The Enron gas company scandal. Who was Arthur Andersen and how was he involved in the scandal.?
To my understanding, Enron was a thriving company. It expanded into other industries. To sustain it's growth , however, Enron began borrowing money and had serious debts to pay. The company decided to hide this fact because it would make the stock look less valuable. They also began offering secret information to to large potential investors which was illegal. And to top that off, the CEO of Enron began to secretly sell his stock so that he doesn't lose any money. The truth eventually came out and the company announced a loss of $638 million and the stock market fell drastically.
Now, who is Arthur Anderson and what exactly was his role in the scandal? I heard that his job was to ensure that potential investors could rely on Enron's financial statements.
Any information regarding this case is appreciated ! (This is for an assignment). I can't seem to find anything about Andersen on google :/
- A HunchLv 71 decade agoFavorite Answer
Sure you can find information on Authur Anderson.
Arthur Anderson may have been a "person" but it is the accounting firm that Enron used to coverup their financial helath. AA fudged on the audits and shredded paperwork, which keep the real financials of Enron hidden.
AA was a gigantic accounting firm, part of the "big 8" accounting firms and very very well respected. There are only 4 "Big" accounting firms remaining = KPMG, Pricewaterhouse Coopers, Deloitte Touche, and Ernst & Young.
- David14Lv 71 decade ago
Not a person...an accounting firm. You couldn't have searched very hard.