Arthur Anderson Essay

2870 Words Apr 22nd, 2012 12 Pages
BUS 501 Managerial Economics Fall 2011 Arthur Anderson Mary Myrick-Saddler

The History of Arthur Andersen
Arthur Andersen LLP., was an accounting firm with an extensive history which is over a span of nearly 90 years, would become one of the Big five largest accounting firms in the United States. First of all, Arthur Andersen the person has been recognized as an important innovator of his professional period moreover, the accounting firm seen as the symbol of trust, integrity and ethic. He had little interest in creating just another accounting firm, but he intended from the start to create an enterprise based upon knowledge, information, and education. Andersen’s goals were set beyond standard practices of accounting, and
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Quality audits were valued more than higher short-run firm profits. Leonard Spacek, who succeeded Andersen as managing partner in 1947, produced more company folklore when he accused powerful Bethlehem Steel of overstating its profits in 1964. He also led a crusade to motivate the Securities and Exchange Commission to crack down on companies that cooked their books. The yellowing press clippings of his bold efforts were still on display at the company's main training center near Chicago in 2002.
Between 1914 and the late 1980s, tradition was everywhere at Arthur Andersen. The company installed heavy wooden doors at the entrance of all its offices. Andersen employees were known to be one of a kind clean cut, straight laced, and dressed in pinstripes. Employees were taught to recite the partnership's motto, think straight, talk straight. Auditors were rewarded and promoted for making sound audit decisions. Top management assigned significant decision rights to the central office's Professional Standards Group. This group, which consisted of internal experts, monitored audits and issued opinions on how specific types of transactions should be handled. The objective was to promote consistent and well-reasoned opinions throughout the firm.
The growth of Andersen's insistence on quality and high standards enhanced its reputation and promoted consistent growth. Auditors in the firm did not become wealthy in these formative years. However, Andersen

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