Andersen Loses Texas License

[Bad~Rodeo]

Accounting firm no longer can practice in Lone Star State

HOUSTON, Aug. 16 — The Texas State Board of Public Accountancy Friday revoked accounting firm Andersen’s right to practice in the state where the once-vaunted auditor met its downfall alongside client Enron Corp.

THE TEXAS REGULATORY board, headquartered in the capital city of Austin, dealt one of its most severe sanctions in revoking Andersen’s license. But it was essentially a symbolic strike against a firm that is all but out of the accounting business.

“Although it is tragic that a firm with Andersen’s proud history in Texas should be brought so low, the firm’s actions in the Enron case clearly warrant this result,” Michael Conaway, the accountancy board’s presiding officer, said in a statement.

Andersen’s fate as a going accounting concern was all but sealed on June 15, when a federal jury convicted it of criminally obstructing justice in a U.S. Securities and Exchange Commission investigation into Enron. The accountancy board used that conviction as the grounds for revocation.

[WhyisaTexasgirlinPA]

The "firm" can't operate, this didn't take the licenses away from the CPA's/Accountants...... they will reorganize and continue......

[Bad~Rodeo]

Not in Tejas, Cali's next....

[El Gato]

The "firm" can't operate, this didn't take the licenses away from the CPA's/Accountants...... they will reorganize and continue

More likely the non-managerial types will find work at other companies that pick up AA's clientel. The managerial types may find getting a new position just a tad on the difficult side. Their only hope will be, as you say, forming a new company, or several. The problem for them is "who would want to work for them", or have them work for you? Of course shaddy corporate executive, might want just such peope as their accountants, but boards of directors and stockholders of their potential clients might have other ideas.

[Bad~Rodeo]

Of course shaddy corporate executive, might want just such peope as their accountants

ie Tony Sanchez???...L~

[Grampa Dave]

Thanks for the good news.

Hiring those who had became AAed could be really dangerous.

The corporate culture at AA has been Arrogance and Bravo Sierra since the early 1960's that I know of.

That AA corporate culture and behavior will go with the former employees to where ever they are hired.

A real danger is that if a group of AAers are hired in the same company, they will form a clique in that new company.

When they get promoted to mangagement, they will pull up every former AA worker under them. They will promote for the large part their former AAers, and they will hire for the large part the former AAers. Then they will start to AA their new company with their power and arrogance into a born again AA under the new corporate name.

[GretchenEE]

bump

[spetznaz]

...... they will reorganize and continue......

Andersen LLP is basically finished in its current form in the US. It would take a very long time for the corporate realm to forget (or forgive) its rather huge faux pas(if that is not an understatement) and the company's options are not very nice.

It could outsorce its workers, or maybe rehash itself and chill out overseas for some time (in tis international subsidiaries which have been claiming to have not been involved in the whole accounting mess over here), however its glory days are over unless a legit miracle occurs.

And when it comes to miracles Andersen LLP is NOT a good candidate for obvious reasons (unless the devil has started dishing out miracles).

RIP Andersen!

[Bobby777]

wow ... somebody who understands how it really works ...

[neutrino]

Friday revoked accounting firm Andersen’s right to practice

Good. It isn't nearly enough...but it's something.

[WhyisaTexasgirlinPA]

Thanks GD, that's pretty much what I was trying to say...... they won't reorganize AS AA, but will basically become another one.........

[HalfIrish]

Concise description. You portray them as the cancer they'd surely be.

[Grampa Dave]

Thanks for your kind words. The reason that I can be so right on target with the AA Corporate Culture Cancer Virus, is that I have seen it happen with the company I took early retirement from 6 years ago.

My former company bought out another company. There was some type of bad seed savings thing in the buyout. So a core of to me the worse were saved and many got management jobs in my old company.

So some of the worse were saved and taken up by my former company. Now my predictions of this potential cancer are becoming very evident.

A company that I consulted part time after my retirement, had a few of these bad seeds. I warned the owner a friend about them before I fully retired. Now he wishes that he had listened to me.

They had this arrogant and to me evil corporate culture. Even though their company was eliminated, their cancer virus has spread to other companies.

[Bobby777]

I know firsthand because I worked for another "firm" ... plus I have seen them in action in other places ... vultures are drawn to vultures ... and many corporate dummies allow them in and are late in realizing what they have done ... it goes exactly as you described, over and over ... amazingly, many corporations have a hard time learning this lesson ...

[WhyisaTexasgirlinPA]

I worked in a CPA firm for quite a few years - although the CPA's there were a product of a similar, large Accounting firm (not AA) they had the same ideas of using generally accepted accounting practices to turn, twist, and obfuscate..... not exactly illegal, just not necessarily ethical.......

I left when I realized what was going on.......

[Grampa Dave]

Often by the time they realize what has happened, it may be too late. The vultures as you call them or the corporate cancer viruses as I call them are in control of too big of a group of fellow vultures or corporate cancer viruses.

Then you have to have massive layoffs and will have to get rid of innocent people to make sure that you don't end up with lawsuits for targeting these vultures/corporate cancer viruses.

Sometimes the boards, CEO's, CFO's and legal staff decide that it will be easier to sell the company and let the new owners deal with the problem.

We have the same problem in every federal government agency. It the people working in that agency were promoted or hired during the Clintoonian years, they are probably card carrying rats who work 24/7 against America and push their agendas/tactics.

[Grampa Dave]

You story is the same as several of my friends from my age 60 something down to 30 something. AA has been the biggest offendor and others are similiar.

The good people with ethics and conscience left these corporate vultures in a few years. The bad ones stayed on and got worse.

[PsyOp]

They'll file for bankruptcy, change their name, and in five years will be doing business as usual. Unfortunately, people have short attention spans.

[Bobby777]

I did some consulting work for a gov't agency ... the woman in charge woudn't listen to proper procedures for developing software systems ... instead we had a guy with no experience with the development tool nor developing a new system from the ground up promising them the moon and on ridiculous schedules ... I told them it took time and we had to follow good methods (especially since we were dealing with federal dollars) ...

well, as you can imagine, the leadership bought the "more and quicker" talk from the junior guy ... I left for a much better paying contract ... 3 weeks later, having had it dumped in his lap, the "more and quicker" guy left ... what a surprise ...

talk is cheap ... so I left him there all alone to do all that he had promised ... I must admit I had a bit of an evil grin ... no one would listen ... so be it ...

[Bobby777]

I'm waiting for a few more accounting scandals to show up ... they've been focusing on AA ... wait until they look more deeply into some of the others ... though I'd not be surprised that AA was the worst of the bunch ... there have already been a couple ...