Enron Corp. accountant Andersen has stirred a lot of conversation among media
clients of the firm.
Among the 'Big Four' networks, Andersen counts News Corp. and its Fox
Entertainment as clients.
There was no comment from them on their auditor's current Enron woes. But a
source at News Corp. said the company is not formally reviewing whether or not
to switch auditors.
However, '[News Corp. chief financial officer] David Devoe could wake up
tomorrow and decide to make a change,' a company source said. 'One call to
[chairman] Rupert [Murdoch] would do it.'
Emmis Communications Corp. is conducting a review of Andersen's work, but CEO
Jeff Smulyan stressed that it is an annual review that would have taken place
anyway. Emmis has had a long-standing and positive relationship with the firm,
Andersen's other media clients include EchoStar Communications Corp.,
Univision Communications Inc., Sinclair Broadcast Group Inc., Mediacom
Communications Corp., Adelphia Communications Corp., TiVo Inc., Interep and
Radio One Inc.
'I have a relationship with Arthur Andersen going back to 1986,' Mediacom
chairman Rocco Commisso said. 'They have always done a good job.'
One observer noted that it would be unlikely that anyone would dump the firm
now, barring evidence of egregious misconduct, because many companies are now
preparing annual 10-K reports and tax forms.