While accounting scandals at huge companies like Enron and WorldCom were the focus of much public scrutiny this summer, Ryan Robinson, ’03, was interning at accounting giant Ernst and Young. Robinson, an accounting major, felt the news about these companies was very scary and feared that his whole dream could come tumbling down.
By the end of the summer, when Arthur Andersen ended its auditing practice in the United States, Robinson’s fears seemed to be well founded.
Andersen was a mighty and prestigious name in the accounting profession, employing 85,000 people worldwide with 26,000 of those working in the United States. By Aug. 31, there were only 3,000 remaining, and according to the Financial Times, “a host” of those left in the offices were lawyers.
According to Prof. Milo Peck and the accounting department as a whole, at the completion of the first month of the semester, there is optimism for the future of their industry.
Peck demonstrated an important point about the collapse of Andersen in America. Though the organization is no longer there to do the work, the business of auditing remains to be done, therefore the employment outlook for accounting major remains strong.
Robinson commented that there are “tons of jobs” in accounting, though not necessarily with the largest accounting firms. “I’m happy now that I’m an accountant,” he said. He also expressed no worry about finding a job when he completes the five-year accounting program at Fairfield.
A statement prepared by the entire accounting department said, “accounting enrollments and job opportunities are up as the business community has come to realize that accounting matters. We feel that the future of the profession is bright.”
Accountants must now face new legislation as a result of these scandals. The Sarbanes-Oaxley Act will provide for new oversight of the accounting profession and stiffer penalties for lapses in paperwork.
The accounting department points out that their profession changes frequently. For an example of this change, Peck said that someone entering the university’s MBA program in accounting would need to take an introductory course in accounting if they have not worked in the industry and if their undergraduate accounting work had occurred several years in the past.
The profession must also face a lingering public image problem.
During the summer, Peck said he was “aghast” to see unfavorable portrayals of accountants in late night television skits. He said that he had “always been proud to be a CPA,” but was displeased with the portrayal of the entire accounting profession based upon the unethical actions of a few individuals.
He also expressed that he felt fortunate to be teaching at a Jesuit institution were ethical discussions could be held both in accounting classes and in the general core curriculum. The accounting department as a whole, he said, addresses contemporary issues and would want to address the ethical lapses of individual accountants.
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