The Demise of Arthur Andersen,one of the Largest Public Accounting

question 119

Multiple Choice

The demise of Arthur Andersen,one of the largest public accounting firms,can be attributed to:

• A)reversal of an indictment by the U.S.Justice Department.
• B)fines levied by the U.S.Securities and Exchange Commission.
• C)the death of Kenneth Lay.
• D)the lack of quality of audit work for several clients that include Enron,WorldCom and Waste Management.

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Definitions:

Total Asset Turnover

A metric indicating how effectively a firm utilizes its assets to produce sales income.

External Financing

Funds that a business obtains from outside sources to cover its operational needs and finance growth, including debt and equity financing.

Internal

Pertaining to activities, operations, or factors that occur or exist within an organization or entity.