Misleading Accounting1.Describe the legal and ethical issues related to Andersen's audit of companies accused of accounting irregularities.In this case study, in my opinion, the causes of Andersen's audit of companies accused of accounting irregularities, has one main factor. Since Athur Andersen does not think about the company with which he will cooperate, it is like Athur Andersen to make deceptive calculations. These four real-life cases show us how they handle deceptive accounting. First point, “Sunbeam”. 1997 Sunbeam Company (SUNBEAM) bankruptcy case, Sunbeam company reports forge sales volume, profit and expenses. Under the premise of his partner's discrete sampling, Andersen had nevertheless approved the Sunlight company to have the questionable point of financial reporting. Finally, the Sunlight Company suspends payment. Proposed grievance request regarding American Marketable Securities and Settlement Committee, Andersen strongly opposes. Finally, to accuse in a situation that shows neither approval nor disapproval, Andersen and the shareholder with an out-of-court settlement, compensate 110 million dollars. Second point, "waste management". Waste Management company to make false report gathers desk, Waste Management Company's financial reports from 1992 to 1996 report false revenue totaling $1.4 billion for the company. The American Marketable Securities and Transaction Committee found that Andersen's audit report is not extremely factual and has the misleading function. Finally, the improper occupation operation is suspected. Andersen accepted this ruling and paid $7 million in damages and civil fines, but is not expected to say anything for or against liability. Andersen's deal also includes a partial payment of $220 million in an out-of-court settlement, but he has not acknowledged making any mistakes. The third point is the "Baptist Foundation of Arizona". The BFA has invested heavily in real estate, a more speculative investment strategy than other Baptist Foundations in the state have traditionally used. Profits from the investments were supposed to be used to fund church ministries and numerous charitable causes. The problems began when the Arizona real estate market took a downturn and BFA management found itself under pressure to turn a profit. The fourth point is the most important point, "Enron". Andersen in 1985 established the start of Enron to audit and has done so for all 16 years. In addition to the pure audit, Andersen also provides management audit and consultancy service. In the mid-1990s, Andersen signed a branch agreement on safety, Andersen took full responsibility for management audit to work safely.