'Arthur Andersen’s Legal Ethical Issues\r'

'Describe the juristic and ethical issues surrounding Andersen’s auditing of companies accused of accounting improprieties The largest nonstarter of a non-profit organization,the investors of Baptist Foundation of genus Arizona sued Andersen which served as the auditor for $217 one thousand one gazillion million million for issuing false and jerry-built approvals of BFA financial statements and too befuddled $570 million donor funds. BFA caution allegedly took money from new(prenominal) investors to pay off the watercourse investors which the court held that there is a Ponzi scheme going on. here, the auditors of Arthur Andersen has all the way compromising their integrity and cartwheel by issuing a false information to the public. The bordering company up in the sacks is Sunbeam whereby Arthur Andersen audits failed to address well(p) accounting errors while they issued an unconditional opinion. Losses to the shareholders amounting to well everyplace $4. 4 tr illion and 1,700 wad was jobless. Andersen paid $110 million out of an approved $141 million for the settlement of the exemplar which they take root the claims without admitting fault or liability.Andersen was also named in the case of waste material Management where they could earn excess fees in some â€Å" special work” which in this case overstating nearly $1. 4 billion earnings. At first, Andersen identified those unfit accounting practices and presented them but some(prenominal) Waste Management and Andersen went into a closed-door engagement with Andersen to keep off those accumu latishd errors. Here there is a opportunism threat.In the case of Enron, Andersen admitted that they had destroyed a number documents concerning its audit on Enron which had filed bankruptcy in late 2001. The destroyed documents had led to an indictment for obstruction of justice on March 14, 2004. Further scandals surfaced and this judgment of conviction is WorldCom where they pick Andersen for failing to pick up the accounting irregularities however Andersen blame for the scandal insisting that the write off irregularities had not been disclosed to them and it had complied minute standards in its auditing for WorldCom\r\n'