A former partner at Arthur Andersen has been reinstated by the Securities and Exchange Commission (SEC) following a ban in 2008 for his role as auditor of Enron
As part of his reinstatement, CPA Michael Lowther has agreed to have his work for any public company reviewed by an independent audit committee.
He is currently not seeking to act as an independent accountant, but if he does in future he will need to submit an application to the SEC proving he has complied with the terms of the deal.
Previously, Lowther was banned by the Commission for “improper professional conduct” in his role as reviewer for Andersen’s audit of Enron.
Enron filed for bankruptcy in 2001 after it hid losses in subsidiaries with the aid of accountants from Arthur Andersen who were found to have overstated financial reports, cash flows and earnings. The scandal led to jail terms for several executives and Arthur Andersen was dissolved.
Lowther, who neither admitted nor denied the allegations, signed off on false and misleading audit reports.
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