Honesty And Integrity At Arthur Andersen - 1814 Words

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 atShow MoreRelatedEnron Corporation: An Electivity and Natural Gas Company1621 Words   |  7 Pagestheir jobs and lost their life savings that they had invested in Enron’s shares. Soon after Enron collapsed, Arthur Andersen, a well respected accounting firm that was also one of the big five accounting firms at the time, was found guilty of obstruction of justice after David Duncan, the lead partner of Enron audit engagement, agreed to testify against his former employer, Arthur Andersen. After Kenneth Lay was appointed the chair and the CEO of Enron, he quickly adapted an aggressive innovativeRead MoreThe Ethics Of The Accounting Profession1210 Words   |  5 Pagesthat one learns as a result of their childhood upbringing and culture. Morals differ from ethics as morals are personal in nature; on the other hand, ethical standards must be same for everyone. Virtues are positive character traits such as integrity and honesty, which a person develops over time. Moral and ethics are classified as good and bad, while laws are categorized as right or wrong. A person’s ethical beliefs not only influence their decisions on a day-to-day basis, they also influence businessRead MoreManagement Planning- Arthur Anderson1299 Words   |  6 Pagesmanagement within Arthur Andersen. Specifically, the paper will discuss at least one legal, ethical, and social responsibility issue that impacts Arthur Andersen. Additionally, this paper will analyze the impact these factors h ave on Arthur Andersen’s management planning. Finally, this paper will analyze at least three factors that influence Arthur Andersen’s strategic, tactical, operational, and contingency planning. The firm of Arthur Andersen LLP was founded in 1913 by Arthur Andersen and ClarenceRead MoreEthics And A New Accountants Perspective On Enron1217 Words   |  5 Pagesone learns as a result of their childhood upbringing and culture. Morals differ from ethics because morals are personal in nature; on the other hand, ethical standards must be same for everyone. Virtues are positive character traits such as integrity and honesty, which a person develops over time. Moral and ethics are classified as good and bad, while laws are categorized as right or wrong. A person’s ethical beliefs not only influence their decisions on a day-to-day basis, they also influence businessRead MoreThe Ethics Of The Accounting Profession1204 Words   |  5 Pagesone learns as a result of their childhood upbringing and culture. Morals differ from ethics because morals are personal in nature; on the other hand, ethical standards must be same for everyone. Virtues are positive character traits su ch as integrity and honesty, which a person develops over time. Moral and ethics are classified as good and bad, while laws are categorized as right or wrong. A person’s ethical beliefs not only influence their decisions on a day-to-day basis, they also influence businessRead MoreManagement Planning of Arthur Anderson Essay1284 Words   |  6 Pagesmanagement within Arthur Andersen. Specifically, the paper will discuss at least one legal, ethical, and social responsibility issue that impacts Arthur Andersen. Additionally, this paper will analyze the impact these factors have on Arthur Andersen’s management planning. Finally, this paper will analyze at least three factors that influence Arthur Andersen’s strategic, tactical, operational, and contingency planning. The firm of Arthur Andersen LLP was founded in 1913 by Arthur Andersen and ClarenceRead MoreEthical Incidents in Organizations: Arthur Andersen777 Words   |  3 Pagesin Organizations: Arthur Andersen While the majority of people in the US are aware of the problems that were faced by Enron, most do not realize the impact the company had on other organizations which were also involved in the scandal. One such company was the accounting firm Arthur Andersen. While the firm is still technically in business, it is nothing like it was in the days before its ethical dilemma and scandal. The mission and core values that were touted by Arthur Andersen were violated byRead MoreEnron And The Enron Scandal847 Words   |  4 PagesThe Enron scandal, discovered in October 2001, eventually led to the bankruptcy of the Enron Corporation, an American energy company based mostly in Houston, Texas, and also the dissolution of Arthur Andersen, that was one amongst the 5 largest audit and accounting partnerships within the world. Additionally, to being the most important bankruptcy reorganization in American history at that point, Enron without doubt is the biggest audit failure. it s ever the fore most notable company within theRead MoreEnron And The Enron Corporation2203 Words   |  9 Pagesthe accounting world were enacted. The 2001 scandal involved two parties: Enron Corporation, a U.S. energy commodities firm, and their auditors Arthur Andersen, LLP, currently a U.S. holding company and formerly one of the â€Å"Big 5† U.S. accounting firms. When the scandal broke, Enron was one of the most innovative companies in the world and Arthur Andersen was the biggest professional services company in the world; so, when both companies fell, it completely changed the world of Accounting. The EnronRead MoreRise Fall of Arthur Andersen, LLP1016 Words   |  5 Pagesï » ¿ March 4, 2014 Rise Fall of Arthur Andersen, LLP Abstract Enron was a natural gas company that was formed in 1985 by Kenneth Lay. By 1992, Enron was the largest selling company of natural gas in North America. In October 2001 a scandal involving Enron was emerging. This scandal led to the fall of the company. The Enron case and many others cases led to the collapse of other companies that did business with them which included one