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Paper Abstract: Traces the history, development, and current status of two firms: Arthur Andersen and Ernst & Young. Discusses founders Arthur Andersen and Arthur Young and compares the two firms regarding issues that impacted their development. Paper Introduction: the arthurs arthur andersen and arthur young the history of the firmsthey founded comparison of the firms and the current status of the firms Introduction Long ago Arthur Andersen and Arthur Young founded firms thateventually grew into giants in the field of professional accounting Today one of those firms is a frail shell of what it once was while theother remains one of the world\'s largest account firms albeit with littleof the original founded in it other than his surname This paper Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. html Accounting firms & organizations. Accessed on the Internet on 2 6- 9-18 at: http://www.salon.com/tech/feature/2 2/ 2/ 7/ arthur_andersen/Lane, C. The former Ernst & Youngconsultancy arm now operates under the name Cap Gemini Ernst & Young. Arthur Andersen assumed full control in 1918, and renamed thefirm Arthur Andersen & Co. C.Ernst and his brother founded their own accounting firm, Ernst & Ernst, inCleveland in 19 3. Sketching the Histories of the Firms Arthur Andersen became a certified public accountant in 19 8. Accessed on the Internet on 2 6- 9-18 at: http://www.ey.com/global/ content.nsf/International/HomeGreene, T. Accountancy, 138(1356), 65.University of Washington. Most of the firm's consultants in theUnited States joined KPMG, while most of the firm's consultants outside ofthe United States joined Deloitte & Touche. Washington Post. Accessed on the Internet on 2 6- 9-18 at: http://faculty.washington.edu/~krumme/companies/account. In March 2 6, 25 former Arthur Andersen partnersformed True Partners Consulting. A. Arthur Young, born in Scotland, was 43 years old when he foundedArthur Young & Co. (2 6, August). About us. (2 6). In mid-2 5, the United States Supreme Court in one of itsmany controversial decisions over the past six years overturned theconviction (Lane, 2 5). In the198 s, many certified public accounting firms shucked the role of financialumpire and began to aid and abet companies in the manipulation of financialdata to support fallacious reports of financial performance. In 2 6, the firm continues to provide accountingservices in some offices. By this time, however, the damage to ArthurAnderson was set in concrete. The firmsold divested its consultancy services in 2 . Ernst & Young has fared better than have most accounting firms havefared over the past decade. For thenext five years, he worked in accounting and finance, and he attendedNorthwestern University, where he received a bachelor's degree in 1913.Then, Arthur Andersen and Clarence DeLany joined to form Andersen, DeLany &Co. Arthur Andersen headed the firmuntil his death in 1947. In 2 3, Equitable Life in theUnited Kingdom sued Ernst & Young charging for professional negligence inrelation to auditing work performed by Ernst & Young for the company. No reputable company would risk engagingArthur Anderson as an auditor even if the firm had its licenses restored. The firm, however, did not completely escapesuch problems. ReferencesErnst & Young. Ernst & Young recorded total revenues of US$16.9 billion in fiscalyear 2 5. Crain's Chicago Business, 29(12), 5.Sarbox forces sales of E&Y arm. Arthur Andersen and the Baptists. Avis Budget Group, Inc. Both firms startedstrong and enjoyed tremendous growth. (the company that acquired Cendant) andHealthSouth have sued Ernst & Young in connection with alleged accountingmalpractice. The moreimportant conflict of interest between auditing and consulting by the samefirm was not addressed. Accessed on the Internet on 2 6- 9-18 at: http://www.washingtonpsot.comMeyer, G. Most offices,however, continue to provide accounting and auditing services. Two men, one vision. Salon.com. This paper sketches the history of the two firms in the followingsection. Both accounting firms prospered over the comingdecades, and in 1989 the two firms merged and became Ernst & Young (Ernst &Young, "Two Men", 2 6). Ernst & Young weathered the accounting scandals of the late-199 s andthe early years of the twenty-first century. Ernst & Young succumbed to this pressure and sold itsaccounting practice ("Sarbox Forces Sale of E&Y Arm", 2 6). One effectof the Act is pressure on firms such as Ernst & Young to provide fulldisclosure concerning the interactions between consulting and auditing armsof their businesses. Following the Enron scandal, the consulting arm ofArthur Andersen split from the firm. (2 6, March 2 ). As a consequence, in 2 6 only