The exodus of blue-chip clients from Arthur Andersen is continuing, sparking increased concern over the US auditing giant’s future.
Accounting industry experts said the stream of defections is likely to continue after the criminal indictment of Andersen for shredding documents related to its audits of Enron.
Sara Lee, Abbott Laboratories, Northeast Utilities and Brunswick have severed decades-long relationships with Andersen, and with others saying they are considering firing the Chicago-based firm.
Combined, the four paid Andersen more than $15 million in auditing fees last year.
Andersen has held talks with other Big Five accounting firms in recent days about a possible sale of some or all of its assets. But talks have faltered over concerns about Andersen's liabilities from the Enron case.
PA