Andersen Grounded by Delta

Big Five firm Andersen continues adding clients to the loss column with Thursday's announcement that Delta, the third-ranked U.S. air carrier, is dropping Andersen as its auditor after a relationship of 50 years.

Deloitte & Touche has been selected as Delta's new independent accountant for 2002 after what the company is calling a "thorough evaluation process" in which four of the five Big Five firms were considered for the job. PricewaterhouseCoopers did not bid on the job. Delta shareholders will vote on the decision at their April 26 shareholders meeting.

Andersen's fees from Delta for the year 2000 were $1.9 million for audit services and $4 million for consulting and other services. According to Delta spokeswoman Catherine Stengel, Andersen will continue to perform some tax and other consulting services for Delta.

Delta released a statement after the decision was announced in which Andersen was given a perfunctory commendation. "We value greatly the professional services provided by Arthur Andersen over the years and appreciate the excellent work provided by their Delta team." Similar statements have accompanied other recent defections of Andersen clients. Andersen has lost 34 clients since the beginning of the year, according to a Reuters report, including Freddie Mac, Merck, SunTrust, and Enron.

Further adding to Andersen's woes is FedEx as well as Riggs Bank, who both announced on Monday March 11 that they were dropping Andersen and going with another Big Five firm as an auditor next year.

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 22This webinar will include discussions of important issues in AU-C 800, Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks.
Oct 23Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.
Oct 30Many Excel users have a love-hate relationship with workbook links.
Nov 5Join CPA thought leader and peer reviewer Rob Cameron and learn ways to improve the outcome of your peer reviews while maximizing the value of your engagement workflow.