Question

Explain in detail the ethical issues of Arthur Andersen with Enron and what does Arthur Andersen did that lead to the company's fraud. Very details pls.

Answer 1

The Enron scandal in early 2001 forever changed the face of business. Enron, the once high flying energy trading company, was exposed as being little more than a slowly unraveling multi-billion dollar financial scheme. Eventually Enron cost employees and investors billions of dollars after the company was exposed and forced to go into bankruptcy.

But what made the Enron scandal so compelling was the fact that it brought down accounting giant Arthur Andersen, too. It was a truly amazing situation, a conflation of corporate wrongdoing which would change the accounting world forever

Due to the sometimes complex nature of financial matters, many may not be familiar with the details of Enron case or Arthur Andersen’s role. While Arthur Andersen was not implicated in directly assisting Enron in cooking its books, the company was found to have been woefully negligent in its role of overseeing and auditing Enron’s financials.