CHICAGO – Andersen Chief Executive Officer Joseph Berardino said Monday the accounting firm has lost business because of its association with collapsed energy trading giant Enron Corp.
"We will survive," Berardino told a news conference at the company's headquarters in Chicago. "People know us. People respect us. Will we lose business? Absolutely," he said.
Berardino said the company, which was Enron's auditor, was reviewing all of its accounting procedures. "We are in the final stages of finishing the review. We will know in a few days ... what did we know, and when did we know it," he told reporters.
When asked if clients defected, Berardino said, "Yes. We've lost business." He declined further comment.
Enron fired Andersen as its auditor on Jan. 17. Andersen said its relationship with Enron ended when the company filed for bankruptcy on Dec. 2. Both organizations are under investigation by the U.S. Securities and Exchange Commission and at least eight congressional committees. The Justice Department is conducting a criminal probe of Enron.