[CANSLIM] Arthur Andersen

From: Dave Cameron <dfcameron@yahoo.com>
Subject: [CANSLIM] Arthur Andersen
Date: Sat, 19 Jan 2002 16:06:41 -0800 (PST)

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- --- Tom Worley <stkguru@netside.net> wrote:
Tom writes:

> Is it coincidence that Arthur Andersen is Enron's consultant /
> advisor / auditor, and was also doing some of the same for Sunbeam?
> (some Sunbeam execs just settled a shareholder class action lawsuit
> for $15 million so they can concentrate on defending themselves
> against fraud charges by the SEC). Sure, I'll pay you guys $15
> really big ones, but, hey, I'm still not admitting I did anything
> wrong with the company financial reports. Maybe we should be buying
> shares in companies making shredders?? This is the third big
> financial scandal in recent years involving Andersen, and now
> leading to cries from Congress for governmental regulation of
> accounting firms. Great idea, let the politicians who rarely can
> balance a budget, and invented the concept of off-book accounting,
> regulate the accountants.

This makes me wonder how "good" the earnings figures we get really
are.  It seems logical that given the number of firms that Arthur
Andersen serves as the accountants/auditors, there have to be more
out there that are fraudulent - and someone is benefiting.

Furthermore, is it likely this behavior is unique to just Andersen?

I don't mean to sound like a conspiracy type; but it does give me a
dose of cynicism that we have to be even more diligent in our
research.  Enron was rarely, if ever, a CANSLIM stock, but the lesson
is valuable nonetheless.

I suspect the Enron situation could change some legislation.   There
are some big name trustee types demanding an investigation.   I blame
Andersen more than Enron.    Andersen is "supposed" to be impartial;
hence the auditing requirements.

> 

=====
Dave Cameron
dfcameron@yahoo.com

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