Featured:
Allergies
Grilling Guide
eHow Now Blog

The History of the Arthur Andersen Accounting Firm

The History of the Arthur Andersen Accounting Firm thumbnail
The History of the Arthur Andersen Accounting Firm

Arthur Andersen LLP was the largest Big Five public accounting firm, providing audit, tax and consulting services in 84 countries. The firm dissolved because of legal issues arising from a series of client financial misstatements. (see ref 1)

  1. Founder

    • Arthur Andersen was 28 when he started the firm in 1913, offering accounting, auditing and tax services. The firm quickly became known for an uncompromising adherence to accounting principles. (see ref 1)

    Consulting

    • The firm added consulting services in 1954 to help audit clients set up their computer systems, and Andersen Consulting became an industry leader. In 2000, Arthur Andersen split from Andersen Consulting, which renamed itself "Andersen" and rebuilt a consulting group of 15,000 professionals. (see ref 2)

    Felony Conviction

    • Andersen was convicted in 2002 of one count of obstruction of justice because of its role in auditing Enron. After the conviction, the firm could no longer provide public accounting services. (see ref 3)

    Aftermath

    • After the conviction, the audit, tax and consulting practices were separated and sold to various competitors' firms. In 2005, the conviction was overturned by the Supreme Court in a unanimous vote. (see ref 3)

    Expert Insight

    • Andersen Worldwide SC was a Swiss corporation that was the parent company of Arthur Andersen.

    Misconceptions

    • The firm never filed bankruptcy. It continues to operate a training facility for professionals in St. Charles, Illinois.

Related Searches:

References

Resources

  • Photo Credit Photographer: Laurie Phillips

Comments

You May Also Like

  • The History of Ernst & Young

    Comments. You May Also Like. The History of the Arthur Andersen Accounting Firm. Arthur Andersen LLP was the largest Big Five public...

  • Negative Effects of Accountability in Accounting Firms

    A turn-of-the-century review titled "Accounting for the Effects of Accountability," published by the American Psychological Association, stated that accountability ...

  • History of Accounting in America

    The recent economic downturn along with notable controversies at Enron and Arthur Andersen have increased public interest in the history of the...

  • The History of Enron

    The history of Enron falls into two distinct parts. The first act was the rise of a company that mastered, for a...

  • The History of Lucas, Tucker & Co. Accounting Firm

    If you're not in the accounting profession, you may only know the biggies: PricewaterhouseCoopers, Deliotte Touche Tohmatsu, Ernst & Young and KPMG,...

  • The History of Unethical Accounting Behavior

    Unethical accounting behavior in the United States has been in the public spotlight since the 1980s. Changes in the business environment led...

  • Evolution & History of Accounting

    Accounting draws on both mathematical and analytical practices. Luca Pacioli--who is known as the father of accounting--noted in 1494 that ethics also...

  • The Enron Scandal & Ethics

    The 2001 Enron scandal gave business ethics a new lease on life. Enron, an energy firm in Texas, was considered an economic...

  • How to Purchase an Audit Report

    An audit report expresses a formal opinion about an organization's accounting records. Medium and large organizations typically subject themselves to an annual...

  • Start Up Questions for An Accounting Business

    Accounting firms are located in most cities. Large accounting firms open branch offices, while independent CPAs go into business for themselves.

  • The History of Public Accounting

    Accounting methods have been used since before the advent of writing. Ancient record-keeping was accomplished with small objects that represented various types...

  • History of Auditing

    Audits are performed to manage and confirm the correctness of a company's accounting procedures. Auditing evolved as a business necessity once it...

  • The History of Electronic Accounting

    Accounting is a somewhat technical process that companies use to record the financial information from their company. While accounting is several centuries...

  • Objectives of a Financial Statement Audit

    This article explains the objectives of the financial statement audit. These audits are meant to provide reasonable assurance to creditors and investors...

  • How to Trace the History of Accounting

    The history of accounting lies almost in the beginning of human civilization. The early agricultural practices of Mesopotamia were matched by the...

  • Ethics & Legality in Accounting

    Nearly all businesses keep some form of records documenting all economic events and transactions that directly affect the business's finances. For stakeholders...

  • The Largest Investment Consulting Firms

    Individuals invest to achieve long-term goals such as college education and retirement. Organizations, companies, universities and pension funds also invest money to...

  • How to Compare the History of the Salem Witch Trials to the Play "The Crucible"

    Arthur Miller's "The Crucible" takes place during the Salem Witch Trials of 1692. Though Miller added certain characters to the play and...

Related Ads

thumbnail
Featured