Arthur Andersen

ARTHUR ANDERSEN LLP CASE STUDY DUE Sunday, May 12, 1159pm 1. Discuss the environment, strategic, and organizational changes that occurred oer the life of Andersen in the context of figure 11. 1. 2. Evaluate Andersens claim that their problems on the Enron audit were delinquent to a few bad supplys in the organization. If you disagree with this claim, discuss what you think were the root causes of the problem. 3. Suppose you were Andersens managing partner in the early 1990s.Would you have done anything differently than the actual management (assuming you knew only what they did at time)? 4. Discuss the relationship between what happened at Andersen and multitask principles agent theory. 5. Discuss the relation between the hard and tardily elements of a firms corporate culture in the context of this case. 6. Do you think that the problems at Andersen were unique to them or did they exist at the other big accounting firms?Suppose you were top partner at one of the major accounting f irms at that time of Andersens demise. What actions, if any, would you take in solution? Explain. 7. In 2000, the SEC proposed new regulations that would limit consulting work by accounting firms. This proposal was not passed by Congress. Do you think that the legislators were trying to act in the public interest when they failed to pass this proposal? Explain. 8.The American Institute of Certified Public Accountants is the primary professional association for certified public accountants. It has developed a Code of professional learn that sets standards of sell for CPAs. People can file complaints about ethical conduct of a CPA with the AICPA, which can levy sanction and other penalties against its members. Do you think the unethical conduct at Andersen (and possibly other accounting firms) was the fault of the AICA for not setting and enforcing higher ethical standards among its members?Explain. 9. The Sarbanes-Oxley proceeding of 2002 established a new five person board to ov ersee financial accounting in publicly traded corporations. The board is appointed by the Securities and Exchanges Commission. Prior to the creation of this board the industry relied primarily on self-regulation through the American Institute of Certified Public Accountants. Do you think the establishment of the new relapsing board was a good idea or should the profession have continued to be self-regulated?