Arthur Andersen LLP was the auditor for Enron, WorldCom, Waste Management and other companies that committed fraud. Andersen was forced to shut its doors forever after a U.S. Department of Justice lawsuit against the firm that it had obstructed justice and lied to the government in the Enron case. One thing Andersen had done was to shred documents related to its audit of Enron before the government could get its hands on them. Some in the profession thought the government had gone too far given the facts and mediating circumstances including top management’s deception; others believed the punishment was unjustified because most accounting firms got caught up in similar situations during the late 1990s and early 2000s (pre-Sarbanes-Oxley). What do you believe? Use ethical reasoning to support your answer.
Answer to relevant QuestionsIn this chapter we discuss the role of Sherron Watkins in the Enron fraud. Evaluate Watkins’ thought process and actions from the perspective of Kohlberg’s model. Do you think she went far enough in bringing her concerns ...In this chapter, we discuss the study by Libby and Thorne of the association between auditors’ virtue and professional judgment by asking members of the Canadian Institute of Chartered Accountants to rate the importance of ...1. Assume Brenda has no reason to doubt Vincent’s veracity with respect to the statement that it is “a one-time request.” Should that make a difference in what Brenda decides to do? Why or why not?2. Analyze the ...In her book ‘Seven Signs of Ethical Collapse,’ Jennings explains: “When an organization collapses ethically, it means that those in the organization have drifted into rationalizations and legalisms, and all for the ...The 2011 National Business Ethics Survey defines “active social networkers” as people who spend more than 30 percent of the workday participating on social networking sites. Such employees are much more likely to view ...
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