Corporate failures, such as Smith Holdings (DSH) and WorldCom, have led to increased scrutiny of accounting requirements and to the introduction of future regulation. Corporate governance practices and earning management have also come into greater focus with an expansion of the duties and role of accountants. Using case study approach, you are required to Identify factors and theories which explain the such high-profile corporate failure?

Analyse critically the causes and consequences of the collapse of above mentioned two high-profile corporate failures. Identify the questionable transactions in mentioned companies and think of any reason for the transactions the accounting could be unclear. Why may there not be an accounting standard that specifies precisely how to account for the particular questionable transactions, if any? How could the ASX Corporate Governance Principles have been better implemented to prevent the company's collapse?

Note: To answer question no. 1, you must apply Hamilton and Micklethwait's (2013) framework to identify the possible reasons for failures and for use ASX Corporate Governance Principles 4th edition guide for the recommendations?