Arthur Andersen Llp Case Study

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Arthur Andersen LLP
1 Discuss the environmental, strategic, and organizational changes that occurred over the life of Andersen in the context of Figure 11.1
2 Evaluate Andersen’s claim that their problems on the Enron audit were due to a few “bad partners” in the organization. If you disagree with this claim, discuss what you think were the root causes of the problem.
3 Suppose you were Andersen’s managing partner in the early 1990’s. Would you have done anything differently the actual management (assuming you knew only what they did at the time?). Explain
4 Discuss the relation between what happened at Andersen and multitask principle agent theory.
5 Discuss the relation between the “hard” and “soft” elements of a firm’s corporate culture in the context of this case.
6 Do you think that the problems at Andersen were unique to them or did they exist at the other big accounting firms? Suppose you were the top partner at one of the other major accounting firms at that time of Andersen’s demise. What actions, if any, would you take in response? Explain.
7 In 2000, the SEC proposed new regulations that would limit consulting work by accounting firms. This proposal was not passed by Congress. DO you think that the legislators were trying to act in the public interest when they failed to pass this proposal? Explain.

8 The American Institute of Certified Public Accountants is the primary professional association for certified public accountants. It has developed a Code of Professional Conduct that sets the standards of conduct for CPA’s. People can file complaints about the ethical conduct of a CPA with the AICPA, which can levy sanctions and other penalties against its members. Do you think that the unethical conduct at Andersen (and possibly other accounting firms) was the fault of the AICPA for not setting and enforcing higher ethical…...

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