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Pastimes : ARTHUR ANDERSON Client list

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To: Patricia who wrote (12)6/27/2002 12:51:11 PM
From: Patricia  Read Replies (1) of 66
 
CLAIBORNE LIZ INC (LIZ)

LIZ CLAIBORNE LIZ INC DEF 14A, Official notification to shareholders of matters to be brought to a vote ("Proxy") 03/28/2002
Page 31

sec.gov

Accounting firms have woven an increasingly complex web of business
and financial relationships with their audit clients. The nature of the
non-audit services that accounting firms provide to their audit clients has
changed, and the revenues from these services have dramatically increased.

The growth of non-audit revenues represents a trend that has been
accelerating dramatically in the last several years, with non-audit fees
for consulting or advisory services exceeding audit fees at many companies.
Our Company is in the category of companies that pays its audit firm more
for non-audit advisory services than it does for audit services. The
Company's most recent proxy statement indicated that Arthur Anderson LLP
billed $717,885 for audit services, while billing $1,584,398 for non-audit
services rendered.
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