1. Risk Assessment:Company-wide risk was disregarded. Risk assessment is the identification and analysis of risks that could prevent the organization from achieving its objectives. Properly identifying risks allows management to determine how to mitigate and manage these risks. Management should have evaluated risk on a regular basis, as changes in the organization, such as staffing, new policies, new software applications, new regulations, etc., could all impact an organization's risk assessment.

2. Control activities:The tracking of daily cash was lax, arrears maturities were not slated, off balance sheet debts was ignored even though obligation continued to be. One of the most important control activities is segregation of duties. Different individuals should be responsible for authorizing transactions, recording transactions, having custody of assets, and performing comparisons/reconciliations.

3. Control environment:The control environment sets the tone at the top of an organization and provides discipline and structure. At Enron, the CFO was exempted from a conflicts of interest policy, and inside settings over SPEs were a disaster, existing in form however, not in substance.

4. Monitoring:Internal control buttons were insufficient; contingent liabilities were not disclosed; and, Andersen too had dismissed all of those weaknesses. Monitoring is a key element of managements responsibilities when it comes to internal control. Top management is responsible for monitoring all controls and to determine if the controls are operating as they were intended.

5. Information and communication:Many financial officials lacked the background for their jobs, and belongings, notably foreign possessions, were not in physical form anchored. Hence, it lacked the identification and transfer of pertinent information in a timely manner that permits personnel to perform its responsibilities. For instance, having timely financial reporting can allow management to identify anomalies in its operations such as drops in margins, high reserves, etc.

Based on this suggest recommendation for each of the problems Enron has been faced and provide example