The job of the Chief Financial Officer has become a lot more interesting in the last few months. Before Enron, investors and journalists put credibility in the words and numbers written in the quarterly and annual reports released by public companies.
Now that’s less of a given.
Enron appears to have been misleading analysts, investors and the press by cloaking a complex scheme of stock-funded partnerships and misstating earnings. Three months ago, the Houston energy firm made the largest bankruptcy filing in U.S. history.
Andersen Consulting, one of the original Big 5 accounting firms, and the one that put its seal of approval on Enron’s financial reports, has been indicted by the U.S. Department of Justice, charged with widespread criminal conduct and destroying documents. The one-time billion dollar company is losing customers weekly and is reportedly on the verge of a buyout.
The Enron and Arthur Anderson debacles have left serious questions in the minds of investors, the government officials and the press: Can public companies be trusted? Does approval from an accounting firm mean anything? Do accounting standards need to be updated?
A joint meeting of the Atlanta Technology Executives Roundtable & The CFO Forum tonight will attempt to address the implications Enron and Andersen will have on technology companies. The invitation only event is set for Villa Christina restaurant from 6 p.m. to 8:30 p.m. Villa Christina is in the Perimeter Mall area, at 4000 Summit Boulevard.
Technology Executives Roundtable president John Yates, chair of the technology group at Morris, Manning & Martin, LLP, will moderate the panel. Speakers at the event include Wayne Howell, chief of staff and administrative assistant for U.S. Senator Max Cleland of Georgia; Roger Franklin, chief financial officer, National Linen Service and president of the Atlanta chapter of Financial Executives International; Ross Albert, former general counsel at the U.S. Securities and Exchange Commission and special assistant U.S. Attorney, now with Morris, Manning & Martin, LLP; and Benn Konsynski, Emory University’s Goizueta Business School professor.
“The complexity of the Enron debacle and the abundance of blame is prompting responsible companies to examine their leadership, business practices and partnerships more deeply than ever,” Yates says. “Technology leaders need to understand the implications for their strategic alliances, their boards and their relationships with venture capitalists and accountants.”
Franklin concurs.
“Quite frankly, just the whole area of financial disclosure and financial statements is being questioned with the Enron issue and even more so with the recent events with Arthur Andersen,” Franklin says. “It’s just very clear that we lack some basis or fundamental principle for everyone to adhere to.”
The event is sponsored by Korn/Ferry International, KPMG LLP, Morris, Manning & Martin, LLP and Wm. Leonard & Co.
The Technology Executives Roundtable is comprised of more than 100 chief executives from Atlanta technology companies. The CFO Forum is a chapter of Technology Executives Roundtable. Membership is restricted to leaders of technology companies with a minimum of ten full-time employees and up to 500 employees. One member per company can join.
