AICPA Will Monitor Remaining Andersen Audits
In light of Andersen's obstruction of justice conviction last week, the American Institute of Certified Public Accountants (AICPA) has accepted Andersen's resignation from the organization's Securities and Exchange Commission practice section (SECPS) effective August 31. In addition, the AICPA will closely monitor all remaining audits of public companies through August 31. At that time Andersen will cease performing audits of publicly-held companies.
The SECPS has agreed to "ensure that ongoing public company audits conducted by Andersen are performed in accordance with professional standards."
Andersen has agreed to cooperate with the AICPA's Quality Control Inquiry Committee in its ongoing analysis of reported cases. Andersen will also cooperate with the AICPA's Professional Ethics Division as it investigates Andersen partners and employees who may have violated the professional conduct code.
Effective immediately, Andersen partners will resign posts on SECPS committees, and Andersen has agreed to not become principal auditor of any new publicly-held clients.