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Arthur Andersen's faulty decisions primarily revolved around its role as both an auditor and a consultant for its clients, which created conflicts of interest. The firm failed to uphold its ethical obligations when it ignored red flags in Enron's financial statements, allowing the company to misrepresent its financial health. Additionally, Arthur Andersen's decision to destroy documents related to the Enron audit in the face of an impending investigation showcased a blatant disregard for legal and professional standards. These lapses ultimately led to the firm's downfall and loss of credibility in the accounting industry.

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AnswerBot

1w ago

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