Earlier this year it was reported that the Connecticut Board of Accountancy was considering an action to revoke Arthur Andersen LLP's license to practice in the state. This week, the Board moved a little closer to following through on that threat as the members unanimously voted in favor of considering suspension or revocation of Andersen's accounting license.
State Attorney General Richard Blumenthal described Andersen as being unfit to practice in Connecticut, saying, "Arthur Andersen was directly and materially responsible for the massive fraud that was involved in the Enron scandal." The State of Connecticut's pension fund lost between $15 and $20 million as a direct result of Enron's collapse.
The Connecticut State Board of Accountancy will meet on September 5 to finally decide whether to officially revoke Andersen's license. Andersen spokesman Patrick Dorton described the action as "a fairly pointless exercise" in light of the fact that Andersen has been in the process of shutting down its two Connecticut offices in preparation for the firm's plan to give up its role as an auditor effective August 31.
Similar actions are pending in New York and Texas.