There are about 50 large accounting firms on the Island with about 2,100 accountants, she said, as well as sole practitioners and many other firms with only three or four accountants.
The issue is particularly sensitive at the consulting units of the large accounting firms.
BDO is the latest of several large accounting firms that have seriously considered a deal with Andersen.
DELOITTE & TOUCHE, New York, the large accounting firm, said it had acquired assets from Klayman & Korman, Chicago, an accounting firm.
He estimates that large accounting firms like PricewaterhouseCoopers typically hire one out of every 10 interns they employ.
The firm helped large accounting firms fight computer hackers and promoted Nextel's efforts to expand its access to public airwaves.
Andersen has a seat on the task force, as do each of the four other large accounting firms.
In another sign that social reporting is growing, some large accounting firms are jumping in, looking to expand their auditing and consulting services.
Mr. Herdman's predecessor, Lynn Turner, had been disliked by the large accounting firms, which saw him as too tough and unyielding.
Inquiries have opened involving the large accounting firms and many of their clients, including Computer Associates International, Dynegy, Elan, Enterasys Networks, Halliburton, Kmart, Microsoft, Nvidia and WorldCom.
It is not clear if Andersen can arrange a deal with Deloitte & Touche, or with any of the three other large accounting firms.
