Perhaps, Enron scandal was the most well-known event about financial statement fraud in the last decade. Arthur Andersen LLP, one of the biggest accounting firms ten years ago, surrendered its licenses to practice as Certified Public Accountants in America because of the scandal. It sold most of its operations to KPMG, Deloitte and Ernst & Young and many accountants in Andersen joined other firms.

Credibility is one of the most criteria to all kind of companies, especially for accounting firms. Giving customers reliable and  credible financial data and statement is  the most significant and basic service of accounting firms. Without credibility, any firm will collapse. Andersen’s financial statement fraud totally ruined its reputation and credibility which had been built up for 90 years.

Reference:http://www.economist.com/node/1174960

Photo:http://www.chicagobusiness.com/assets/legacy/images/random/andersenrox.gif