend to stockpile pharmaceuticals                                               reserve amounts. By summarizing          The authors found a positive
                                        Pyramids and France                     hand-collected disclosures related
and other supplies toward year-                                                                                          association between earnings
                                        doUg deJong, ABE dE Jong,               to tax reserves from 2005 through
end. This behavior produces a                                                                                            forecast accuracy and the
                                        gERARd MERtEnS, And uli                 the first quarter of 2007, the
spending spike that potentially         HEgE                                                                             profitability of price targets.
exhausts the budget. Interestingly,                                             authors found that for the largest       Moreover, price targets issued by
                                           International firms exhibit          100 nonfinancial, nonregulated
administrators also build a                                                                                              analysts who accurately forecast
                                        a diverse array of organization         firms, the reserve at adoption on
spending reserve for later use at                                                                                        earnings are more informative
                                        forms: some are privately held          Jan. 1, 2007, is $78 billion excluding
the beginning of the budget year,                                                                                        for investment purposes than are
                                        while others are widely held;           interest, or about two percent
and this reserve is larger than                                                                                          their buy/sell recommendations.
                                        some are state controlled               of assets. Of this $78 billion, an
the preceding spending spike.                                                                                            In addition, the price target
                                        while others are blockholder            estimated $58 billion would
The authors conclude that risk-                                                                                          superiority can be traced in part
                                        controlled or are pyramids. Each        affect earnings if ever released.
aversion, particularly in the face of                                                                                    to the use of theoretically more
                                        organizational form presents            (Forthcoming in the National Tax
environmental uncertainty, plays                                                                                         rigorous valuation approaches.
                                        unique agency problems which            Journal).
a significant role in determining                                                                                        These results are consistent
                                        pose challenges for minority
intra-year spending patterns in                                                                                          with the notion that analysts
                                        shareholders, debt-holders and
this setting. (Forthcoming in the
                                        regulators. France is an ideal
                                                                                Does CEO Overconfidence                  who issue more accurate
Journal of Management Accounting
                                        laboratory for studying these           Affect Management                        earnings forecasts and who
Research).                                                                      Forecasting and Subsequent               use theoretically more rigorous
                                        diverse organizational forms
                                                                                                                         valuation models are also better
                                        because it has a wide dispersion        Earnings Management?
Corporate Governance and                of ownership structures, and            PaUl HriBar And Holly yAng
                                                                                                                         at assigning price targets to the
Backdating of Executive                 financial reporting in France is
                                                                                                                         firms they cover.
                                                                                    Does managerial overconfidence
Stock Options                           unusually transparent because of        increase the likelihood of issuing       continued on next page
dan collinS, guoJin gong,               the availability of financial reports   overly optimistic earnings
And Haidan li                           for both public and private             forecasts? Using a measure of
   Does weak corporate                  holding companies. This research        overconfidence derived from
governance contribute to the            asks such questions as: How are         financial press coverage, the
incidence of backdating executive       pyramidal structures designed? Is       authors provide evidence that
stock option awards? Based on           the use of leverage in pyramids a       CEO overconfidence is associated
a sample of S&P 1500 firms that         substitute for equity as a means        with an increased likelihood
exhibit evidence of backdating,         to engineer control? What is the        that the firm will fall short of
the authors found that firms            effect of pyramids, different types     its own earnings forecast. CEO
where CEOs can exercise greater         of pyramidal structures, and            overconfidence is also associated
power over the board and its            types of owners on performance          with the use of income-increasing
compensation committee are              and payout policy? How do               earnings management devices
more likely to engage in CEO            pyramidal structures change over        after the forecast is issued. Taken
option backdating. The tendency         time? How do pyramids perform           together, the results suggest
to backdate is stronger when stock      relative to other organizational        that overconfidence increases
options are more important in CEO       structures?                             the optimistic bias in voluntary
compensation and when directors                                                 earnings forecasts, leading to
receive option grants on the                                                    both an increased likelihood of
same date as the CEO. In addition,                                              missing the forecast and to greater
interlocking boards among                                                       earnings management.
backdating firms are associated
with a higher incidence of

                                                                                                                                   Henry B. Tippie College of Business 25
Faculty News
                                                                                                  Faculty News
         A Sampling of Current                                                                    For Amy An, it’s all about the miles. She logged

