Google has been sending a fair amount of traffic to my Jan 25's post on Anderson Consulting's role in the Enron affair. I kinda feel I owe them an update of sorts.

NYT has by far the best coverage on the subject. Its yesterday's story on why the government chose to indict Anderson makes interesting reading. While I relate to the employee indignation inside Anderson, I think the accounting firms had it coming for some time. I feel it would be really unfortunate if the indictment puts AC out of business. What is really called for is far reaching structural reforms. Of course, thats' one beast no one probably wants to touch. Mr. Harvey Pitt's (the current SEC chair) clientale (via mefi) and choice of cases before he joined SEC leaves one with the feeling that structural reform of accounting industry may not be his highest priority.

Incidentally, NYT today outlined the measures that Volcker proposed and what AC is doing about it. They are not very different from Levitt has been trying to do industrywide when he was running SEC.