PracticeAuditDeloitte to review Enron audit

Deloitte to review Enron audit

Andersen, auditor of Enron, the energy company that filed for bankruptcy protection at the weekend, is to have its work investigated by Deloitte Touche Tohmatsu.

The move comes as PwC, administrator of Enron in Europe, prepared to sack 1,100 workers in the UK, leaving a skeleton staff of 250 to help with the administration.

DTT, which has just completed a peer review of Andersen’s audit systems, wants to do more work on the audit issues raised by the collapse at Enron.

At the same time, the Securities & Exchange Commission has launched a similar investigation into Enron’s accounts, which will include the role of the auditor.

Andersen has faced questions on its objectivity after it was revealed the firm received $27m in non-audit fees last year.

The news will further dent the firm’s battered image in the US – earlier this year it paid $7m to settle an SEC allegation of fraud in its audit of Waste Management, the rubbish removal comapny.

Links

PwC cuts 1,100 jobs at Enron

Andersen denies Enron blame

Andersen approves Enron accounts plan

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