         Faculty Research continued                                                               many miles attended meetings in New York
                                                                                                  City, Washington, Raleigh, Chicago, Kansas City,
                                                                                                  Emporia (Kansas), Salt Lake City, and San Diego
                                                                                                  as a member of the International Beta Alpha Psi
         The Assignment of Decision                 financing policies, and to a lesser extent    (BAP) Board of Directors. During the past year,
         Rights in Formal Information               aggressive operating and compensation         she also enjoyed some personal travel in Paris
                                                    strategies. Firms with aggressive financial   with a college friend, and to Istanbul to visit her
         Systems                                    and tax reporting contemporaneously
                                                                                                  son Drew. In Istanbul, Amy experienced dorm
         mark Penno                                                                               life for the first time, spending an unforgettable
                                                    experience higher abnormal stock              weekend with Drew and his five suite-mates
            Contracting theory presumes an          returns than less aggressive firms, which     at The University of Zagreb. She treasures the
         uncontestable report on which to           suggests that the market recognizes and       e-mails and phone calls from many former
                                                                                                  students and looks forward to their campus
         base required payments. This research      rewards firms with aggressive policies.       visits.
         demonstrates the importance of
                                                                                                  Ramji Balakrishnan, Ernst & Young Professor, is
         decision rights for this central feature   Economic Consequences of                      half way to becoming an empty nester—his son
         of the theory by examining the optimal     Increasing the Conformity in                  Vasu has enrolled at Carnegie Mellon University
         assignment of the right to choose from                                                   in Pittsburgh this fall to major in math and
         a menu of ex ante identical, but noisy,
                                                    Accounting for Uncertain Tax                  economics. As director of the RSM McGladrey
         performance measures. Conditions
                                                    Benefits                                      Institute, he was busy this past year organizing
                                                                                                  our PricewaterhouseCoopers Research Seminar
         are identified where a principal would     PEtER FRiScHMAnn, tERRy SHEVlin,
                                                                                                  and the institute’s National Speaker Series. He is
         strictly prefer to assign these rights     And ryan WilSon                               completing a co-authored textbook on strategic
         to his agent even though the choice        On July 13, 2006, the FASB issued             cost management and continues to teach
                                                                                                  cost management courses to M.Ac., MBA, and
         is made after the report is realized.      Interpretation No. 48, Accounting
                                                                                                  Executive MBA audiences.
         The surprising aspect of this result is    for Uncertainty in Income Taxes: An
         that neither individual has a natural      Interpretation of FASB Statement No. 109,     Joyce Berg, Pioneer Hi-Bred Research Fellow,
                                                                                                  is interim director of the newly renamed
         advantage in making the choice, and        proposing a more restrictive approach         Iowa Electronic Markets Institute (formerly
         the assignment of rights alleviates        to recognizing benefits associated with       Iowa Electronic Markets). She enjoys teaching
         problems jointly caused by the agent’s     uncertain tax positions. Commentary on        managerial accounting courses and having
                                                                                                  the opportunity to see students at the start of
         limited liability, agent risk aversion,    the proposed interpretation suggests
                                                                                                  their business career development. As faculty
         and a measurement system that              that it could be costly for firms because     advisor for Beta Alpha Psi, much of the 2006-07
         detects shirking better than working.      charges and disclosures made as a result      year was spent working on the Tippie Build (see
         Conditions also are identified for         of applying the new interpretation could      story page 31) and the Volunteer Income Tax
                                                                                                  Assistance (VITA) program (see story page 7).
         which the principal welcomes a larger      be used by the IRS to more effectively        On a personal note, she taught her new cat to
         menu of performance measures from          identify and challenge uncertain tax          perform “dog tricks.” Nestle can now sit, lie down,
         which the principal or the agent can       positions. The authors tested whether         and roll over on command. And, if he wants a cat
                                                    investors believed firms would incur          treat, he rolls over in front of the cabinet holding
         choose. (Forthcoming in the Journal of
                                                                                                  the treats. “Perhaps,” she says, “it’s me that has
         Management Accounting Research).           significant costs associated with FIN 48      learned the trick.”
                                                    by examining the stock price reaction
                                                                                                  Tom Carroll is faculty advisor for our M.Ac.
                                                    around key pronouncements. The
         Are Financial and Tax Reporting                                                          program and enjoys teaching courses on the
                                                    authors noted significant abnormal            theory and practice of financial reporting. He
         Aggressiveness Reflective of               returns for firms associated with key         was again honored by our accounting students
         Broader Corporate Policies?                event dates related to Interpretation No.     as the 2007 recipient of the Gilbert P. Maynard
                                                                                                  Excellence in Accounting Instruction Award (see
         SonJa rego, MARy MARgAREt                  48. In addition, returns around certain       story page 22).
         FRAnK, And luAnn lyncH                     key dates are more pronounced for
                                                                                                  Dan Collins, Henry B. Tippie Research Chair,
            The recent spate of corporate and       firms identified as aggressive corporate      became a grandfather in September 2006. His
         financial accounting scandals, the         taxpayers using two alternative measures      grandson, Alexander Daniel Baker (a future
         growing book-tax gap, and widespread       of tax aggressiveness. The authors also       Hawkeye) is shown on the next page on his
                                                    studied the market response to the initial    first birthday. Dan was a featured speaker at
         tax shelter activity motivates this
                                                                                                  the AAA Financial Accounting and Reporting
         research on aggressiveness in financial    disclosures of uncertain tax benefits         Doctoral Consortium in San Antonio (January
         reporting and tax reporting. The authors   required by FIN 48 in the first quarter of    2007), was the distinguished faculty presenter
         develop an enhanced measure of tax         2007. Results are consistent with these       at the University of Technology in Sydney,
                                                                                                  Australia (March 2007), and was a presenter at
         reporting aggressiveness and link it to    disclosures providing new information
                                                                                                  AAA Doctoral Consortium in Lake Tahoe (June
         firms known to have participated in tax    to investors regarding the extent of firms’   2007). During the past year, he also presented
         shelter transactions. They found that      uncertain tax benefits and with investors     workshops at Vanderbilt, Georgia State,
         firms with more aggressive financial       responding positively to news of tax          University of Houston, Tennessee, and Arkansas.
                                                                                                  Forthcoming papers include “The Effect of
         reporting also chose more aggressive       aggressiveness.                               SOX Internal Control Deficiencies and Their
         tax reporting strategies. In addition,                                                   Remediation on Accrual Quality” co-authored
         the more aggressive firms generally                                                      with Hollis Ashbaugh-Skaife (Iowa Ph.D.), William
                                                                                                  Kinney, and Ryan LaFond in The Accounting
         exhibit more aggressive investing and
                                                                                                  Review; and “What Drives the Increased

