Two Arthur Andersen employees are on the stand in the fraud and conspiracy trial of two former Enron executives. Houston Public Radio’s Capella Tucker reports. Aired 3/21/06 during KUHF’s Morning Business Report.
Good morning, I’m Capella Tucker, Houston Public Radio Business News.
Two former Arthur Andersen employees took the stand in the Enron trial.The first half of the day attorneys spent analyzing how a particular water business called Wessex was handled.
The second half of the day was spent with former Andersen partner Thomas Bauer. Prosecutors used his testimony to introduce auditing documents that were signed by former Enron CEO Jeffrey Skilling, Ken Lay and Enron attorneys. Bauer also testified about how reserve funds are and are not supposed to be used. Prosecution questioning suggested that information was withheld from Andersen that would have revealed reserves were being misused to help earnings statements. Defense attorneys countered with e-mails between Enron and Arthur Andersen advising them of changes with the reserve funds.
Capella Tucker, Houston Public Radio Business News.