Which accounting firm collapsed in 2002 after its conviction in the Enron scandal?

Arthur Andersen collapsed in 2002 after its conviction in the Enron scandal.

The firm was one of the Big Five accounting organizations and audited Enron, the energy company whose hidden debts and inflated profits were exposed in late 2001. Andersen employees were accused of destroying Enron-related documents after receiving legal warnings about the investigation.

A federal jury convicted Arthur Andersen LLP in June 2002 of obstruction of justice. Although the U.S. Supreme Court later overturned that conviction in 2005 because of flawed jury instructions, the firm had already lost most of its audit clients and effectively ceased operating as a major auditor.

A common mix-up is to call Andersen a consulting company only; it provided both audit and consulting services. Its collapse helped reduce the Big Five accounting firms to the Big Four: Deloitte, PwC, EY, and KPMG.