How global are the 'global' accountancy firms and who are they accountable to? Such questions are highly relevant: 'global' firms audited Enron, World.The websites of all major accountancy firms claim they are 'global' businesses offering integrated services. This has boosted their worldwide income to more than $70 billion a year. They use the same logo, headed paper and advertising campaign. They have a worldwide board of directors, a chairman and a chief executive officer, often headquartered in secretive offshore tax havens with no information-sharing treaties with other nation states or regulators.
These firms have been the driving force behind moves by the International Accounting Standards Board to take accounting rules out of the hands of governments and put them in the grip of major corporations and firms. But they are silent on their global accountability.
Arthur Andersen audited Enron, including its UK operations, and also provided worldwide consultancy. As the Securities & Exchange Commission launched criminal proceedings against the firm for shredding documents in Houston, Chicago and London, the firm claimed that it was not 'global'.
