[SevenDaysInMay]

FASBs will not save AA for their complicity in the management failure at Enron. "Materiality" as determined by the financial markets dictate "materiality" for AA's reporting. AA's utter failure to include the games played in finacial/annual reports ought to wipe AA LLP as clean as Enron.

AA has committed an unforgivable sin in the world's financial Garden of Eden. It's a rotten apple.

[Dog Gone]

That's the bottom line. Even without the new revelations about Andersen's apparent coverup regarding internal documents, they were toast.

Previously, they could have pleaded incompetence in certifying Enron's financial condition. That might have prevented criminal prosecution of the auditors (or maybe not) but it still would have finished them as a company.

This new revelation changes the presumption to them being crooks without very good judgment.

It's like the famous law school question of whether somebody who jumps out of a skyscraper but is shot as he is falling has been murdered. It's important for a lot of reasons, but the dude is still dead.