Andersen Names Transition Team
Former Federal Reserve chairman, Paul Volcker, the man in charge of attempting to keep Big Five firm Andersen alive in the wake of the Enron fiasco and the subsequent lawsuits and client defections, has announced a team to lead the transition of Andersen to its new structure.
Last week, Andersen's partners agreed to adopt Mr. Volcker's reorganization plan that includes a complete separation of the firm's U.S. auditing and consulting practices. Auditing and consulting already operate separately in Europe and many other areas of the Andersen Worldwide practice.
Leading the transition team are C.E. Andrews, head of the firm's worldwide audit practice, and Larry Riegler, another senior partner. Last week, Andersen's CEO Joseph Berardino resigned his post. Mr. Berardino has not yet been replaced.
In other recent appointments, Larry Gorrell has been named managing partner of the U.S. firm, replacing Houston-based Terry Hatchett. "We are committed to building the audit firm of the future under the leadership and recommendations of Mr. Volcker," said Mr. Gorrell.
If all of the conditions of Mr. Volcker's plan are met, a seven-member governing board led by Mr. Volcker will oversee the operations of the firm.