d by dy

In the 1990’s, auditing was about making clients happy and winning consulting contracts. In response, the FASB, the standard setter in the United States, sent auditing satisfaction surveys to CFOs at corporations. The theory was that auditors should not make people happy. Happy CFOs raised red flags.

Of course no such surveys are needed now. After the demise of Arthur Anderson and Sarbanes Oxley, auditors went to the other extreme so as to cover their butts to the greatest extent possible. There are probably no happy CFOs anymore.

He was a bankruptcy lawyer for 15 years. Then, a client invited him to join a hedge fund. What is unique about his experience is that his substantive legal trainings have remained valuable. This is so because he places bets on the amount of money creditors can collect from a bankrupt company.

I am more and more convinced that bankruptcy is the practice area that requires the greatest amount of problem solving.