PracticeAccounting FirmsSale of Andersen UK may never materialise

Sale of Andersen UK may never materialise

Any chance of Andersen selling off its UK partnership could be scuppered if it is hit by the maximum penalty of a disciplinary ruling - the removal of its audit certificate.

Although the ICAEW will initially be tasked with launching an investigation, if the case is found to be in the public interest it would then be referred to the profession’s watchdog, the Joint Disciplinary Scheme, headed by executive counsel Chris Dickson.

The institute would not confirm anything yet, but a referral to the JDS could happen within the next few weeks, with the maximum penalty being the withdrawal of Andersen UK’s audit certificate.

The London office moved to the centre of the Enron debacle after it was named in a US Justice Department indictment accusing the firm of ‘obstruction of justice’ – the first criminal charges to emerge from the scandal.

Observers have suggested that a deal must have already been struck with one of the individuals involved in the shredding of documents at Andersen’s London office for the incident to be cited in the indictment.

A very real fear for UK partners of Andersen is civil action being taken against them personally. The firm is not a limited liability partnership so all partners are jointly and severally liable.

Related Articles

BDO’s global revenues pass $8bn

Accounting Firms BDO’s global revenues pass $8bn

5d 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
Backsourcing: The latest accountancy trend?

Accounting Firms Backsourcing: The latest accountancy trend?

1m Pillsbury Winthrop Shaw Pittman