Arthur Andersen 1-Introduction Arthur Andersen LLP was founded in Chicago in 1913 by Arthur Andersen and partner Clarence DeLany. After 90 years Arthur Andersen firm become known as one of the “Big Five” largest accounting firms in the United States, the firm was one of the big five with PricewaterhouseCoopers, Deloitte & Touche, KPMG and Ernst & Young. the firm’s name was synonymous with ethics, integrity, and trust. And it is important for a firm to have such values. Because accounting firms are charged with independently auditing and confirming the financial statements of public corporations, that also helps investors to make investment decisions. Arthur Andersen once exemplified the integrity and rock-solid character that was synonymous with the accounting profession. However, the bankruptcies of high-profile clients such as WorldCom and Enron and the string of accounting scandals that eventually cost investors nearly $300 billions of dollars and also caused hundreds of thousands of people their jobs. As a result of these scandals, the Chicago-based accounting firm closed its doors in 2002, after 90 years of business. 2- background, ethical issues involved BAPTIST FOUNDATION OF ARIZONA BAPTIST FOUNDATION OF ARIZONA become the largest bankruptcy of a nonprofit charity in U.S history, the Baptist Foundation of Arizona (BFA), where Andersen firm served as the charity auditor, the charity lost $570 millions of donor funds. BFA, an agency of the Arizona Southern