   26 The Iowa Ledger
                                                     responsibilities, teaching Executive MBA                Lynn Pringle, Director of the Professional
                                                     courses, and research. His paper on accounting          Program in Accounting, received the Dean’s
                                                     restatements (with Cristi Gleason) is forthcoming,      Teaching Award for his efforts in developing and
                                                     and he continues to investigate (with Cristi            implementing the innovative internal control
                                                     Gleason and Haidan Li) the determinants and             projects in our graduate auditing course. These
                                                     profitability of analysts’ price targets. He recently   projects, featured in the Fall 2006 issue of The
                                                     led several sessions on financial statement             Iowa Ledger, require student teams to assess
                                                     analysis at Grant Thornton’s 2007 Assurance             control risk for finance and operations areas of
                                                     Leadership Conference and has been appointed            The University of Iowa. These teams document
                                                     to the firm’s Academic Advisory Council. He             existing control structures in flowcharts, in
                                                     continues to serve on the editorial board of The        control risk matrices, and in written reports to
                                                     Accounting Review. His fly fishing and automotive       the University Controller and to the University’s
                                                     repair skills are improving.                            Director of Internal Audit. Lynn’s bicycle
                                                                                                             group, Team Dirt, again this summer traveled
                                                     Haidan Li teaches our first semester intermediate       the highways and byways of Iowa as part of
                                                     financial accounting course. She presented her
Alexander Baker, grandson of dan collins                                                                     RAGBRAI.
                                                     paper on “Corporate Governance and Backdating
                                                     of Executive Stock Options,” co-authored with           Sonja Rego, Lloyd J. and Thema W. Palmer
                                                     Dan Collins and Guojin Gong (Iowa Ph.D.) at             Research Fellow, was promoted to associate
Informativeness of Earnings Announcements
                                                     the University of Cincinnati, the Symposium             professor during 2006-07. She was the 2006
Over Time?” with Oliver Li and Hong Xie (Iowa
                                                     on Backdating of Stock Options at University of         recipient of the Gilbert P. Maynard Excellence
Ph.D.) in the Review of Accounting Studies.
                                                     Delaware, the American Accounting Association’s         in Accounting Instruction Award. Her paper,
Doug DeJong, John F. Murray Professor, had           2007 annual meeting, and the Contemporary               “Market Reaction to Events Surrounding the
his paper on “Investor Relations, Reputational       Accounting Research conference. She also                Sarbanes-Oxley Act of 2002 and Earnings
Bonding, and Corporate Governance: The Case          presented her research on “Equity Incentives for        Management” (co-authored with Haidan Li and
of Royal Ahold,” published in the Journal of         Outside Directors and Earnings Management”              Mort Pincus) is forthcoming in the Journal of Law
Accounting and Public Policy. He presented a         at the Midwest Summer Accounting Research               and Economics. In addition, she recently initiated
paper on “Pyramids and France” at an Institute for   Conference held at The University of Iowa.              changes to the Department of Accounting’s tax
Corporate Governance workshop at the Chinese                                                                 curriculum, which now focuses more heavily on
                                                     Mary Murphy ensures that Iowa accounting                the taxation of business entities.
University of Hong Kong.
                                                     students understand the guiding principles and
Along with her co-authors, Cristi Gleason            nuances of Business Law. She is a past recipient of     Al Schepanski helps our students understand
received the 2007 ATA Manuscript award for           the Gilbert P. Maynard Excellence in Accounting         the intricacies of consolidation accounting and
their article “Last Chance Earnings Management:      Instruction Award.                                      other advanced financial accounting topics. As
Using the Tax Expense to Meet Analysts’                                                                      faculty coordinator for our sophomore financial
                                                     Mark Penno, Soumyo Sarkar Fellow, enjoys                accounting course of 1,200 plus students each
Forecasts,” which appeared in the summer 2004
                                                     teaching corporate financial reporting in Des
issue of Contemporary Accounting Research. Her                                                               year, he is responsible for curriculum design and
                                                     Moines and Cedar Rapids for the MBA for
paper on “The Contagion Effects of Accounting                                                                innovation, supervision of the graduate teaching
                                                     Professionals and Managers program. His research
Restatements,” co-authored with Nicole Thorne-                                                               assistants, and for teaching several sections of
                                                     deals with financial reporting theory and utilizes
Jenkins (Iowa Ph.D.) and Bruce Johnson, is                                                                   the course.
                                                     recent developments in the fields of economics,
forthcoming in The Accounting Review. She is
an editorial board member for The Accounting
                                                     linguistics, jurisprudence, philosophy, and             Ryan Wilson joined us in August 2007 upon
                                                     psychology. One recent working paper, “Bending          completion of his Ph.D. from the University of
                                                     the Rules: The Dynamic Expansion of Accounting          Washington (Seattle). His paper on “Examining
Bob Hartman helps oversee our First-year             Categories,” examines the role of categorization        Investor Expectations Concerning Tax Savings
Accounting Scholarship program and teaches           in accounting. Another working paper, “Rules            on the Repatriations of Foreign Earnings Under
undergraduate financial and managerial               and Accounting: Vagueness in the Conceptual             the American Jobs Creation Act of 2004,” co-
accounting courses. This past year, he bought        Framework.” examines the role of “vagueness,”           authored with Mitchell Oler and Terry Shevlin,
a new short-wheel base, underseat steering           a philosophical concept, in the Financial               received the Best Paper Award at the 13th annual
recumbent bicycle. Bob owns three bicycles—a         Accounting Standards Board’s conceptual                 conference of the Journal of the American
short-wheel base, long-wheel base, and a             framework. His paper on “The Assignment of              Taxation Association. On a personal note, his golf
“tadpole” trike. He rode them in excess of 2,500     Decision Rights in Formal Reporting Information         game continues to decline as it has for many
miles throughout Iowa and Illinois between the       Systems” is forthcoming in the Journal of               years. His wife, Nicole, surprised him with a trip
end of spring semester finals and July 31. His       Management Accounting Research.                         to the U.S. Open this year, and he is finding his
longest ride was 68 miles.                                                                                   home-improvement skills need sharpening.

Paul Hribar, Lloyd J. and Thelma W. Palmer
Research Fellow, got his first exposure to Iowa
students last spring, teaching financial statement
analysis to the Iowa MBA and M.Ac. students.
His paper on measuring earnings management
(co-authored with Craig Nichols) is forthcoming
in the Journal of Accounting Research. He also
presented his research on CEO overconfidence
at Texas A&M University and at the “People and
Money” conference in Chicago, Ill. Paul continues
to serve on the editorial boards of The Accounting
Review and The Review of Accounting Studies,
and referee for all of the major journals. Over
the summer, Paul and his family (wife, Pi, and his
children, Nicolas and Danielle) took a road trip
back to Calgary, Canada, to visit family.

Bruce Johnson, Department Chair and Sidney G.
Winter Professor, continues to shuffle—some
would say careen—between his administrative

                                                     Hartman’s recumbent short-wheel base bike with underseat steering, tadpole trike
                                                     (two wheels in the front), and a long wheel base bike.

