The Fall of Arthur Andersen - Organizational Culture Issues |
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A Shamed Company Contd...
Andersen was once known as one of the 'Big Five' accounting and consulting firms in the US that had prospered for nearly a century (Refer Table I). Considering the fact that the firm had itself set the standards for honest and law-abiding accounting ever since its inception, its shameful descent into becoming one of the 'Big Corporate Frauds' was even more painful and humiliating. According to industry observers, Andersen's fall can be seen as a perfect example of how even great institutions founded on integrity, value, stewardship and personal growth, could collapse in the absence of internal controls, a good work culture and sound values.
The firm's name was changed to Arthur Andersen in 1918. Arthur gave a lot of importance to ethics and insisted on honest accounting, and the elimination of conflicts of interest that arose when accounting various companies. According to him, 'public accountants should be answerable to only the investing public and not to the companies they audit.'3 3] 'Final Accounting' By Barbara Ley Toffler, with Jennifer Reingold. |
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