Posted at 12:10 p.m., Friday, June 28, 2002
Arthur Andersen, local firm to split
Advertiser Staff
Partners in the Honolulu office of Arthur Andersen LLP have decided to split from the troubled company and establish their own firm, to be tentatively called Karns, Murakami and Hanashiro LLP, managing partner Randy Karns said today.On June 16, a Houston court found Arthur Andersen guilty of obstructing justice in connection with the Securities and Exchange Commission inquiry into the Enron Corp. bankruptcy. The accounting firm destroyed Enron documents as the SEC was beginning its investigation of the energy trading giant last fall.
Arthur Andersen was also the accounting firm used by WorldCom Inc., which this week revealed it had hidden $3.8 billion in expenses to improve its balance sheet.
Andersen has lost most of its largest audit clients worldwide and has agreed to sell its consulting, tax, audit and other businesses.
Karns said earlier this month that Hawai'i customers "have been very, very supportive" and the local office has not lost any of its clients.
The local partners are still negotiating the terms of their separation from Arthur Andersen, Karns said.
Karns said the local partners want to continue to do auditing work and are looking at how to make this possible.
