As I pointed out to one of Andersen’s senior management partners, senior engagement partners had an incentive not to look too closely at the risks associated with big clients. A retiring partner’s pension depended on how much revenue he brought in over the years. The audit of a big firm, like Enron, typically involved millions of dollars. It was clear to me why a partner might look the other way, choosing not to check too closely whether the firm had created a big risk of litigation down the road.
