caseism

Arthur Andersen (A): The Waste Management Crisis Case Solution & Answer

The case studies describe the demise of Arthur Andersen, a company that has long set the standard for industry professionalism in accounting and auditing. Once an example of strong corporate culture with a commitment to public service and self-integrity, Andersen has seen its culture and norms weaken as explosively grew and changed its form of government. Case (A) describes a crisis caused by the intake of waste management, a major customer Andersen, who overestimated their pre-tax profits of 1.43 million in 1992 and 1996. The Securities and Exchange Commission (SEC) the resulting investigation ended with Andersen fined $ 7,000,000, the largest ever imposed on an accounting firm, and the acceptance of a court order that effectively sets the accounting giant parole. Students analyze the causes of Andersen and Andersen advising management problems. (B) case covers the relationship with Enron, Arthur Andersen, one of the biggest hits of the arrow “new economy.” When the aggressive use of off-balance sheet partnerships Enron became impossible to hide the fall of 2001, press reports indicated that Andersen auditors are engaged in a wide projects shredding documents and communications related to Enron. Students are invited to act as CEO of Andersen Crisis management consultants Joe Berardino. (C) case in detail the collapse of Andersen after his indictment and criminal conviction for obstructing justice in the Enron case. His conviction was later overturned by the Supreme Court of the United States for limited technical reasons, but by then Andersen ceased to exist 89 years after Arthur E. Andersen had a small accounting firm in Chicago. Students can focus on the impact of the media in a crisis of reputation.
by
Daniel Diermeier,
Robert J. Crawford
Charlotte Snyder
Source: Kellogg School of Management
11 pages.
Release Date: October 10, 2011. Prod #: KEL558-PDF-ENG
Arthur Andersen (A): The waste management Crisis Solution

Share This

LOOK FOR A FREE CASE STUDY SOLUTION

JUST REGISTER NOW AND GET 50% OFF ON EACH CASE STUDY