Arthur E. Andersen
Encyclopedia
Arthur E. Andersen was a founder of the accounting firm Arthur Andersen LLP
.
. John William and Mary Aabye Andersen, Arthur Andersen’s parents, had immigrated to the United States from Norway
in 1881. Andersen was left on his own at the age of 16 after the death of his parents. In 1917, after attending courses at night while working full time, he graduated from the Kellogg School at Northwestern University
with a bachelor's degree in business.
He worked during the day as a mailboy and attended school at night. Eventually he was hired as the assistant to the controller
of Allis-Chalmers
in Chicago where he became intrigued with the work of independent public accountants. He became a Certified Public Accountant
in Illinois in 1908, and was then the youngest CPA in the state. In 1913, with Clarence Delaney, he bought out a firm named The Audit Company of Illinois to form Andersen, Delaney & Co which became Arthur Andersen & Co. in 1918.
While practicing accounting, he was also associated with Northwestern University as lecturer (1909-12), assistant professor (1912-15), and professor (1915-22). He also served as head of the accounting department from 1912 to 1922, when he resigned to devote full time to his professional accounting practice.
Honorary Doctor of Laws degrees were conferred upon him by Luther College
in 1938, and by Northwestern University
, Grinnell College
and St. Olaf College
in 1941. Among other awards, in 1940 he was awarded the Norwegian Knight Commander's Cross of the Royal Order of St. Olav. Arthur E. Andersen also served as Treasurer of the Norwegian-American Historical Association
(1936-42) and was a director of the State Bank & Trust Co.
(Evanston, Illinois).
At the time of his death, Arthur Andersen was one of the largest accounting firms in the world. Arthur Andersen's mother had schooled him in a Scandinavian axiom--"Think straight, talk straight". His brand of stern independence carried on through Leonard Spacek, who succeeded Andersen after the founder's death in 1947. He was named to the Accounting Hall of Fame
in 1953. Northwestern University
dedicated Arthur Andersen Hall at the Evanston Campus in 1979 to commemorate Northwestern alumnus, faculty member, and trustee Arthur Andersen.
Arthur Andersen
Arthur Andersen LLP, based in Chicago, was once one of the "Big Five" accounting firms among PricewaterhouseCoopers, Deloitte Touche Tohmatsu, Ernst & Young and KPMG, providing auditing, tax, and consulting services to large corporations...
.
Biography
Arthur Edward Andersen was born in Plano, IllinoisPlano, Illinois
Plano is a city in Kendall County, Illinois, United States near Aurora, with a population of 5,633 at the 2000 census. The city is rapidly growing with new subdivisions such as Lakewood Springs completed and several other developments under construction or in the planning stages. Former Speaker...
. John William and Mary Aabye Andersen, Arthur Andersen’s parents, had immigrated to the United States from Norway
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...
in 1881. Andersen was left on his own at the age of 16 after the death of his parents. In 1917, after attending courses at night while working full time, he graduated from the Kellogg School at Northwestern University
Northwestern University
Northwestern University is a private research university in Evanston and Chicago, Illinois, USA. Northwestern has eleven undergraduate, graduate, and professional schools offering 124 undergraduate degrees and 145 graduate and professional degrees....
with a bachelor's degree in business.
He worked during the day as a mailboy and attended school at night. Eventually he was hired as the assistant to the controller
Comptroller
A comptroller is a management level position responsible for supervising the quality of accounting and financial reporting of an organization.In British government, the Comptroller General or Comptroller and Auditor General is in most countries the external auditor of the budget execution of the...
of Allis-Chalmers
Allis-Chalmers
The Allis-Chalmers Manufacturing Co. of West Allis, Wisconsin, is an American company known for its past as a manufacturer with diverse interests, perhaps most famous for their bright Persian Orange farm tractors...
in Chicago where he became intrigued with the work of independent public accountants. He became a Certified Public Accountant
Certified Public Accountant
Certified Public Accountant is the statutory title of qualified accountants in the United States who have passed the Uniform Certified Public Accountant Examination and have met additional state education and experience requirements for certification as a CPA...
in Illinois in 1908, and was then the youngest CPA in the state. In 1913, with Clarence Delaney, he bought out a firm named The Audit Company of Illinois to form Andersen, Delaney & Co which became Arthur Andersen & Co. in 1918.
