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In June 2002 an American court found the accounting firm Arthur Andersen guilty on charges of unlawfully destroying documents relating to the firm’s relationship with the collapsed energy giant, Enron. Even before the company was indicted, Andersen-audited firms appear to be discounted by about 6 percent relative to non-Andersen-audited firms, clients started leaving Andersen in droves. Soon after their conviction Andersen filed for bankruptcy and soon ceased operations. Web Sources: a search on Arthur Andersen and records destruction will deliver reference material on this subject. More Information Final Accounting – Ambition, Greed and the Fall of Arthur Andersen Barbara Toffler and Jennifer Reingold 2003, Broadway Books Inside Arthur Andersen: Shifting Values, Unexpected Consequences Susan E. Squires, Cynthia J. Smith, LornaMcDougall, and William R. Yeack, Financial Times Prentice Hall Arthur Anderson conviction overturned The supreme court has ruled that Arthur Anderson was convicted without proof that the shredding of documents was deliberately intended to undermine a looming Securities and Exchange Commission inquiry in fall 2001. The government had not proved that the company knew they were breaking the law and therefore the conviction was overruled

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