Andersen May Spin Off Audit Practice

AccountingWEB first reported rumors of a spin off of the consulting arm from Big Five firm Andersen, in the wake of Enron and in anticipation of further audit-consulting separation requirements to come from regulators and the profession. Reports this week describe details of a plan at Andersen to spin off its auditing practice into a separate entity, beginning in the United States and spreading internationally.

The report indicates that an announcement about the plan could be made as early as this week. Andersen's audit practice would become a stand-alone firm, providing audit and related services. No information has been provided as to whether firm would continue to use the name, Andersen.

The plan is being described as one of the results of an internal review of Andersen conducted by former Federal Reserve chairman, Paul Volcker, who was brought in as a consultant shortly after Andersen became embroiled in the publicity surrounding the Enron bankruptcy.

One unnamed senior Andersen partner was quoted as saying, "Clients are deciding that they will not buy consulting from their auditors. The game is up and the whole industry faces restructuring."

Meanwhile, according to a report on our sister site, AccountingWEB UK, Andersen is denying the validity of the report, and a spokesperson at Andersen UK said, "no decisions had been made, and no announcements were imminent."

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...

Upcoming CPE Webinars

Jul 16
Hand off work to others with finesse and success. Kristen Rampe, CPA will share how to ensure delegated work is properly handled from start to finish in this content-rich one hour webinar.
Jul 17
This webcast will cover the preparation of the statement of cash flows and focus on accounting and disclosure policies for other important issues described below.
Jul 23
We can’t deny a great divide exists between the expectations and workplace needs of Baby Boomers and Millennials. To create thriving organizational performance, we need to shift the way in which we groom future leaders.
Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.