Not only has Joe Berardino, Andersen’s chief executive, publicly admitted it made errors in its audit of Enron, but the firm recently told a US Justice Department hearing something potentially far more damning; namely that it disposed of ‘a significant but undetermined number of Enron-related documents’.
The implications for Andersen are enormous, with some experts speculating that a massive lawsuit could bring about the downfall of the firm, as Enron investors bay for blood.
Whatever the outcome for the firm, the repercussions for the other Big Five and the audit profession in general will undoubtedly be far-reaching.
Follow the story by clicking on the links below.
HMRC breaches client confidentiality; and partner profits fall at EY. These stories and more discussed in Friday Afternoon Live
Two new audit partners have been appointed at the firm BDO in its audit practice following continued growth and investment
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
Six new partners have been revealed by top ten firm Mazars