The separation of consultancy practices from accountancy firms and the hiving off of audit work will intensify in the aftermath of Enron. The Enron scandal shows every sign of being a huge turning point in the way in which business activities are regulated in a free enterprise society. We have seen nothing quite like this since the former Prime Minister, Ted Heath, in 1973 described the Lonrho affair as “the unprecedented and unacceptable face of capitalism”. In the aftermath of Lonrho, with its emphasis on stricter accounting rules, reliance on accountants not only for accountancy services, but also for much wider consultancy activities, boomed.
Lawyers are often their own worst enemy. Although as a profession, we are far better placed to advise in areas far wider than any strict legal context, we have missed opportunity after opportunity, with few exceptions, to set up our own consultancy practices.