While practicing accounting, he was also associated with Northwestern University as lecturer (1909-12), assistant professor (1912-15), and professor (1915-22). He also served as head of the accounting department from 1912 to 1922, when he resigned to devote full time to his professional accounting practice.
Honorary Doctor of Laws degrees were conferred upon him by Luther College
Luther College (Iowa)
Luther College is a four-year, residential liberal arts institution of the Evangelical Lutheran Church in America, located in Decorah, Iowa, USA...
in 1938, and by Northwestern University
Northwestern University
Northwestern University is a private research university in Evanston and Chicago, Illinois, USA. Northwestern has eleven undergraduate, graduate, and professional schools offering 124 undergraduate degrees and 145 graduate and professional degrees....
, Grinnell College
Grinnell College
Grinnell College is a private liberal arts college in Grinnell, Iowa, U.S. known for its strong tradition of social activism. It was founded in 1846, when a group of pioneer New England Congregationalists established the Trustees of Iowa College....
and St. Olaf College
St. Olaf College
St. Olaf College is a coeducational, residential, four-year, private liberal arts college in Northfield, Minnesota, United States. It was founded in 1874 by a group of Norwegian-American immigrant pastors and farmers, led by Pastor Bernt Julius Muus. The college is named after Olaf II of Norway,...
in 1941. Among other awards, in 1940 he was awarded the Norwegian Knight Commander's Cross of the Royal Order of St. Olav. Arthur E. Andersen also served as Treasurer of the Norwegian-American Historical Association
Norwegian-American Historical Association
Norwegian-American Historical Association publishes scholarly books, documenting research and interpretations of the American experience of immigrant Norwegians....
(1936-42) and was a director of the State Bank & Trust Co.
State Bank of Chicago
State Bank of Chicago was an American banking firm which conducted business under a state of Illinois charter issued on February 10, 1891. State Bank of Chicago operated from offices in the Chamber of Commerce Building located at the southeast corner of La Salle and Washington streets in Chicago,...
(Evanston, Illinois).
At the time of his death, Arthur Andersen was one of the largest accounting firms in the world. Arthur Andersen's mother had schooled him in a Scandinavian axiom--"Think straight, talk straight". His brand of stern independence carried on through Leonard Spacek, who succeeded Andersen after the founder's death in 1947. He was named to the Accounting Hall of Fame
Accounting Hall of Fame
The Accounting Hall of Fame is an award "recognizing accountants who are making or have made a significant contribution to the advancement of accounting" since the beginning of the 20th century. Inductees are from both accounting academia and practice...
in 1953. Northwestern University
Northwestern University
Northwestern University is a private research university in Evanston and Chicago, Illinois, USA. Northwestern has eleven undergraduate, graduate, and professional schools offering 124 undergraduate degrees and 145 graduate and professional degrees....
dedicated Arthur Andersen Hall at the Evanston Campus in 1979 to commemorate Northwestern alumnus, faculty member, and trustee Arthur Andersen.
Selected works
- Complete Accounting Course (1917)
- Financial and Industrial Investigations (1924)
- The Major Problem Created by the Machine Age (1931)
- Duties and Responsibilities of the Comptroller (1934)
- The Future of our Economic System (1934)
- Present Day Problems Affecting the Presentation and Interpretation of Financial Statements (1935)
- A Layman Speaks (1941)
Other sources
- Ruane, John A. "Andersen, Arthur E. (1885-1947)." History of Accounting: An International Encyclopedia. (New York: Garland Publishing, Inc. 1996). Pp. 44-45.
- Spacek, Leonard The Growth of Arthur Andersen & Co. 1928-1973, An Oral History (New York: Garland Publishing, Inc. 1989)
- Spacek, Leonard Ahead of His Time, Relevant Today (CPA Journal. March 2004)