                                                                                                                                              Henry B. Tippie College of Business 27

                                          Accounting Educators
                                          Have Iowa Connections
                       Looking back on it now, the academic year 1977       financial accounting research. But we’ve kept pace
                     to 1978 must have been one amazing time in the         and developed a remarkable reputation.”
                     accounting department at The University of Iowa.          The AAA, the field’s premier academic accounting
                       That year, William “Bill” Kinney, Dan Collins, Dan   association, promotes worldwide excellence in
                     Dhaliwal, Gerald “Jerry” Salamon, and Lawrence         accounting education, research, and practice. It
                     “Larry” Brown all happened to be teaching in the       was founded in 1916 as the American Association
                     department.                                            of University Instructors in Accounting and adopted
                       Those same five individuals have since gone on to    its current name in 1936.
                     win the American Accounting Association’s (AAA)           The outstanding educator award recognizes
                     prestigious Outstanding Accounting Educator            individual contributions to accounting education
                     Award, in recognition of their contributions to        “from scholarly endeavors in research and teaching
                     accounting education.                                  over a sustained period of time through educational
                       A glance at the list of recipients, which dates      innovation, excellence in teaching, publications,
                     back to the early 1970s, indicates that no other       research guidance to graduate students, and
                     institution has connections to that many winners.      significant involvement in professional and
                       “We’ve had a unique, special combination of          academic societies and activities.”
                     people here. The awards reflect very positively on        Three of the five winners with Iowa connections
                     the work we’ve done while at Iowa,” says Collins,      have served as managing editors of the Accounting
                     who graduated with a Ph.D. in accounting from          Review, a top accounting journal, and the others
                     Iowa in 1973 and has been teaching here since          have held major editorial roles as well. Kinney,
                     the late ’70s. “People don’t expect a school in the    now at the University of Texas-Austin, and Salamon,
                     cornfields of Iowa to know much about cutting-edge     recently retired from Indiana University, are past
28 The Iowa Ledger
managing editors; Dhaliwal, now at the University      Contributions to the Literature Award (2002), was
of Arizona-Tucson, is the current managing editor.     his research assistant when he did his seminal work
In addition, Collins was an associate editor of the    with Mike Rozeff on analysts’ forecasts (formerly
Accounting Review, and Brown, now at Georgia State     on the University of Iowa faculty, recently retired
University, was an editor of the journal when          from SUNY-Buffalo). Brown also fondly remembers
Terry Shevlin was managing editor (University of       that Bill Kinney taught him that the purpose of
Washington) between 2002 and 2005.                     a workshop was to improve authors’ manuscripts           Outstanding
   Brown, whose primary research interests are         rather than to be critical and not helpful.               Educators
analyst forecasts and corporate governance, also          When told that his colleagues had high praise for     with Iowa Ties
has written several papers focusing on influential     him, Kinney’s voice became filled with emotion. The
accounting programs and individuals. The               kind and humble professor, who was at Iowa from             Bill Kinney
University of Iowa has been mentioned and, in one      1969 to 1983, calls himself the “big picture” guy
case, was ranked in the top 10 nationally.             and says he tried to guide others as best he could.
   While these educators’ involvement with             He praises the business school administration on
professional organizations and research publications   board during his time at Iowa for “encouraging us          Dan Collins
are important components of the Outstanding            to do great work as scholars,” both in research and           2001
Accounting Educator Award, several of the University   teaching, and in all areas of accounting.
of Iowa recipients of this award credit their work        Kinney says he learned more at Iowa than he has      Dan Dhaliwal
with Ph.D. students at Iowa as a significant part of   learned anywhere else. He learned from his fellow           2004
their careers.                                         accounting instructors, from his students, and from
   “The thing I enjoyed the most was getting to        colleagues across campus and considers himself as
                                                                                                               Jerry Salamon
know doctoral students, spending time with them        much a student of Iowa as a professor.
in small classes, seeing them develop intellectually      “We were encouraged to learn and grow. You can’t
and be excited about things to come,” says Salamon,    ask for much more than that,” he says.
who was at Iowa from 1974 to 1986.                        Salamon had a similar experience at Iowa. He           Larry Brown
   He also credits his colleague, Kinney, for          recalls the slogan for the state during his stay.             2006
cultivating a sense of camaraderie within the             “It was ‘Iowa – A place to grow.’ And I think I
department and serving as a role model for faculty     really did.”
and students alike.                                       Unfortunately, the five award winners did not
   “Bill taught me a lot about being a successful      all stay at Iowa. Faculty members at any university
researcher. He was helpful and unselfish, always       move on for a variety of reasons. Some get a great
direct and honest,” continues Salamon. “One of         offer, whether academic or financial. Others go
the reasons I was successful was because my time       for personal reasons, to be close to a relatives or a
with him was almost like a post doc, because of his    particular area of the country.
mentoring.”                                               “It’s natural in our business that good people
   Dhaliwal also emphasizes the importance of          go on to do good things at other good schools,”
the senior faculty members’ influence on him and       says Bruce Johnson, Sidney Winter Professor of
others during his time at Iowa. He appreciated their   Accounting at Iowa and accounting department
“dedication to scholarship” as well as what he calls   executive officer. “It would have been nice to keep
“their genuine joy and pleasure in seeing junior       them around a little longer.
faculty flourish” during his time here from 1977          “But it’s great to know that the fact they were
to 1980.                                               here has been integral to shaping our doctoral
   His senior faculty mentors were willing to listen   program and the way accounting research is done
to his ideas, help him with his review process, and—   at this university,” Johnson says.
most important, he says—encourage him when he             The mix of teaching and research, as well as the
had a good idea.                                       emphasis on mentoring postdoctoral students, has
   “Not only would they look at it and say it was      helped earn Iowa accounting its reputation for
good, but they were willing to work on joint           excellence, says Kinney.
projects with me,” says Dhaliwal, adding that his         As a result, faculty members have successfully
high opinion of the program continues today. “If       touched the lives of students who go on to work
anybody gets the chance to work at Iowa, it will be    at other outstanding institutions. Kinney and the
a great opportunity.”                                  others expect to one day be joined on the winners
   Brown recalls that Dave Burgstahler (University     list by their former students, and the string of
of Washington), winner of the A A A Notable            connections will continue.

                                                                                                               Henry B. Tippie College of Business 29
Alumni Notes

                       Travis Named
                         Bill Travis, MA75, received the
                       2007 Outstanding Accounting
                       Alumnus Award at the Spring
                       Awards Banquet last April.
                         He retired in 2006 as chief          Department Chair Bruce Johnson congratulates Bill Travis, recipient of the 2007
                       executive officer (CEO) of McGladrey   Outstanding Accounting Alumnus Award.
                       & Pullen in Bloomington, Minn.,
                       and is currently the president and     him get accepted into the M.Ac.               starfish and threw it back into the
                       CEO of Bailiwick Data Systems,         program at Iowa and encouraging               sea and said, “Made a difference to
                       a privately held company that          him while he completed his degree:            that one, didn’t I?”
                       specializes in the deployment of
                                                                 One evening, a businessman                    “I am one of the starfish who
                       information technology solutions.
                                                              flew to the coast of Florida for a            was helped by the University of
                       He serves on the Board of Trustees
                                                              business meeting to be held the               Iowa Accounting Department,
                       of the AICPA Foundation and is
                                                              next day. The hotel was located on a          and I greatly appreciate the help
                       a member of the U.S. Treasury
                                                              beautiful Florida beach overlooking           I received so many years ago,” he
                       Department’s Advisory Committee
                                                              the ocean. That night, there was              concluded.
                       on the Auditing Profession.
                                                              a horrific storm with high winds,                Upon graduation, he joined
                         In his acceptance speech, Bill
                                                              pummeling rain, and lots of waves.            the audit firm of McGladrey &
                       summarized the lessons he learned
                                                              The businessman awoke the next                Pullen as a staff accountant and
                       during his career. They included:
                                                              morning and went down to the                  was promoted to audit partner in
                       •being your own brand—understand       beach for his traditional morning             1983. In 1995, he was appointed
                       what is important to yourself          walk before he started his day. He            SEC coordinator with firm-wide
                       and make sure your actions are         saw that there were thousands of              oversight responsibility for audit
                       consistent with that brand;            starfish washed up on the shore,              practice policies and procedures for
                       •becoming an expert—find your          covering the beach for as far as              all SEC registrant clients.
                       passion and pursue it, because         he could see. He then noticed a                  From 1996 to 1999, he served
                       expertise provides differentiation     young man a ways down the beach.              as McGladrey & Pullen’s executive
                       from others in the marketplace and     The young man was reaching                    partner of audit and accounting,
                       professionals must be experts; and     down, picking up a starfish and               holding final authority on all audit,
                       •becoming a mentor—help someone        throwing it back into the sea. The            accounting, and financial reporting
                       grow and develop as a professional     businessman’s curiosity got the               matters including the resolution of
                       because you never know how             best of him, and he wandered down             complex technical issues, firm audit
                       the smallest gestures can make a       to see what the young man was                 policy and methodology, and client
                       difference to someone’s life and       doing. He said, “Young man, what              acceptance.
                       career.                                are you doing picking up starfish                From 1999 until his retirement,
                         He ended by telling a favorite       and throwing them into the sea?               Bill served as CEO of McGladrey &
                       story he once heard that               You can’t possibly believe you are            Pullen. Under his leadership, the
                       summarizes how he feels today          making any difference.” The young             firm has grown to become one of
                       after several UI faculty members       man looked at the man and then                the eight largest audit firms in the
                       served as mentors to him, helping      reached down and grabbed another              United States.

