Arthur Andersen

ARTHUR ANDERSEN LLP CASE STUDY DUE Sunday, May 12, 1159pm 1. Discuss the environment, strategic, and organisational changes that occurred over the life of Andersen in the context of figure 11. 1. 2. Evaluate Andersens claim that their problems on the Enron audit were due to a few defective partners in the organization. If you disagree with this claim, discuss what you imagine were the root causes of the problem. 3. Suppose you were Andersens managing partner in the early 1990s.Would you fool d 1 anything differently than the developed 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 soft 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(a) big explanation firms?Suppose you were top partner at one of the major acc ounting firms at that time of Andersens demise. What actions, if any, would you take in response? 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 assay to act in the public interest when they failed to pass this proposal? Explain. 8.The American imbed of Certified Public Accountants is the primary professional association for certifiable public accountants. It has developed a Code of professional demeanor that sets standards of conduct 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 gaolbreak of the AICA for not setting and enforcing higher ethical standards among its members?Explain. 9. The Sarbanes-Oxley Act of 2002 established a new five person b oard to oversee financial accounting in publicly traded corporations. The board is appointed by the Securities and Exchanges Commission. Prior to the invention 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 supervision board was a good idea or should the profession have continued to be self-regulated?