Arthur Anderson Case- Question Responses

1. Was there wrong conduct by Andersen/any of its employees? If so, what specifically
did Andersen/its employees do wrong? What principles inform your analysis?

There was implied unethical behavior indicated in the e-mails sent by Nancy Temple, an Andersen lawyer. She sent an e-mail to remind Andersen employees working at Enron of the document retention policy, which state that non-essential miscue documents be shredded while on a client engagement. However, it later surfaced that from that point forward, Andersen employees on the account pass hours shredding documents, possibly pertinent to the trial. Furtherto a greater extent, a separate e-mail include instructions from Nancy Temple to remove the name of legal focusing from the document, indicating that the lawyer knew that her advice could be supporting insidious activity.

2. Assuming you intend there was unethical conduct by Andersen/its employees, how did
this happen?

This happened because of the shut up relationship between the audit firm and their client, in this case Enron, contributed to biased judgments and interpretations of history practices and standards.



Enron, an incredibly competitive firm whose managers were heavy incentivized to maximize profits (and hide losses), was a large offset of revenue for Andersen over the years, and to cause conflict by disagreeing with their accounting practices could have caused Andersen to lose the account and revenue stream. Andersen employees took the approach that it is in the firms best interest to keep Enron happy. Additionally, at one time these practices were adopted, to expose the risk to management chain would be likewise expose the fact that the practice was wrong from the beginning; it is possible that many individuals were also just trying to protect their proclaim jobs.

3. What could Andersen have done differently?
Andersen could have done more to review the Enron practices, especially after one partner, having expressed difference regarding the...If you want to get a full essay, order it on our website: Ordercustompaper.com



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