Abstract This paper explores the accounting malpractices within the Andersen Firm. The paper discusses the functions and duties of the firm and the history of the company. The writer describes recent events including the Enron case and a myriad of other cases, accusing Andersen of misleading investors. The paper also examines whether or not the Author Andersen auditing firm is a trustworthy firm to do business with.
From the Paper "Anderson contracted with the Enron Corporation to perform its audits and provide the audit opinion. The firm performed this task for over ten years and charged Enron almost $48 million in fees in the year 2000 alone. It is believed that Andersen hid the fact the Enron used questionable accounting practices to hide huge losses that Enron had incurred. Andersen has admitted that employees destroyed evidence that exposed the shotty accounting practices."
This paper discusses one of the key ethical issues that the accounting firm, Arthur Andersen, faced in the Enron case: A company cannot exist without clients.
Abstract The paper discusses that the Enron case was a no-win situation for Arthur Andersen. The paper points out that Arthur Andersen tried to distance themselves from the case in hope that Enron did not get caught, but Enron did get caught. The author feels that Arthur Andersen, despite client loyalty, would have managed the case better if they had severed relationships with Enron much sooner.
From the Paper "Arthur Andersen was in a tough client relations position. However, there are several points along the way where they could have perhaps at least saved their reputation. One point is when they continued to shred documents after they had been ordered by the courts to stop this activity. Had they at least obeyed that court order, then they may have been able to claim that they were not so deeply embroiled in the controversy and could have perhaps distanced themselves from it. This was the final straw as for as the public and the courts were concerned. Their actions in destroying the court order stood as clear evidence that they were both aware of and in support of the activities at Enron. This act enraged the public the most."
Abstract This paper addresses the question about whether accounting firms should act as consultants for the same companies that they audit. It uses the case of the accounting firm, Arthur Andersen, and its complicity in the Enron debacle to explore this question. The paper also addresses several larger issues on business and accounting ethics and looks at the need for reform in the accounting industry as a way of ensuring public confidence in the integrity of the accounting system.
From the Paper "In late 2001, Arthur Andersen, one of the world's largest accounting firms, found itself plunged into what will likely be remembered as one of this generations greatest business scandals. The scandal involved Enron Corp., one of America's most successful corporations, and the darling of investors, employees, and market analysts alike. Enron was accused of a multitude of ethical breeches, including deliberately misleading shareholders about the company's true financial status. Ultimately, Enron was found guilty of a number of financial misdeeds, went bankrupt, and Anderson's involvement in the scandal brought the ethics of accounting firms into question."
Abstract This paper examines how the ethical difficulties involved in the case of Enron and Arthur Anderson, the accounting firm that had been responsible for auditing Enron accounts, are both numerous and overreaching. From the initial process of setting up the special purpose entities (SPEs), to the accounting bias fueled by large fees that Enron provided to Arthur Anderson, it looks at how the failure to testify truthfully about the Enron scandal in a court of law, showed a lack ethical decision making.
From the Paper "The ethical difficulties involved in the case of Enron and Arthur Anderson, the accounting firm that had been responsible for auditing Enron's accounts, are both numerous and overreaching. From the initial process of setting up the special purpose entities (SPEs) to the accounting bias fueled by large fees that Enron provided to Arthur Anderson, to the failure to testify truthfully about the Enron scandal in a court of law, participants showed a lack ethical decision-making. Freeman, in his stakeholder theory of business ethics, argues that businesses do bear social responsibilities for their actions. This paper will examine the actions of both companies against the strictures of the stakeholder model of ethics. "
Abstract This paper discusses the fall of the Arthur Andersen accounting firm and the lessons that can be drawn from its demise. The paper explains that the problem at Arthur Anderson began because it served as the auditor of and consultant to Enron, causing a conflict of interest on many levels. The paper then highlights the lessons that can be learned from this event, namely, that arrogance and greed will lead nowhere and ethics should be the guiding principle in businesses and in daily lives.
Outline:
What Went Wrong
Conflict of Interest
Recommendations
From the Paper "A day after Enron Corp. announced that the SEC was inquiring into the company's accounting, auditors at Arthur Andersen's Houston office started destroying thousands of documents and e-mail messages. The destruction, which apparently took place on from October 23 to November 9, 2001, was only the start. Investigators also found that Arthur Andersen approved transactions by Enron and its affiliates that contributed to Enron's collapse. It was also found that Andersen had repeatedly assured Enron management that its books were in order (Oppel & Eichenwald, 1).
"In June 2002, Andersen was found guilty of obstruction of justice in relation to impeding the Enron investigation (Eichenwald, 1). While Andersen still exists today, it's only a shell of what it used to be, with no more than 200 employees. It has also stayed away from auditing public companies, focusing more on litigation or pension issues (Glaten, 1)."
