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Arthur Andersen Essay

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Below is an essay on "Arthur Andersen" from Anti Essays, your source for research papers, essays, and term paper examples.

This paper is designed to evaluate the planning function of management at Arthur Andersen. This paper will also discuss   a legal, ethical, and social responsibility issue that impacts Arthur Andersen. This paper is also designed to analyze the impact that each of these issues had on the management planning of Arthur Andersen. Finally, this paper will analyze at least three factors that influence Arthur Andersen’s strategic, tactical, operational, and contingency planning.
The accounting firm Arthur Andersen LLP was founded in 1913 by Arthur Andersen and   Clarence DeLany when they purchased the Audit Company of Illinois and was initially known as Andersen, DeLany & Co. until 1918 when the company changes its name to Arthur Andersen & Co. after its co-founder, Clarence DeLany, withdrew from the company. Based in Chicago, IL, Arthur Andersen became one of the “Big Five” accounting firms who perform audit, tax, and consulting services for corporations such as Commonwealth Edison in the 1930s to Enron. After Arthur Andersen Consulting split from the parent company, Arthur Andersen LLP had to develop its new consulting branch to help increase revenue growth due to the fact that the auditing industry was still in a stiff competition and audit fees were lower than consulting fees. The tough decision that Arthur Andersen LLP found itself in was the fact that the company charged both audit and consulting fees, and the consulting fees were much higher than the audit fees. If the company wanted to keep their consulting contracts with their clients, they had to make their clients happy and gain an extra advantage unfairly from its auditing practices. To do this, Arthur Andersen began to engage in manipulative auditing practices in order to make their clients happy. As a result, Arthur Andersen and some of its clients, most notably Waste Management and Enron found themselves in serious legal problems that ultimately led to the demise of both Arthur Andersen and Enron among...

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Arthur Andersen. Anti Essays. Retrieved December 17, 2018, from the World Wide Web: http://cassandralynndesignllc.com/free-essays/Arthur-Andersen-236569.html