Audit Practice-Less Arthur Andersen Is Back from Damnation
Vorsatz says the firm will go by Andersen Tax from now on, and it will draw lessons from both the rise and the fall of the old Andersen. He’s hoping to restore the old firm’s reputation for ethics and integrity. And, he says, his firm’s focus will continue to be narrower than the old Andersen’s was.
“We don’t want to be an audit firm,” he says. “We tried that, and it didn’t work. For most of us, we lost our unfunded retirement plans, we lost most of our capital.”
Curated from www.npr.org
I was scrolling through my twitter account’s live stream when I came across a tweet discussing the return of Arthur Andersen LLP from damnation. WTAS LLC, a San Francisco based tax firm that traces its roots back to Arthur Andersen LLP, purchased the rights to the Andersen name and has renamed itself Andersen Tax LLC. For an encore, they seem to be getting quite a bit of good PR. I find it interesting that they decided to solely focus on providing tax services. When I think about it, this appears to have all the makings of great market positioning. Nowadays, so much gymnastics is required of registered public accounting firms desiring to provide both tax and audit services to an issuing client. This can be attributed to the Sabarnes Oxley Act which stipulates the circumstances under which a registered public accounting firm may provide both audit and tax services to an issuing client. The new Andersen Tax LLC, a well established firm with presumably an enviable book of business and a growing global presence, can market itself as the true alternative to any of the Big Four (PWC, Deloitte, EY, and KPMG) when it comes to providing tax services free of bias. That’s a claim that any of the Big Four will have a hard time successfully challenging. Something tells me this is just the beginning of a much bigger story and I look forward to seeing it unfold. All that said, I wonder why they opted not to use the domain name of the former Arthur Andersen LLP. Who knows, maybe they have it in their plans to use it at a later time. What are your thoughts about this news event? Chime in using the comment form below.