Summary of Facts of the Case Study
1.0 SUMMARY OF FACTS OF THE CASE STUDY
After understanding the overall of case study, Arthur Andersen: Questionable Accounting Practice, we have identified a few facts. The following subsection will present the facts.
1.1 ARTHUR ANDERSEN
Arthur Andersen LLP was founded in Chicago in 1913 by Arthur Andersen and partner Clerence DeLeny. Over a span or nearly 90 years, the Chicago accounting would became known as one of the “Big Five” largest accounting firms in the United States together with Deloitte & Touche, PricewaterhouseCoopers, Ernst & Young, and KPMG. For most of those years, the firm’s name was synonymous with trust, integrity, and ethics. In its earlier days, Anderson sets standards for the accounting profession and advanced new initiatives on the strength of its then undeniable integrity. The Chicago-based accounting firm closed its doors in 2002 that is after 90 years of business.
1.2 The Advent of Consulting
Leorned Spacek joined the company in 1947 following the death of founder Arthur Andersen. Anderson began providing consulting services to large clients such as General Electric and Schlitz Brewing in the 1950s. Over the next 30 years, Andersen consulting business become more profitable on per-partner basis than its core accounting and tax services business. The company linked its consulting business in a joint cooperative relationship with its audit arm, which compromises its auditor’s independence, a quality crucial to the execution of a credible audit.
Andersen’s consulting business becomes recognized as one of the fasters growing and most profitable consulting networks in the world. Ten years later, Arthur Anderson merge it’s operational and business systems consulting units and set up a separate business consulting practice in order to offer clients a broader range of integrated services. Throughout the 1990s, Anderson reaped huge profits by selling consulting services to many clients whose financial
After understanding the overall of case study, Arthur Andersen: Questionable Accounting Practice, we have identified a few facts. The following subsection will present the facts.
1.1 ARTHUR ANDERSEN
Arthur Andersen LLP was founded in Chicago in 1913 by Arthur Andersen and partner Clerence DeLeny. Over a span or nearly 90 years, the Chicago accounting would became known as one of the “Big Five” largest accounting firms in the United States together with Deloitte & Touche, PricewaterhouseCoopers, Ernst & Young, and KPMG. For most of those years, the firm’s name was synonymous with trust, integrity, and ethics. In its earlier days, Anderson sets standards for the accounting profession and advanced new initiatives on the strength of its then undeniable integrity. The Chicago-based accounting firm closed its doors in 2002 that is after 90 years of business.
1.2 The Advent of Consulting
Leorned Spacek joined the company in 1947 following the death of founder Arthur Andersen. Anderson began providing consulting services to large clients such as General Electric and Schlitz Brewing in the 1950s. Over the next 30 years, Andersen consulting business become more profitable on per-partner basis than its core accounting and tax services business. The company linked its consulting business in a joint cooperative relationship with its audit arm, which compromises its auditor’s independence, a quality crucial to the execution of a credible audit.
Andersen’s consulting business becomes recognized as one of the fasters growing and most profitable consulting networks in the world. Ten years later, Arthur Anderson merge it’s operational and business systems consulting units and set up a separate business consulting practice in order to offer clients a broader range of integrated services. Throughout the 1990s, Anderson reaped huge profits by selling consulting services to many clients whose financial