After the Enron scandal, it came out that the accounting firm, Arthur Andersen, had been a participant in covering up Enron’s crimes. Arthur Andersen had a mixed reputation for integrity. While its founder stressed ethics, Andersen was also engaged in accounting scandals involving Sunbeam Corp. and Waste Management Inc.
Arthur Andersen was eventually convicted for their role in Enron’s collapse. The U.S. Supreme Court reversed their conviction in 2005, but the damage had already been done. Arthur Andersen went out of business, leaving thousands of Andersen employees out of a job.
Discuss the role of the independent auditor, and whether Arthur Andersen and its employees was treated appropriately by the courts.