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Worse. Most of Enron management was directly sourced from McKinsey and McKinsey was intricately involved in its strategy and accounting. One day the story will
by haltingproblem 6y ago
Worse. Most of Enron management was directly sourced from McKinsey and McKinsey was intricately involved in its strategy and accounting. One day the story will be told of how they got away with it but Andersen took the whole blame.
https://www.independent.co.uk/news/business/analysis-and-features/mckinsey-how-does-it-always-get-away-it-9113484.html https://www.independent.co.uk/news/business/analysis-and-fea...
- nickff 6y ago"The Smartest Guys in the Room" told that story, and the short version is that Andersen was the auditor which was supposed to be ferreting out accounting issues (and has certain legal responsibilities). McKinsey was a recruiting ground and consultant.
- haltingproblem 6y agoThat is not what this article says: https://www.theguardian.com/business/2002/mar/24/enron.theobserver https://www.theguardian.com/business/2002/mar/24/enron.theob... McKinsey was integral to designing Enron's asset light strategy and also creating the stock borrow structure, their internal talent marketplace, etc. etc. Seems like where Enron stopped and McKinsey started is hard to place.
- nickff 6y agoConsultants are often deeply entwined in their companies, particularly when people like Skilling were from the consultancy. The auditor on the other hand has a duty to the shareholders. The whole point of independent financial audits is to guarantee the completeness and veracity of financial statements.