PracticeConsultingAndersen men at Enron to be quizzed

Andersen men at Enron to be quizzed

US Congress is to probe the role of two senior financial executives at Enron who had previously worked for embattled auditor Andersen.

As the storm continued over the collapse of the energy giant, it emerged that Richard Causey, Enron’s chief accounting officer, and Jeffrey McMahon, chief financial officer, had both worked for Andersen in Houston, the office responsible for Enron’s audit.

Both executives are now expected to be quizzed by congressional investigators about their role in the collapse.

The revelation will further fuel the row over Andersen’s role at Enron, which last year paid the big five firm $27m in non-audit fees on top of $25m for its audit work.

As a senior manager at Andersen, Causey had primary responsibility for the firm’s work at Enron.

Although it is not unusual for auditors to be recruited by their clients, the news will raise further questions about Andersen’s objectivity.

Joe Berardino, Andersen’s US chief, has already admitted his firm made ‘errors of judgement’ in its work at Enron.

Links

Andersen audits slated by DTT

Andersen in second Enron probe

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