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

Is It the Draft Lottery or Ernst & Young That’s Unfair?

The recent NBA draft has sparked a debate about its fairness, especially in light of the Dallas Mavericks’ incredibly slim chances of securing the number one pick. With only a 1.8% probability—equating to approximately 1 in 55—it’s a scenario that feels unlikely, to say the least.

This brings us to the heart of the issue: the Accounting firm responsible for the draft lottery process, Ernst & Young (EY). Known for their involvement in several high-profile controversies, EY has developed a reputation that prompts one to question their oversight capabilities.

Here are a few notable incidents that paint a concerning picture:

• Wirecard (2020): Despite approving financial statements that showed a staggering €1.9 billion in cash, it was later revealed that this sum didn’t exist at all.

• Luckin Coffee (2020): The firm uncovered a glaring red flag when it failed to detect $300 million in fictitious revenue.

• CPA Ethics Exam Scandal (2022): EY found itself embroiled in scandal after being discovered cheating on internal ethics examinations and subsequently misleading the SEC about their actions, resulting in a hefty fine of $100 million.

• Brooge Energy (2024): A lawsuit filed by investors alleged that EY either missed or overlooked significant revenue inflation, reported to be between 30% and 80%.

• Italy (2024): The Italian branch of EY faced scrutiny after authorities raided their offices due to allegations of bid rigging related to European Union contracts.

Given this track record, one must ponder: what seems more plausible? That the Dallas Mavericks defied the odds and clinched the number one pick, or that Ernst & Young has once again found itself entangled in a troubling Audit scandal?

In light of these circumstances, the discussion of fairness within the draft lottery could benefit from greater scrutiny, particularly concerning the oversight provided by Ernst & Young. It certainly raises questions about the integrity of the process and whether the odds are truly random—or if there is more at play behind the scenes.