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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Secret_Agent_Man who wrote (148095)	2/3/2002 5:06:06 PM
From: maceng2	Read Replies (2) \| Respond to of 436258

Volcker knows how to make unpleasant but necessary changes. In removing the slimeball aspects about the company, I hope he starts here... andersen.com I hope we see some of the crooks connected with the Enron scandal sued into the ground. An example needs to be set. OBL and Saddamn can wait until some of these guys are dealt with. Here's that news item... dailynews.yahoo.com Andersen Hires Ex-Fed Head Volcker NEW YORK (Reuters) - Embattled auditor Andersen, criticized for its poor handling of fallen Enron Corp.'s books, said Sunday it hired former Fed Chairman Paul Volcker to help restore its credibility, and said it will no longer offer some consulting services to audit clients. Accounting firms that offer consulting services to corporations they audit have come under heavy criticism for potential conflicts of interest. Andersen said Volcker agreed to chair an independent oversight board to work with Andersen ``in making fundamental changes to its audit practices.'' Volcker said: ``Some months ago, in addressing the International Conference of Financial Executives, I stated that my concern was that 'the profession of auditing and accounting is in crisis.' That crisis is now evident to everyone.'' Andersen said it will no longer offer consulting services, such as designing computerized financial systems, to publicly traded U.S. audit clients, or provide internal audit services to publicly traded U.S. clients they externally audit. Andersen has come under fire for its auditing role with Enron, as questions were raised about the energy trader's accounting for certain partnerships that were hidden off its balance sheets. The moves came after recent calls for the New York Stock Exchange (news - web sites) to tighten its accounting rules for listed companies and prevent auditors from working as consultants for the same firm. Top accounting firms PricewaterhouseCoopers and KPMG said last week they would support such proposals for the accounting profession, which had fought bitterly against limits on consulting services. The cigar-smoking, 6-foot-8-inch Volcker, who was chairman of the Federal Reserve (news - web sites) from 1979 to 1987, is currently chairman of the trustees of the International Accounting Standards Committee Foundation. ``We are pleased that Paul Volcker has agreed to help us in this effort,'' said Joseph Berardino, managing partner and chief executive officer of Andersen Worldwide. ``Mr. Volcker is one of the most independent and innovative thinkers in American finance,'' he added. ``Andersen, our clients, and America's investors will jointly benefit from his active participation and leadership.'' The Independent Oversight Board will have a professional staff and free access to all information relevant to a full review of the policies and procedures of the firm, Berardino said. The IOB will have full authority to mandate changes in any practices it may find necessary and desirable. Volcker's hiring parallels another high-profile effort to revive a scandal-scarred company. In 1991, Salomon Brothers, nearly crippled by revelations it submitted rigged bids at a U.S. Treasury auction, turned to legendary investor Warren Buffett (news - web sites), to rebuild the investment bank. Buffett was an investor in Salomon when he took over as interim chairman in 1991. Volcker said he hoped to achieve needed reform of a accounting profession ``that, by its nature, must be the trustee of truth and transparency in our capital markets.'' Andersen's lead partner handling Enron's audit, David Duncan, was fired for his alleged role in destroying documents related to the energy giant's bookkeeping. Duncan has said he was following instructions. Andersen, the No. 5 accounting firm, already has former U.S. Senator John Danforth conducting a comprehensive review of the company's records management policy to recommend improvements.