Nude Awakening
You won’t see Peter Jennings or Tom Brokaw doing what these folks do — it’s broadcast journalism with an edge / 9
DM TROJAN
Student newspaper of the University of Southern California
WEDNESDAY
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February 20, 2002
Of interest...
Read the platforms and plans for the future for presidential Student Senate slates /12
News Digest	2	Calendar	2
Opinions	4	Lifestyle	9
The Buzz	9	Classifieds	20
Crossword	21	Sports	24
vol. CVL, no. 28 www.dailytrojan.com
Professors analyze Enron case
Academics: After examining financial documents, USC professors make national news
By VERONICA TORRDON
. Contributing Writer
In the wake of the Enron controversy, two USC accounting professors are making national news for their research, which suggests that higher consulting fees paid to accounting agencies do not make the agencies hesitant to disclose damaging information.
The study, conducted by USC associate professor K.R. Subramanyam, professor Mark DeFond and Texas A&M University professor Kannan Raghunandan,
examined financial documents, known as proxy statements, of almost 1,000 struggling companies.
The study focused on the argument that higher consulting fees impair an accounting agency’s ability to conduct an unbiased audit of a company. An agency that is being paid to advise a company cannot be trusted to wam stockholders if the company falls into financial trouble.
DeFond claims the debate is really an empirical question.
“You can argue the issue but talk is cheap," he said. "Show me the data."
The data suggests accountants can maintain an independent role when auditing a company, regardless of the high consulting fees they are paid by that same company, DeFond and Subramanyam said.
But professors from Stanford, the Massachusetts Institute of Technology and Michigan State University did earlier research that conflicted. with DeFond and Subramanyam’s data. Their research suggests companies that pay high consulting fees tend to report earnings that meet or beat analysts’ earnings projections, which some claim are signs that companies are managing the consultants’ earnings.
DeFond and Subramanyam defended their research as a more direct and “less noisy” study than the Stanford study.
“It could be that good companies’ earnings are more predictable," DeFond said. “If you spend more money on auditing, you may be a better company."
I see Enron, page IS I
Politicians argue for more freedoms
Event: Americans’ rights must be protected during fight against terrorism
By JACKSON DeMOS
Contributing Writer
The government should not take its citizens’ freedoms away in exchange for safety in post-Sept. 11 America, and the United States should focus on the causes of terrorism to help abolish it, prominent leaders said Sunday at a conference at Bovard Auditorium.
The 14 speakers, mostly self-identifying liberals, all spoke on connect-
ed issues concerning the American way of life after Sept. 11, such as fighting the causes of terrorism and protecting peoples freedoms.
“A society that will trade a little liberty for a little order will deserve neither and lose both,” said Stephen Rohde, past president of the Southern California branch of the American Civil Liberties Union.
Rohde followed the ideals of Thomas Jefferson and Benjamin Franklin, who also had similar views, Rohde said.
The definition of terrorism is making the recipients of terror change their behavior, said John Burton, president pro-tempore of the
California Senate. That is what is happening in this country, Burton added.
He said people’s basic constitutional rights are being confiscated because the government is going too far in its quest to battle terrorism.
“I don’t really mind standing in line in an airport and taking my shoes off, but I do mind when they try to take off the 4th and 5th amendments of the Constitution," Burton said.
Many speakers also expressed outrage that the government is infringing on citizens’ constitutional rights.
“How can we justify, in effect, to cancel the 4th amendment, (which requires) probable cause, (and) a pro-I see Speakers . page 17 I
Remembering executive orders and mistakes
Culture: USC alum, professor discusses experiences in World War II internment camps
By ELIZABETH BROTHERTON
Contributing Writer
Sixty years ago Tuesday, President Franklin Roosevelt signed Executive Order 9066, which led to the eventual relocation of more than 100,000 Japanese-Americans from their homes to internment camps.
Most lost their jobs, possessions, and homes in the move. But instead of protesting, many Japanese-Americans joined the military and served their country during World War II.
“How a people can be so discriminated against and then turn around and be so heroic is amazing,” said history professor Lon Kurashige, a speaker at the presentation. “Today, it is a great contradiction to us, but it really wasn’t a contradiction to them. The thought of not fighting in the army was a no brain-er.”
The mindset of the Japanese-Americans during the time was different than it would have been today, Kurashige said. Instead of protesting the internment, most went along with what the government asked of them.
“Ninety-nine percent of the Japanese-Americans showed up to go to the camp the day the government asked of them,” he said. "Amazingly, that many never even thought twice about it.”
George Hayakawa, a Japanese-American who was at a camp and then served in the army, confirmed the Japanese-Americans obedience. Born in Pasadena on July 4,1924, Hayakawa eventually attended USC on the GI Bill.
“It was just something we didn’t think twice about,” Hayakawa said. “It was just a different time I guess.” Hayakawa spoke less about his own experiences and more about his hope for the future. He discussed how he used his $20,000 retribution check, given to all Japanese-Americans who were at the camps, to start a scholarship for disadvantaged Japanese-American students at USC.
“I always felt that education was one of' the great equalizers,” Hayakawa said.
Jennifer Ito, President of Delta Phi. Kappa, which co-sponsored the event, said she was happy to share the history of Japanese-Americans.
"Especially with the events of last year, I still think that that mentality can still exist”
Moving up
More campus safety needed
Get high. Rachel Anchors, a sophomore majoring in fine arts, scales an inflatable climbing wall at a barbecue in McCarthy Quad. The event was part of a week-long series organized by the Engineering Student Council.
comment was directed at him and defended his platform.
“I think Andrew is referring to our platform when he says things don’t seem feasible,” Weir said. “However, if you look at our resumes and our bios online, especially my experience in Senate, I have history of getting things done.”
I see Debate, page 17 I
SIDEBAR
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Meeting: Increase in programming fee passed after submission last month
By KENNETH BASIN
StaffWriter
Student Senate’s plan to increase undergraduate programming fees from $56.50 per semester to $59 was approved at Tuesday night’s meeting by a vote of five and one-half to two.
The proposal, submitted by Program Board late last month, was designed to compensate for inflationary increases in expenses, as well as I see Senate, page 17 I
Debate: Presidential
candidates defend their platforms, discuss crimes
By ROBB FERRIS
Student Senate Writer
Candidates for Student Senate president and vice president discussed their platforms and that of other slates’ in a debate on “Platforum” Tuesday night
Presidential candidate Andrew Compton differentiated his campaign from others, saying his platform is attainable and viable.
“If you look at my campaign platform, all of the four things we’re campaigning upon and the overarching goal of bringing Senate to you are very attainable," Compton said. “When deciding who you are going to vote for, look more in terms of the platforms, because some of the things people are listing on platforms aren’t necessary feasible.”
But Compton said he is driven to affect change in Senate.
“1 don’t want to maintain the status quo,” Compton said. “If things continue on the way they have this past year, we aren’t going to get anywhere.”
Presidential candidate Matt Weir said he thought Compton’s