Political Pressure is too much for mega businesses
March 27, 2002
Andersen CEO resigns “bowing to mounting pressure as a result of Anderson’s role in the Enron scandal.” What does this mean? It means this firm is done. Branches in the States are trying to merge with KPMG while I also read that the Hong Kong affiliates are trying to get into bed with PWC. The rats are abandoning ship. This means either everyone will continue joining the other big 4 or they’ll change their name again and try to pretend nothing happened.
Do not think that it was that one bad auditor that doomed this company, many of their clients are under suspicion while many legit people have ditched them in favor of other firms. This is before any class actions have been settled too. The 7th largest accounting firm in the world was brought under after settling a big big lawsuit back in the 80’s. Andersen is among the Big 5 so the impact in the “accounting world” will be humongous. I expect the SEC to come out with way more stringent rules soon.
That’s all. Thanks for not giving a rat’s ass.
