Arthur Andersen

Definition

Arthur Andersen was a major American accounting firm that became involved in the largest auditing failure in history with the Enron scandal, leading to its downfall and loss of license to practice in 2002. It serves as a cautionary tale about ethics and regulations in accounting.

Related terms

Enron Scandal:

A financial scandal involving Enron Corporation and its accounting firm Arthur Andersen, highlighting fraudulent accounting practices.

Auditing:

The systematic examination of books, accounts, documents, and vouchers of an organization to ascertain how far the financial statements present a true and fair view of the concern.

Business Ethics:

Principles and standards that determine acceptable conduct in business organizations, emphasizing the importance of ethical practices in maintaining public trust