Unit 8 Accounting Text B The Enron Effect
Unit 8 Accounting Text B The Enron Effect
Text B The Enron effect Background information Enron Corporation: a former american energy company based in Houston Texas Arthur Andersen: one of the former five largest audit and accountancy services in the world Enron scandal: Arthur Andersen as the auditor of Enron, approved the accounting practices to hide the true liabilities of the company The enron Scandal has the devastating influence on the public perception of accounting and even the whole field of accounting
Text B The Enron Effect Background information • Enron Corporation: a former American energy company based in Houston, Texas • Arthur Andersen: one of the former five largest audit and accountancy services in the world • Enron scandal: Arthur Andersen, as the auditor of Enron, approved the accounting practices to hide the true liabilities of the company. – The Enron Scandal has the devastating influence on the public perception of accounting and even the whole field of accounting
Text B The Enron effect °p.188Task1 In Text b the author explains in detail the effects of the enron affair and then the reforms in the accounting profession Read the text and then complete the following table
Text B The Enron Effect • p. 188 Task 1 • In Text B, the author explains in detail the effects of the Enron affair and then the reforms in the accounting profession. • Read the text and then complete the following table
The effects of the enron affair (Paras. 1-2) Number the bullet points: 1-5 ° Go through them quickly Come back to para. 1
The effects of the Enron affair (Paras. 1-2) • Number the bullet points: 1-5 • Go through them quickly • Come back to Para. 1
The effects of the enron affair (Para.1-2) ·Para.1: Effects1-2 Explain: L2 Enron engaged in accounting practices designed to hide the true liabilities of the company accounting practices that were approved by its auditor, Arthur Andersen Line 2, Para. 1) 安然公司采取了意在隐瞒公司真实负债的会计处理 方法,而且这些会计处理方法是负责该公司审计的 安达信会计事务所核准的
The effects of the Enron affair (Paras. 1-2) • Para. 1: Effects 1-2 • Explain: L2 • Enron engaged in accounting practices designed to hide the true liabilities of the company accounting practices that were approved by its auditor, Arthur Andersen. (Line 2, Para. 1) – 安然公司采取了意在隐瞒公司真实负债的会计处理 方法，而且这些会计处理方法是负责该公司审计的 安达信会计事务所核准的
The effects of the enron affair (Paras. 1-2) Para. 1: Effects 1-2 Effect 1: it eliminated arthur andersen as a major player in the auditing industry ( l6) Big Five→ Big Four Effect 2: It increased scrutiny on the accounting and professional services industry (L9)
The effects of the Enron affair (Paras. 1-2) • Para. 1: Effects 1-2 • Effect 1: It eliminated Arthur Andersen as a major player in the auditing industry (L6) – Big Five Big Four • Effect 2: It increased scrutiny on the accounting and professional services industry. (L9)
The effects of the enron affair (Paras. 1-2) Para. 2: Effects 3-5 Effect 3: It resulted in one of the largest bankruptcies in U.S. history, $32 billion lost in market capitalization, $1 billion lost in employee retirement accounts, and the first ever felony conviction of a public accounting firm(L1-4)
The effects of the Enron affair (Paras. 1-2) • Para. 2: Effects 3-5 • Effect 3: It resulted in one of the largest bankruptcies in U.S. history, $32 billion lost in market capitalization, $1 billion lost in employee retirement accounts, and the firstever felony conviction of a public accounting firm. (L1-4)
The effects of the enron affair (Para.1-2) Para. 2 L4 Sentence structure Furthermore, the scandal, along with other recent, high-profile audit failures at companies from Waste management and Cendant to more recent scandals involving Italian dairy company Parmalat, to SEC settlements involving companies such as Bristol-Myers Squibb and Qwest, to current investigations into mortgage investment giant Fannie Mae, has damaged the integrity and credibility of the public accounting profession in the eyes of senior executives and the public at large ( L4-9) 主干: the scandal… has damaged Ax: along with other recent high-profile audit failures at companies from….to…,to…,to
The effects of the Enron affair (Paras. 1-2) • Para. 2 L4 Sentence structure • Furthermore, the scandal, along with other recent, high-profile audit failures at companies from Waste Management and Cendant to more recent scandals involving Italian dairy company Parmalat, to SEC settlements involving companies such as Bristol-Myers Squibb and Qwest, to current investigations into mortgage investment giant Fannie Mae, has damaged the integrity and credibility of the public accounting profession in the eyes of senior executives and the public at large. (L4-9) • 主干：the scandal …. has damaged… • 分支：along with other recent, high-profile audit failures at companies from … to …, to …, to …
The effects of the enron affair (Para.1-2) Para. 2: Effects 3-5 Effect 4: Its scandal, along with recent, high profile audit failures at other companies has damaged the integrity and credibility of the public accounting profession in the eyes of senior executives and the public at large. L8-9)
The effects of the Enron affair (Paras. 1-2) • Para. 2: Effects 3-5 • Effect 4: Its scandal, along with recent, highprofile audit failures at other companies has damaged the integrity and credibility of the public accounting profession in the eyes of senior executives and the public at large. (L8-9)
The effects of the enron affair (Para.1-2) Para. 2: Effects 3-5 Effect 5: It's not just Arthur Andersen that has suffered in light of these developments; three of the big four accounting firms have endured similar investigations by the SEC in the past couple of years. (L10-12)
The effects of the Enron affair (Paras. 1-2) • Para. 2: Effects 3-5 • Effect 5: It’s not just Arthur Andersen that has suffered in light of these developments; three of the Big Four accounting firms have endured similar investigations by the SEC in the past couple of years. (L10-12)