Andersen approves Enron accounts plan
Andersen is understood to have approved the off-balance sheet arrangements for its audit client Enron as the company moved to overhaul its accounts.
However, according to reports in the Financial Times, the firm refused to comment on whether it had vetted the complex arrangements, used by Enron to manage its trading risks and off-load debt.
Enron chairman and CEO Ken Lay said: ‘We believe that the information we have made available addresses a number of the concerns that have been raised by our shareholders and the SEC about these matters. We will continue our efforts to respond to investor requests for information about our operational and financial condition so they can evaluate, appreciate and appropriately value the strength of our core businesses.’
Meanwhile, the SEC’s recently revamped auditor independence rules may also be tested after reports suggested the US energy company paid Andersen $25m (Pounds 17.16m) for audit and $27m (Pounds 18.53m) for non-audit services last year.
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Opinion: Issue of audit independence