A new world order is likely to emerge after all the reshuffling of cards in the corporate world as well as in bilateral ties between nations. Let's hope that the way ahead to economic recovery and rebuilding of economies will not take too long. The job cuts by the big corporations have been swift and furious. Individuals who have over extended themselves financially will find themselves in a state of shock if not panic. There are some basic lessons to remember, such as cultivating the habit of saving during good times and keeping within one's budget, and constantly reminding ourselves that not every day is a sunny day. One good principle to follow is to ask yourself how can you work you way to become financially independent of your full time job?
In the coming weeks as the East celebrates the Lunar New Year, the time for festivities is over for the West as they try to find their foot back on the slippery ground. Hopefully the harsh weather they are facing now will be over before long and by April Barack Obama's 100 days in office will be over. The world will then know whether the new US President is able to make the change that he talked so much about.
One change that is not on his cards is the need to make corporate auditors more stringent and accountable in their work. I often wonder with all the accounting audits being carried out throughout the corporate world, how did all the frauds and scams escape them? It frightens me to think after years of scrutiny by internal and external auditors, the frauds were allowed to continue under their eyes. What's the purpose of audits then, if they are not able to detect the very task they are assigned to do. Should the entire syllabus for the training of accountants be reviewed. Should the relationship between auditors and clients be reviewed so that the former can be truly independent in their scrutiny of accounts without worrying about whether their contract will be renewed in the next fiscal year? Millions of dollars are lost...many lives are shattered...not to mention the many jobs that are lost because someone out there didn't do a good job of what they were paid to do as professionals.
