The Fall of Arthur Andersen, LLP and Enron Corporation, and the Rise of the Sarbanes-Oxley Act of 2002
Journal Title: International Journal of Social Science And Human Research - Year 2023, Vol 6, Issue 10
Abstract
The purpose of this paper is to explain the fall of the Arthur Andersen accounting firm and the energy giant Enron Corp. as well as the rise of the Sarbanes-Oxley Act of 2002. Arthur Andersen was a Chicago-based accounting firm that engaged in auditing, tax advising, consulting and other professional services to major corporations. Arthur Andersen fell victim to the excessive greed of Enron with its disproportionate and unwarranted use of off-balance-sheet entities to hide its losses. In the end, both organizations collapsed. In the ashes of the debacle, the United States Congress stepped in, and passed the Sarbanes-Oxley Act, a law whose intent was to restore investor confidence. The Act succeeded. As time passed, several previous Arthur Andersen partners formed a new accounting firm, eventually named Andersen Global, while removing the tarnish to the Arthur Andersen name in the Supreme Court in a 9-0 decision. Enron never recovered, and several senior managers went to prison. The debacle ended, and the nation now possesses a law that will hopefully prevent overreaching greed to dominate the financial industry in the future.
Authors and Affiliations
Donald L. Buresh, Ph. D. , Esq.
Keywords
Related Articles
- EP ID EP722765
- DOI 10.47191/ijsshr/v6-i10-71
- Views 79
- Downloads 0
The Effect of Teacher Competence, Work Discipline and Work Motivation on Teacher Performance
Performance is a work achievement or a person's work based on the quality achieved in carrying out the responsibilities received. Teacher performance is a determining factor in achieving educational goals. Factors that a...
The Use of Qris as a Payment Transaction That Facilitates the Financial Recording Process in an Effort to Increase the Accountability of MSMEs in Denpasar City, Indonesia
Financial Statement Standards for MSMEs are regulated by the Indonesian Institute of Accountants in the Financial Accounting Standards of Micro, Small, and Medium Entities abbreviated as SAK EMKM. Although there are many...
Vote Patterns and Political Participation of New Immigrants from Indonesia in Taiwan Presidential Election (2024)
This study aims to analyze the vote patterns of new immigrants from Indonesia in the 2024 Taiwan presidential election as a form of political participation. This study used a qualitative research method with the primary...
Balinese Ornaments
Bali is known worldwide for most of its people's activities using handicrafts; one of the most commonly found arts and crafts is Balinese ornaments. Ornaments are very well developed, not only to decorate temples, but al...
Protection of the Fulfillment of Rights of Women Victims of Trafficking from a Human Rights Perspective
Human trafficking remains a significant global issue. The UNODC reports 40.3 million annual cases, with 71% involving women. The National Human Rights Commission monitors and addresses these cases. Research, according to...