Mention the collapse of Andersen to any lawyer and the reaction will typically be a mixture of shock, amazement and fear – plus a touch, perhaps, of a sense that “there but for the grace of god”.
Many lessons can be drawn from this unfortunate episode, not least that a professional firm’s reputation, one of its most valuable, albeit intangible assets, can be a fragile thing, vulnerable to harm. Andersen’s professional reputation, carefully and expensively established over a number of years, was destroyed virtually overnight as a result of the actions of people within the firm, or by clients that indulged in irregular activity.
