Posts Tagged ‘Arthur Andersen’
9/8 – re:The Auditors – More on My Reuters Breakingviews Column: The Andersen Tax Name Grab – Francine McKenna brings in more background and other articles on the return of the Andersen brand.
She even quotes the last part of my previous post which said that if a small portion of the worldwide CFOs think the Andersen name denotes quality then there is huge market for the formerly named WTAS firm.
Just a small portion of people who don’t think the Andersen name is mud means there is a huge potential market. Part 2
Previous post started a discussion that the tax-only accounting firm of Wealth & Tax Advisory Services, or WTAS, has acquired the right to use the name Andersen. The firm will change its name to Andersen Tax.
More discussion this week
A tax-only accounting firm that was started by 22 or 23 partners from the imploded Arthur Andersen firm has acquired the name Andersen from the bankruptcy trustee. The firm of WTAS LLC, abbreviation for Wealth & Tax Advisory Services, will change their name to Andersen Tax.
The issue is getting a bit of attention in the accounting world this week.
A few links and comments of interest to auditors. The Andersen name is back, how to classify ‘trapped cash’, government assigning audits, and The F Student (twice). Wow, am I confused. The Andersen name resurfaces, and vinyl record sales are surging. What’s next, disco?
August 2014 – The CPA Journal – Meet the Future of the Profession – Rumbi Bwerinofa-Petrozzello is one of the bloggers I follow. She writes on fraud at Figuring Financial Forensics.
She and three other young professionals were featured in the linked article in the NY state society. The four discussed their perspectives. Well worth a read.
In particular, I enjoyed the following comment from Ms. Bwerinofa:
All the Enron accounting was approved by the attorneys and the auditors and the board. Everything was perfectly legit. Until indictments were issued.
In a speech that should give all auditors pause, Andrew Fastow, former CFO of Enron, tells us that all the off-balance sheet transactions were reviewed and approved in advance by everybody.
Enron was one of the biggest in the host of business frauds after the turn of the century.
Half of Enron’s assets were off-balance sheet. According to the article, Former Enron CFO Andrew Fastow Confronts the Fraud Examiners, Mr. Fastow says those deals were intended to deceive:
Fastow admitted that his role was engaging in structured finance transactions that intentionally created a false appearance for Enron.
The goal was to create misleading financial statements.
Did he violate the accounting rules?
Did he break specific laws?
The transactions were reviewed and approved, yet still fraudulent
Second post provides background on the large number of audit failures that surrounded Andersen. The editorial provides background on the poor ethical environment of the firm.
David Albrecht, in his post 10 Years Later – Did Andersen Die in Vain?, has a very different answer to the question.
There was a purpose in the demise of Andersen. Punishment
Previous post discussed a March 14, 2012 editorial in the Chicago Tribune which ponders what greater cause may have existed behind the 2002 collapse of Big 5 accounting firm Arthur Andersen. The editorial concluded that Andersen died in vain.
Methinks the editorial’s content argues against the editorial’s conclusion.
Let’s look at the pattern of behavior