Arthur Andersen fired by Enron

FRIDAY, JANUARY 18, 2002

Enron Corp. on Thursday fired its accountant, Arthur Andersen, but the firm said the relationship had already ended when the energy company declared the largest bankruptcy in history.

Enron said it should have been warned by Andersen about accounting problems that had been raised months before the October collapse. But Enron's own executives had also raised similar concerns.

Arthur Andersen earlier this week fired the lead auditor for Enron, David B. Duncan. Duncan oversaw shredding of Enron documents, a practice that was not halted until a subpoena from the Securities Exchange Commission was received.

In the wake of the scandal, the SEC is proposing auditing standards and practices be changed. Chairman Harvey L. Pitt wants an oversight board created to police the industry.

Get the Story:
Enron Fires Andersen Firm, Citing Audit Failures (The Washington Post 1/18)
Enron's Influence Reached Deep Into Administration (The Washington Post 1/18)
The Enron Story That Waited to Be Told (The Washington Post 1/18)
SEC Chief Proposes Sweeping Reform of Audit Regulation (The Washington Post 1/18)
S.E.C. Leader Says Auditing Industry Can't Police Itself (The New York Times 1/18)
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Relevant Links:
Arthur Andersen - http://www.andersen.com
Enron - http://www.enron.com/corp