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The output from this research reflects the view and perceptions of Enron and WorldCom debacles, which involved in the risk judgment. Given the timeframe of the research, the judgment does not constitute an exhaustive coverage on preventive controls of the scandals. Whilst, detailed fieldwork not been conducted to validate the integrity for both organization. In addition, the research problem had been highlighted as below:

Lack of Corporate Risk Management and transparency that resulted to loss of confidence and thrust by investors, customers, staff and relevant parties.i. e. No proper arrangements in transparency, compliance and policies.  Unclear reporting lines which create a conflicting instruction and confusion resulting in retarding efficiency by internal and external auditors and lack of strategic direction and planning, which is not accounted about organization function without clear objectives.

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Lack of awareness by Directors and Senior Management on Corporate Governance Issues and ignorance in investment planning and feasibility studies which resulted to monetary loss. Lack of control on Capital Expenditure, which effect to fund tied down to non-essential capital expenditure which cause to high gearing with high interest cost, repayment problem and large amount of debt.

Poor Supply Chain Management -cause to lose market share and did not adopt modern technology and customizing various aspect of Accounting Standards. This studies focus on the current preventive step that has been taken by governance bodies to blowup the accounting fraud.

The prototype of the accounting standards and auditors is to look forward for more advancement in organizing the newest method of preparation the organization financial statements. The progression on the corporate governance issues evolves the intellectual thinking among the directors, top management and external auditors between the organizations. Survey of Literature Carolan McLarney and Ramakrishnan Dastrala (2001) discussed the socio-political structures as determinants of global success, which is ability to match the aggressiveness of Enron operations and its strategy to preparedness to defend themselves into environmental threats.

The author pointed that globalization has increased the complexity and the pace of “change” to which organization much adapt and over which they have no control. The results from their survey indicated that market deregulation; economic liberalization and rapid advancement of information technology have facilitated the convergence of technical, legal and educational factors whereby the differences have eliminated. The implications of the Enron cases bring into the thrust of the entire structural reforms program that has been improve the climate investment.

The articles describe how is the events leading to the problem with the financial problem and political pressures. The analysis of the Enron case shows challenges to organizations and managers to understand and interpret these challenges in order to determine an appropriate response. The Enron case proves, to the international investor community, that there are uncertainties in the whole system. The author did not mention the global economics activities that determine the collapse of Enron Corporation. It’s also failed to identify irrefutable empirical evidence from the corporate and government sectors.

Peter Driscoll and Witold M. Orlowski (2002) presented that the fate of Enron and WorldCom be seen as a mere tip of the iceberg. He discussed that the upturn in the US was to be followed by an upturn in Western Europe, then by an improvement in growth rates in Poland. The global 2001 recession was assessed as relatively shallow and short-term. The articles describe how the threat of bankruptcy became the occasional reality for poorly managed company in the past but now large enterprises with the tremendous of experience also slip and fall.

The author pointed there are several phenomena give rise to particular anxiety. Firstly, it is difficult to resist the impression that they are facing some form of epidemic, which can spread throughout American and the global economy. Secondly, there are corporations with a market value and annual income reaching tens and hundreds of billions of dollars (over the final year of its operation, Enron’s income totaled USD 138 billion).

Thirdly, no one had been able to detect accounting fraud at Enron until obvious symptom of imminent corporate bankruptcy appeared because of certain helplessness of national audit and control authorities. Fourthly and lastly, boards of directors showed obvious lack of good faith, and deliberately concealed problems. The problems of this article elaborated with a lengthy period of extraordinary high economic growth and prevailing optimism as to long-term perspective for growth.

As a result, enterprises engaged enormous investment projects, funded by debt to financial institutions as well as by major equity providers. Another problem that author mentioned in this articles was bankruptcies materialize in large US companies, this would inevitably affect global corporate profits and the levels of investment expenditure. In addition the reporting value chain, which is describe in this articles to be truly efficient, and the entire player need to review their own role and responsibility in the whole process.

The limitation of this article is that the audit procedures plan was not emphasised. It failed to mention the possible cause of failure in Enron and WorldCom from the auditors’ stance. Sir David Tweedie (2002) proposed a new accounting standard should be imposed to support the auditors in ensuring the financing reporting clearly defined role of organization. To be efficient, financial markets need timely, high quality financial information that presents in a transparent manner the results of transactions and events affecting a particular entity.

In this article, there were problems with both IASC and FASB. FASB was at time only focused on domestic issues and had no foreign representation on its board. Whereas IASC was seen as being to dependent on the accounting profession and not sufficiently resourced to do its job effectively. Author mentioned that most of the EU is implementing IASB which can improving the standards that it inherited from the IASC and also by developing its own standards where it thinks necessary and clearly stated principles. The authors further illustrated, if standard are written as rules, they are easier to circumvent.

Some of the problems at Enron and WorldCom seem to have unleashed a strong sentiment that there has been an over-reliance on meeting the letter of the standards whilst ignoring their intention. Although the use of share options in European pay and benefit packages has been relatively rare, the fact that a significant portion of an executive’s pay and benefits received no accounting recognition at all is scandalous. The FASB has standards on this topic that have some degree of acceptance, but they permit a company to avoid treating as an expense the cost of share option granted disclosed in financial statements.

This article also point out another task that IASB has undertaken a limited of a number of the standards it inherited from the IASC. The objective is to make some desirable improvement to them, either by eliminating alternatives within them, or by updating the disclosures or even replacig them entirely. Author mentioned that IASB is committed to working towards convergence of accounting standards to evade the debacle of Enron and WorldCom take place in other organization.

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