Revenue per year in million U. Andersen began working as a mail boy by day and attended school at night, eventually being hired as the assistant to the comptroller of Allis-Chalmers in Chicago. Inafter attending courses at night while working full-time, he graduated from the Kellogg School at Northwestern University with a bachelor's degree in business.
Arthur Andersen is a global, multidisciplinary professional services organization that provides clients, large and small, all over the world, the thing they need most to succeed: Our work is to acquire knowledge and to share knowledge--knowledge of how to improve performance in management, business processes, operations, information technology, finance, and change navigation--so that our clients can grow and profit.
This knowledge comes from these sources: In all three, Arthur Andersen excels. History of Andersen Worldwide Andersen Worldwide, the second-largest accounting and business services firm in the world, was established to manage and coordinate the worldwide operations of Arthur Andersen and Company and Andersen Consulting.
The two units were created inwith Arthur Andersen and Co.
Early History The founder and guiding force behind the early years of the accounting firm was Arthur Edward Andersen. Born in Plano, Illinois, inAndersen was the son of a Norwegian couple who had immigrated to the United States four years earlier.
At a young age, Andersen displayed a propensity for mathematics. Upon graduating from high school, he worked in the office of the comptroller at Allis-Chalmers Company in Chicago, while attending classes at the University of Illinois.
Inhe received a degree in accounting from the university and at 23 years old became the youngest certified public accountant in Illinois. From toAndersen served as senior accountant for Price Waterhouse in Chicago.
Following a one-year term as comptroller for the Uihlein business interests in Milwaukee, primarily Schlitz Brewing Company, Andersen was appointed chairperson of Northwestern University's accounting department.
Soon thereafter, however, inAndersen decided to establish his own accounting firm. Andersen's small company began to grow rapidly, as demand for auditing and accounting services increased dramatically following Congress's establishment of federal income tax and the Federal Reserve in Into the s, work for utility companies comprised about 50 percent of Andersen's total revenues, and the company became known as a "utility firm," a dubious distinction in accounting circles.
|Fall of Arthur Andersen|Business Ethics|Case Study|Case Studies||Background[ edit ] During the fall of EnronArthur Andersen, Enron's accounting firm, instructed its employees to destroy documents relating to Enron after Andersen officials learned they would soon be investigated by the Securities and Exchange Commission. The jury found Arthur Andersen guilty on June|
|Arthur Andersen (C): The Collapse of Arthur Andersen||Justice Department today announced the indictment of embattled accounting firm Arthur Andersen on one count of obstruction of justice relating to the collapse of former energy giant Enron Corp.|
|Consulting Schemes||The jury found Arthur Andersen guilty on June|
|The Indictment||See Article History Arthur Andersen, Arthur Andersen LLP was one of the largest public accounting firms in the s, with more than 85, employees operating in 84 countries.|
|The 10 Worst Corporate Accounting Scandals of All Time||Many of the biggest corporate accounting scandals in history happened during that time.|
InAndersen was awarded the degree of B. Licensed as accountants and auditors in many states across the country, the company grew rapidly during the s.
The firm opened six offices nationwide, the most important of which were located in New YorkKansas Cityand Los Angeles Serving as auditor for many large industrial corporations, Arthur Andersen also began providing financial and industrial investigation services during this time.
Incompany representatives testified as expert witnesses in the Ford Motor Company tax case. Hired as a secretary by Thomas Edison, Insull would soon prove to be an adept entrepreneur. During this time, the use of Edison's incandescent lights was provided only to licensed utility companies, which became known as "Edison Companies.
Insull volunteered for the job and immediately began to acquire and manage his own utility companies. In a few years, Insull had built an empire of utility companies, including the first utility to construct a generator with a capacity more than 12, kilowatts.
When the Chicago banking community--on which Insull had always relied exclusively--was unable to provide the required cash, Insull was forced to turn to the East Coast banks for help.
The East Coast banks refused to extend financial assistance, but, rather than forcing Insull into bankruptcy, they chose Arthur Andersen to act as their representative and manage the reorganization and refinancing of Insull's business holdings.
Inthe firm was placed in charge of supervising all the Insull utility companies' income and expenditures and was also involved in the subsequent financial reorganization of all the Edison companies within Insull's empire. To Arthur Andersen's credit, none of the utility companies went bankrupt; the firm maintained a firm control on all the assets during the period of refinancing.
Moreover, Arthur Andersen not only increased its gross revenues by 20 percent through the Insull account but also garnered a reputation for honesty and independence that heightened its stature in the business community across the country.
Thereafter, the company had no difficulty attracting large corporate clients. The incident also gave rise to the company's self-proclaimed role as watchdog of the accounting industry's methods and procedures.
Andersen not only provided direction for his company and personally approved of all the firm's clients, he remained involved in nearly every aspect and detail of company business.
Until the day he died, he paid himself 50 percent of the firm's profits, while the other 50 percent was distributed among the rest of the partners. As he grew older, and as the company grew increasingly successful, Andersen became less tolerant of those within the firm who disagreed with him or began to eclipse his leadership, and he tended to fire or drive out those with whom he wasn't compatible.
Nevertheless, he had an uncanny sense of hiring particularly talented accountants, and many of the individuals hired during the s and s would play prominent roles in the company's development years later. Under the watchful eye of its founder, Arthur Andersen and Company brought in many new accounts during the s, including Montgomery Ward, one of the most sought-after clients during the decade.
Bythe company employed approximately people, and, bythat figure had increased to To provide greater accessibility to its clients, the firm opened new offices in Boston and Houston and in Atlanta and Minneapolis Andersen served as president of the board of Trustees at Northwestern University and as a faculty member in accounting at the school.
In recognition of his contribution to the field of accounting, and also for his devotion to preserving Norwegian history, he was awarded honorary degrees by Luther College, St.
Olaf College, and Northwestern. Spacek joined the company in and was named a partner inbecoming one of Andersen's closest and most trusted confidants.
Upon Andersen's death in JanuarySpacek took over the company, remaining committed to the regimented management style of the founder.
During Spacek's tenure, the firm grew from a regional operation located in Chicago with satellite offices across the United States into an international organization with one-stop, total service offices located around the world.Daniels Fund Ethics Initiative University of New Mexico Arthur Andersen: An Accounting Confidence Crisis INTRODUCTION Arthur Andersen LLP was founded in Chicago in by Arthur Andersen and partner Clarence DeLany.
few of the cases that helped lead to Andersen’s collapse. Jan 16, · Arthur Andersen fired its partner in charge of auditing the Enron Corporation today, saying he had ordered the destruction of thousands of documents and e-mail messages after learning that the. ARTHUR ANDERSEN LLP V. UNITED STATES () U.S.
() F.3d , reversed and remanded. Syllabus: Opinion ARTHUR ANDERSEN LLP, PETITIONER v.
UNITED A jury trial followed. When the case went to the jury, that body deliberated for seven days and then declared that it was deadlocked. The 10 Worst Corporate Accounting Scandals of All Time. If there is one theme to rival terrorism for defining the last decade-and-a-half, it would have to be corporate greed and malfeasance.
The U.S. Justice Department today announced the indictment of embattled accounting firm Arthur Andersen on one count of obstruction of justice relating to the collapse of former energy giant Enron.
Andersen Worldwide, the second-largest accounting and business services firm in the world, was established to manage and coordinate the worldwide operations of Arthur Andersen and Company and Andersen Consulting.