Litigation

Bring Out the Big Guns?

By Tracy Coenen

From my Thought Leadership series at Securities Docket:

When companies have big problems, they usually bring out the big guns. The benefits of using large law firms, audit firms, and other professional service firms are undeniable. These firms offer a depth of experience that is invaluable, and they have seemingly unlimited resources in terms of manpower. A large firm often has the ability to mobilize an engagement team quickly, and can bring in experts from around the world.

Does bigger mean better? Certainly the perception exists that larger firms provide better services. No one can fault an executive who chooses a big firm when trouble is brewing. There is an undeniable comfort level that comes with the big firms because they have established reputations and many resources. Even if the project goes poorly, no one can fault the executive who chose the large firm.

Contrast this with the risk of using a small law firm or forensic accounting firm. Most board members and shareholders have never heard of the small firm. Is it competent? Does it have the resources to handle an investigation of this size? What if something goes wrong? The executive who chose the small firm is going to feel the heat.

Read the whole article at Securities Docket.

Full post as published by The FRAUDfiles Blog on November 14, 2010 (boomark / email).