David Duncan and the Arthur Andersen Case Essay

David Duncan and the Arthur Andersen Case Essay

Length: 976 words (2.8 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

In May 2002, Andersen was prosecuted for obstruction of justice based on two main reasons. First, David Duncan, a former Andersen partner in charge of the Enron audit, destructed related documents to keep them out of the investigation. Second, Nancy Temple, an in-house attorney for Andersen, suggested the management to pay attention to the document retention policy. The jury convicted Andersen and believed David Duncan was corruptly persuaded to impede the integrity of the justice proceedings. In 2005, the Supreme Court overturned the conviction of Andersen based on flawed jury instructions. However, this verdict is too late for Andersen which already exists in name only.

The World English Dictionary defines corrupt as lacking in integrity; open to or involving bribery or other dishonest practices; to become or cause to become dishonest or disloyal. In this case, corrupt is not appropriate applied to the actions of Andersen. In the internal October 16, 2001 email, Nancy Temple suggested Andersen to pay attention to a potential investigation and try some protective actions. I read the original text of the email and find there’s no word show that Nancy corruptly persuaded the management to destroy documents. She just recommended the management to care about document retention policy. It’s an attorney’s responsibility to provide clients with advices about imminent litigations. Thus an attorney’s persuasion of withholding of documents under a valid document retention policy cannot be defined as a dishonest practice. So corrupt is not appropriate applied to the actions of Andersen.

I believe Andersen violated the law. The management, including David Duncan, obviously knew Andersen would get an investigation due to the audit fai...

... middle of paper ...

...n 2002, Enron has burdened huge debts and filed for bankruptcy protection. Andersen also had no money to pay for angry investors. The plaintiffs, Enron’s investors and employees, could not get enough compensation from Enron and Andersen. So they named these rich banks in the lawsuit to try to recover their huge loss. The plaintiffs believe those banks assisted Enron to conceal huge debts and encouraged people to invest Enron.
Merrill Lynch and Credit Suisse claimed they didn’t know the actual financial situation of Enron. They defensed that there’s no substantial evidence to verify that investment banks played a significant role in the Enron scandal. However, to pursue own profits these banks may have conducted improper acts to mislead investors. They obviously would like to settle out of the court and avoid a lawsuit which will damage their reputation greatly.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay about The Ethics Of Arthur Andersen Llp

- Over the years many companies have decided abandon ethical practices is lieu of higher profits. Because of the high value placed on profits in America, many companies have taken extreme measures to increase profits and increase payouts for shareholders. Arthur Andersen LLP is a prime example of how business executives have been willing to make unethical business decisions in order to please clients and gain an edge on competition. In the short run, these unethical decisions may have seemed beneficial, but in the long run, the extensive consequences of this behavior was not worth any anticipated gain....   [tags: Arthur Andersen, Enron, Business ethics]

Better Essays
1396 words (4 pages)

The Rise and Fall of Arthur Andersen Essay

- A month after the twin towers fell in New York City the nation's focus was shifted to the Enron scandal. Kenneth Lay and Jeffery Skilling were names in the press almost every day. Enron filed bankruptcy and thousands lost their jobs and pensions. Another company involved in the scandal was Arthur Andersen, an accounting firm; Enron was their client. Arthur Andersen continued to perform bad audits even after a warning from SEC. 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)

Enron and Arthur Andersen Essay

- Summary Evaluating is the strategy of investigating & examining any part of a business, whether money related or non-fiscal. Inspectors are completely prepared to spot regions of required change, potential dangers and occurrences of deceptive direct in their general vicinity of adroitness. Reviews can disturb the ordinary stream of business in an organization, yet the capability to spot and location potential shortcomings generally exceed any transitory misfortunes of gainfulness. Around the extent of issues reviews can audit are human assets approaches, operational strategies, and quality or security arrangements and, obviously, bookkeeping reviews....   [tags: bankrupcy, illegal wealth]

Better Essays
1852 words (5.3 pages)

Hans Christian Andersen 's The Little Mermaid Essay

- For my literary analysis I read Hans Christian Andersen 's The Little Mermaid, and watched Disney 's rendition of The Little Mermaid. I felt that these stories had more differences than similarities. Where Hans Christian Andersen focused more on the consequences of becoming human, the movie focused on Ariel winning the prince over. While reading this story I took note of the fact that even though The Little Mermaid was a normal human, in the end she still didn 't get what made her happy. The movie on the other hand, gave Ariel everything she wanted along the way for conforming to normalities of the world above the sea....   [tags: The Little Mermaid, Hans Christian Andersen]

