Unethical Practices of Arthur Andersen

Unethical Practices of Arthur Andersen - questions as long...

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1. What did Arthur Andersen contribute to the Enron disaster? Arthur Andersen was the accountant for Enron. Arthur Anderson was said to have been fired for destroying business documents and fixing financial information to make the business look good when it was struggling, they did this to make money. 2. What was the prime motivation behind the decisions of Arthur Andersen’s audit partners on the Enron, WorldCom, Waste Management, and Sunbeam audits: the public interest or something else? Cite examples that reveal this motivation. The prime motivation in my opinion behind Arthur Andersen’s audit partner’s decisions was profit. I do not think they had any other motivations. The accounting firms turned into cash hungry people that they began to ignore certain
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Unformatted text preview: questions as long as they where profiting. So the accounting firm was not going to be found accountable as easily they had executives sign statement so they can blame them instead of themselves being held responsible. 3. Why should an auditor make decisions in the public interest rather than in the interest of management or current shareholders? Accounting is very important, especially to the public. The information that accountants provide should be true to the best of their knowledge because it helps the public see how good or how bad a business is doing. Having said that it is the auditors job to make sure that the accountants follow the rules and guidelines that are set to keep them honest and make sure the numbers are correct....
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This note was uploaded on 05/02/2011 for the course ACC 260 acc 260 taught by Professor Unknown during the Spring '10 term at University of Phoenix.

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