Week 2 Checkpoint- Unethical Practices of Arthur Andersen
1 ) What would Arthur Andersen contribute to the Enron disaster? Arthur Andersen contributed to the Enron disaster simply by failing to acquire Enron set up and enforce internal handles. Also by destroying Enron audit paperwork which protected deficiencies written for the Enron disaster. The formal costs and imprisonment sentence had been a result of the obstruction of justice brought on by the destruction of the audit papers. three or more. What was the prime motivation behind the decisions of Arthur Andersen's review partners around the Enron, Worldcom, Waste Managing, and Sunbeam audits; people interest or something else. Cite examples that reveal this motivation. -- The prime motivation behind the decisions of Arthur Andersen's audit lovers was revenue generations. They will wanted to make money plain and simple. The audit associates wanted to be sure that they built a profit and kept the clients that made all of them the profit. Evidence of this is LUKE WEIL use of SPEs to make false profits as well as hide the losses. This shows that they can do what ever it took to make certain they produced money and also to keep their very own clients happy.
4. So why should an auditor make decisions in the public interest instead of in the interest of supervision or current shareholders? Auditors should make decisions inside the public fascination rather than in the interest of management or current shareholders because they may have taken a pledge for this. Also because making decisions in the community interest is the ethical way that they should certainly conduct their business. As we have learned in the Enron disaster making underhanded business decisions doesn't gain anyone ultimately.