Andersen questioned Enron relationship

THURSDAY, JANUARY 17, 2002

An internal Arthur Andersen e-mail being reported by the media questioned the accounting practices of failed energy giant Enron and top executives considered dropping the client.

The exact contents of the February 2001 e-mail are vague, however. Congressional investigators apparently have a copy but have not released the full text.

By August, though, Andersen had more doubts about the company and consulted lawyers about the situation. By November, the Securities Exchange Commission had subpoena the accounting firm, which had been shredding documents related to Enron.

Andersen was contracted by the Department of Interior to examine the tribal trusts and found $2.4 billion was unaccounted in a time-limited examination of records. Congressional appropriators and senior officials were not happy with the company's effort, which took five years and cost $12 million.

Get the Story:
Andersen Considered Severing Enron Ties (The Washington Post 1/17)
Auditor Received Warning on Enron Five Months Ago (The New York Times 1/17)
Auditor Struck Many as Smart and Upright (The New York Times 1/17)
Experts Say Andersen Has Big Job in Trying to Repair Its Reputation (The New York Times 1/17)
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Relevant Links:
Arthur Andersen - http://www.andersen.com
Enron - http://www.enron.com/corp