PracticeAuditAndersen admits Enron error

Andersen admits Enron error

Andersen boss Joe Berardino has admitted the firm got it wrong over the audit of Enron, the US energy company that collapsed last month.

Speaking at the first congressional hearing on the collapse, Berardino told the House financial services committee that Andersen had warned Enron executives of possible illegal actions.

Referring to the firm’s treatment of one of Enron’s special purpose entities, an off-balance sheet vehicle, Berardino said: ‘We made a judgement about the appropriate accounting treatment that turned out to be wrong.’

But he said Enron had withheld information and that Andersen had told the energy giant of possible illegal acts, according to today’s Financial Times.

Links

Andersen braced for Enron probe

Big Five stand up to critics

Related Articles

Is predictive analytics the end of the annual audit?

Audit Is predictive analytics the end of the annual audit?

4d Martin Herron, MHA MacIntyre Hudson
Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

Audit Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

1w Emma Smith, Managing Editor
PCAOB sanctions former Deloitte Turkey CEOs over altered documents

Audit PCAOB sanctions former Deloitte Turkey CEOs over altered documents

2w Alia Shoaib, Reporter
KPMG South Africa to review past audit work amid fresh scandal

Audit KPMG South Africa to review past audit work amid fresh scandal

1m Alia Shoaib, Reporter
FRC introduces £10m sanctions for Big Four firms

Audit FRC introduces £10m sanctions for Big Four firms

2m Alia Shoaib, Reporter
Ukraine’s PrivatBank files $3bn claim against PwC

Audit Ukraine’s PrivatBank files $3bn claim against PwC

2m Alia Shoaib, Reporter
Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

Audit Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

2m Alia Shoaib, Reporter
Big Four dominate FTSE 250 audit market in Q1 rankings

Audit Big Four dominate FTSE 250 audit market in Q1 rankings

3m Alia Shoaib, Reporter