SUIT PROMPTED BY FAILURE OF BAHAMAS BANK PUTS ACCOUNTING INDUSTRY PRACTICE ON TRIAL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00806R000200880023-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: June 25, 2010
• Sequence Number: 23
• Publication Date: February 17, 1981
• Content Type: OPEN SOURCE

STAT
Sanitized Copy Approved for Release 2010/06/25: CIA-RDP96-00806R000200880023-8
3
ti1ALL STREET JOURNAL
17 February 1981
Suit Pthniptedbv
Puts Accouritirig`
13y JIM DBJNXHALL
If the law firm of Williams & Connolly.
has its way, there could be siegnificant
changes in how the accounting profession
cotes its business.
In. asuit filed in federal."district court in
Co '.the nation's largest' accounting flrm?II
should be held-liable for..t acts of-a. Baha I!
house:mamtaui? thar;eactirol the organua
tion's affiliate bfficesris"lndependenLt ,But'
Wil isms-d Connolly=, already has. .: started':
chipping' awa}? ar~:thaf def use' & federal
judge has ruled:that:secioet-oaudit standard.
reyiews,c: Price Watieoose's-'internal--au-
dits of rtst*affiliates, ber.tnrned over to
SSi7liaa*&BcConnoliy?,, n ,rt ~
Tbe:i'm_ Connection
Attorneys for five: of-the} Big Eight: no-
counting concerns . argued unsuccessfully-
that-disclosure of the.reports would practi-
cally destroy the ,effectiveness of the ac-
courting profession. They say they haven't
decided whether to appeal: .
Meanwhile, there-are-Indications, that an
accountant for Price' Waterhouise's- Baba-
mian affiliate may'bave - bad- connections'
with the Central Intelligence-Agency;: Price
Waterhouse denies any involvement-
T& the court battle, Williams & Connolly
represents. the ' tiquidab~ss:: of'`lvfer.
Bank be T=t.Co ;; -galrarnas:;
In L9T3, a. two-thirds: huarest"_f> Mercantii
was? piuchase by,,Dttesnatfonal Bank --
Washington, a diversltfed=holdingCempa)"
International: bought alte