  30 The Iowa Ledger
Recent Recipients
of the Outstanding Alumnus Award
1995     leonard A. Hadley                  Maytag corporation
1996     Kenneth H. Evans Jr.               Ameritruck distribution
1997     Paul W. Wentzien                   delmar gardens Enterprises
1998     Michael F. cooney iii              KPMg Peat Marwick
1999     david J. Kirkpatrick               KPMg Peat Marwick
2000     lloyd J. Palmer                    nalco chemical company
2001     James g. darby                     deere & company
2002     Anne l. Buettner                   Walt disney company
2003     Jonathan F. Eisele                 deloitte & touche
2004     Kay Hegarty                        RSM Mcgladrey                                Alamo Bowl Festivities
2005     david F. licko                     gannett company                                 About 250 business alumni attended
2006     terri Bobek                        Pricewaterhousecoopers                       the tippie college’s Alamo Bowl
                                                                                         reception held in San Antonio on dec.
                                                                                         30, 2006, before the Hawkeye/longhorn
                                                                                         bowl game. in addition to hearing
                                                                                         from dean curt Hunter, participants
                                                                                         reconnected with fellow alumni, learned
  Alumni News                                                                            about current programs and collegiate
  James dixson, BBa96, recently               laura newinski, BBa87, a tax               initiatives, and talked with currently
  accepted a position at Lehman Brothers      partner in KPMG’s Minneapolis              enrolled students. Accounting graduates
  in New York as an associate/M&A,            office, has been named the national        shown below: orland Jeffries (BBA59)
  focusing on real estate. He previously      Tax Sector Leader for Banking and
  was an associate with the Technology,       Finance. In this new role, she will        and his wife, nancy, and (above) Molly
  Media, and Telecom group of Banc of         work closely with advisory and audit       carpenter (BBA07), now a M.Ac. student,
  America Securities.                         colleagues throughout the firm’s           with Henry B. tippie (BSc49). More
                                              industry program to enhance KPMG’s
  Bryan einck, BBa06, was recently                                                       photos can be found in an online Alamo
                                              position in the banking and finance
  promoted from account analyst to
                                              sector. In the Tippie College, Newinski    Bowl 2006 photo album at http://www.
  financial analyst at RR Donnelley in
                                              is the chair of the Department of
  Downers Grove, Ill.
                                              Accounting’s Professional Accounting
  tanya greiner, BBa97, has been              Council.
  appointed chief financial officer at Q3
                                              William d. travis, ma75, has been
  Innovations of Independence, Iowa.
                                              named to the Treasury Advisory
  Prior to joining Q3 Innovations in 2006
                                              Committee on the Auditing Profession.
  as the controller, Greiner served as a
                                              The public committee will make
  senior auditor for Theobald, Donohue
                                              recommendations to encourage a
  & Thompson, P.C. in Fairfield (2000-04)
                                              more sustainable auditing profession.
  and a senior auditor for Deloitte &
                                              The 21 committee members represent
  Touche, LLP in Cedar Rapids (1997-
                                              a broad range of perspectives,
  2000). Q3 Innovations, a privately held
                                              including investors, auditors, large and
  company that began operations in
                                              small public companies, insurance
  1999, is a leading designer, developer,
                                              companies, lawyers, and regulators.
  and distributor of personal safety and
                                              Travis has been president and chief
  monitoring products such as digital
                                              executive officer of Bailiwick Data
  breath alcohol detectors, infrared
                                              Systems, Inc., since 2007 and currently
  thermometers, ultraviolet light meters,
                                              serves on the Board of Directors of
  and radar/laser detectors.
                                              McGladrey & Pullen, LLP, where he
                                              was previously managing director and

                                              Send your Alumni Notes submission

                We’d ar
                                              via e-mail to

                to he you!
                                              or through U.S. mail to Alumni Notes,
                                              Department of Accounting, Tippie

                                              College of Business, The University of
                                              Iowa, W252 PBB, Iowa City, IA 52242-


                                                                                                                         Henry B. Tippie College of Business 31
Student Life
                                                            Blake Carpenter
                                                            SenIOr ACCOunTIng mAjOr

                                                               Blake Carpenter has been a        much from it,” Carpenter says.
                                                            “Hawkeye since birth,” since         “I would have regretted not
                                                            his parents both graduated           doing both those things.”
                                                            from The University of Iowa.            Through the internship,
                                                            But when it came time for him        Carpenter has learned that
                                                            to select a college, that wasn’t     accounting is a challenging
                                                            enough to make him enroll            field of study, and he is glad to
                                                            at Iowa—it was knowing he            have studied at Iowa.
                                                            would be enrolling in a top-            “My education at the
                                                            ranked program.                      University has been up to
                                                               “One of the things I really       a high level, which helped
                                                            liked about the University           prepare me for my internship
                                                            was that it has some of the          doing tax work for both
                                                            top programs I was interested        businesses and individuals,”
                                                            in,” he says, “especially the        he says.
   Students Compete in Deloitte                             accounting program.”                    Choosing to major in
   Tax and PwC “Extreme”                                       Carpenter is double               accounting, he says, “was

