Any company that failed recently do to lack of adeqate internal control system.?
Answer:
The question is what time frame you regard as recent. The 2001 slowdown was triggered because the companies were concentrating on the revenue and not profit. The dot-coms were good ideas, but many of them not good enough to generate cash, not in those times at least. The whole thing was over-hyped but there was no money coming in.
Qwest (though still limping forward) is one such example. They had a lot of things in pipeline, but with no clear outline of return on investment. No wonder only, a few companies of the time have still managed to retain the hype - Google, Amazon, eBay, Yahoo. The only element that differentiated them from the rest was their managing with focus on efficiency and getting cash back in to their kitty.
Enron, WorldCom are examples of companies that used accounting fraud to show profit. And during independent auditing when the buble burst, it took with it many employees and their families. The sad thing about Enron was that the employee retirement money was invested back in Enron stocks. So the retirement amounts were reduced to junk as the company skirted Bankruptcy.
Arthur Andersen faced consequences of being the auditor of Enron. They lost all their clients and now have 200 employees in Chicago area working mainly on the lawsuits filed against the company!
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One example I can readily think of is Global Crossing. They kept laying fiber cable without regard to cash flow of the company. They literally spent themselves into bankruptcy. Of course one could also chalk that one up to poor management.
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