Enron Corp. - University of California | Office of The President

Andersen also consented to the use of its name as an expert in each Prospectus filed and issued
pursuant to these offerings, including the Prospectus for the Zero Coupon Notes filed on 7/25/01.
Andersen's issuance of, and multiple consents to reissue materially false reports on Enron's 97-00
financial statements were themselves violations of GAAS.
900. The SEC has stressed the importance of meaningful audits being performed by
independent accountants:
[T]he capital formation process depends in large part on the confidence of investors
in financial reporting. An investor's willingness to commit his capital to an
impersonal market is dependent on the availability of accurate, material and timely
information regarding the corporations in which he has invested or proposes to
invest. The quality of information disseminated in the securities markets and the
continuing conviction of individual investors that such information is reliable are
thus key to the formation and effective allocation of capital. Accordingly, the audit
function must be meaningfully performed and the accountants' independence not
compromised.
Relationship Between Registrants and Independent Accountants, SEC Accounting Series Release
No. 296, 1981 SEC LEXIS 858, at *8-*9 (Aug. 20, 1981).
901. Moreover, Andersen violated the public's trust and violated the American Institute
of Certified Public Accountants ("AICPA's") Code of Professional Ethics:
ET §51
.02 These Principles of the Code of Professional Conduct of the American
Institute of Certified Public Accountants express the profession's recognition of its
responsibilities to the public, to clients, and to colleagues. They guide members in
the performance of their professional responsibilities and express the basic tenets of
ethical and professional conduct. The Principles call for an unswerving
commitment to honorable behavior, even at the sacrifice of personal advantage.
ET §53
.03 Those who rely on certified public accountants expect them to
discharge their responsibilities with integrity, objectivity, due professional care,
and a genuine interest in serving the public.
- 580 -