Conflicts of interest in the Arthur Andersen accounting firm intensified when ________ became the firm's largest source of profits and large clients pressured ________ office managers to give favorable audits.
A) consulting; regional
B) consulting; national
C) auditing; regional
D) auditing; national

Question

Quizplus · Accepted Answer

Consulting services became Arthur Andersen's largest source of profits, leading to conflicts of interest, especially when large clients pressured regional office managers to give favorable audits. This situation compromised the firm's objectivity and integrity in its auditing functions.

Conflicts of Interest in the Arthur Andersen Accounting Firm Intensified