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rthur Anderson Scandal - Essay Example
Author : vspencer
Pages 8 (2008 words)
Name: Company Analysis: Course Number: Date: Arthur Anderson Scandal Founding of Andersen LLP Arthur Anderson and Clarence Delany founded Andersen LLP. It was initially known as Andersen, Delany and Co. This was an accounting and auditing firm, which experienced tremendous growth to become one of the biggest accounting firms in the U.S (Martin and Arthur 112)…
This helped the firm to grow and ended up being one of the companies serving the greatest number of clients in the U.S. Those who worked with Andersen were aware of his motto: "Think straight, talk straight.” Andersen also played a big role in upping the standards in the U.S. accounting industry. Additionally, he was involved in innovation of new accounting standards that are still being used today. Andersen was active in social activities that also got involved in charitable organization as well in promotion of education. The firm spent large amounts of money into training new recruits (Martin and Arthur 127). This was crucial in stressing the company’s morals and its consistency around in offering and performing services. The company was admired by many people for the high morals exhibited. He became even more popular when he refused to engage in a fraud case when one of his prominent clients presented flawed accounting records. He chose to lose the client rather than committing fraud, as was the wish of the client. This had a positive impact since it increased his reputation and that of the company. Greed Begins During the 1980s, the company started experiencing internal friction. Then, there were two divisions making up the firm. These were the consulting division and the audit division. ...