Four days before Enron reported a staggering loss of $618 million for the third quarter of 2001, one of Andersen’s top lawyers sent out a memo ordering his staff to shred all Enron-related audit documents. An excellent book on Enron entitled ?The Smartest Guys in the Room? Fall of Arthur Andersen - Arthur Anderson, US DOJ, The case examines the emergence of Arthur Andersen as one of the leading auditing and consulting firms in the world, on the basis of its emphasis on integrity and ethics in business. Art Anderson, Ken Lay and all of the other executives did a number of unethical things which ultimately brought down Enron and affected thousands of employees and their futures. The Enron Scandal and Ethical Issues. In the case of Enron, however, Arthur Andersen failed at their duties. Arthur Andersen somewhat helped Enron with their accounting scandal. There were glaring conflicts of interest and yet Arthur Andersen continued to approve deals for Enron. During the last decade of the partnership’s life, auditors at several regional offices failed to detect, ignored, or approved accounting frauds for large clients paying lucrative consulting fees, including Enron Corp. and WorldCom Inc. Introduction Although Enron went bankrupt and disappeared ten years ago, the impacts it has made on the ethical standards never faded. This paper will focus on the business ethics issues at Enron that were raised from the documentation Enron: The Smartest Guys in the Room, from cognitive moral development to group norms, etc. Arthur Andersen continued to perform bad audits even after a warning from SEC. I think that one of the obvious systemic causes of the Enron scandal is our legal and regulatory structure. Enron's Ethical Dilemma: Ethical and moral issues have received substantial focus in the modern society because of the recent cases in which huge corporations with big profits and earnings have faced bankruptcy The Fall of Enron-An Analysis of Ethical Issues ENRON & ARTHUR ANDERSEN ETHICS ESSAY The Fall of Enron An Analysis of Ethical Issues Xiaomeng Wang 1. One of many mistakes that condemned Arthur Andersen, was the shredding of those Enron documents. Arthur Andersen, Arthur Andersen LLP was one of the largest public accounting firms in the 1990s, with more than 85,000 employees operating in 84 countries. AA contributed to the disaster by approving the structure of many Special Purpose Entities (SPE), which Enron used for off-balance sheet financing. However, high-profile bankruptcies of clients such as Enron and WorldCom capped a string of accounting scandals that eventually cost investors nearly $300 billion and lost jobs for hundreds of employees. Enron and Arthur Andersen: The Case of the Crooked E and the Fallen A 31 PART I ENRON AND ANDERSEN – A UNIQUE AND INNOVATIVE COMPANY WITH A PRESTIGIOUS AUDITOR Enron was a leading energy commodities and service company with revenue of US $101 billion in 2000. Eventually the derivative contracts worth $2.1 billion lost significant value. Arthur Andersen provided auditing services for Enron and continued to do so even when advised not to. You may also want to view the documentary […] One of the largest ethical and legal business cases in a very long time has involved Enron. Today, Enron’s a case study in ethics and the story of one of the biggest frauds in American history. ENRON and ARTHUR ANDERSEN ETHICS AND LAW. If Arthur Andersen employees had been ethical, after the warning, the Enron Scandal would not have had led to the conviction and dissolution of the Arthur Andersen accounting firm.... [tags: Case Study] Better Essays 1602 words (4.6 pages) One of the largest ethical and legal business cases in a very long time has involved Enron.