Management　　Arthur Andersen

: Management discussion on Arthur Andersen

Introduction

When we think of auditing and accounting , we think of five big giants They have captured and dominating most of the business in the market But we have few complications and convictions about a giant auditing accounting , professional services and tax consulting company i .e . Arthur Andersen , LLP

Arthur Andersen , LLP is a Chicago based Limited Liability Partnership Company founded in the year 1913 . Until June 15th , 2002 Arthur Andersen is listed as the top five auditing companies in the world . With the one

of biggest financial scandal in United States Arthur Andersen came back into news with few facts

Arthur Andersen on June 15th , 2002 was convicted for obstruction of justice for shredding documents which are related to Enron auditing case . This resulted in the Enron Financial Scandal , which shocked many stock holders and investors

This case brought Arthur Andersen into spot light of audits reports of other companies , some of them are Waste Management , Sunbeam and WorldCom

With this incident Enron is registered as the biggest bankruptcy in the history of United States companies

On May 31st , 2005 there case d against Arthur Andersen , i .e . Arthur Andersen LLP v . United States Supreme Court . This resulted in the serious flaws in financial malpractice . As of 2008 Arthur Andersen , LLP declared bankruptcy and as of today company is said that during Enron downfall , Enron 's accounting and auditing company , Arthur Andersen instructed one of there employees to destroy documents related to Enron Auditing . The Securities and Exchange Commission charged Arthur Andersen with false financial charges , which resulted in surrendering its CPA license declaring a bankruptcy in the business

With this issue , Andersen has lost much of its business and 2 /3 of its employees left

the company with this case on . There was a fine that was d against Andersen

for half a million USD , which in turn reversed the image of the entire company

Problems

There are innumerous problems that are caused before and after the serious flaws

against the company . This is regarded as the major accounting scam which caused

serious and rapid decline in the market down trend and market perception of Enron

Enron being a large company in the industry with the missteps in accounting changed

the entire market perception and resulted in the says Beresford

Financial Market Analyst

Once the accounting and auditing went wrong with Arthur Andersen there credibility is

on the challenge , then resulted in market devaluation of the Enron company

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Market Devaluation : With the accounting scandal in 2001 , Arthur Andersen was devaluated in the market . Serious flaws against auditing and accounting procedures the down trend has started in the company as well as company 's image in the industry

Even though Arthur Andersen claimed back the case saying that there were only 3 employees who are responsible for the mistake and they are removed from there jobs for these flaws , the court didn 't listen to them

Market Perception Method , clearly...