Abstract In recent years, the standards of the accounting profession have been a subject of great scrutiny. The boom of the 90s changed the business environment tremendously. Financial scandals and out-of-hand executives required the reshaping of the accounting industry. This paper shows that at the forefront of all this is the once-famous accounting firm of Arthur Andersen. The paper examines the history and success story of this firm and then examines the issues surrounding the charges of unethical practise.
Paper Outline
Company Background
The Rise of Arthur Andersen Implications of the Fall of Arthur Andersen The Fall of Arthur Andersen After Enron, WorldCom, and the Fall of Arthur Andersen Bibliography
From the Paper "In 1997, Andersen paid $7 million to settle fraud allegations arising from an audit of Waste Management Inc. Another whopping $24 million was paid in settlement over allegations that Andersen misrepresented the financial health of American Continental Corp. and its subsidiaries bases in Arizona. On top of that, Andersen was also under investigation by Arizona officials for repeatedly ignoring information that the Baptist Foundation of Arizona was defrauding its customers. After years of clean audits, the foundation was exposed as a multi-million dollar fraud."
Abstract This paper analyzes the accounting firm, Arthur Andersen and describes the role Andersen played in the Enron collapse. The paper uses this case to illustrate the debate of whether or not auditing should be separated from consulting. The writer states that the Andersen debacle has been instrumental in informing the public of the flaws of businesses in a capital market.
From the Paper "In recent months the standards of the accounting profession have been the subject of great scrutiny. At the forefront of this ongoing debate is the accounting firm of Arthur Andersen. The firm has been found guilty of obstruction of justice in the Enron case on the grounds that the company shredded valuable documents relating to the financial collapse of Enron. The purpose of this paper is to explore whether or not auditing should be separated from consulting."
Abstract Accounting firm Arthur Andersen's recent involvement in the spectacular Enron scandal has raised a number of questions about whether accounting firms should act as consultants for the same companies that they audit. Clearly, Andersen's experience shows that is difficult, if not impossible, for an accounting company to avoid conflict-of-interest issues when acting as both a consultant and auditor for a single company. This paper paper shows that the conflict of interest is only one of the serious ethical issues faced by the business world in the past years. As such, clients and investors are becoming increasingly aware of ethical issues, a situation that makes reform in the accounting industry a necessity to ensure public confidence in the integrity of the accounting profession.
From the Paper "In examining only the behavior of Arthur Andersen, we run the real risk of losing sight of the larger ethical issues that are involved in the Enron fiasco. The behavior of both Arthur Anderson and Enron executives showed a shocking disregard for personal ethics, as well as professional standards, and corporate ethics. Jennifer Beever notes that the business world has responded by taking a renewed interest in the study of ethics. This is a marked difference previous standards of proper business behavior that adhered most strongly to the pursuit of self-interest (Beever)."
Abstract This essay examines the fraud led by Enron's accountants that led to its recent bankruptcy. It studies the huge investigation into this fraud and analyzes some of its findings. It details the uncovering of several suspects that were connected to the biggest fraud in American history. It concludes that revisions must be made in order to prevent future frauds like these.
From the Paper "When the mighty giant, Enron, fell, it fell hard and resulted in the largest bankruptcy in American history. Worldwide focus then fell upon all who might have a possible answer for this event. Intense focus fell first upon Enron executives, and then, as the event evolved into what appears to be one of the most massive cases of corporate corruption ever known, others were brought into the spotlight.
"According to a statement published on the Andersen website, the primary corporate auditors of Enron, the organization was founded in 1913, when ?Arthur Andersen recruited the brightest students into his classes. Then, he turned them into "thoroughly trained accountants" who were able to go beyond the obvious in their work by using unique methodologies to improve financial performance.? It is, perhaps, those "unique methodologies" that took an unexpected turn at some point in the company's long and previously respected history, and then emerged as something uniquely ungoverned, unprincipled, and unconscionable. After the Securities and Exchange Commission began its in-depth investigation of Enron, focus then also fell upon Andersen."
Tags: Enron, United, States, Andersen, Bush, Administration, fraud, bankruptcy, accountant
Abstract This paper discusses the rise and fall of nation's seventh largest company, Enron International. It describes Enron's bankruptcy and one of the worst stories of deception, greed and fraud in the history of Corporate America. The paper also examines how the largest energy trader of the United States managed to keep its negative debt position off the books with the help of its auditing firm, Arthur Andersen.
From the Paper "Enron was formed when two energy companies, Houston Natural Gas and InterNorth, decided to merge their operations in 1985. The company achieved tremendous success, as energy trading firm and it was the first firm of its kind where energy was traded as any other commodity. In the short span of 15 years, the company managed to gain rise to heights of success as it turned from a regulated natural gas company into world's largest energy trader. With 21,000 employees and operations in more than 30 countries, the company it seemed was doing extremely well and this was further supported by the evidence presented by its auditors."
Abstract Discusses the life of the Danish author and his influence on children's literature. His fairy tales ("The Little Mermaid," "The Emperor's New Clothes," "The Ugly Ducking" & many others). Andersen's unique writing style. How his self-perception as an outsider impacted on the themes of his fairy tales. His use of oral narrative. Gives specific examples.
