Please answer.will definitely upvote C22-6 Ethics, Enron, Arthur Andersen, andAccounting ChangesIn 2001, Enron Corporation filed financialstatements in which it did not consolidate vari-ous special purpose entities, thereby keeping largeamounts of debt off its balance sheet. The com-pany has since declared bankruptcy and admittedthat it violated GAAP. Enron's auditor, ArthurAndersen LLP, issued an unqualified auditopinion stating that Enron had followed GAAP.Instead, Enron should have changed its account-ing principles to conform to GAAP, and Andersenshould not have issued an unqualified opinion.The U.S. Department of Justice began aninvestigation of Enron and Arthur Andersen.Some employees of Arthur Andersen shreddedcertain documents related to the audit. As a result,the firm was found guilty of obstruction of jus-tice and therefore was no longer able to performaudits. Only a few of the Arthur Andersen part-ners and employees were involved in the audit andeven fewer in the shredding. However, thousandsof Arthur Andersen employees lost their jobs.Required:From an ethical perspective, discuss whether theactions of the Department of Justice were fairwith regard to the employees of Arthur Andersen.

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Answered: Required: From an ethical perspective,…

Required: From an ethical perspective, discuss whether the actions of the Department of Justice were fair with regard to the employees of Arthur Andersen.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 6C

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