《Arthur Anderson Failure》.ppt

Arthur Anderson’s Failure * Arthur Anderson’s Failure Intro of Arthur Anderson What went wrong？ The responsibility to shareholder Accounting and Consulting Judgment Sarbanes–Oxley Act Reference * Intro of Arthur Anderson Arthur Andersen LLP, based in Chicago, was once one of the Big Five accounting firms among PricewaterhouseCoopers, Deloitte Touche Tohmatsu, Ernst Young and KPMG, providing auditing, tax, and consulting services to large corporations * Intro of Arthur Anderson Fiscal year 2001, its global turnover of $ 9.3 billion, audit business agent with 2,300 listed companies in the United States, accounting for 17% of the total number of U.S. listed companies; There are 390 branches in 84 countries around the world, with 4700 partners, and professionals of 8.5 million people. * Intro of Arthur Anderson June 15, 2002, Arthur Andersen, the court finds that hinder the government investigation Enron bankruptcy crimes committed. Arthur Andersen announced after the jury decision to stop engaging in the business of the listed companys audit, from August 31, 2002, after more than 2,000 public company clients in succession to leave Arthur Andersen, Arthur Andersen global branches have been revoked and acquisitions * What went wrong？ The evidence available to us suggests that Andersen did not fulfill its professional responsibilities in connection with its audits of Enron’s financial statements, or its obligation to bring to the attention of Enron’s Board (or the Audit and Compliance Committee) concerns about Enron‘s internal contracts over the related-party transactions.3 ^? * Enron fictitious profits from 1997 to 2001 for $ 586 million, and to hide hundreds of millions of dollars in debt. In 2000, Arthur Andersen earned $25 million in audit fees and $27 million in consulting fees (this amount accounted for roughly 27% of the audit fees of public clients for Arthur Andersens Houston office) What went wrong？ * What went wrong？ Compounded by organizational flaws and a