Final Accounting
Ambition, Greed and the Fall of Arthur Andersen
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4.0 • 3 Ratings
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- $13.99
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- $13.99
Publisher Description
A withering exposé of the unethical practices that triggered the indictment and collapse of the legendary accounting firm.
Arthur Andersen's conviction on obstruction of justice charges related to the Enron debacle spelled the abrupt end of the 88-year-old accounting firm. Until recently, the venerable firm had been regarded as the accounting profession's conscience. In Final Accounting, Barbara Ley Toffler, former Andersen partner-in-charge of Andersen's Ethics & Responsible Business Practices consulting services, reveals that the symptoms of Andersen's fatal disease were evident long before Enron. Drawing on her expertise as a social scientist and her experience as an Andersen insider, Toffler chronicles how a culture of arrogance and greed infected her company and led to enormous lapses in judgment among her peers. Final Accounting exposes the slow deterioration of values that led not only to Enron but also to the earlier financial scandals of other Andersen clients, including Sunbeam and Waste Management, and illustrates the practices that paved the way for the accounting fiascos at WorldCom and other major companies.
Chronicling the inner workings of Andersen at the height of its success, Toffler reveals "the making of an Android," the peculiar process of employee indoctrination into the Andersen culture; how Androids—both accountants and consultants--lived the mantra "keep the client happy"; and how internal infighting and "billing your brains out" rather than quality work became the all-important goals. Toffler was in a position to know when something was wrong. In her earlier role as ethics consultant, she worked with over 60 major companies and was an internationally renowned expert at spotting and correcting ethical lapses. Toffler traces the roots of Andersen's ethical missteps, and shows the gradual decay of a once-proud culture.
Uniquely qualified to discuss the personalities and principles behind one of the greatest shake-ups in United States history, Toffler delivers a chilling report with important ramifications for CEOs and individual investors alike.
PUBLISHERS WEEKLY
The doomed accounting firm of Arthur Andersen emerges as a grown-up version of Lord of the Flies in this fascinating insider expose. Toffler, a Columbia Business School professor and an expert on management ethics, provides an engrossing history of the accounting firm, from its early days as an icon of financial probity to its demise after a drumroll of accounting scandals culminating in the Enron and WorldCom bankruptcies. But the book's greatest strength is the author's first-hand account of corporate corruption. Toffler spent four years at Andersen selling ethics consulting services to clients while her own ethics were affronted and compromised by the atmosphere at Andersen. As a consultant, Toffler wasn't involved in the auditing shenanigans that brought Andersen down, but there was sleaze a-plenty--outrageous over-billing and forcefully selling consulting services clients didn't need--in her bailiwick. Her observations of this sordid milieu, of bullying bosses, desperate sales pitches, jockeying for power and demeaning motivational hoopla, are both funny and revealing. Looking beyond the"bad apples" to the"rotten culture," Toffler blames Andersen's problems on an ethos of conformity and deference to senior managers, bizarre compensation schemes that set partners at each other's throats, and the relentless pressure for lucrative consulting tie-ins that made auditors acquiesce in clients' fraudulent bookkeeping. The result is a case study in"group dependency," in which moral chaos mounts as good people do nothing. Toffler's acerbic wit and keen analysis make this essential reading for anyone concerned with the profit-driven turpitude of corporate America.