   Case Competitions                                        majoring in accounting and
                                                            international studies, and
                                                                                                 pretty much trial and error.”
                                                                                                    “I really just seemed
      Accounting students Amy Pepping, Katie Koss,          has a minor in Spanish. It’ll        to thrive on accounting.
   Seth Van gorp, and Matt glendening (shown above)         take him about five years to         I remember going to my
                                                            graduate, but only because he        financial and managerial
   placed among the top 10 teams nationwide and
                                                            studied in Sevilla, Spain, for a     accounting classes and some
   earned an honorable mention in the 2006 deloitte
                                                            semester in 2005, and held a         of my classmates were having
   tax case competition held in new york city. the top      semester-long internship with        a hard time grasping the
   six teams advanced to the national competition in        McGladrey & Pullen’s Iowa            double entry system and the
   orlando. the team received a $1,000 award. Faculty       City office last spring.             philosophy behind what we
   advisor was Amy An.                                         “It makes for busy days, but      do in accounting. But to me it
      teams from 40 colleges and universities had           I enjoy it and am learning so        just clicks and makes sense.”
   five hours to analyze information and identify
   data relevant for tax purposes, identify issues          Blake Carpenter consults with Madeline Windauer, his internship
   and alternative tax treatments, and develop a            supervisor at RSM McGladrey.
   recommended solution that appropriately cites the
   internal Revenue code and treasury Regulations. A
   written solution to their case then was submitted to a
   panel of judges from deloitte tax llP for evaluation.
      in addition, 25 students competed in the
   Pricewaterhousecoopers extreme accounting
   challenge (xact) case competition this past
   year. the annual competition gives students the
   opportunity to work though an issue that challenges
   today’s business and government leaders. this year’s
   case asked students to evaluate the challenges
   the mythical country Panadrevia would face as it
   transitioned from rules-based accounting standards
   to principles-based accounting standards and provide
   recommendations to mitigate these challenges.
      the team of Molly carpenter, Matthew
   glendening, christine Slattery, Kelly Steffes, and
   Brenna Stephenson won the university of iowa
   competition and became semifinalists for the national

   32 The Iowa Ledger
                                               The students raised the money         actually get out into the community,
                                            in various ways: by selling a line       forge new friendships with Iowa City
                                            of clothing emblazoned with the          residents and work on a project that
                                            College’s logo, dubbed TippieWear;       will have lasting effects for many
                                            selling paper “Tippie Houses” for $5     years after we leave the University,”
                                            (Henry Tippie’s first contribution       Carpenter said at the dedication
                                            to The University of Iowa was $5);       ceremony on May 6.
                                            pursuing sponsorships from local            “Franklin Delano Roosevelt once
                                            businesses; organizing a faculty dunk    said, ‘We cannot always build the
                                            tank event during Business Week;         future for our youth, but we can
                                            and seeking contributions from           build our youth for the future.’
                                            friends and family.                      Remarkably, the Tippie Build has
                                               “We spent so much time planning       done both by providing a loving
                                            and raising money for this project       home for two children where they
                                            that it was exciting to finally go       can prosper and grow, while also
                                            out and get your hands dirty and         teaching college students about
                                            see something happen,” said Derek        hard work, dedication, community,
                                            Kimmerle, then a senior accounting       and humanity, traits we will need to
                                            major and one of the Tippie Build        succeed in life as we become better
                                            coordinators who is now also a M.Ac.     citizens, better leaders, and better
                                            candidate.                               business students.”
                                               The groundbreaking ceremony
                                            was held on March 9, and foundation
                                            construction began the following
                                            week, which was spring break at the

The House That                              University. When classes resumed
                                            10 days later, students, faculty, and

   Tippie Built                             staff from the College immediately
                                            began the “blitz build” portion of
     When Balla Sanoh, his wife             the project where the framing of the
   Ramatou Sanogo, and their two            home is completed. The interior of
   young sons moved into their new          the home was finished in April.
   Iowa City home last June, it marked         “This was a great way for students
   the successful completion of the         to give something back to the Iowa
   largest community service project        City community that will last for a
   ever undertaken by Tippie business       long time,” Kimmerle said. “Most of
   students.                                us will be here only for the few years
     Members of Beta Alpha Psi,             that we’re in school, but this house
   the honorary accounting society,         will be there for a lot longer than
   spearheaded the effort, and working      that and many families will call it
   with other student organizations,
   pledged to raise $50,000 and provide
                                            home. When I come back to Iowa City
                                            in 25 years, I can go see that house
                                                                                           First-Year Scholarship
   the volunteers to build a Habitat        and say we helped build that.”                 Awardees, 2006-07
   for Humanity home. The home was             The fund-raising aspect of the              For 10 years, the Department
   built in just 57 days.                   project also gave students an                  of Accounting has sponsored
     “The students, faculty, and staff in   opportunity to gain real-world                 scholarships for deserving first-
   the College wanted to do something       business experience. Tippie students           year students who plan to major in
   together to thank Henry Tippie and       tracked the monetary gifts using an            accounting. We thank our alumni
                                                                                           and friends for their generosity in
   other donors like Henry for their        online accounting system, performed
                                                                                           supporting these students. Left to
   generous support for the College,”       inventory control and pricing for              right, front row: Katie Ortmann,
   said Molly Carpenter, then a senior      TippieWear, and marketed the                   Chelsea Fields, Jiwon Kim, Heather
   accounting major and member of           clothing line.                                 Johnson. Middle row: Nicholas Skow,
   Beta Alpha Psi who’s now a M.Ac.            “As college students, we often              Kaitlyn Hullinger, Corbin Mader. Back
   candidate.                               live in a bubble surrounding the               row: Nathan Weekly, Colin Brown.
                                            University of Iowa campus. Yet, the
                                            Tippie Build has allowed students to

