Attestation Update – A&A for CPAs

Technical stuff for CPAs providing attestation services

Not so fond memories of Enron

with 3 comments

December 2 was the 10th anniversary of the Enron bankruptcy.

Just a few of the big consequences of that massive fraud were Sarbanes-Oxley legislation and the bankruptcy of Arthur Andersen. 

Two of the subtle consequences are that it’s now a federal felony to destroy any documents after a federal investigation has begun (when the IRS or ICE has merely started asking questions about one of your clients, it becomes a felony to do a routine shredding in your office or cleanup of your e-mail) and PCAOB is setting standards for public company audits.

If you need to refresh your memory of what happened, here are just a few of the recent blog posts discussing that not-so-wonderful time:

10 years after Enron, the wound is still freshCPA Success

The Legacy of Arthur Andersenre: The Auditors

And a contrarian opinion that things have gone downhill since then (mild language warning):

Look, You Guys, You Should Really Be Thankful for Enron’s BankruptcyGoing Concern

Maybe this should be Part Ib of my What’s going on in the big firm posts.

Written by Jim Ulvog

December 3, 2011, 10:14 am at 10:14 am

Posted in Accounting, Audits

3 Responses

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  1. GOOD READING…..The Biggest Stock Scams Of All Time at
    http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/12/01/investopedia355.DTL&ao=all

    Gary Zeune CPA

    December 3, 2011, 11:31 am at 11:31 am

  2. Mr. Zeune points to a great article that provides a condensed 2 paragraph summary of 8 different major financial frauds. Chronological order too. Good article. Thanks for pointing it out.

    Jim Ulvog

    December 3, 2011, 11:41 am at 11:41 am

  3. […] Not so fond memories of Enron […]


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