State won’t shut out embattled auditing firm

Government agencies and businesses like Delta Airlines are considering firing the Arthur Anderson auditing firm for its connection to the Enron scandal, but Iowa officials say they won’t “blacklist” the firm. Deputy State Auditor Warren Jenkins says Arthur Anderson won’t be “black-balled” but if the firm bids for state business, he and others would be “professionally skeptical”.Senator Neal Schuerer, a republican from Amana, leads the budget committee that drafts the state’s administrative budget.Schuerer says if Arthur Anderson retains its certified public accounting license, then it shouldn’t be blacklisted. But Schuerer says the state competency board should review Anderson’s license. Schuerer is concerned by what Arthur Anderson did, saying a lot of accounting firms go beyond their scope to become consultants, and have no idea what they’re doing.A preliminary check shows Arthur Anderson currently is not hired by the state for auditing or consultant work.