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> Well ok, but was EY less competent than McKinsey or did they just get unlucky that they're the poor bastards who stepped on the landmine? I have asked myself
by krn 3y ago
> Well ok, but was EY less competent than McKinsey or did they just get unlucky that they're the poor bastards who stepped on the landmine?
I have asked myself the same question, before I noticed that EY is basically the Credit Suisse and the SoftBank of the audit world[1]:
> EY has been involved in many accounting scandals: Bank of Credit and Commerce International (1991), Informix Corporation (1996), Sybase (1997), Cendant (1998), One.Tel (2001), AOL (2002), HealthSouth Corporation (2003), Chiquita Brands International (2004), Lehman Brothers (2010), Sino-Forest Corporation (2011), Olympus Corporation (2011), Stagecoach Group (2017), Wirecard (2020), Luckin Coffee (2020) and NMC Health (2020).
In fact, Wirecard managed to partner with EY, Credit Suisse, and SoftBank simultaneously just before going bankrupt.
Maybe because no reputable companies wanted to touch it?
[1] https://en.wikipedia.org/wiki/Ernst_%26_Young#Accounting_scandals https://en.wikipedia.org/wiki/Ernst_%26_Young#Accounting_sca...
- hef19898 3y agoWell, EY started as part of Andressen (?) and was as such part of the Enron scandal. We shouldn't ignore the scandal of the century. EY so is a very reputable accounting firm. Unreputable would be the Metaverse headquartered shop FTX used.
- deleted 3y ago[deleted]
- tim-- 3y agoYou might be thinking of Accenture, which was founded from the ashes of Andersen Consulting. Andressen is one half of Andreessen Horowitz (a16z) which (I think?) doesn't have any connection to Enron.
- Zafira 3y agoAccenture is Andersen Consulting. It left and changed its name to Accenture because of internal infighting and politics prior to the Enron scandal that took down Andersen entirely.
- bayouborne 3y agoThe name Accenture was also chosen because they were able to keep using Andersen Consulting's existing ac.com domain w/o interruption.
- er4hn 3y agoThe OP is thinking of "Arthur Andersen", the accounting firm that serviced both Enron and Worldcom. The first paragraph of Wikipedia cites the scandals as factors in enacting SOX (src: https://en.wikipedia.org/wiki/Arthur_Andersen https://en.wikipedia.org/wiki/Arthur_Andersen)
- cgeier 3y agoIt wasn't, it was spun out before Enron.
- jasmer 3y agoE&Y and McKinsey are not remotely in the same business. E&T are accountants who double check that your financials are what they say they are. McKinsey are management consultants who generally do strategic projects, and/or facilitate other consultants to actually do work.
- cgeier 3y agoEY also has a management consulting arm, not sure how successful they are though. https://www.ey.com/en_gl/strategy-transactions/strategy-services https://www.ey.com/en_gl/strategy-transactions/strategy-serv...