Enron and Arthur Anderson with references
History Arthur Andersen and Clarence DeLany as Andersen, DeLany & Co founded Arthur Andersen in 1913. The firm changed its name to Arthur Andersen in 1918. Arthur Andersen LLP was a multinational partnership that had offices in several countries across North America, Asia, and Europe. ... In 2002 Arthur Andersen LLP lost its auditing licence in the United States as a result of the Enron scandal. ... org/wiki/Timeline_of_the_Enron_scandal) Major Players There were a few key players in Arthur Andersen that were ultimately responsible for the Enron client. David Duncan the lead audit partner, Sherron Watkins who was Enron’s vice president of corporate development, Joseph Berardino the CEO of Arthur Andersen, and Nancy Temple, Andersen’s lawyer http://www. ... hts/special/enron/1296595 Each of these players had a significant role, during and in the aftermath of the scandal that discredited Arthur Andersen. David Duncan was terminated by Arthur Andersen and was in the forefront of the Securities and Exchange Commission (SEC) investigation of the event. Sherron Watkins wrote a seven-page memo to her boss about questionable accounting practices at Enron. ... Joseph Berardino is the CEO and spokesperson for Arthur Andersen, has tried to restore public confidence in Arthur Andersen. Nancy Temple, Andersen’s lawyer was in direct contact with David Duncan and the rest of Andersen’s staff, advising them on what actions to take regarding Enron (http://en. ... Review of Events The entire Arthur Andersen story started with the Enron scandal, which led to the ultimate downfall of Andersen. It all started with Enron’s executives getting bonus cheques for millions of dollars, through financing from partnerships. ... The partnerships were financing vehicles that were cleverly structured to keep $500 Million of debt off Enron’s balance sheets (http://www. ... Enron. ... Kenneth Lay the member of the Board of Enron states that there is “absolutely no accounting issue, no trading issue, no reserve issue, and no previously unknown problem issues” (http://en. ... However, Sherron Watkins issued a very detailed seven-page memo to Lay, outlining her concerns with the accounting practices at Enron, she also contacted David Duncan and two other partners at Andersen with her concerns. ... Soon after the revelation of Enron’s accounting practices the Securities and Exchange Commission (SEC) started a formal investigation of Enron and Arthur Andersen. ... Based on the findings of the investigation, on June 15, 2002 Arthur Andersen was convicted of obstruction of justice for shredding documents related to Enron (http://www. ... Current State of Arthur Andersen After the conviction of Arthur Andersen for obstruction of justice, Andersen was penalized by being fined $500 000, banned from filing reports for clients with the SEC, and sentenced to five years probation (http://www. ... If one visits the Arthur Andersen website at http://www. ... ASSESSMENT OF CONTRIBUTING FACTORS Inconsistency with Organizational Culture: One of the key contributing factors to the Arthur Andersen tribulation had a great deal to do with the organizational culture. ... ” David Duncan had his own personal agenda and used his position in the company as a vehicle to perform illegal activities as an auditor by not investigating and thoroughly examining Enron’s expenses and legal obligations. David Duncan’s personal agenda was not to thoroughly investigate Enron’s expenses, but to use his authority to practice corrupt methods for personal gain.