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Why was Arthur Andersen accused of obstructing justice when the SEC started to investigate Enron?

a) Falsifying financial documents
b) Destruction of evidence
c) Insider trading
d) Securities fraud

User Zigac
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1 Answer

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Final answer:

Arthur Andersen was accused of obstructing justice by destroying evidence during the SEC's investigation of Enron. Corporate crime includes unlawful acts like embezzlement, which is the answer to the example provided in the query. The correct option is b) Destruction of evidence

Step-by-step explanation:

Arthur Andersen was accused of obstructing justice because he was involved in the destruction of evidence when the Securities and Exchange Commission (SEC) began investigating Enron. The accounting firm destroyed documents related to its audit of Enron, thereby hindering the SEC's investigation. This act of destroying documents was part of a larger scandal involving Enron's fraudulent accounting practices, which Arthur Andersen had allegedly helped to conceal.

Corporate crime refers to illegal actions committed by a company or individuals acting on its behalf. Embezzlement, which is the fraudulent taking of personal property by someone to whom it was entrusted, is an example of corporate crime. So, the answer to the question about an example of corporate crime would be embezzlement. The correct option is b) Destruction of evidence

User Cynical
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