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

million per year amount considering the multi-disciplinary services being provided.
Such amount did not trouble the participants as long as the nature of the services was
not an issue.
913. In another example, Andersen partners at the highest level removed partner Carl Bass
from his oversight role on the Enron audits because he continued to oppose Enron's improper
accounting practices and Andersen's complicity therein. Bass was a top accounting expert in
Andersen's internal Professional Standards Group – a national team of experts whose job was to
review and approve accounting and auditing questions facing local offices. As early as 99, Bass had
strongly objected to Enron's accounting. Again in February, March and December 00 and March 01,
e-mails, Bass continued to express his disagreement with Enron and other Andersen partners over
Enron's improper accounting. This eventually upset Enron management. As a consequence,
defendant Richard Causey, with defendant David Duncan's help, pressed top Andersen management
in Chicago to have Bass removed from the account. Causey went so far as to bring this up in a
personal meeting with Andersen CEO Berardino on 2/21/01. Three weeks later, top Andersen
management removed Bass from his job of providing oversight and approval of accounting issues
to Andersen's Enron audit team.
914. Andersen's close relationship with management was another significant contributing
factor in impairing Andersen's independence and objectivity on its Enron audits during the Class
Period. For example, at one time, former Andersen auditors and professionals occupied upwards
of 300 accounting and finance positions at Enron, many in mid-level and senior management. In
fact, Enron was the world's largest single employer of Andersen alumni. Enron defendants liked the
relationship as they knew that current Andersen auditors were much less likely to challenge the
improper accounting done by their former Andersen co-workers and bosses that were now officers
and managers at Enron.
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