ACC 260 WEEK 2 CHECKPOINT - UNETHICAL PRACTICES OF ARTHUR ANDERSEN

ACC 260 WEEK 2 CHECKPOINT - UNETHICAL PRACTICES OF ARTHUR ANDERSEN

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Unformatted text preview: Week 2 CheckPoint: Unethical Practices of Arthur Andersen Resource: Business & Professional Ethics Due Date: Day 4 [Individual forum] Read the Arthur Andersens Troubles Ethics Case on pp. 107-113 (Ch. 2) of the text. Answer questions 1, 3, and 4 on p. 113 in 200 to 300 words. When responding to question 3, focus solely on the Enron case. 1. What did Arthur Andersen contribute to the Enron disaster? Arthur Andersen worked not only as auditors but as consultants also which created a conflict of interest. They approved the structure of Special Purpose Entities that did not meet the 3% equity-at-risk and decision control criteria for non-consolidation, failed to recognize the principle that prohibits recording shares issued as an increase in shareholders equity unless they are issued for cash, did not advise Enrons audit committee that head decision makers were involved in conflict of interest situations, that Enrons policies and internal controls were not enough to...
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This note was uploaded on 11/21/2011 for the course ACC 260 260 taught by Professor Riley during the Spring '11 term at University of Phoenix.

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ACC 260 WEEK 2 CHECKPOINT - UNETHICAL PRACTICES OF ARTHUR ANDERSEN

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