Andersen audits slated by DTT
Andersen, under fire for its audit of collapsed energy giant Enron, has been rapped across the knuckles by Deloitte Touche Tohmatsu, following a review of its work.
The DTT peer review, which was extended following the Enron revelations, criticised the documentation of certain procedures on some engagements, communications with audit committees and short-comings in its management representation letters.
But despite these concerns, DTT gave Andersen’s work a clean bill of health overall.
Andersen said that DTT’s opinion was ‘unmodified’ despite extending its review to cover the work of its Houston office, which was responsible for the Enron audit.
The embattled big five firm said it had taken, or would take, steps to improvement its auditing practices in the light of DTT’s criticisms.