State board opens investigation of Andersen

By Walter Woods

Atlanta – A state board that regulates the accounting industry in Georgia has opened an investigation of Arthur Andersen LLP's local business that could end in fines, revoked licenses and other sanctions.
The Georgia Board of Accountancy, which operates under Secretary of State Cathy Cox, opened its investigation of Andersen following a March 15 federal indictment against the firm nationwide.
The board, which licenses and regulates certified public accountants and accounting firms, could suspend or revoke Andersen's license to conduct business in Georgia, put Andersen on probation from auditing clients or fine the firm if it establishes wrongdoing, a state spokesperson said.
Individual accountants working for Andersen in Georgia could also face penalties under the investigation.
The federal indictment charges that Andersen obstructed justice when it shredded documents related to Enron Corp. Andersen has denied the charges.
The accountancy board will have a regularly scheduled meeting at its headquarters in Macon March 27. A spokesperson for Cox said it had not been determined whether Andersen will be discussed at the meeting.
The seven-member board, which is appointed by the governor, has the authority to adopt rules, set standards for licenses, adopt mandatory standards of professional conduct, and investigate and discipline unauthorized, negligent or incompetent accounting practices.
There are more than 14,000 certified public accountants and 2,000 public accounting firms licensed in Georgia.