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Monday, 17 June, 2002, 09:49 GMT 10:49 UK
Andersen's fall from grace
Andersen, one of the oldest and best-known accountants in the world, has been brought to its knees because of the Enron scandal. BBC News Online takes a look at the key events that saw the drama unfold.

22 October 2001
The US financial watchdog announces an investigation into the balance sheets of Enron, one of Andersen's biggest clients.

8 November 2001
Enron revises its financial statement for the past five years - the reports that Andersen had approved - to account for $586m in losses.

2 December 2001
Enron files for bankruptcy, in the US' biggest ever corporate failure.

13 December 2001
Andersen executives tell Congress they warned Enron about "possible illegal acts" after Enron withheld crucial data about its finances from Andersen.

9 January 2000
The US Justice Department announces it has opened a criminal investigation into Andersen, prompting more clients and partners to jump ship.

10 January 2002
Andersen admits its staff shredded thousands of documents concerning the Enron audit.

15 January 2002
Andersen fires its chief partner in the Enron audit, David Duncan.

17 January 2002
Enron fires Andersen, blaming the auditor for destroying documents wanted by government investigators.

4 February 2002
Former federal reserve chairman Paul Volcker is hired to introduce widespread reforms at Andersen and restore its reputation.

14 March 2002
The US Justice Department charges Andersen with deliberately destroying evidence relating to its audit of Enron whilst an investigation was already underway.

26 March 2002
Chief executive Joseph Berardino resigns amid an ongoing exodus of clients and partners.

2 April 2002
Andersen admits defeat in trying to forge a merger deal for its international partnerships.

8 April 2002
7,000 US employees are laid off - about a quarter of its US workforce - as US operations are split-up.

7 May 2002
The trial begins, after settlement talks between Andersen and the US Justice Department break down.

12 June 2002
The jury in the Andersen trial admits it is deadlocked. It is then granted permission to deliver a guilty verdict against the company even if they fail to agree which individual is responsible for the actions.

15 June 2002
Arthur Andersen, the US arm of the accounting giant, is found guilty of obstructing justice by shredding evidence relating to the Enron scandal. It agrees to cease auditing public companies by 31 August.


The trial

The disintegration

Background

IN-DEPTH
See also:

15 Jun 02 | Business
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