Arthur Anderson accountants testify at Enron hearings

(12 Dec 2001)

APTN
Washington, DC
1. Congressmen at the Enron hearing
2. Cutaway of reporters

POOL
Washington, DC
3. SOUNDBITE:(English), Robert Herdman, Chief Accountant Of The Securities and Exchange Commission
"The markets are clearly the best in the world and our accounting and financial reporting are widely acclaimed as the best in the world as well."

APTN
Washington, DC
4. Congressmen during the hearing

POOL
Washington, DC
5. SOUNDBITE (English) Robert Herdman, Chief Accountant Of the Securities and Exchange Commission:
"I really cannot say at this point what has led to Enron's demise with any certainty. That is something we hope to learn as part of our investigation is... as that progresses. As we learn things we will be looking to see whether there are indications of other problems out there."

APTN
Washington, DC
6. Cutaway of reporters and observers

POOL
Washington, DC - December 12, 2001
7. SOUNDBITE (English) Robert Herdman, Chief Accountant of The Securities and Exchange Commission:
"I do not think any of us can say that at this point Congressman. I think the Enron situation raises questions about our entire system of financial reporting and confidence in that system."

APTN
Washington, DC - December 12, 2001
8. Cutaway of photographer

POOL
Washington, DC - December 12, 2001
9. SOUNDBITE (English), Joseph Berardino, Chief Executive Officer of Arthur Andersen LLP:
"I am here because faith in our firm and the integrity of the capital market system has been shaken."

APTN
Washington, DC - December 12, 2001
10. Cutaway of Congresswoman and Congressman at the Enron hearing

POOL
Washington, DC - December 12, 2001
11. SOUNDBITE (English) Joseph Berardino, Chief Executive Officer of Arthur Andersen LLP:
"Andersen will have to change to restore the publics interest and confidence. We are working hard to identify the changes we need to make. The accounting profession will also have to reform itself. Our system of regulations and discipline will have to be improved. And others will have to do things differently as well."

APTN
Houston - File
12. Exterior of Enron building

STORYLINE:

The head of Enron Corporation's longtime auditing firm told Congress on Wednesday the tragedy of the company's collapse shows that the accounting firm and the entire profession will have to change.

Robert Herdman, chief accountant of the Securities and Exchange Commission, which is investigating Enron, said a recent spate of accounting irregularities by big corporations "may shake investors' confidence in our system of financial reporting and our capital markets," according to his prepared testimony.

At the House hearing, lawmakers called the Enron debacle the biggest corporate failure in recent history.

Enron, which only months ago was the nation's seventh-biggest in revenue, has acknowledged that it overstated profits for four years.

Subjects being examined at the hearing included the Houston-based company's accounting practices, potential securities law violations and Enron's handling of its employees' retirement investment plans.

Worth more than 80 Dollars (US) a year ago, Enron's stock has tumbled to less than a dollar a share.

Find out more about AP Archive: http://www.aparchive.com/HowWeWork
Twitter:   / ap_archive  
Facebook:   / aparchives   ​​
Instagram:   / apnews  


You can license this story through AP Archive: http://www.aparchive.com/metadata/you...