                                                                                                       Henry B. Tippie College of Business 33
                                Lisa Ortner               Patricia Dean            Irma Seddig Heck           Chester A. Phillips/Delta
Awards for                      Krista Parcel             Patrick Dwyer            Scholarship                Sigma Pi Scholarship
2006-07                         Michael Raczka            Zachary Evett            Kim Nhung Beecher          Brian Bay
                                                          Ashley Fruendt           Cassie Isaacson            Matthew Hennings
Faculty Scholars                AEGON TransAmerica        Joel Greteman            Allison Nelson
Kim Beecher                     Foundation Scholarship                                                        F. Preston and Lois Reed
                                                          Jack Groot
Matthew Glendening              Molly Carpenter                                    Independent Insurance      Scholarship
                                                          Heather Harvey
Kathleen Koss                                                                      Agents Scholarship         Matt Kunze
                                                          Scott Healy
TJ Monner                       Robert B. Becker Award                             Rachel McGuire
                                in Business               Jeremy Hopp
Anton Narinskiy                                                                    Michael Richey             Bruce M. Robertson
                                                          Travis Jargo                                        Scholarship
Amy Pepping                     Jamie Heefner
                                                          Justin Lane
Joshua Simpson                  Joseph Husak                                       Reva Kohser Memorial       Aruna Mittal
                                                          Michael Less             Scholarship
Seth Van Gorp
                                Raghunath K. Bendigeri    Margaret Nanninga                                   Scheel’s All Sports
Johnathan Williams                                                                 Peter Randol
                                Memorial Business         Bryant Nicholson                                    Scholarship
Hawkeye Chapter of              Scholarship               Jennifer Oh              Krapfl/Barnes              Brady Bogue
Iowa Society of CPAs            Ciao-Wei Chen             Michael Raczka           Scholarship                Trisha Cranny
Outstanding Junior                                        Kami Ricklefs            Neil Coleman               Thomas Grooms
Award                           Keith and Janet Benson    Richard Ridgway          Andrew Tiedt               Stephanie Westrom
                                Scholarship               Alexandria Seydel
Katherine Mohrhauser                                                                                          Krista Winkleblack
                                Matthew M. Miller         Wendy Steffen            Robert S. and Dorothy J.
Iowa Society of CPAs                                      Thomas Stutesman         Lee College of Business    John W. & Mabel
Outstanding Senior              Beta Alpha Psi Superior                            Scholarship                G. Schoen Business
                                                          Anne Talbot
Award                           Chapter Scholarship                                Steven Acarregui           Scholarship
                                                          Andrew Zajicek
Anton Narinskiy                 Molly Carpenter                                                               Justin Boswell
                                Holly Carter              Lowell F. and Dorothea   Regina G. Markowitz        Blake Carpenter
Junior Writing Award                                      T. Cristy Business       Scholaship                 Toni Chrisman
Blake Carpenter                 Dorothy Blackborn         Scholarship              Matt McDonald
                                Business Scholarship                                                          Carolyn Grammens
                                                          Daniel Hughes                                       Sumitra Shakya
Senior Writing Award            Joshua Simpson                                     Jan Medberry Graduate
                                                          Heather Jenn                                        Jennifer Voss
TJ Monner                                                                          Accounting Scholarship
                                Gordon Campbell                                                               Jiaying Wu
                                                          Dore Scholarship         Kevin Hansen
Mary L. Collins                 Scholarship                                        Matthew Pronk
                                                          Philip O’Donnell                                    Richard C. Sheehan
Doctoral Fellowship in          Jessica Cameron
                                                                                                              Memorial Scholarship
Accounting Award                Charles Good              Keith and Helen Dunn     Glenn L. Medhus
                                                                                   Business Scholarship       Brian Bay
John McInnis                                              Scholarship
                                John C. Clendenin                                                             Brian Patz
                                                          Kathryn Buzynski         Matt McDonald
2007 Federation of              Scholarship
                                                          Chelsea Donald                                      Margaret A. Shriner
Schools of Accountancy          Jea Hong Ahn                                       Harrison Mitnick
Award                                                     Matthew Glendening                                  Scholarship
                                Jacob Berns                                        Memorial Accounting
                                                          Aaron Hemmer             Scholarship                Mark Binning
for Outstanding M.Ac. Student
                                James and Zella           Carlyn Mullinex                                     Jamie Heefner
Sharon DeKraker                                                                    Alyssa English
                                Cleveland Scholarship     Steven Palmersheim                                  Timothy Niehoff
M.Ac. Writing Award             Alexander Agnew           Craig Pfeiler            John F. Murray             Maggie Paris
Adam Simon                      Alexander Chiang          Jolene Phillips          Scholarship
                                                          Meggan Reed              Alison Cavanaugh           Mark Smith Business
                                Erin Donohue
                                                          Joshua Rohe                                         Scholarship
                                Colleen Jemmi                                      Nicole Faron
                                                          Jeffrey Steenhoek                                   Joseph Schneider
Scholarships                    Lisa Jobes
                                                          Johnathan Williams
                                                                                   Andrea Fitzgerald
                                Amanda McCalmont                                   Michael Freund
for 2006-07                     Laura Nass                Jing Zhang               Kayla Harvey
                                                                                                              Timothy Emmett Steele
                                                                                                              Business Scholarship
                                Lisa Ortner                                        Kayla Lopata               Amy Pepping
2006 Accounting                                           Harold H. Farr
Department First-Year           Caleb Schmidt                                      Jessica Nigl
Scholarship                     Patrick Teyro                                      Lucas Passow               Stoppelmoor Business
                                                          Thomas Vonderhaar
Adam Agnew                      Brian Underwood                                    Sara Weitzel               Scholarship
Alexander Agnew                 Jane Vance                Robert E. and Joan D.                               Shaun Flander
                                Jeffrey Verde                                      Murray Undergraduate
Brady Bogue                                               Fulton Scholarship
                                                                                   Scholarship                Henry B. Tippie
Nicole Cox                      Brett Winters             Heather Jenn
                                                                                   Ryan McBride               Accounting Scholarship
Alex Dean
                                Andrew W. Code            Lindsay Anne Gibbs                                  Kerry Campbell
Ashley Dentlinger                                                                  Charles M. and Mary
                                Scholarship in Business   Scholarship                                         Trevor Johnson
Zachary Evett                                                                      Ann Peters Scholarship
                                Nichole Burgmeier         Stephanie Clark                                     Ryan McBride
Nicole Faron                                                                       Marcus Beer
                                Christopher Frazer                                                            Keri Rolland
Kiley Feigenbutz                                                                   Timonthy Monner
                                                          Vernon E. Goedken/
Kylie McArtor                   Colvin/Cox Scholarship    Clifton Gunderson        Brittany Vrtis
Jessica Nigl                    Joshua Davis              Scholarship in
Kristin Oberg                   Megan Deahr               Accounting
Jennifer Oh                     Alex Dean                 Benjamin Hentges

