Arthur Andersen and Co Accounting Firm

Introduction to Arthur Andersen and Co

Arthur Andersen and Co, commonly known as Arthur Andersen, was one of the “Big Five” accounting firms in the United States. Founded in 1913 by Arthur Andersen and Clarence DeLany, the firm provided auditing, tax, and consulting services to individuals and businesses. With a strong presence in over 80 countries, Arthur Andersen was a leading provider of professional services until its downfall in the early 2000s.

History of Arthur Andersen and Co

The firm’s history began when Arthur Andersen, a Danish immigrant, joined the accounting firm of Price Waterhouse in 1906. After working for several years, Andersen left to start his own accounting firm, Andersen, DeLany & Co, in 1913. The firm’s name was later changed to Arthur Andersen and Co in 1918. During the 1920s and 1930s, the firm expanded its services to include tax consulting and auditing.

Services Provided by Arthur Andersen and Co

Arthur Andersen provided a wide range of services to its clients, including: * Auditing: The firm provided auditing services to ensure that financial statements were accurate and presented fairly. * Tax Consulting: Arthur Andersen helped clients with tax planning, preparation, and compliance. * Consulting: The firm offered consulting services in areas such as strategy, operations, and technology. * Risk Management: Arthur Andersen provided risk management services to help clients identify and mitigate potential risks.

Notable Clients of Arthur Andersen and Co

Some of the notable clients of Arthur Andersen included: * Enron Corporation * WorldCom * Sunbeam Products * Waste Management * General Motors

💡 Note: These clients were involved in some of the most high-profile accounting scandals in the early 2000s, which ultimately led to the downfall of Arthur Andersen.

Accounting Scandals and Downfall

In the early 2000s, Arthur Andersen was involved in several high-profile accounting scandals, including the Enron scandal. The firm was accused of shredding documents related to Enron’s accounting practices, which led to a loss of public trust and confidence. In 2002, the firm was convicted of obstruction of justice and lost its license to practice accounting in the United States.

Legacy of Arthur Andersen and Co

Although Arthur Andersen is no longer in operation, its legacy continues to impact the accounting industry. The firm’s emphasis on quality and integrity helped shape the industry’s standards and practices. However, the accounting scandals that led to its downfall also highlighted the importance of independent auditing and the need for stricter regulations.

Comparison with Other Accounting Firms

A comparison of Arthur Andersen with other accounting firms reveals both similarities and differences: * Deloitte: Like Arthur Andersen, Deloitte provides a wide range of services, including auditing, tax consulting, and consulting. * Ernst & Young: Ernst & Young, another Big Four firm, offers similar services to Arthur Andersen, including auditing, tax consulting, and consulting. * KPMG: KPMG, a global network of professional firms, provides services similar to those offered by Arthur Andersen, including auditing, tax consulting, and consulting. * PricewaterhouseCoopers: PricewaterhouseCoopers, a multinational professional services firm, offers services similar to those of Arthur Andersen, including auditing, tax consulting, and consulting.

Firm	Services	Notable Clients
Arthur Andersen	Auditing, Tax Consulting, Consulting	Enron, WorldCom, Sunbeam Products
Deloitte	Auditing, Tax Consulting, Consulting	General Motors, Procter & Gamble, Coca-Cola
Ernst & Young	Auditing, Tax Consulting, Consulting	Apple, Amazon, Microsoft
KPMG	Auditing, Tax Consulting, Consulting	Toyota, Honda, Nissan
PricewaterhouseCoopers	Auditing, Tax Consulting, Consulting	General Electric, IBM, Ford Motor Company

The key points to take away from this discussion are that Arthur Andersen and Co was a leading accounting firm that provided a wide range of services to its clients, but ultimately fell due to its involvement in high-profile accounting scandals. The firm’s legacy continues to impact the accounting industry, with an emphasis on quality, integrity, and independent auditing.

In summary, the story of Arthur Andersen serves as a reminder of the importance of ethics and integrity in the accounting profession. The firm’s downfall highlights the need for stricter regulations and independent auditing to ensure the accuracy and fairness of financial statements.