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August 31, 2009



"As soon as the extent of the fraud was made public, Andersen's international divisions and partners not involved in the scandal detached themselves from the firm, making it impossible for Andersen to survive." NOT TRUE!!!! IT WAS THE INDICTMENT THAT CAUSED THE NON-US ANDERSEN FIRMS TO LEAVE. EVERYONE KNEW THE SIZE OF DAMAGES FACE IN THE ENRON CASE FOR 2-3 MONTHS BEFORE THE INDICTMENT.


It's Farrell's timeline, not mine -- and depends on how you define "as soon as." Because Enron was mooted by the plaintiffs' bar to be the first billion-dollar payment by an auditor, and a settlement in the $800 million range was reported as agreed in principle but scuttled by the firm's disintegration. Sums of that magnitude in context of Andersen's other pending litigation exposures would have inflicted a mortal wound on the firm -- the indictment notwithstanding.

Small Business Bookkeeping

I hope the issue would be settled immediately since it involves the big company's reputation.

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