A former partner of the now defunct Arthur Andersen, responsible for the Enron Corp account, has settled allegations that he breached securities laws when he signed audit reports that were ‘materially false and misleading’, USA's Securities and Exchange Commission (SEC) revealed yesterday.
SEC said that, from 1998 to 2000 accountant David Duncan was reckless in not knowing that the unqualified audit reports he signed on behalf of Andersen were materially false and misleading, Reuters reports.
Duncan failed to exercise the ‘due professional care and the necessary skepticism’ required to ensure financial statements for Enron, which collapsed under a string of accounting scandals.
Duncan, who did not admit to or deny the allegations, has agreed not to appear before SEC as an accountant. He was not charged a fine. Duncan's lawyer said his client had made every effort to co-operate and take the appropriate responsibility for his role as Arthur Andersen's partner responsible for the Enron audits.
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