The document summarizes the history of the accounting firm Arthur Andersen from its founding in 1913 to its dissolution in 2002 following the Enron scandal. It notes that Arthur Andersen provided auditing services to Enron for 16 years until Enron's bankruptcy in 2001. An investigation then found that Andersen had been complicit in Enron's accounting fraud, leading to Andersen being charged with obstruction of justice and eventually debarred from auditing services after 87 years in business.

1. Clarence
DeLany
Arthur E
Andersen

2. ANDERSE
N
DELANY
& CO
Arthur E Andersen
Clarence DeLany
1913 1918
Clarence DeLany LEFT
Started
Name changed to
Arthur
DIED
1947
Leonard Spacek
Became the new
C.E.O
Andersen’s
disciple
1950
IT Revolution
Josef Glickauf
“father” of the
computer consulting industry
Andersen
Worldwide
ARTHUR ANDERSEN
ANDERSEN CONSULTING
1989 2001
Andersen Worldwide Scandal

3. Summary of the Case
After the Splitting of Andersen Auditing & Andersen Consultancy,
The Profits of the Consultancy Co Became a huge threat for the Auditing Co
1998 2x Performance policy has been Introduced to keep up with Auditing Co
Enron, the large energy corporation, has been a client of Andersen’s for 16 years
So, Adopted this Methodology to Enron, Cooked up Financial Statements for past 16 years
2001 Enron Declared 7.6 Billion $ loss In One Quarter (3 Months)
On Investigation by Securities Exchange Commission (SEC) of U.S.A
Enron was Found Guilty Andersen Auditing Co as a Culprit&
ventually, Andersen was charged with obstruction of Justice for manipulating the docume
Finally It has been Debarred from its 87 years of Auditing Services
Andersen Worldwide Scandal

4. ISSUES IN THE CASE
 Evolution of a large organization on the basis of integrity and adherence to professional standards
Andersen Worldwide Scandal
More Than 85,000 Employees were Recruited
Less Experienced Candidates were encouraged
Retirement at 56 years Age was implemented
Removal of Experienced Potential

5.  The importance of ethics, integrity and professional standards in the Audit business
Andersen Worldwide Scandal
$30 Million of self dealings by James Fastow (C.F.O)
$700 million of net earnings disappeared from Balance Sheets
 $1.2 Billion Shareholders Equity disappeared from the Incomes
 Over $4 Billion were in hidden Liabilities

6.  The need to balance economic and social benefits in corporate decision making
Andersen Worldwide Scandal
Policy Formulation
Inclusive Growth
Social Justice
Resource Conflicts
 Accountability
 Sustainability
 Transparency

7.  Arthur E Andersen
 Clarence DeLany
Arthur E Andersen Leonard Spacek
Enron, the large energy corporation, has been a client of Andersen’s for 16 years up until Enron’s 2001 bankruptcy
Think Straight, Talk Straight
Touch
Stones
of
Arthur
Andersen
Transparency
HonestyIntegrity
Andersen Worldwide Scandal

8. https://en.wikipedia.org/wiki/Joseph_Glickauf
https://en.wikipedia.org/wiki/Arthur_E._Andersen
https://en.wikipedia.org/wiki/Andersen_Worldwide
http://www.aabri.com/manuscripts/11899.pdf
https://en.wikipedia.org/wiki/Arthur_Andersen_LLP_v._United_States
https://www.mckendree.edu/academics/scholars/issue4/stinson.htm
http://public.tepper.cmu.edu/ethics/AA/arthurandersen.htm
REFRENCES
THANK YOU