Biography

Arthur

Edward Andersen Born in Plano, Illinois in 1885.05.30 Died 1947.01.10 (aged 61) Orphaned 1901 (age 16) He became interested in work of independent accountants during his work days Became CPA in 1908 Made up a company named Andersen, Delaney & Co. (1913) Changed the name to Arthur Andersen & Co (1918)

Biography
While

he was practicing accounting he associated with Northwestern University As lecturer (1909-12) As assistant professor (1912-15) As professor (1915-22) As head of the accounting department (1912-22) President of the Northwestern University (1930-32) Doctor of Laws in 1938 in Luther College He was named to the Accounting Hall of Fame in 1953

About Arthur Andersen LLP The company was founded in 1913 as

an accounting firm Arthur Andersen LLP was one of the Big 5 among PricewaterhouseCoopers, Deliotte, Ernst & Young and KPMG Company provided audit, tax and consulting services to large corporations The firm voluntarily surrendered because of being found guilty of the auditing of Enron, energy corporation which had went bankrupt in 2001

General
Andersen

headed this firm until his death (1947) For many years Andersens motto was Think straight, talk straight Headquarters were located in Chicago, Illinois, US Revenue 9.3billion USD (2001) Employees 85000 (2001) Website http://www.andersen.com

Revenue

Enron scandal
On

June 15, 2002, Andersen was convicted of obstruction of justice for shredding documents related to its audit of Enron, resulting in the Enron scandal Two of the higher responsibilities were cited as the responsible managers in this scandal as they had given the order to shred relevant documents. Since the U.S. Securities and Exchange Commission does not allow convicted felons to audit public companies, the firm agreed to surrender its CPA licenses and its right to practice before the SEC on August 31, 2002 - effectively putting the firm out of business. It had already started winding down its American operations after the indictment, and many of its

Enron scandal
The

firm sold most of its American operations to KPMG, Deloitte, Ernst & Young and Grant Thornton LLP. The damage to Andersen's reputation also destroyed the viability of the firm's international practices. Most of them were taken over by the local firms of the other major international accounting firms. The Andersen indictment also put a spotlight on its faulty audits of other companies, most notably Waste Management, Sunbeam, the Baptist Foundation of Arizona and WorldCom. The subsequent bankruptcy of WorldCom, which quickly surpassed Enron as the then biggest bankruptcy in history.

Migration of partners and local offices to new firms

Huron KPMG Perot

Consulting

Systems Protiviti SMART business Advisory and Consulting West Monroe Partners WTAS Grand Thornton International

Thank you