Accounting firms often audit the records of public companies, making sure the balance sheets are in order. This assures investors that the company’s figures are accurate. But what happens when the accountant itself loses the public’s trust? That is what happened with Arthur Andersen. Once a very successful accounting firm, it was brought to ruin by its involvement with Enron.
audit：検査する
be in order：整然としている
assure：(人に)保証する
accurate 正確な
accountant：会計士
When Arthur Andersen himself ran the company in the early 20th century, its reputation was built on trust and honesty. And for many years after Mr. Andersen’s death in 1947, the firm continued to be highly respected.
be built on X：Xによって作り上げられる
honesty：誠実さ
Things started to turn sour in the 1990s, with legal trouble related to client’s accounting problems. After the collapse of Sunbeam Corporation in 1998, Andersen paid $110 million to settle lawsuits. Then in 2001, Andersen paid $7 million to settle suits involving another client, Waste Management. But those were nothing compared to the Enron scandal.
turn sour：上手く行かなくなる
settle：決着をつける
(law)suit：訴訟
scandal：スキャンダル、汚職事件
In October 2001, as the U.S. government started to investigate Enron, staff at Arthur Andersen destroyed thousands of Enron-related files. The government charged Arthur Andersen with obstruction of justice (interfering with an investigation). The firm was accused of covering up its involvement with Enron’s activities.
investigate：捜査する
obstruction：妨害
interfere：妨げる
be accused of X：Xで告発される
cover up：(悪事など)を隠す
A key issue in the scandal was Arthur Andersen’s two roles at Enron. Andersen had not only acted as Enron’s accountant; it was also a consultant for the energy giant. Many people saw this as a conflict of interest. How can you work as an independent accountant while advising the client about ways to save or earn money?
conflict of interest(s)：利益相反 (同時に2つの業務に携わり、一方の業務が他方の業務の利益に影響を及ぼすような状況)
overturn：(判決を)覆す
In June 2002, Arthur Andersen was found guilty of obstruction of justice. The firm had to give up its license to perform audits for public companies. It soon lost most of its clients, and most of its 28,000 U.S. employees lost their jobs.
be found guilty of：Xの罪で有罪になる
obstruction of justice：司法妨害
audit：監査
Several years later, in May 2005, the decision against Arthur Andersen was overturned by the U.S. Supreme Court. By then, however, the firm was down to just 200 employees, and its reputation was ruined. Arthur Andersen’s name, once synonymous with corporate trust, was now, to many people, synonymous with corporate greed.
overturn：判決を覆す、ひっくり返す
Supreme Court：最高裁判所
synonymous：同義の