Deceptive Accounting1.Describe the legal and ethical issues surrounding Andersen's audit of companies accused of accounting irregularities. In this case study, in my opinion, the causes of Andersen's audit of companies accused of accounting irregularities, there is one main factor. Because Arthur Andersen does not think about which company should cooperate, it is like Arthur Andersen to do misleading accounting. These four real cases show us how they operate deceptive accounting. First point, “Sunbeam”. 1997 Sunbeam Company (SUNBEAM) In the case of bankruptcy, Sunbeam Company refers to the forging sales volume, profits and expenses. In accordance with the premises of his partner Discrete sampling, Andersen had nevertheless allowed the Sunlight company to have questionable financial reports. Eventually, Sunlight Company suspends wages. Andersen strongly opposed the proposed claim regarding American Securities and the Transaction Committee. Finally, to accuse in a situation that shows neither approval nor disapproval, Andersen and the shareholder amicably, compensate 110 million dollars. Second point, “waste management”. Waste Management Company to Make False Report Gathers Office Shares, Waste Management Company's financial reports from 1992 to 1996 generated false revenues amounting to $1.4 billion for the company. The American Securities and Transactions Committee found that Andersen's audit report is not entirely real and has a misleading function. He is finally considered a suspect in the inappropriate occupation operation. Andersen accepted this decision and paid damages and civil penalties of $7 million, but he is not to say whether he is responsible or not. Andersen's deal also calls for a partial out-of-court payment of $220 million, but he has not admitted he made a mistake. The third point is the “Arizona Baptist Foundation”. BFA has invested heavily in real estate, a more speculative investment strategy than others. State Baptist foundations are traditionally used. Profits from investments were supposed to be used to fund church ministries and many charitable causes. The problems began when the Arizona real estate market suffered a downturn and BFA's management came under pressure to turn a profit. The fourth point is the most important point, “Enron”. Andersen established Enron in 1985 to audit for this, doing so for a full 16 years. Besides pure auditing, Andersen also offers management auditing and consulting service. In the mid-1990s, Andersen signed a safe subsidiary agreement, Andersen took full responsibility for the safe management audit work..