The Texas State Board of Accountancy (TSBPA) has had an ongoing disciplinary action against three CPAs who were involved in Arthur Andersen's (AA) 1997 and 1998 audits of Enron Corporation’s financial statements. After extensive proceedings, TSBPA revoked the professional certificates of two Andersen partners and suspended the certificate of an Andersen senior manager, but probated the three-year suspension.
The CPAs appealed the action to the State District Court in Austin and won a summary judgment preventing TSBPA from enforcing the revocations and suspension on the grounds that the TSBPA had violated the Texas Open Meetings Act (TOMA) in the process of determining the case. On appeal, the Texas Court of Appeals reversed the summary judgment, ruling that TSBPA did not violate TOMA and remanded the case to the district court for further proceedings.
The appellate court’s opinion (PDF) was issued Feb. 24, 2012 and includes a brief recap of the entire case.