U.S. Senate To Join In On Enron Investigation

A US Senate Committee has joined other Congressional panels in an investigation of failed energy giant Enron.

The Governmental Affairs Committee's permanent subcommittee on investigations, said its panel will subpoena top executives and directors of Enron to determine their role in the collapse of the company. Additionally, financial and trading records from Enron and audit documents from its accountant, Arthur Andersen LLP, will be subpoenaed, according to Sen. Carl M. Levin (D-Mich.), Chairman of the Committee.

Enron's business practices had the mark of "a massive shell game with multiple layers of conflict of interest," said Sen. Levin.

Sen. Joseph Lieberman, D-Conn., the full committee's chairman, promised Wednesday "a search for the truth, not a witch hunt." He did not rule out an examination of Enron's relationships with the Bush administration.

The Senate Governmental Affairs Committee is among a half dozen committees and subcommittees expected to hold hearings in both the House and Senate in the coming months on Enron's collapse. The Securities and Exchange Commission and the Labor Department also have investigations under way.

Enron's attorney Robert Bennett claims the corporation is cooperating fully with investigations, having turned over more than 30 boxes of documents to the House Energy and Commerce Committee so far. Expressing his frustration at the ongoing investigations, Mr. Bennett said, "I don't question the legitimacy of an inquiry, but it's not a measured approach to have half a dozen different committees doing this at the same time."

In the middle of the growing firestorm about Enron, Andersen announced a clean peer review this week. The Public Oversight Board, an accounting industry oversight group, plans to look at the adequacy of the peer review system in light of the failed Enron audits.

Voice of the Editor

Results from a recent AICPA survey disclosed the two top priorities for CPA firms as they plan for the future: bringing in new business and finding talent. Our goal at Sift Media is to help our readers deal with the issues most important to them. One way in which we are doing this is through the launch of our new recruitment/placement service, Going Concern Jobs. Check it out today for your talent needs.
ADVERTISEMENT

This Week on AccountingWEB

Russ Wilson of Moss Adams talks with us about the firm's collaboration with WWU in educating and developing talented accounting and business professionals.
Plante Moran CPAs Gordon Krater, Alicia Sturtevant, and Susan Perline spoke with AccountingWEB about the firm's Women in Leadership initiative.
Jeff Thomson, CMA, president and CEO of the IMA, talks with us about the 2013 jobs market for accounting professionals.
Todd Lisle of BKD LLP and Amy Welch of OSCPA share their stories of helping tornado victims in Moore, Oklahoma.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT