Part One
16th January, 2026
For decades, Arthur Andersen LLP ranked among the world’s most respected auditing firms.
Founded in 1913 in Chicago, the firm became a pillar of the global accounting profession and one of the prestigious “Big Five” audit firms.
By the early 2000s, however, Arthur Andersen had collapsed, its reputation destroyed by ethical failures, legal troubles, and the loss of public trust.
The roots of the collapse lay in the erosion of auditor independence.
During the 1990s, Arthur Andersen expanded aggressively into consulting services, often earning higher fees from advisory work than from auditing. This business model blurred professional boundaries and created conflicts of interest, reducing the firm’s willingness to challenge questionable accounting practices by major clients.
These weaknesses became undeniable with the downfall of Enron Corporation in late 2001. Enron, once celebrated as an innovative energy company, used complex accounting structures to conceal debt and exaggerate profits.
Arthur Andersen, Enron’s external auditor, failed to adequately scrutinize or oppose these practices. When Enron filed for bankruptcy, one of the largest in U.S. history, attention quickly turned to its auditor.
The crisis deepened when it was revealed that Arthur Andersen employees had destroyed audit documents related to Enron while regulatory investigations were underway.
In 2002, the firm was convicted in the United States of obstruction of justice. Although the conviction was overturned by the U.S. Supreme Court in 2005, the ruling came too late to save the firm.
By mid-2002, Arthur Andersen had lost most of its clients and surrendered its license to audit public companies in the United States.
Thousands of employees worldwide lost their jobs, and the global accounting industry shrank from the Big Five to the Big Four.
Arthur Andersen’s collapse reshaped the profession, leading to reforms such as the Sarbanes–Oxley Act of 2002 and stricter oversight of auditors. The firm’s fall remains a lasting reminder that in business, ethical integrity and public confidence are non-negotiable assets.
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Who were some of the auditors of Arthur Anderson and how does that relate to Sierra Leone’s politics? Please stay tuned for next edition.
Part 2
20th January, 2026.
The British citizen, Madam Yvonne Aki-Sawyerr, two-term Mayor of Freetown and current aspirant for the flag-bearer position of the All Peoples Congress Party (APC), began her professional career at Arthur Andersen’s London office in 1990.
She joined Arthur Andersen in London as a chartered accountant trainee, an entry-level role in which she began her career in the services and auditing industry.
Over the subsequent years, she worked in financial services, corporate governance consultancy, and eventually progressed into senior roles.
Madam Aki-Sawyerr’s employment at Arthur Andersen occurred during a period when the auditing firm had made a name for itself around the World. However, the decade that saw Arthur Andersen expand its global workforce, marked the beginning of deep structural weaknesses within the firm.
This period blurred the line between independent auditing and profit-driven consultancies, undermining the principle of auditor independence upon which public trust depended.
These systemic weaknesses came into full view with the collapse of Enron Corporation in late 2001. Enron used complex accounting mechanisms to hide debt and inflate profits, practices that went insufficiently challenged by Arthur Andersen as its external auditor. When Enron filed for bankruptcy, Arthur Andersen’s credibility suffered a devastating blow.
The situation worsened when it emerged that some Arthur Andersen personnel had destroyed audit-related documents while regulatory investigations were underway.
In 2002, the firm was convicted of obstruction of justice.
Arthur Andersen effectively collapsed, losing most of its clients and surrendering its license to audit public companies around the World.
Tens of thousands of employees worldwide, lost their jobs. The global accounting industry then contracted to the “Big Four.” Those events were driven by failures at the highest levels of the firm.
Arthur Andersen’s collapse offers enduring lessons that are relevant today, particularly in respect of its senior management staff who oversaw the collapse of the once illustrious company.
That lesson calls for stricter scrutiny of anyone involved with Arthur Andersen during its dishonourable fall, moreover, if they are seeking higher political office.
Lessons Sierra Leoneans must reflect upon are that, Institutional failures often begin quietly.
Major collapses rarely start with large criminal acts; they begin with small compromises, weak oversight, and tolerance of conflicts of interest.
Even highly educated individuals and globally respected institutions can fail when ethical discipline is subordinated to ambition and profit.
Once public confidence in an institution is lost, whether a global audit firm or a national government, it is extremely difficult to restore.
Experience in powerful institutions should produce humility, not entitlement.
Exposure to global systems that have failed should sharpen one’s commitment to transparency, not dull it.
As Sierra Leoneans evaluate those seeking to lead the nation, the collapse of Arthur Andersen stands as a cautionary historical example; that technical competence alone is insufficient; ethical courage, independence, and accountability are indispensable.
History judges institutions and leaders not only by their success, but by how they respond to ethical pressure when it matters most.