Terrible Financial Fraud and Corruption

No doubt, an employer can neither make the employees satisfied nor motivate them to deliver their best performance to the company without giving them the feeling of being trusted by the company (Brown, Gray, McHardy, & Taylor, 2015). However, there must be some limits to trust. The policies must be efficient enough to prevent employees from embezzling the funds and timely alerting the management. Proper code of conduct and strong organizational culture could help the management in timely detecting and preventing the fraud at Enron.

As per my research and observation, most of the frauds are committed by artificially tailoring the account records. Financial embezzlements have encouraged the frequent introduction of different fraud schemes. I agree with you that an ERP accounting software could help the company is avoiding such a massive fraud. It can raise the fraud prevention intelligence of the management. It can enable effective audit and prevent the unauthorized access to the accounting system (Fernandez, Zainol, & Ahmad, 2017).

Reference

Brown, S., Gray, D., McHardy, J., & Taylor, K. (2015). Employee trust and workplace performance. Journal of Economic Behavior & Organization, 116, 361-378.

Fernandez, D., Zainol, Z., & Ahmad, H. (2017). The impacts of ERP systems on public sector organizations. Procedia computer science, 111, 31-36.