Yes that is correct, the upper 1/3 of the ears are trimmed smooth. The safest and easiest way I have read is with mustache trimmers to do the trimming.
Me personally am too gun shy to trim Schatzie so it get's done at the groomers.
It is amazing just how much weight that hair carrys on their ears....
I always think the Yorkie's are cute with floppy ears too though...
