Andersen admits end of audit practice
Andersen has acknowledged the jury verdict in its criminal trial in Houston, will end the firm's audit practice.
A staement by the firm, said: ‘Unless the jury verdict is set aside by the trial judge, a judgment of conviction could be entered as early as August 31, 2002, depending on the amount of time needed for the Government and Andersen to brief and argue post-trial motions.
‘If entered, the conviction would be grounds for automatic suspension of Andersen’s ability to practice before the Securities and Exchange Commission.’
Between now and August 31, Andersen said it would work actively to help transition its remaining clients to other accounting firms.
By 31 August, the firm expects to cease practicing before the Commission and expects to begin immediately an orderly process for dealing with state regulators leading to surrender of the firm’s licenses.
In the meantime, Andersen expects to complete all of its outstanding engagements to provide attest services to its clients.
In a separate statement issued, the SEC said that it would permit Andersen to continue to practice before the SEC, including signing opinions for SEC Registrants until 31 August 2002.
