Bryan Marsal, a co-director of New York consultant Alvarez & Marsal, also specializes in advising firms through a bankruptcy. However, Andersen spokesman Dan Hill denied that this was the purpose for hiring Marsal.

"He has been brought on to help the firm restructure and reorganize," said Hill. "He is helping with the need to trim costs and  restructure. He wasn't brought on to help us pursue bankruptcy."

Marsal's title with Andersen is "chief restructuring manager". The terms of his consulting agreement were not disclosed. 

Marsal is working with Paul Volcker's plan under which Andersen would become an audit-only firm, dropping its consulting and tax practices.

Volcker is expected to resign as the leader of Andersen's oversight body that was assembled in January to assist Andersen through the Enron crisis due to the collapse of negotiation talks between Andersen and the Justice Department last week. The failed attempts decreases the likelihood of federal prosecutors dropping the indictment against Andersen, which Volcker said was key to Andersen's survival.

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