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Running head: ENRON AND ARTHUR ANDERSEN 1Enron and Arthur AndersenNameUniversity of the People
ENRON AND ARTHUR ANDERSEN 2AbstractThis paper will identify what the author considers any conflicts of interest in the case of Enron and Arthur Andersen. Overgeneralizing the circumstance of Enron and Arthur Andersen, Enron was expending some accounting duties that were dubious. Because Arthur Andersen was a self-governing auditor, they were accountable for recording any dubious accounting duties that mightbe dangerous to the shareholders of Enron. The Security and Exchange Commission was accountable for demanding and printing correct info about Enron’s accounting data. At the finish line, a few Enron employees went to jail, and Arthur Andersen halted conducting business under that name. The following questions will be address: What could have been done to avoid the conflicts of interest you identified? How would you change the laws to correct the problems that came up in the Enron and Arthur Andersen case? Explore how Enron and Arthur Andersen mighthave been encouraged to act ethically other than direct legal pressures. The author will draw on all the reading assignments that were assigned in class as well as provide outside references to answer the previous questions.
ENRON AND ARTHUR ANDERSEN 3Identify What You Consider Any Conflicts of Interest in The Case of Enron and ArthurAndersenMr. Samek took things to new heights. After being announced the top partner in 1998, he stunned many auditors with a new program he titled his "2X" strategy. Partners must produce two times their revenues in work outside their area of practice. This means that if an auditor brought the firm $4 million a year regulating a business’s books, he should produce an additional$8 million in nonaudit services, such as tax guidance and technology consulting. Auditors were arbitrated against "2X" on freshly overhauled performance evaluations (Brown & Dugan, 2002).