A sweeping review of accounting standards is being fast-tracked by the government following the latest US corporate collapse.

The chancellor told the cabinet on Thursday that the committee set up in February to look into the Enron scandal has now been ordered to investigate the collapse of US telecoms giant WorldCom. An interim report of the committee's findings will now be published next month.

Forum Response: Chartered Institute of Management Accountants

Charles Tilley, chief executive of CIMA, told ePolitix.com: "If there is any silver lining to be had from Worldcom, it is that it has emphasised the importance of these relationships as well as the need for all significant organisations to have quality Internal Audit.

"CIMA has always been very positive about the benefits to be obtained from quality internal auditing processes and the framework within which internal audit needs to operate, in order for organisations to achieve these benefits.

"In 2000, CIMA collaborated in a report called Internal Audit: A Guide to Good Practice. Developed by a working party of accountancy and internal audit bodies in which CIMA took a lead, the issues covered in the report include the benefits of internal audit; internal audit products; the management of internal audit; the audit report and measurement of internal audit. It provides a comprehensive insight into the reasons for supporting the internal auditing process, and advice on how to get the best out of it."

Forum Response: Institute of Directors

A spokesman for the IoD told ePolitix.com: "Undoubtedly the revelation of financial wrong-doing at WorldCom, has badly damaged confidence in the audit process.

"This latest scandal further underlines the importance of the audit committee on the board of directors and highlights the need for this committee to do its job properly."