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Mark-to-industry accounting allowed the corporation to write unrealized long run gains from some investing contracts into current earnings statements, Therefore providing the illusion of bigger existing income.
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Arthur Andersen also arrived underneath extreme scrutiny, and in March 2002, the U.S. Division of Justice indicted the agency for obstruction of justice. Consumers desirous to assure traders that their money statements could satisfy the best accounting benchmarks deserted Andersen for its competitors. They have been shortly accompanied by Andersen staff and overall workplaces.