The chief auditor for accounting firm Arthur Andersen has pleaded guilty to a charge of obstruction of justice connected to the collapse of energy trader Enron. 

David Duncan pleaded guilty in Houston, Texas Tuesday to one count of obstructing justice for directing the shredding of documents related to Enron's finances. He is believed to be the first person in the case to strike a deal with federal prosecutors, and is expected to testify against Andersen at its trial May 6. 

The Andersen firm was indicted in March on one count of obstruction of justice for allegedly shredding documents related to the Enron collapse. The firm has been accused of using questionable accounting practices to hide losses at Enron. 

On Monday, Andersen announced it will cut 7,000 jobs over the next several months, amid mounting losses as the company loses clients. Thousands of workers have also lost their jobs at Enron - once the world's largest energy trader, but now in the middle of the largest bankruptcy in U.S. history. 

Some information for this report provided by AP. 

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