Aanderson

Arthur Anderson Case Study

Mission Statement

To provide an international clientele with superior public accounting and audit services in a culture of integrity, honesty, accountability and respect; seeking cooperation and growth for our partners and employees, enhanced profession and public value, as well as profitability and endurance for Arthur Anderson.

Stakeholders

1.Clients

2.Partners

3.Employees

4.Regulators- Federal Accounting Standards Board

5.Accounting Profession

6.Public

Credo

We believe our clients deserve uncompromising integrity, accountability and respect. To meet these necessities, we will hire and retain only professionally trained controllers who act with uncompromising integrity. We will perform regular audits of ourselves objectively through internal and external controls.

We believe our partners should be facilitated in developing the latest ethical practices and assist in establishing each location as examples of the Arthur Anderson standard brand of reliable audit services. Growth of the business shall never come at the expense of internal standards.

To our employees we believe each should have the training and tools available and leadership support to fulfill their duties as representatives of our ethics and values while fulfilling employment goals. Employees further deserve the opportunity to grow and display honest and accountable practices.

We believe leadership and vision are at the forefront of the accounting profession. As leaders in our profession, it is our duty to display practices of integrity, honesty, accountability and respect. We will provide to companies our objective auditing and accounting services unblemished by concern for short-term profits. We will display leadership in setting the standards of our profession.

We believe the governmental regulators provide checks and balances needed to ensure corporations like ours are reporting accurately and timely information. As such we openly and honestly adhere to all their rules and regulations. They deserve our commitment to abide by General Accepted Accounting Practices to the intent of public good. We believe in going beyond the letter of the law and taking the extra steps to insure we respect the greater public.

We believe the public deserves accurate financial information to make informed investing decisions to their best interest. We vow to provide information that is above reproach when information we have approved is released.

Shared Values

1.Integrity. We are guided by ethical principles and professional standards to ensure that even when no one is watching Arthur Anderson employees do the right thing.

2.Honesty. We speak the truth in all interactions providing constructive unbiased information to our stakeholders.

3.Accountability. We are responsible for the information we certify and the decisions we make.

4.Respect. We are open, fair and trustworthy with all our stakeholders. We follow this practice even when our decisions are unpopular.

Program to Implement and Audit Shared Values

1.Among our clients:

a.We will establish a program to measure client adherence to values and satisfaction.

i.Define metrics

1.Client belief in Arthur Andersen representative's adherence to company values

2.Client adherence to Arthur Andersen values or have in place and adhere to a compatible value system

3.Client satisfaction

ii.Establish or hire an independent entity to gather and analyze information on a quarterly basis. Client selections will be a random sample of no less than 5% of Arthur Andersen's clientele

1.In addition, any client identified by an employee or outside agent as possibly in violation shall be researched and reported upon

b.Evaluate results

i.Results shall be collected and categorized as:

1.Perfect Ð'- All responses and data gathered indicate complete compliance and adherence to values

2.Minor infractions Ð'- Data indicates that the client has performed actions inconsistent with the standards of Arthur Andersen's Professional Standards Group (PSG) and Ethics Compliance Board (ECB) but still legal and accepted within GAAP.

3.Major Infraction Ð'- Data indicates that the client has performed actions directly in conflict with Arthur Andersen's values including, but not limited to, falsifying data, using off book transactions to conceal debt, unauthorized disposal of documents, etc.

4.Ambiguous Ð'- Data collected is in conflict (i.e. client reports something that is not supported by other gathered data).

c.Establish remedies for underperforming areas

i.Company representatives identified as compromising on our values shall be disciplined according to the following two sections

ii.Clients found to have committed a major infraction shall be immediately dismissed as an Arthur Andersen client

iii.Clients found to have committed a minor infraction shall be:

1.Issued a written warning from the company's PSG and ECB indicating non-compliance with basic Arthur Andersen values

2.Placed on mandatory audit where the PSG, ECB or an approved agent thereof will audit all work for said client.

3. A further violation of any kind while on mandatory audit will result in the immediate dismissal of the client

4.Mandatory audit shall be removed after 1 year should no further violations be found

iv.Clients with an ambiguous report shall be:

1.Sent to review by the PSG and ECB

2.Researched (further information gathered

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