Arthur Andersen
Dead1913–2002
| Industry | Accounting |
| Headquarters | Chicago, IL |
| Founded | 1913 |
| Died | 2002 |
| Peak employees | 85,000 |
| Peak revenue | $9.3B (2001) |
| Cause of death | Scandal |
Arthur Andersen was one of the Big Five accounting firms, a pillar of corporate America for nearly a century. Founded by a Northwestern University professor who believed in 'Think Straight, Talk Straight,' the firm built its reputation on integrity.
That reputation evaporated in a paper shredder. When the Enron scandal broke, Andersen employees in Houston shredded thousands of documents related to the Enron audit. The firm was indicted for obstruction of justice and convicted in 2002. The Supreme Court later unanimously overturned the conviction on narrow grounds, but it didn't matter. Clients fled. The firm surrendered its CPA licenses.
85,000 employees worldwide lost their jobs. The Big Five became the Big Four overnight. Andersen's destruction demonstrated a brutal truth: for a firm whose entire product is trust, a single scandal is an extinction event.
Timeline
Arthur Edward Andersen founds accounting firm in Chicago
Revenue exceeds $1 billion; becomes world's largest professional services firm
Consulting division spun off (later becomes Accenture)
Enron scandal breaks; Andersen served as Enron's auditor
Employees shred Enron-related documents; firm indicted for obstruction
Convicted in June; surrenders CPA licenses; effectively ceases to exist
Supreme Court unanimously overturns conviction — too late to save the firm