Ex-Andersen practice now independent LLP

Advertiser Staff

Executives of the former Hawai'i practice of Arthur Andersen LLP have assumed control of the troubled company's local office, under the name Karns Murakami and Hanashiro LLP.

Company officials said yesterday that independent operations began earlier this month and that all existing local clients have been retained.

Terms of the agreement with Arthur Andersen were not disclosed.

The company continues as one of the state's largest accounting firms, with approximately 50 employees.

Arthur Andersen, the accountant for Enron Corp., has been losing clients worldwide since it was accused of shredding documents related to the Enron bankruptcy last year. Last month, a Houston court found Arthur Andersen guilty of obstructing justice in the Enron case.

The Mainland-based company was also the accounting firm used by WorldCom Inc., which revealed it had hidden $3.8 billion in expenses to improve its balance sheet.

"Our office has always enjoyed a unique level of autonomy, and the formation of the independent LLP is a natural progression of that relationship with our clients," said Randy Karns, managing partner with the new KMH, in a news release.

The company said it will continue to occupy its Bishop Street office, but office e-mail will change to the new @kmhllp.com extension.