Volcker to restore confidence in Andersen
Embattled auditor Andersen is hoping former Federal Reserve Board chairman Paul Volcker will restore public confidence in the firm and its audit processes.
Volcker was appointed to chair an Independent Oversight Board to work with Andersen and tasked with making ‘fundamental changes’ at the firm.
He was chairman of the Federal Reserve from 1979 until 1987 when he was succeeded by Alan Greenspan, who remains at the post. He is also chairman of the board of trustees of the International Accounting Standards Committee.
In a statement, Andersen said the IOB would have the authority to mandate revisions to policies and procedures and/or to implement such additional policies and initiatives, where it deems they are necessary or desirable.
In addition, the board would also advise Andersen on the appointment and retention of key personnel and is to have access to ‘all necessary information and full administrative support’ to perform this task.
Furthermore the board has the right to hire its own outside staff, counsel and advisors, and the appointment of such individuals will be at the IOB’s ‘sole discretion’.
To date only lead audit partner David Duncan, who headed up the Houston office responsible for the Enron work, has been dismissed from the firm.