Andersen Guilty in Effort to Block Inquiry on Enron By KURT EICHENWALD http://www.nytimes.com/2002/06/16/business/16AUDI.html
"HOUSTON, June 15 — A federal jury convicted Arthur Andersen today of obstruction of justice for impeding an investigation by securities regulators into the financial debacle at Enron. Soon afterward, Andersen informed the government that it would cease auditing public companies as soon as the end of August, effectively ending the life of the 89-year-old firm. ...
The conviction is the first ever against a major accounting firm and was based on the first criminal indictment stemming from the government's investigation into the events that led to Enron's collapse in December. Sentencing has been scheduled for Oct. 11, and Andersen faces the possibility of fines up to $500,000."
[because of the corrupt, money-drenched campaign finance system the Democratic Party leadership endorses..] http://www.nytimes.com/2002/06/16/business/16IMPA.html NEWS ANALYSIS Verdict Does Little to Advance Reform of the Audit Industry By FLOYD NORRIS "With Arthur Andersen now closing its doors, the remaining Final Four large accounting firms are girding for congressional and regulatory battles to determine whether any meaningful reforms will be imposed on the industry ....
As the government pondered Andersen's preindictment arguments, it saw a firm that in recent years had seemed to be more and more like any other business out to make a buck, and less and less like a firm dedicated to high-quality audits. Managers emphasized selling consulting services to clients and rewarded auditors who did the best job of that, even if their auditing skills were not exemplary. Andersen's top management was implicated in fraud at one major client, Waste Management, leading to accusations of fraud by the S.E.C..."
On the subject of Capitalism, while it is revolutionary when it comes to destroying unjust traditions like Feudalism, etc., it also is essentially corrupting, whether it be in the accounting industry - who will watch the watchdogs? - or the health care racket. This is not merely a few bad apples as the Republicans would have it. Marx was right, everything is being reduced to the cash nexus.
Peter