The page report, released on Saturday, sets the stage for an explosive week of hearings in the nation's capital, starting Monday with testimony from former Enron Chairman Ken Lay. TimesMachine is an exclusive benefit for home delivery and digital subscribers. Wadia had turned down a settlement offer a few years ago that would have given the firm more money than did the ruling -- while sparing it years of acrimony. It then had to choose an arbitrator from a country in which neither the consulting nor accounting firm did business, leaving it a list of eight nations that included Iraq, Somalia, Sudan and Colombia. Separately, Arthur Andersen hired former Federal Reserve Chairman Paul Volcker to serve as chair of a new independent oversight board, according to published reports. Under the pact setting up the semiautonomous consulting unit, the more profitable of the two divisions had to pay as much as 15 percent of profits to the other. Such splits have come as the Securities and Exchange Commission has proposed restricting firms from selling advice to companies they also audit. They said that Mr. The task is made easier, however, because the firm's customers are a relatively small cadre of business executives rather than millions of consumers, said Clive Chajet, chairman of Chajet Consulting, a brand-identity concern in New York.
August 8,Section A, Page 1Buy Reprints that had founded it, the consultants began to chafe over sharing their profits with the accountants. The arbitrator, Guillermo Gamba, ruled that Arthur Andersen had not breached the.
The agreement, known as the Florida accord, called for any party.
Enron execs inflated profits MarketWatch
Arthur Andersen LLP was an American holding company based in Chicago. Formerly one of. Andersen Consulting saw a huge surge in profits during the decade. In Augustat the conclusion of International Chamber of Commerce.
Arthur Andersen's revenue last year did not grow as fast as inwhen it "In latethe Y2K work began to go away, and has just.
Though the roots of the case are internal, the ruling is the latest example of the separation of consulting units from accounting firms.
Text Resize Print icon. Such splits have come as the Securities and Exchange Commission has proposed restricting firms from selling advice to companies they also audit.
Arthur Andersen's chief executive, Jim Wadia, said that his fellow partners were happy with the ruling and that he would resign because, having been appointed three years ago largely to oversee the dispute, his work was done. Andersen Consulting's partners voted unanimously in December to sever ties with Arthur Andersen. Andersen Consulting will face its own set of difficulties, even if analysts said they were less intimidating.
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|Wadia had turned down a settlement offer a few years ago that would have given the firm more money than did the ruling -- while sparing it years of acrimony.
TimesMachine is an exclusive benefit for home delivery and digital subscribers.
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Enron execs inflated profits. Analysts said the decision, which ended a three-year battle that had distracted the sprawling company, was a major victory for the consultants. Wadia ''is not going to be very popular with the Arthur Andersen partners,'' said Wayne Cooper, the president of Kennedy Information, which follows the consulting business.
The consolidation of companies from the automobile to the packaged-food industry has left accountants with fewer potential clients.
Gamba, the arbitrator, barred the firm from ''using the 'Andersen' name or any derivative thereof,'' presumably preventing it from adopting ''AC,'' which forms the crux of the logo designed in Sign Up Log In. Analysts said they expected the firm to pick a name that evoked technology and might even drop the word ''consulting.
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Separately, Arthur Andersen hired former Federal Reserve Chairman Paul Volcker to serve as chair of a new independent oversight board, according to published reports. Wadia, a British citizen, said he would take particular pleasure in Andersen Consulting's having to remove a large sign displaying its logo in the British Airways terminal at Kennedy Airport. In response, Andersen Consulting is trying to shift its focus from installing computer systems to designing Internet strategies for both its traditional large clients and small start-ups.