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 his …show more content…
In 1950, an Andersen engineer named Joseph Glickauf demonstrated that computers could be used to automate bookkeeping. This event led to monumental changes in the partnership. In addition to its basic auditing function, Andersen could help clients automate their accounting systems. The firm launched its new computer consulting business in 1954 when it began providing services to General Electric's state-of-the-art appliance factory near Louisville, Kentucky. Andersen soon developed the largest technology practice of any accounting …show more content…
She ran into off the books arrangements and the downward spiral began in the last fall of 2001. As Enron began to crumble in late 2001, it was clear that many lawsuits were going to be field against Enron, and also that Congress and various government agencies were going to conduct thorough investigations into the financial aspects of the Enron debacle. Mr. Duncon had started a massive shredding program which consisted of all documents and papers related to Enron were destroyed. This was done in order to cover up and evidence they have left behind of false filing. It seemed that executives at Arthur Anderson and Enron did not originally set out to have a positive impact on the accounting industry or any industry. They set out to make as much money for themselves as possible. These selfish acts led both companies into an eventual downfall in bankruptcy. The accounting industry reacted to this and introduced changes that would improve itself and the economy. On December 2, 2001 Enron Corporation filed for chapter 11 bankruptcy, which was the largest bankruptcy petition in U.S. history. It had cleared out shareholder investments that had once been valued at more than $60 billion. Many of Enron's employees had large amounts of Enron stock in the company's retirement savings plans. As a result, they saw the value of their retirement savings first
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 his …show more content…
In 1950, an Andersen engineer named Joseph Glickauf demonstrated that computers could be used to automate bookkeeping. This event led to monumental changes in the partnership. In addition to its basic auditing function, Andersen could help clients automate their accounting systems. The firm launched its new computer consulting business in 1954 when it began providing services to General Electric's state-of-the-art appliance factory near Louisville, Kentucky. Andersen soon developed the largest technology practice of any accounting …show more content…
She ran into off the books arrangements and the downward spiral began in the last fall of 2001. As Enron began to crumble in late 2001, it was clear that many lawsuits were going to be field against Enron, and also that Congress and various government agencies were going to conduct thorough investigations into the financial aspects of the Enron debacle. Mr. Duncon had started a massive shredding program which consisted of all documents and papers related to Enron were destroyed. This was done in order to cover up and evidence they have left behind of false filing. It seemed that executives at Arthur Anderson and Enron did not originally set out to have a positive impact on the accounting industry or any industry. They set out to make as much money for themselves as possible. These selfish acts led both companies into an eventual downfall in bankruptcy. The accounting industry reacted to this and introduced changes that would improve itself and the economy. On December 2, 2001 Enron Corporation filed for chapter 11 bankruptcy, which was the largest bankruptcy petition in U.S. history. It had cleared out shareholder investments that had once been valued at more than $60 billion. Many of Enron's employees had large amounts of Enron stock in the company's retirement savings plans. As a result, they saw the value of their retirement savings first