Andersen's Client Losses Continue
Beleaguered Andersen was dealt another blow Wednesday when mortgage giant Freddie Mac dropped the Big Five firm after a 30-year audit relationship. Freddie Mac joins a long and growing list of clients that are abandoning Andersen in the aftermath of the firm's involvement in the Enron collapse.
Freddie Mac replaced Andersen with PricewaterhouseCoopers, the firm that so far seems to be reaping the largest benefit from Andersen defectors. Freddie Mac will continue to use Andersen for consulting services.
Freddie Mac paid Andersen $1.1 million for audit services in 2000 and $8.2 million for consulting services.
A statement released by Freddie Mac said, "Arthur Andersen has provided Freddie Mac with high quality audit service since 1970, and Freddie Mac will continue to benefit from Arthur Andersen's knowledge and expertise through an ongoing consulting relationship."
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.