Arthur Andersen Case

Decent Essays

Question 1 Andersen was once a thriving global institution that focused on providing accounting services to public companies. Before its solvency, Andersen was attributed to significant changes in the accounting industry as it introduced automation in accounting services including other achievements (Sellers, Fogarty, & Parker, 2012). From a business environmental perspective, Andersen began as an accounting firm in 1914 which later expanded to providing consultancy and auditing services. Moreover, a technological aspect (as mentioned above) of accounting was introduced in 1950s that contributed to the significant changes that the firm encountered. After the split of the firm (Andersen Consultants (AC) and Arthur Andersen (AA) firms), it implied that some of the initial strategies that were documented in 1914, had taken a new direction as AC was more concerned with providing consultancy services to large corporations and AA with auditing and consultancy to small companies. From an organizational architecture perspective, Andersen’s firm depicted an enormous evolvement and especially after introducing the practice of partnerships with other companies (Sellers, Fogarty, & Parker, 2012). On top of that, the splitting of the original Andersen firm had a direct change in the leadership management. In a nutshell, the entirety of change in the Andersen firm could be attributed to its desire to expand its services to consultancy and auditing. The inclusion of involving partners

Get Access