alleryStart learning →Which former member of the largest group of public accounting firms disbanded in 2002 as a result of the Enron scandal?
ABaker Tilly
BGrant Thornton
CErnst and Young
DArthur Andersen
Answer & Solution
Correct answer: D. Arthur Andersen
1. The largest public accounting firms are called the Big Four: Deloitte, PwC, EY and KPMG International.
2. Arthur Andersen was a former member of that group and was Enron's accounting firm.
3. It was indicted and convicted of obstruction of justice, and in 2002 the firm went out of business.
4. Ernst and Young remains one of the four, so it is not the firm that disbanded.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 14 "Using Financial Information and Accounting", section 14.2 The Accounting Profession_
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