First, the proposed The United States' seventh-ranked Fortune '500 strong Enron (Enron Corp.

) Bankruptcy case has seriously shaken the confidence of the U.S. stock market in the U.S. Political arena has also caused a great uproar, and even has become a global concern. As Enron's auditor, Arthur Andersen is also in conjunction with the Enron Corporation to accept the U.S. Congress, the Justice Department and the U.S. Securities and Exchange Commission (SEC) investigation. Enron's investors and creditors, Enron and Arthur Andersen have made a huge civil compensation. In the charges against Arthur Andersen, the independence of the problem is one of the focuses. Arthur Andersen for Enron to provide audit Services at the same time, it also provides a large number of non-audit services. In 2001, Arthur Andersen on Enron's audit fees are 25 million U.S. dollars, non-audit services fees and charges is 27 million U.S. dollars. Therefore, many people believe that certified public accountants to provide non-audit services to audit clients, especially when non-audit fees than audit fees, CPA's audit independence has undoubtedly been seriously damaged, which is the main reason leading to the audit failure. The major media have been greatly exaggerated, the U.S. 'Washington Post', the British 'Times' call for Wall Street regulators to reconsider the ban accounting firm providing management consulting and other non-audit services. In addition, some large organizations such as the American Federation of Labor AFL-CIO and the United States (AF LC IO) have been specifically sent a letter to SEC, the independence of the rules seek to amend the Certified Public Accountant, Certified Public Accountants to redefine the definition of independence, and strictly limited registration accountants to provide non-audit services to audit clients. AF LC IO view, audit and non-audit services that exists between 'conflict of interest', to provide non-audit services, CPAs are often 'the role of inter-string', in fact, involved in management decisions of customers, without the effective implementation of the audit oversight functions, so that audit independence has been significantly damaged. Arthur Andersen CEO Joseph Berardino in the House of Representatives Financial Services Committee hearing, held in the Enron case against the accused are described and counterattack. He said that Enron's total assets of up to 65 billion U.S. dollars, with annual sales of more than 100 billion U.S. dollars, and has the world's largest business systems, for such a very complex multinational corporations, fees are generally commensurate with its size and complexity of the . Meanwhile, Arthur Andersen provided non-audit services is essential, and some that have traditionally provided by the Certified Public Accountant, or even only by the Certified Public Accountant, so there would not undermine the independence of the audit. In the Enron paid 27 million U.S. dollars of non-audit service fee, there are 350 U.S. dollars is the tax service, which is the universal services provided by accounting firms, there can be no conflict of interest; 3.2 million U.S. dollars is a new accounting system of the need to review (of the system by another one 'five' design and installation); the other four million U.S. dollars actually pay for Andersen Consulting's (Accenture) in consulting fees, while Arthur Andersen was in August 2000 a formal split with Andersen Consulting ; There are millions of dollars in services are also certified public accountants should be done. Comprehensive consideration of these factors, the audit and audit-related fees and charges accounted for more than 70%, while

the genuine non-audit services than 13.3 million U.S. dollars, and each individual service charges are not more than 3 million U.S. dollars. Joseph Berardino convinced that the registration of accountants Arthur Andersen will not and should not be motivated to abandon the principle of non-audit services will not be because of the high-income fails to comply with the audit independence requirements. In fact, the non-audit services are detrimental to the independence of the audit is not a new phenomenon. Early in the 20th century, 70's, the United States once well-known Cohen reports specifically had this problem, but the report did not come to harm non-audit services, auditor independence conclusions. In 2000, SEC Chairman Levitt's effort to promote, launched a massive campaign of independence of the rule amendments, the main purpose is to restrict or ban its certified public accountants to provide non-audit services to audit clients. But the SEC has been a draft amendment to the United States Institute of Certified Public Accountants and the 'five', led by CPA with strong opposition, and even many members of Congress and business representatives joined the opposition ranks. Finally the two sides finally reached a compromise, SEC no longer insist on a total ban on non-audit services, but requires the listed company's audit committee review of certified public accountants to provide non-audit services, identification of whether they undermine the independence of the audit, public disclosure of payments to certified public accountants of the audit and the amount of non-audit services, and evaluation and internal audit individual restrictions, the provisions of CPA can not provide more than 40% of the internal audit. August 2001 SEC Appoints New President, new President Haweipite served as the securities sector, a prominent lawyer involved in the independence of Arthur Andersen, the new SEC rules against the struggle. Therefore, people think Levitt strongly advocated reform of the basic will not return. However, no one would have thought that, on the Haweipite office only a few months time, the sudden outbreak of Enron came up again draw attention to this topic of great concern. This incident will affect the CPA profession could be very significant and far-reaching, if the CPA Industry can not convince the SEC, as in 2000, as non-audit services to avoid a total ban will face a major adjustment of industry structure