Better Essays
1216 words (3.5 pages)

The Differences Between Hans Christian Andersen And Walt Disney 's Tales Of The Little Mermaid

- The Difference Between Two Tails Often times people forget that Walt Disney got many of his ideas for movies from previous fairy-tales and folklore. Since I was young my personal favorite Disney movie has been The Little Mermaid.. However, it scarcely crossed my mind as I grew older that there was a different story contradicting almost everything in the film. Despite bearing some similarities, the striking differences between Hans Christian Andersen’s and Walt Disney’s tales of The Little Mermaid have just furthered my love for Disney’s version....   [tags: The Little Mermaid, Hans Christian Andersen]

Better Essays
1435 words (4.1 pages)

Essay about The Sarbanes Oxley Act ( Sox )

- On July 30, 2002, the passage of the Sarbanes-Oxley Act (SOX) was enacted to introduce major changes to accounting practices in the United States. The act was enacted in reaction to a number of accounting scandals committed by major companies such as Enron and Worldcom. The act is named after Sarbanes–Oxley was named after sponsors U.S. Senator Paul Sarbanes, a Democrat from Maryland, and U.S. Representative Michael G. Oxley, a Republican from Ohio. The House of Representatives agreed upon the act, with a vote of 423 in favor, 3 opposed, and 8 abstaining....   [tags: Enron, Fraud, Arthur Andersen, Kenneth Lay]

Better Essays
1494 words (4.3 pages)

Ransom Written by Lois Duncan Essay

- Ransom Written by Lois Duncan Setting:     The story takes place in New Mexico Time:           The story occurs during the winter. Characters:      Buck is one of the three people who are kidnapping the children. He is tempered easily. He doesn’t really care for others much. Rita is Buck’s wife. She is not very pretty and gets drug into schemes by Buck. She feels he will leave her if she doesn’t follow directions. Juan is the other kidnapper who does more of the dirty work. He is the one who calls the parents for the money....   [tags: Ransom Lois Duncan Essays]

Better Essays
1833 words (5.2 pages)

Gus in James Duncan's The River Why Essay

- Gus in James Duncan's The River Why James Duncan’s book entitled, The River Why, focuses around the main character, Gus, and how he changes throughout the book. In this book Gus is discovering what life really is and that the whole world does not revolve around fishing. After moving out of his erratic house he spends all of his time fishing at his remote cabin, but this leaves him unhappy and a little insane. He embarks on a search for him self and for his own beliefs. Duncan changes Gus throughout the book, making Gus realize that there are more important things to life than fishing, and these things can lead to a happy fulfilled life, which in turn will help Gus enjoy life and fishing mo...   [tags: James Duncan River Why Essays]

Better Essays
2336 words (6.7 pages)

Management Planning of Arthur Anderson Essay

- In this paper, the writer will evaluate the planning function of management within Arthur Andersen. Specifically, the paper will discuss at least one legal, ethical, and social responsibility issue that impacts Arthur Andersen. Additionally, this paper will analyze the impact these factors have on Arthur Andersen’s management planning. Finally, this paper will analyze at least three factors that influence Arthur Andersen’s strategic, tactical, operational, and contingency planning. The firm of Arthur Andersen LLP was founded in 1913 by Arthur Andersen and Clarence DeLany and named Andersen, DeLany & Co....   [tags: Business Analysis Planning Management]

Better Essays
1278 words (3.7 pages)

Dickens, Thurber, Andersen, London and Perseus Essay

- Dickens, Thurber, Andersen, London and Perseus As far back as I can remember, my mind has always thought and learned by association. My brain fancifully connects things like computer terminals and bus terminals, Indian reservations with plane ticket confirmations, and carpetbaggers with rug stealers. Don’t ask me why, but I think I get bored with ordinary human communications and then lapse into my imaginary fantasy’ association world, finding it much more fascinating than the nightly news, soap operas and talking head yakety-yak cable tabloid shows....   [tags: science]

Free Essays
884 words (2.5 pages)