Case Study of Arthur Andersen - 1399 Words

Business Ethics Decision-Making Cases Write-ups Arthur Andersen: Questionable Accounting Practices Name: Wen Jiangshan Student ID:2011008274 Part I. Summary of the case Case 2 mainly introduces how Arthur Andersen, who used to be one of the â€Å"Big Five† largest accounting firms in the United States, strayed away from accepted policies and stuck in a string of accounting scandals, finally closed its doors after 90 years of business. The firm’s name was synonymous with trust, integrity and ethics during a long period of time, however, Andersen failed to withstand the pressure from the competition of consulting service. Thus, it leaded to a negative influence on Andersens corporate culture, which enabled†¦show more content†¦|Failed to address serious accounting errors |Agreed to pay $110 million to resolve the | | |Andersen | |claims | | | |Company’s senior management aided and abetted | | | | |others’ violations of antifraud, reporting and| | | |Waste Management |record keeping provisions of federal |$20.5 billion losses to shareholders | | | |securities laws; $1.4 billion of overstated |11,000 employees were laid off | | | |earnings | | |3 | | | | | | |Assisted in the fraud by repeatedly issuing |Paid $220 million to Waste Management | | | |unqualified audit opinions on Waste |shareholders and $7 million to the SEC | | |Arthur |Management’s materially misleading financial |Was forced to promise not to sign off on | | |Andersen |statementsShow MoreRelatedCapstone Case Study – Arthur Andersen LLP Essay1871 Words   |  8 Pagesï » ¿Individual Project Capstone Case Study – Arthur Andersen LLP Bus 680 – Economics for Business Decisions Summer 2013 1. 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The scandal also affected the greater business world by causing the dissolution of the Arthur Andersen accounting company. This report will reveal the whole story of Enron scam and auditors role from the situation in more depth. It will also include the current situation of those responsible for the fraud. 2. Background of U.S in 1990s TheRead MoreCorporate Scandals and the Sarbanes-Oxley Act of 20023268 Words   |  14 Pagesdecade is Arthur Andersen. These corporate accounting scandals resulted in costing investors billions of dollars when the share prices of the affected companies collapsed. In response to the public outcry regarding loss of investments through these scandals, Jain and Rezaee (2006) stated that the US federal law known as the Sarbanes-Oxley Act of 2002 was enacted on July 30th, 2002 to strengthen corporate governance and restore investors’ trust in the capital market. Objective of the study This paper