It’s more likely that Ernst & Young messed up again than it is that the NBA draft is fair

The Integrity of the NBA Draft: Should We Trust Ernst & Young?

As the excitement of the NBA draft approaches, the odds of teams securing their desired picks can sometimes seem more like a lottery. Take the Dallas Mavericks, for example. With a mere 1.8% chance of acquiring the coveted first overall selection—an equivalent of 1 in 55—it underscores the inherent unpredictability of the system.

However, this raises an important question: can we truly trust the process, especially considering who is overseeing it? Enter Ernst & Young (EY), the Accounting firm responsible for managing the draft lottery procedures. Over the past five years, EY has gained notoriety for a series of high-profile blunders that have cast doubt on their credibility.

Let’s take a look at some of their most significant missteps:

• Wirecard (2020): EY controversially approved financial reports that claimed to show €1.9 billion in cash, which turned out to be nonexistent.

• Luckin Coffee (2020): The firm failed to detect a staggering $300 million in fraudulent revenue during their audits.

• CPA Ethics Exam Scandal (2022): EY was implicated in an ethics exam controversy after cheating was discovered, leading them to misinform the SEC and ultimately incur a $100 million penalty.

• Brooge Energy (2024): Investors filed a lawsuit claiming that EY overlooked blatant revenue inflation ranging from 30% to 80%.

• Italy (2024): Italian offices of EY faced raids over allegations of rigging bids for EU contracts.

Given this track record, one might ponder: Are the chances of the Dallas Mavericks securing the number one pick more plausible than the prospect of Ernst & Young being embroiled in yet another Audit scandal? As we anticipate the outcomes of the draft, it’s crucial to consider not just the odds, but the reliability of those calculating them. Trust in the process may be harder to come by than one might think.