1998 Case Grant Recipients
KPMG LLP and The University of Illinois
at Urbana-Champaign
Business Measurement Case Development and Research Program
Grant Recipients
KPMG and the University of Illinois at Urbana-Champaign are
pleased to announce case development grants under the Business
Measurement Case Development and Research Program. This
ongoing competitive program provides funding and other administrative
support for the development of case materials and follow-on
research on issues related to the assessment of client business
risks, the evaluation of business controls, and the measurement
of strategic and business process performance during a financial
statement audit. Case development projects funded under the
program are collaborative arrangements between KPMG’s
engagement teams and teams of professors who specialize in
accounting, auditing, and business strategy.
During the Program’s first submission period, thirty
two proposals were received requesting grants totaling approximately
$870,000. The program will disburse a total of $246,346 in
support funds to eight case development teams awarded funding
during the 1998 submission period. Completed cases and accompanying
teaching notes will be distributed to business educators on
a worldwide basis at no charge. Case development teams can
apply for follow-on research grants of up to $50,000 after
case projects have been completed.
"This is a timely project that will benefit not only
KPMG and the professional services field, but all of business,"
said Bernard J. Milano, KPMG LLP’s partner in charge
of university relations, diversity and alumni programs. "The
Program is intended to encourage scholarly research and case
study development that builds upon and advances the strategic-systems
auditing framework that is the foundation for KPMG’s
Business Measurement Process (BMP) audit methodology."
Grant recipients were selected by a Program Advisory Board
consisting of four leading members of the academic community
– William R. Kinney, Jr., University of Texas at Austin;
Krishna G. Palepu, Harvard University; Katherine Schipper,
University of Chicago; and Ira Solomon, University of Illinois
at Urbana-Champaign – and KPMG’s Timothy B. Bell,
the Program’s Executive Director and KPMG’s Director
of Assurance Services. Speaking about the importance of this
program from the scholar’s viewpoint, Ira Solomon, the
Program’s Managing Director-Academic, said "This
program, by drawing on expertise from leading practitioners
and professors, promises to both significantly advance knowledge
of how audits must evolve to address the challenges of the
21st century and to empower educators to incorporate such
innovations into their classrooms on a timely basis."
The eight case development projects selected for funding
during the 1998 submission period are described below.
| Researchers & Institutions |
Project Titles |
Funding |
Project Descriptions |
Shawn Davis
Ronald R. King
Washington University in St.
Louis |
Auditing Firms in the Pharmaceutical
Industry Using A Strategic-Systems Framework |
$26,500
|
A case study focusing on
the relationship between business risk and audit risk
in the pharmaceutical industry. |
Brian Ballou
Richard Tabor
Mustafa Uzumeri
Auburn University |
Identifying and Integrating
Business Process Knowledge: A Strategic-Systems Approach
to Auditing |
$25,600
|
A case study illustrating
how knowledge of the client’s business and industry
is translated into audit evidence. |
Roger D. Martin
Michigan State University
Fred Phillips
University of Saskatchewan
Michael D. Shields
Michigan State University |
Chains, Linkages &
Cars: Business Process Analysis and Performance Measurement
In An Industrial Products & Automotive Audit |
$28,000
|
A case study focusing on
how business process analysis and process performance
measurement provides evidence about the validity of
key assertions. |
Mahendra Gupta
Washington University
George Foster
Stanford University
Richard Palmer
University of Tennessee at Martin |
The Strategic Utilization
of Electronic Commerce: Business Risks, Business
Controls, and Audit Considerations |
$40,000
|
A case study of the use
of electronic commerce in procurement, with analysis
of business risk and audit implications using a strategic-
systems audit approach. |
Royston Greenwood
University of Alberta
Steven Salterio
University of Alberta and
University of Waterloo |
A Comparison of the Transactions-Cycle
and Strategic-Systems Audit Approaches: The Case for
Complex Analytical Procedures |
$27,500
|
A case study that demonstrates
how the strategic-systems audit approach overcomes
some limitations to the transactions -cycle audit
approach. |
Stephen Asare
Richard McGowan
Greg Trompeter
Arnold Wright
Boston College |
Variations in Business
Strategy and Complex Analytical Procedures |
$30,000
|
A case study that demonstrates
how variation in business strategy affects the development
of auditor expectations. |
Anne Ilinitch
Linda S. McDaniel
University of North Carolina
at Chapel Hill |
Competitive Advantage and
Business Risk: Strategic- Systems Audits in the Managed
Health Care Industry |
$33,800
|
A case study that applies
a strategic-systems audit approach to the dynamic
environment of the managed health care industry. |
Merle M. Erickson
University of Chicago
Brian W. Mayhew
Georgia State University
William L. Felix, Jr.
University of Arizona
|
Application of a Strategic-
Systems Knowledge Acquisition Framework to the Lincoln
Savings and Loan Audits |
$35,000
|
A case involving the retrospective
application of KPMG’s Business Measurement Process
to the Lincoln Savings and Loan audits. |
