Read the Arthur Andersen’s Troubles Ethics Case on pp. 107–113 (Ch. 2) of the text.
Answer questions 1, 3, and 4 on p. 113 in 200 to 300 words. When responding to question 3, focus solely on the Enron case.

1. What did Arthur Andersen contribute to the Enron disaster?

Arthur Andersen (AA) did not advise the Enron Audit Committee that Enron’s policies and internal control were not adequate to protect the shareholders’ interests even though AA had assumed Enron’s internal audit function (Brooks, 2007, 110).
As their accountants they should have had and were supposed to have had reviewed the company's financial condition and truthfully report on that condition. This would have allowed the investors as well as the public to estimate and know about the risk of trusting Enron and investing in the company. They down played the risk which caused their actions to become illegal. Arthur Anderson helped Enron deceive investors and the public by helping the company keep substantial information private. Many people trusted Arthur Anderson, they were seen as being a respectfully and trustworthy accounting firm; they also believed that they were experts in their work which helped legitimized Enron and gave its financial reports and statement credibility that it may not otherwise have had. AA did not establish nor enforce internal controls for Enron, by doing some fraud would and could have been detected, charges and jail time would have been avoided, and the auditing of papers to cover up deficiencies would not have happened.

Brooks, . (2007). Business & Professional Ethics for Directors, Executives, & Accountants. Retrieved from pg. 110 .

3. What was the prime motivation behind the decisions of Arthur Andersen’s audit partners on the Enron, WorldCom, Waste Management, and Sunbeam audits: the public interest or something else? Cite examples that reveal this