Andersen Agrees to Expanded Peer Review

Big Five firm Andersen will face an expanded peer review from Deloitte & Touche as a result of the recent controversy surrounding Andersen's audit practices with regard to energy giant Enron.

The expanded review will include a review of the procedures at Andersen's Houston office, which was in charge of handling the Enron audit.

"In light of recent developments, we believe that extending the peer review to include work done in other offices, including Houston, and other procedures that Deloitte & Touche deems appropriate and necessary is the right thing to do," said Andersen chief executive, Joseph Berardino.

Peer reviews, which are conducted every three years, generally focus on assessing a firm's quality control system for its accounting and auditing practice. The Public Oversight Board oversees peer reviews of U.S. accounting firms. The peer review process started in 1978. No Big Five firm has ever received a qualified review.

Deloitte was in the process of conducting a peer review at Andersen when the Enron situation was made public. Although Andersen has asked for an expansion of the review, sources at Deloitte & Touche have stated that the firm had independently decided to broaden the scope of its review.

You may like these other stories...

Here's a CPA who truly walks the walk. On March 15, Frank Ryan, CPA, departed San Diego, California, with plans to be in Ocean City, Maryland, by July 2 to teach a course at the Maryland Association of CPAs’ (MACPA...
When Theodore J. Flynn first joined the Massachusetts Society of CPAs (MSCPA) in 1970, it was a different world and a different profession.  The "Big Eight" were still headquartered in Boston. Vietnam War...
Accountant Rickey Charles Goodrich had it a little too good. Many bean counters would kill to serve as financial guru to the likes of Pearl Jam. Goodrich was hired in 2005, and the following year, he became the CFO of Curtis...

Already a member? log in here.

Upcoming CPE Webinars

Oct 9In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards.
Oct 15This webinar presents the requirements of AU-C 600, Audits of Group Financial Statements (Including the Work of Component Auditors).
Oct 21Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience’s communication style.
Oct 23Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.