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Essay / Research Paper Abstract
A 4 page paper that discusses the downfall of Arthur Andersen LLP. The paper begins with comments about the original climate in the company - integrity and honesty set it apart, and how that changed. The writer discusses Steve Samek's 2x strategy as one of the factors that led to the company's problems. Bibliography lists 4 sources.
Page Count:
4 pages (~225 words per page)
File: MM12_PGandsm.rtf
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Unformatted sample text from the term paper:
the firm above loyalty to the client or the investing public" (Accountancy, 2006). This was a company that set itself apart in their industry by having integrity (Accountancy, 2006), they
refused to doctor the books for a railroad company in 1914, and they were consistently trying to get the SEC to "crack down on companies that cooked their books" (Brown
and Dugan, 2002). In other words, Arthur Andersen was the epitome of ethical auditing practices (Brown and Dugan, 2002). It was a violation of these very types of practices that
led to the downfall of Andersen. Andersen has been in the middle of accounting and auditing unethical practices since 1993 (Brown and Dugan, 2002). Some of those included Sunbeam Corp.,
Waste Management Inc. and, of course, Enron Corp. (Brown and Dugan, 2002). It was actually in 1950 that the company began placing more of an emphasis on profits (Brown and
Dugan, 2002). They began using early computer technology, showing companies how to automate their bookkeeping, earning Andersen bigger profits (Brown and Dugan, 2002). Beginning in the 1980s, salaries of
auditors were the lowest in the professional field; investment bankers and lawyers earned significantly more (Brown and Dugan, 2002). The steps they took, such as enforcing retirement of auditors at
age 56, brought in a new break of auditors, who were not steeped in the integrity and ethics of the original founder and subsequent partners (Brown and Dugan, 2002). It
was through these years that Steve Samek emerged as a power force in the company (Brown and Dugan, 2002). Samek became a managing partner in 1989, at age 32 (Brown
and Dugan, 2002). One of Sameks clients in the early 1990s was a restaurant called Boston Chicken (Brown and Dugan, 2002). As their auditor, Samek allowed the company to "keep
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