Arthur Andersen after Enron Scandal Essay Example | Topics and Well Written Essays - 1000 words

Arthur Andersen after Enron Scandal - Essay Example Despite the death of its founder, the firm managed to continue expanding. The base of the clients rose to 50,000 from 2,300 in the years 1947-1973 with offices in Chicago increasing to more than 1,500 employees from 250. The late centuries of the twentieth saw, the expansion of the firm internationally creating a division for consultation with management that is fast growing. Arthur Company was regarded as one of the big five companies in the world until the company’s involvement in a criminal case that saw its downfall. The main reason for choosing this company is because, despite the company being involved in various scandals, it managed to rise again after 12 years. Â  The company faced various ethical issues that led to its downfall in 2001. One of them was conducting the illegal audit for Enron Company, the giant company in energy that aimed at covering up billions of dollars that were lost at the energy firm (Titcomb Par. 4). According to the Enron committee, the assessment of the audit that was done revealed that Andersen Company failed to fulfill the responsibilities of its profession regarding the audit the company conducted on the financial statement for Enron. Andersen was therefore convicted for destroying documents that were produced after auditing, which prevented justice according to Enron’s claims. The conviction was however revised later after two managers from Andersen and Enron Company were found to be responsible for ordering the shredding of the relevant documents. This scandal was before Andersen engaged a math of Brickyard with its worker Gagel that to the company was a history though it proved the ability of Andersen to carry out its work with perfection. The brick incidence was whereby a young auditor was sent on a task that was his daily routine to ascertain inventory of bricks million in number that was baking in the sun in Marion.