What have we learned from the Enron Fiasco?

“When Lawrence Summers spoke from his U.S. Treasury Pulpit, he preached

that no innovation was more important to the success of the U.S. capital

markets than “Generally Accepted Accounting principles”

Conclusion: The U.S. economy relies heavily on credible accounting information.

(Wall Street Journal, February 2, 2002)

“The U.S. continues to have one of the world’s most rigorous accounting systems, and most companies clearly function within the rules … But just as investors ultimately turned away

from overhyped tech stocks during the Internet bust, in the wake of Enron those same investors clearly have no stomach for any hint of accounting irregularities … fears of a new

mini-Enron spur share sell-offs at the slightest whiff of accounting problems.”

Conclusion: Corporations who care about their stock values have strong incentives to invest big bucks in credible accounting reports and honest and talented auditors.

(Wall Street Journal, January 30, 2002)

“As the collapse of Enron has made painfully clear, the complexity of corporate accounting has grown exponentially. What

were simple and objective concepts, like sales and earnings, in many cases have

become complicated and subjective … This is true not just for investors, but for Wall

Street analysts, corporate executives with MBAs, and sometimes even outside

auditors reviewing a corporation’s books.”(Wall Street Journal, January 23, 2002)

Conclusion: Students who don’t invest the time and effort needed to understand accounting statements will be placing themselves in a very vulnerable position in the real world.

Overall conclusion:

A thorough understanding of accounting may be tough to

attain, but it is critical for business success, and very

valuable on the marketplace.

Are there accounting jobs available and what do they

involve?

LA Times, “Go Figure: Accounting is Hot Job – Slow Economy, High Demand Add up to Big Career.”

Looking for a hot career? 

Think number crunching!

“That’s right. Even in this rapidly slowing economy – and in part because of it –

accounting and related services are very much in demand, with graduates getting multiple job offers and accounting firms

competing with technology and entertainment companies for the

brightest ‘bean counters.’”

And accounting is no longer confined to just calculators and spreadsheets. The profession

requires regular interaction with top-level management. “I’ve worked on traditional

audits, business plans, and an initial public offering, for a company,” said a 23-year old

senior accountant at KPMG in Orange County. ”I’ve had a chance to work with high-tech companies, the entertainment industry,

financial service clients, traditional manufacturing, health care … and I’m getting

to work with senior management at those companies.”

Jacques Rioux, Professor at Drake University: “If we could produce 40 accounting graduates,

businesses would hire 40. If we could produce 100, they’d hire 100.”

 

Betty Chavis, Chair of Accounting Department at Cal State Fullerton, “Our top students are

getting three to five job offers … and the demand for students seems to be getting

stronger.”

And these quotes come from a time when the U.S. economy is slow.

•Professional Services•Industry•Government

Who are the major employers?

Andersen, LLPDeloitte & Touche, LLP

Ernst & YoungKPMG

PriceWaterhouseCoopers, LLP

Top Five Professional Service Firms...

Accenture American ExpressBear, Sterns & Co., Inc.BKD LLPCap GeminiClifton Gunderson LLCCrowe, Chizek & CompanyGrant ThorntonKatz, Sapper & MillerV4 Consulting

Other Professional Service Firms...

Industry...American United Life Insurance Co.Dow Chemical CompanyEli Lilly & CompanyBank One CorporationIBM CorporationMotorola, Inc.Cummins, Inc.Deere & Co.FordLockheed Martin Control SystemsProctor & Gamble CompanyRolls-Royce CorporationQuaker OatsSubaru-Isuzu Automotive, Inc.

Government...

• CIA• FBI• U.S. Army• GAO

• Indiana University

How does Indiana University’s Accounting program prepare

you for these careers?

•World Class Curriculum

•World Class Facilities

•World Class Faculty

World Class Curriculum 1. University of Texas 2. University of Illinois 3. Brigham Young University 4. University of Southern California 5. University of Florida 6. University of Notre Dame 7. University of Michigan 9. Arizona State University 10. University of Pennsylvania

Public Accounting Report ranked our Accounting Program...

8. Indiana University*

* The only program in the U .S. that offers an MBA in accounting

FreshmanSophomoreJunior

MBAa degreeMPA degree

ISS

MBAa

Senior Corecurriculum

Tax trackConsulting trackE-Business trackAssurance track

Year 1Year 2Year 3

Year 4

Year 5

IU Accounting Programs

Admission

Tax trackConsulting trackE-Business trackAssurance track

4 ½ year option(with summer courses &2 spring internships)

4-year degree holders

Bachelors degree

Other Schools

World Class Facility

MBAa Students “Plugged In” MBAa Students “Plugged In”

New Corporate & Graduate Center

World Class Faculty

Faculty

• Steve Baginski

• Daniel Beneish

• Walt Blacconiere

• Joe Fisher

• Jim Grandorf

• David Greene

• Mike Groomer

Faculty

• Les Heitger

• Peggy Hite

• Pat Hopkins

• Laureen Maines

• Jerry Salamon

• Geoff Sprinkle

• Jim Wahlen

Should I look into Accounting

as a major?

YES NO

Am I willing to put in the effort to be the best

I can be?

YES NO

Am I interested in joining a highly-

respected profession?

YES NO

Do I want to be well compensated?

Do I want a career that provides limitless

professional options and paths?

YES NO

YES NO

Am I willing to put in the effort to be the best

I can be?

Curriculum is challenging, interesting, and broad.

Financial Accounting Standards BoardThe mission of the Financial Accounting Standards Board is to establish and improve standards of financial accounting and reporting for the guidance and education of the public,

including issuers, auditors, and users of financial information.

YES NO

Am I interested in joining a highly-

respected profession?

YES NO

Do I want to be well compensated?

Business-Undergraduate $43,000Masters of Business in Accounting $52,000*

* Does not include signing bonuses.

Do I want a career that provides limitless

professional options and paths?

Yes NOPartner in professional service firm (assurance, tax, business advisory), chief financial officer, controller, professional consultant, investment analyst, etc...

Summary

Most sophomore undergraduate students are not exactly sure what

career choice is best for them.

(1) Keep your options open, and(2) Challenge yourself with a rigorous

curriculum that adds value

So what should you do?

Panel Members...

Holly Klaasen -

- Adam Rooks

- Keith Puckett

Linda Tansel -

Panel Members...

- Brian Newton

Marcy Simpson -

- Bobby Samuel

Lindsey Ross -

Panel Members...Holly Klaasen– BKD, LLP

Keith Puckett – Bear, Sterns & Co., Inc.

Adam Rooks – Cummings, Inc.

Linda Tansel – Deloitte & Touche

Marcy Simpson – Indiana University

Brian Newton – KPMG, LLP

Lindsey Ross – Rolls Royce

Bobby Samuel – V4 Consulting