PracticeAccounting FirmsProsecutors claim Andersen is corrupt

Prosecutors claim Andersen is corrupt

Government prosecutors have kicked off their case against crumbling firm Andersen by describing the firm as corrupt, saying that it was on probation for previous actions, and had destroyed documents to protect its former audit client Enron.

The prosecution opened by saying the firm had attempted to get rid of papers relating to Enron, despite knowing the SEC would subpoena such documents .

However Andersen’s attorney opened by claiming the amount of documents destroyed by the firm were less than a box full, while waving hundreds of Enron documents that had not been destroyed.

The firm also claimed they were acting on the orders of sacked partner David Duncan.

If the firm is found guilty it could face a $500,000 (£340,000) fine and five years probation.

But a conviction, could also see Andersen barred from auditing public companies, effectively meaning the end of the road for the firm, which has already merged many of its practices in Europe, Asia and South America with the remaining Big Five.

The jury of nine men and seven women is not expected to reach a conclusion for another three weeks at the earliest.

The criminal case against the firm began on Monday.

Related Articles

LLPs in Top 50+50: Will LLPs continue to be the preferred set-up?

Accounting Firms LLPs in Top 50+50: Will LLPs continue to be the preferred set-up?

10h Fergus Payne, Lewis Silkin
BDO’s global revenues pass $8bn

Accounting Firms BDO’s global revenues pass $8bn

6d Alia Shoaib, Reporter
Top 40 International Networks, Associations and Alliances: Finding growth amid uncertainty

Accounting Firms Top 40 International Networks, Associations and Alliances: Finding growth amid uncertainty

1w Philip Smith, Reporter
Top 40 International Networks, Associations and Alliances 2017: Big Four tussle for top spot

Accounting Firms Top 40 International Networks, Associations and Alliances 2017: Big Four tussle for top spot

1w Emma Smith, Managing Editor
BDO reports revenue growth of 5.7%

Accounting Firms BDO reports revenue growth of 5.7%

2w Alia Shoaib, Reporter
Taylorcocks announces merger with Surrey firm

Accounting Firms Taylorcocks announces merger with Surrey firm

2w Emma Smith, Managing Editor
Kingston Smith reports 7% gender pay gap

Accounting Firms Kingston Smith reports 7% gender pay gap

2w Emma Smith, Managing Editor
RSM announces two partner promotions

Accounting Firms RSM announces two partner promotions

3w Emma Smith, Managing Editor