Arthur Andersen

Arthur Andersen

Arthur Andersen (AA) had served as Enron’s outside auditor since 1985. Two years after the collapse of Enron, Arthur Andersen went from an international firm of 36,000 employees to nonexistence. In AA’s 16 years relationship with Enron, besides external auditing, AA also provided Enron internal auditing and consulting services. From 1997 to 2001, Enron overstated its profits by $568 million, 20 percent of Enron’s earnings for those four years. Andersen auditors helped Enron hide this earnings manipulation. On June 15, 2002, Andersen was convicted of obstruction of justice for shredding documents related to its audit of Enron. (Arthur Andersen v. United State, 2005)

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