Andersen Split has Rippling Effect | AccountingWEB

Andersen Split has Rippling Effect

Now that Andersen Consulting has made a formal split from its parent company, Arthur Andersen, some analysts are saying that the larger, Big 5 firm will suffer from separation anxiety.

What's the affect of such a split? Financially, Arthur Andersen has lost a division worth $10 billion, along with more than $200 million in profit-sharing fees each year.

But more than that, the word on the street is that the split forces Arthur Andersen to become more competitive, having been relegated to the least profitable Big 5 in terms of revenues.

One proposed path for the Big 5 firm is to increase its revenues with its finance consulting division for internal accounting matters. Most likely, nothing major will be done until a new CEO can be secured for the firm.

Wait, there's more!
There's always more at AccountingWEB. We're an active community of financial professionals and journalists who strive to bring you valuable content every day. If you'd like, let us know your interests and we'll send you a few articles every week either in taxation, practice excellence, or just our most popular stories from that week. It's free to sign up and to be a part of our community.
Premium content is currently locked

Editor's Choice

WHAT KIND OF FIRM ARE YOU?
As part of our continued effort to provide valuable resources and insight to our subscribers, we're conducting this brief survey to learn more about your personal experiences in the accounting profession. We will be giving away five $50 Amazon gift cards, and a $250 Amazon gift card to one lucky participant.
This is strictly for internal use and data will not be sold
or shared with any third parties.