Former Andersen Head Who First Suggested Split Has Died

A former head of Arthur Andersen who first suggested back in the 1970s that the group's accounting and consulting practices should be split has died at his home in Florida.

Harvey E. Kapnick, who was chairman and chief executive of the accounting group from 1970 to 1979, stepped down when it was clear that his plan would be rejected by other Andersen partners.

The two practices were separated in 1989, but the issue of an accounting firm also bidding for consulting work with its clients came back to haunt Andersen this year after the Enron collapse.

Mr Kapnick, who was 77, also created the first independent group to monitor an accounting and auditing firm.

But his Arthur Andersen & Co Public Review Board, which he established in 1974, was later disbanded.

Kapnick rose through the ranks of Andersen after joining the firm in Chicago in 1948 at the age of 23.

He became a partner eight years later, was managing partner in Cleveland from 1962 to 1970, and was elected to the board of directors in 1966.

Source: Ananova

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

Apr 24
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
Apr 25
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.
Apr 30
During the second session of a four-part series on Individual Leadership, the focus will be on time management- a critical success factor for effective leadership. Each person has 24 hours of time to spend each day; the key is making wise investments and knowing what investments yield the greatest return.
May 1
This material focuses on the principles of accounting for non-profit organizations’ expenses. It will include discussions of functional expense categories, accounting for functional expenses and allocations of joint costs.