PracticeAccounting FirmsAndersen reveals long-standing Enron fears

Andersen reveals long-standing Enron fears

Partners at underfire Andersen met last February to discuss whether or not to continue working for Enron, according to a report released by the firm.

The report – based on a memo summarising the meeting – also noted that partners discussed whether there would be a perceived independence issue solely based on the nature of fees.’

The memo was prepared by partner Michael Jones, on 5 Feb last year, and also includes details of Enron?s accounting and disclosures where concerns relating to potential conflicts of interest at US energy giant Enron were voiced.

Andersen was the auditor of Enron the US energy giant that went bust with debts of $80bn.

The firm has since confessed to having shredded key documents and Berardino himself has stated before Congress committee that the firm made ‘errors in judgement’ while working on the Enron accounts.

The memo was among the documents Andersen voluntarily provided to congressional investigators in response to their questions. Nothing in the meeting or the memo indicated that any illegal actions or improper accounting was suspected.

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