Boston Chicken’s Andersen Suit Has Similarities to Enron Case

By Bill Richards & Scott Thurm, The Wall Street Journal Published:  March 13, 2002

In a 1992 huddle that included top partners, Arthur Andersen LLP auditors debated the merits of an accounting approach desired by a client. If they approved, the client could keep details of losses at affiliated entities from public view. Andersen’s conclusion: The treatment fell in a “somewhat grey” area, a partner summed up in a memo, but the client’s plan was “defendable.”

The client? Not Enron Corp., the collapsed energy-trading firm whose books with off-balance-sheet partnerships were approved by…

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