A 5 page paper that discusses specific aspects of the Enron crisis. The writer first provides 11 points in outline form that describe the relationship between these two companies and the impact this event had on Arthur Andersen. The second part of the paper discusses the parties who were most responsible for the crisis and justifies why these particular people shoulder the most responsibility. Bibliography lists 8 sources.
Name of Research Paper File: MM12_PGenand.rtf
Unformatted Sample Text from the Research Paper:
totaled $9 billion (Berenson and Glater, 2002). The company employs 85,000 people across 84 countries (Berenson and Glater, 2002). The company always known for its honesty and integrity is one
of the main players in the Enron debacle. Some of the facts and aspects of this case as they relate to Andersen are: 1. Enron Corporation was Andersens second-largest client
in 2000 (Berenson and Glater, 2002). Anderson billed Enron for about $58 million in 2000 (McRoberts, 2002). 2. High level Andersen officials tried to discuss Enrons accounting practices with Enron
top executives as early as February 2001, eight months before Enrons collapse (CNN, 2002). 3. There was far too cozy a relationship between Andersen and Enron (McRoberts, 2002). Andersen
auditors and consultants had their own floor in the companys headquarters building (Frammolino and Leeds, 2002). 4. Andersen employees were too intertwined with Enron management. Andersen auditors and financial
consultants who worked in the Enron building received their paychecks from Enron and not from Andersen (McRoberts, 2002). 5. Andersen employees shredded documents and destroyed electronic documents related to
the Enron debacle (CNN Money, 2002; Berenson and Glater, 2002). This practice stopped when the company received a subpoena for all documents (CNN Money, 2002). Further, David B. Duncan, the
lead partner who was in charge of the Enron account, was fired (CNN, 2002). 6. Andersens relationship with Enron was a conflict of interest because the company acted as both
internal auditor and external auditor (McRoberts, 2002). 7. Andersen representatives always searched for ways to appease Enrons top executives in financial accounting practices (McRoberts, 2002). For instance, when Carl Bass,
a member of Andersens Professional Standards Group questioned some of the partnerships Enron was setting up, Enron executives insisted Bass be excluded from working on the account in any way