Andersen's RI unit merges with Ernst & Young<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The Indonesian unit of troubled accounting giant Arthur
\nAndersen, called Prasetio Utomo-Andersen Indonesia, has finally
\nmerged its operation on Thursday with the Indonesian affiliate of
\nErnst & Young.<\/p>\n
The merger was held to combine the strengths of both companies
\nas well as to provide certainty for Arthur Andersen's clients
\nfollowing the Enron scandal in the United States, which dragged
\nthe reputation of the accounting firm worldwide through the mud.<\/p>\n
\"(Through the merger) we will bring the strengths of both
\nfirms together to be stronger than the sum of our parts,\" said a
\nstatement released to the press on Thursday, following the merger
\nannouncement.<\/p>\n
The merger followed months of talks, during which the troubled
\nfirm also approached PricewaterhouseCoopers (PwC), and Deloitte
\nTouche Tohmatsu (DTT).<\/p>\n
Ernst & Young was finally available for merger with the Arthur
\nAndersen unit.<\/p>\n
After the merger, the new firm will be known as Ernst and
\nYoung Prasetio, Sarwoko, Utomo and Sandjaja.<\/p>\n
John Prasetio, formerly from Andersen, will be the firm's
\nchairman. Simon Halim from Ernst and Young will retain his
\nposition as the chief executive officer of the new firm.<\/p>\n
The move by the Indonesian unit of Andersen followed similar
\nactions by other Andersen affiliates worldwide, which had been
\nseeking mergers with other firms, as the reputation of Andersen's
\nheadquarters in Washington was ruined following its involvement
\nin the Enron scandal.<\/p>\n
U.S.-based Andersen, which audited Enron's financial reports,
\nwas convicted last week by a jury for the obstruction of a
\ngovernment inquiry into the firm which announced its bankruptcy
\nlate last year amid reports of irregularities in its financial
\nreports.<\/p>\n
Andersen affiliates in Singapore, New Zealand and Australia
\nhave signed deals to merge their operations with Ernst and Young.<\/p>\n
Associated Press reported that Andersen headquarters in
\nWashington had lost more than 100 public audit clients so far
\nthis year, following the Enron scandal.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/andersens-ri-unit-merges-with-ernst-young-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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