Mark Cheffers, CEO of AccountingMalpractice.com has created a primer for auditors based on lessons learned from Enron. In this multi-part series, Mr. Cheffers examines a number of issues in easy-to-read white papers (available for download at the end of this story). The parts include:Part I - Old Line Partners Wanted Part II - Why Andersen is so Exposed Part III - An Independence Dilemma Part IV - Could It Get Any Worse?

Perhaps the most controversial aspect of the Enron meltdown revolves around questions about the extent to which independence played a role in the events leading up to Enron’s restatement and subsequent bankruptcy.

Failed energy giant Enron announced on Thursday that it has fired Andersen as its auditor, ending a relationship that dates back to mid-80s.

The Washington Post reports today that an internal Andersen e-mail message prompted top management to consider dropping Enron as a client as early as February 2001 because of concerns about bookkeeping irregularities.According to sources, the e-mail message (available in PDF format here) was sent to two partners in the Houston office as well as other

Big Five firm Andersen has fired David B. Duncan, the partner who headed the Enron audit, after learning the partner ordered the "rushed disposal" of documents relating to the audit. Mr. Duncan ordered the destruction of documents during a meeting on October 23, having just learned of the Securities and Exchange Commission's intent to investigate Enron. Two weeks later, the day after Andersen received a federal subpoena for documents, an assistant for Mr.

Adding to the accounting profession’s mounting credibility problems, the Securities and Exchange Commission (SEC) announced on January 14, 2002 that it had censured Big Five firm KPMG for purporting to serve as an independent accounting firm for a client while it held substantial investments in the client.

Recent allegations about potential fraud, cover ups, document shredding and criminal investigations in the Enron scandal have once again given former SEC Chairman Arthur Levitt a platform to speak out against the status quo in the accounting profession.Responding to Andersen's disclosure last week about destroying documents, Mr. Levitt told the Wall Street Journal that it is time for outside auditors to accept tough oversight through a new government-sponsored self-regulatory organization.Mr.

The American Institute of Certified Public Accountants (AICPA) has issued guidance on the timely subject of related parties and related-party transactions. The guidance was written with the counsel of the eight largest U.S. accounting firms: Andersen, BDO Seidman, Deloitte and Touche, Ernst & Young, Grant Thornton, KPMG, McGladrey & Pullen, and PriceWaterhouseCoopers.

The recessionary economy. Recent business failures. The events of September 11. All of these economic influences converged in 2001 to create one of the most turbulent financial reporting environments in recent memory, requiring the extra care and attention of financial statement preparers to ensure that the public has a clear picture on the health and welfare of American businesses.The Big Five accounting firms, in cooperation with the American Institute of CPAs, has issued a detailed list of risk factors to consider when preparing and communicating financial results for 2001.