Arthur Andersen Conviction Overturned - What does it mean? 759
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The US Supreme Court overturned the conviction of the Arthur Andersen accounting firm.
Andersen had put in practice a policy that called for the destruction of ‘unnecessary documentation’. They shredded tons of documents followed the policy, but they said in court that ‘there was no intent to thwart the SEC investigation’.
What does it mean to all of us?
If we have document-retention policies, we will have more freedom to destroy documents without fear of potential prosecution. We do not need to keep all files for fear that any disposal could mean a potential prosecution.
Sure, we will be charged if we destroy documents consciously knowing we are committing a fraud.
But it is not that simple. What do you believe about that?