Inside Arthur Andersen: Shifting Values, Unintended Consequences.

• Author: Marshall, Jeffrey
• Position: Book review - Book Review

By Susan E. Squires, Cynthia J. Smith, Lorna McDougall and William R. Yeack. Financial Times/Prentice Hall, 185 pages. $24.95.

Among the first of an expected spate of books about the collapse of Arthur Andersen, this is no quickie recap by a journalist, rushed out to exploit ongoing interest in the subject, but a thoughtful look back by a group of former Andersen organizational experts.

That background is worth mentioning, because apart from a writerly beginning--a narrative about the sentencing of David Duncan, the former Andersen partner in charge of the Enron Corp. account, replete with a few reconstructed quotes--the book is more historical in nature. Much of it recounts the growth of the 89-year-old (at its death) firm from a one-office operation to a multinational colossus, and the ensuing change in its corporate culture as the process of auditing and consulting itself changed.

Much like IBM Corp., renowned for its relentless approach to training and standardization, Andersen had a rulebook governing virtually every situation and every practice. Apprenticeship was a key concept, and senior partners provided constant mentoring. Its St. Charles, Ill., training center was also legendary for churning...