Case Analysis Arthur Andersen: Questionable Accounting Practices

1012 WordsMay 8, 20115 Pages
Case Analysis Arthur Andersen: Questionable Accounting Practices ●Introduction Arthur Andersen LLP, which is over a span of nearly 90 years, would become one of the "Big five" largest accounting firms in the United States. Moreover, the accounting firm seen as the symbol of trust, integrity and ethic. The good reputation is derived from the advent of consulting business, which was developed by Leonard Spack. However, with the growth of consulting services, many accounting firms viewed it as a sccessful model that should be emulated, so that the competition pressure increasing sharply. Eventually, Andersen failed to withstand the pressure. Thus, it leaded to a negative influence on Andersen's Corporate culture, which enabled Andersen to be…show more content…
3. This case introduces some lawsuits for Andersen from its clients, such as BFA, Sunbeam, Waste Management, Enron, and Worldcom. Those proceedings had a huge negative influence on Andersen, specifically Enron's, which is deadly strike. 4. In the end, Andersen agreed to cease auditing public corporations by the end of August in 2002, essentially marking the end of the ninety-year-old accounting institution. At the end of this case, Andersen has received his well deserved punishment. What is more important, Who was the mastermind making so much fraud? Maybe it’s just some people’s faults. However, the main reason is from its degenerative corporate culture that places great emphasis on placing huge profits ahead of ethics and laws. Unfortunately, the life of staffs in the accounting firm were affected pessimistically by all of the events associated with this case. Furthermore, this ethical misconduct caused the loss of the public. Accordingly, no matter who we are, the CEO, the CFO or employees, we should keep something in mind that accounting ethics is significant not only for everything and everyone in the company but also for the
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