34 The Iowa Ledger
Henry B. Tippie Outstanding                                                                                she says, “and I’m glad I did.”
Scholar                                                                                                       Slattery credits her
Brian Bay                                                                                                  father for her interest in
Charles Good                                                                                               entrepreneurship.
Nicholas Hobart                                                                                               “Growing up, my father
William Kress                                                                                              always had these crazy ideas
Craig Pfeiler                                                                                              that he’d rant off about.
Alexandria Seydel                                                                                          ‘Wouldn’t it be cool if we had
Vaughan/Allied Insurance                                                                                   a restaurant where you’d see
Scholarship                                                                                                scenery on a TV screen, but
Jeffrey Jansen                                                                                             it was like you were looking
Amy Sewright                                                                                               out of an airplane down on
                                                                                                           a specific location?’ I kind
Rosemary Vitosh Grant                                                                                      of inherited that from him.
Wood ABWA Scholarship                                                                                      Entrepreneurship is the
Michelle Collins                                                                                           creative side of business
                                                                                                           where you can really use your
Judy Walke College of                                                                                      imagination and pool a lot of
Business Scholarship
                                                                                                           ideas together.”
Ross McKay                                                                                                    A former member of the
Stacy Yackley
                                                                                                           Hawkeye Marching Band,
Frank Warner Memorial                                                                                      Slattery quit this year in order
Scholarship                                                                                                to have time for volunteer
William Kress                 Christine Slattery enjoys a gelato with her “little sister” Breann Hubler.   activities. She now fills her
Eric Thiessen                                                                                              “free” time by meeting weekly
                                                                                                           with her “little sister” in
Wheeler Business
Scholarship                   Remarkable                                                                   the Big Brothers Big Sisters
Alison Marczewski

E. Lester Williams
                              Endeavors                                                                       “It seemed like it took a
                                                                                                           long time for my paperwork
                                                                                                           to be approved, and I’m so
Richelle Broshous
                              Christine Slattery                                                           excited to be working with
                              SOPhOmOre ACCOunTIng/mAnAgemenT mAjOr                                        kids,” she says. “I did a lot
Shea McCarty
                                                                                                           more volunteering in high
Katherine Mohrhauser          PurSuIng CerTIfICATe In enTrePreneurShIP                                     school than I’ve had time to
David Mootz
                                                                                                           do in college, and I love giving
Thomas Redmond
                                 For Christine Slattery,             competing on a financial              back to the community when
Jamie Schuck
                              studying at Iowa and the               analysts team competition in          possible.”
Seth Van Gorp
                              Tippie College means making            California. That experience,             With so many interests
John Werner
                              choices—and instead of                 plus suggestions from                 and only a few years to tackle
Lester and Frances M.         turning down an opportunity,           accounting faculty members,           them all, Slattery credits the
Williams Scholarship          she usually goes for it.               encouraged her to pursue              direct admission program
Nathan Heitz                     “I have really broad                accounting.                           and starting the accounting
Nicholas Hobart               interests, and it’s been hard             Slattery was admitted to           program a semester early as
Donna Hocker                  for me to focus on just one. So        the Tippie College of Business        important to her success.
Alison Marczweski             instead of picking just one, I         as a freshman through the                “I’m going to try to
Kirk Scott                    chose them all,” she says.             direct admission program              graduate in three and half
                                 Slattery is an accounting           (other students must meet             years,” she says, “although I’m
Robert and Eleanor            major, but she’s also a                prerequisites and then enroll         really interested in studying
Williams Endowment Fund
                              management major and she               in their junior year), and she        abroad. There is no way that
Holly Adams                   is pursuing a Certificate in           is a First-Year Scholarship           I would have been able to get
Peter Randol                  Entrepreneurship.                      awardee in the accounting             everything done had I not
Robert A. Young Sr.              “Accounting is my                   department. She has worked            been in the college early and
Memorial Scholarship          strong point,” she says,               in the Department of                  in the program early.
Anna Schiltz                  “entrepreneurship would                Accounting for three years,              “I haven’t really thought
                              be my passionate point, and            so she has had plenty of              about working out the
Ernest V. Zuber Accounting    management is the right                opportunities to talk with            logistics of studying abroad
Scholarship                   tool to help combine them,             faculty about the profession.         yet since it’s only my second
Molly Carpenter               especially if I want to start my          “It was a little bit of extra      year, and I’d do it my last
                              own business someday.”                 pressure knowing that                 semester of my last year,” she
                                 In high school, she joined          there were people watching            ways. “Right now I’m just
                              the Business Professionals             me, seeing if I was going to          trying to think about where
                              of America and enjoyed                 choose accounting or not,”            I’d like to go.”

                                                                                                                 Henry B. Tippie College of Business 35
   Lloyd J. (BSC49) and Thelma W. Palmer, of
Burr Ridge, Ill., are longtime philanthropists
who have invested generously in the Henry
B. Tippie College of Business and other UI
projects and programs. In 1999, the couple
established the Lloyd J. and Thelma W.
Palmer Faculty Fellowship Fund, which has
helped the Tippie College of Business recruit
and retain outstanding faculty. Shown
here are the Palmers with the Department
of Accounting’s two Palmer Research
Fellows, Paul Hribar, associate professor
of accounting, and Sonja Rego, assistant
professor of accounting.
   Lloyd Palmer is a Postville, Iowa, native
who eventually became chief financial and
administrative officer at Nalco Chemical
Company—from which he retired in 1986.
He is a lifetime honorary member of the UI
Foundation Board of Directors and is the
recipient of a 2000 Outstanding Accounting
Alumnus Award, as well as a 2005 UI Alumni
Association Distinguished Alumni Award
for Service. Thelma Palmer, also a Postville,
Iowa, native, attended the University from
1944 to 1946. Together, the Palmers—who
are members of The Presidents Club of The
University of Iowa—have actively supported
the University for more than 30 years.

                                    Henry B. Tippie College of Business 39
   Business Week 2007
   Neither the spring rain nor the ice water
   in the dunk tank could dampen this
   year’s Business Week events held April
   22-28. Sponsored by the Undergraduate
   Leadership Council, the fun-filled week
   included activities such as a collegewide
   BBQ, a downtown Iowa City clean-up event,
   and a case study competition. During the
   BBQ, several faculty members—including
   accounting’s Tom Carroll (shown here)—
   volunteered to participate in a faculty
   dunk tank to support the Tippie Build
   (see article, page 31). Tippie students
   conducted a change drive where students
   could cast their votes by donating money
   toward the faculty member they’d most
   like to see dunked. The faculty member
   with the lowest amount of money in their
   container at the end of the drive won
   immunity. Unfortunately, that person
   wasn’t Tom—he actually received more
   votes than any other faculty member.

  The University of Iowa
                                               nonprofit organization
   Henry B. Tippie College of
Business                                             uS Postage Paid
   Department of Accounting                             Permit no. 45
   108 John Pappajohn Business                        iowa city, iowa

       40 The Iowa Ledger

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