Arthur Anderson Ethical Case Study Essay

956 Words Oct 24th, 2013 4 Pages
There were several internal control issues with Arthur Andersen (AA) that contributed to the Enron disaster. Firstly, AA gave Enron nonaudit services as well as audit services, meaning that AA could advise the structuring of transactions for desired disclosure outcomes and other work and later give an audit opinion on these transactions. This resulted in a blatant conflict of interest issue that many audit professionals did not recognize. Secondly, the “tone at the top” of AA did not encourage ethics or quality of work. Joe Berardino, CEO, made it clear that success was tantamount with revenue. He was noted by one former partner as the “most aggressive pursuer of revenue” that she had ever met. AA failed to recognize how angry the public …show more content…
Legally, there are professional codes and laws

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