Andersen left out in cold
Industry trade group reportedly decides to distance itself from embattled firm.
March 4, 2002: 7:07 a.m. ET
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NEW YORK (CNN/Money) - A coalition comprised of an industry trade group and four of the Big Five accounting firms said it will distance itself from Arthur Andersen in an effort to more effectively fight legislative proposals to change the accounting business, according to a published report Monday.
The American Institute of Certified Public Accountants and accounting firms Deloitte Touche Tohmatsu, Ernst & Young LLP, KPMG LLP, and PricewaterhouseCoopers LLP decided last week to break from Arthur Andersen as the firm's tarnished reputation is harming the coalition's ability to lobby congressional panels, according to the Wall Street Journal.
The group also believes that the reforms under consideration by Enron's former accounting firm exceed what the rest of the industry is willing to accept, the paper reported.
"Arthur Andersen is in the middle of a firestorm," former Rep. Vin Weber, an employee of lobbying firm Clark & Weinstock, told the Journal. "For the near term, the coalition and Andersen will pursue separate paths."
The coalition hired the lobbying firm to lead its efforts against the various proposals in Congress, according to the report.
Andersen has already implemented a series of self-imposed changes, including no longer providing information technology consulting or internal audit services to audit clients, and creating two internal offices to assure audit quality and ethical conduct, according to the Journal.
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