Honesty And Integrity At Arthur Andersen

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Arthur Andersen From Honesty to Fraud At the end of 2001, the reputation of honesty and integrity at Arthur Andersen LLP plummeted to the bottom. The public trust in their ability to perform independent and trustworthy audits had completely vanished. The firm, which for centuries had been a leader in setting audit standards, was now indicted with obstructing of justice when it became known how much knowledge Arthur Andersen had of the wrongdoings at Enron as well as the destruction of papers to the paper trail. One after one, clients of the firm, started to leave while the partners at Andersen searched for solutions to their problems. In the beginning, long before Arthur Andersen LLP became one of the largest audit firms with 85 thousand employees all over the world and 28 thousand in US , the founder of the firm; Arthur Andersen refused to approve a deviating transaction in purpose of inflating profit, while working with a local train company in 1914. Arthur Andersen replied that there was "not enough money in the city of Chicago" to make him agree to it, even though it put him at risk of going bankrupt. Another famous story of the firm’s integrity is one about a young accountant who recounted 900 thousand bricks three times when the inventory said it should be a million. The owner at the brickyard was furious at first when confronted with the discrepancy. The diligent work though, led to the discovery of an inside job where one of the managers was stealing bricks at
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