From the Paper "Hans Christian Andersen was born on April 2, 1805 at Odense, Denmark. Although he attended two different schools at Odense, he did not complete his schooling until he was given state funding to attend Slagelse State Grammar School in 1822. Six years later, he passed his university examinations (Spink 117-8).
With the publication of his first novel, The Improvisatore, Andersen also published his first set of fairy tales containing ?The Tinder Box,? ?Little Claus and Big Claus,? "The Princess and the Pea" and "Little Ida's Flowers" in 1835 (Spink 53). From 1837 onwards, Andersen published his fairy tales in annual volumes. On August 4, 1875, he died at a summer villa near Copenhagen after suffering several years from liver cancer (Spink 117-8; "Chronology of HCA's Life")."
Abstract This paper traces the life of Hans Christian Anderson from the time of his birth in Odense, Denmark in 1805. It examines his education, his relationship with his parents and his writing career. The paper discusses Anderson's works, including his first novel, "The Improvisatore" and subsequent texts such as his famous fairy tales such ("The Princess on the Pea," "The Little Mermaid," "The Emperor's New Clothes", "The Ugly Duckling" and others). The paper reflects on Andersen's important contribution to the world of children's literature.
From the Paper "An examination of the distinctive characteristics of his writing illuminates their enduring quality and his contribution to children's literature. One of the key characteristics, which makes Anderson's tales lively and interesting, is his use of the oral narrative. His tales often begin with a question that draws the readers or listeners into the story. By adopting the perspective of his characters, Andersen brings them alive, whether they are trees, trolls or sparrows. His vivid description of the Emperor's court in "The Nightingale" with its lavish and exotic objects evokes the mysterious and exotic quality of the Orient."
Abstract This paper discusses the rise and fall of nation's seventh largest company, Enron International. Enron announced bankruptcy last year and this unveiled one of the worst stories of deception, greed and fraud in the history of Corporate America. The largest energy trader of the United States managed to keep its negative debt position off the books with the help of its auditing firm, Arthur Andersen.
Abstract This paper looks at the changes needed within accounting practices in light of the recent scandals at Enron and Arthur Andersen. The writer explores the new rules, which have become standard practice in the past few years.
Contents
The Constituencies
Investors
The public
Employees
Managers and executives
CPAs
Auditors
Financial advisors
Governing Bodies
SEC
FASB
GAO
IRS
Congress
From the Paper "There are those doing a lot about the question of ethics in managerial accounting, and those doing little or even creating more opportunities for unethical behavior. If the loopholes are shut down here, will companies go overseas to grease the wheels of commerce? Possibly. Global ethics are not quite as demanding in many parts of the world as most constituencies would like to see them here. (Bray, 2000) Or possibly not. Enron marched across India with its financial sleight-of-hand, injuring that nation"arguably"as it did this one. Perhaps there are ethics watches going on globally in the aftermath."
Abstract This paper discusses the theme in "The Steadfast Tin Soldier" through a character analysis of the tin soldier. The paper points out that, while the theme of the story seems to be about true love conquering all, the underlying theme is about manliness and the suggestion that love seems to feminize men while they are in pursuit of their beloved, transforming them into an acceptable love object. The paper also examines an additional theme that suggests that those who are too sensitive cannot live through the harshness of the world.
From the Paper "At the beginning of the story, the tin Soldier is "different from all the others because he was missing one leg. He has been the last one to be cast and there had not been enough tin" (112). In this way, the Tin Soldier can either be viewed as disabled, having only one leg, or as symbolically emasculated. Soldiers, weapons and perpetrators of destruction, are often viewed as one of the highest forms of masculinity. Violent by nature and protective of their countries, the tin soldier symbolizes the opposite of love and romance, even if they are all "handsome [in] red and blue uniforms" and stand "with rifles sticking up over their shoulders" (112). Soldiers are deadly in their masculine beauty. However, the Tin Soldier in Andersen's tale is far from perfect and is less than a warrior. Andersen reveals the tin soldier's love constant love for the ballerina throughout the story. However, the tin soldier is unable to demonstrate through his bravery that he is worthy of this love. Moreover, the lacking leg may be equated with missing biological parts of masculinity. This Steadfast Soldier cannot procreate and therefore, must be less than a man. The reader might ask why Andersen would want to portray his protagonist as less than a hero. The response is that soldiers, in their courage and readiness to fight, are not true candidates for romantic love. The Tin Soldier, lacking a leg cannot approach his beloved ballerina to declare his love for her. He is afraid that the ballerina will not accept him because of his disability. Symbolically, he is distanced from the ballerina by their placement in the boy's room. Additionally, the troll who possibly "caused the window to open suddenly and the soldier to fall out of it" may represent nature's cruelty to those who are different."
Tags: analysis, andersen, children, christian, fairy, hans, love, soldier, steadfast, story, tale, tin
