Arthur Andersen: New Woes in Arizona
Andersen's 1994 audit of home builder UDC Homes, Inc. produced a clean bill of health for the company's financial statements. Shortly after the audit, UDC filed for bankruptcy.
Earlier this week the Arizona Attorney General's office announced an out-of-court settlement with Andersen regarding the UDC audit. The accounting firm agreed to pay $755,000; two Andersen accountants, Dan Nahom and Charles McLane, received letters of concern in their licensing files; and all firm members who were on the audit engagement team will be required to take an ethics course.
For more information see a related story .