Earnst 7Young continues to be a top-level accounting firm. (2 2). The scandals that best Arthur Andersen and other accounting firms andtheir clients led to the enactment of the Sarbanes-Oxley Act. at that time. Both firms have log traditions; however, of the two, only Ernst &Young is a strong firm and industry leader in 2 6. The federal government in the United States sued the firmin 2 2 for role Earnst & Young played in the failure of Superior Bank.Ernst & Young also was investigated in connection with the fraudallegations against Cendant Corporation. ArthurAndersen, as an example, was involved in the Sunbeam Products financialscandal well before the firm became inextricably enmeshed in the Enronscandal (Greene, 2 2). By 2 2, Arthur Andersendescribed itself as "a global, multidisciplinary professional servicesorganization that provides clients, large and small, all over the world,the thing they need most to succeed: knowledge" (Quoted by University ofWashington, 2 2, p. Arthur Andersen continues to exist as a company in 2 6 at itsChicago facilities. in 1913. Former Andersen exec takes top spot at UHY. Justices overturn Andersen conviction. Late in 2 2, Arthur Andersensurrendered its state licenses to practice as a certified public accountingfirm. This semi-independence, however, was a monetary arrangement that allowed toconsultants to retain a larger share of the fees they generated. Arthur Andersen more so than Ernst &Young, however, took the path of cooperating with clients to compromise theintegrity of financial repots. The firm remains profitable and likely will remain profitableif it and its peers can persuade the Republican-controlled United StateCongress to enact legislation that protects them against client law suits. Ernst & Young operates 7 offices in 14 countries in 2 6. In some instances, such pressure leads to thedivestment by some accounting firms of one arm or the other of theirbusinesses. Ernst & Young at this point was thesuccessor to Ernst, Whinny, and Arthur Young. "the arthurs" - arthur andersen and arthur young: the history of the firmsthey founded, comparison of the firms, and the current status of the firms Introduction Long ago Arthur Andersen and Arthur Young founded firms thateventually grew into giants in the field of professional accounting.Today, one of those firms is a frail shell of what it once was, while theother remains one of the world's largest account firms, albeit with littleof the original founded in it other than his surname. Other services provided include auditing, taxreporting and operations, tax advisory, business risk services, technologyand security risk services, transaction advisory, legal services, and humancapital services (Ernst & Young, "About Us", 2 6). Ernst & Young is at risk for legal problems related to the firm's pastwork. The final section of this paper considers the status of thesurviving firms in 2 6. Summary This paper sketched the histories of Arthur Andersen and Ernst &Young. The five largest firms were Arthur Andersen, Deloitte & Touche,Ernst & Young, KPMG, and PW Coopers. Ernst & Young provides a range of services that vary depending on theoffice and the country. (2 6). 1). The histories of the two firms is followed by a comparison of thefirms with a focus on those issues the directly influenced their latterdevelopment. (2 2, February 7). This paper alsocompared the two firms in relation to development. Since the fall of ArthurAndersen, Earnst & Young has remained one of the "Big Four" accountingfirms. Comparing the Development of the Firms The ethical and governance crises that engulfed the accountingprofession and accounting practice in the late-199 s and the early years ofthe twenty-first century trace their beginnings to the 198 s. Whilelegal services are not offered in all Ernst & Young offices, the firmemploys approximately 2, legal professionals in 2 6. Accessed on the Internet on 2 6- 9-18 at: http://www.ey.com/global/content.nsf/ International/HomeErnst & Young. In 2 2, the largest accounting firms were referred to as the "BigFive". in Chicago after moving to the United States. In mid-2 2, Arthur Andersen was convicted ofobstructing of justice in relation to the shredding of documents in theEnron case. The new firm will focus on advisoryservices, but will not provide auditing services (Meyer, 2 6). (2 5, June 1). Status of the Firms in 2 6 Before the Enron scandal, the consulting arm of Arthur Andersen hadattained a degree of autonomy from the auditing arm. At that time, the firm operated 363 offices in 78countries. If this paper is not what you are looking for, you can search again: Search for: or Click here to request an essay written just for you.

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