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Worldcom

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CASE 3 : Accounting Fraud at WolrdCom

Table of Contents
Introduction....................................................................................................................... 1 Question 1 .......................................................................................................................... 2 Question 2 .......................................................................................................................... 4 Question 3 .......................................................................................................................... 6 Question 4 ........................................................................................................................ 10 Question 5 ........................................................................................................................ 16 References........................................................................................................................ 24

BKAL 3063 Integrated Case Study

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CASE 3 : Accounting Fraud at WolrdCom
Introduction
WorldCom, US second largest telecommunication company shocked the world by filing bankruptcy at 21 July 2002. The WorldCom filing surpassed Enron and became the largest bankruptcy filing in United States history. Due to its rapid growth, WorldCom is also heavily in debt as they finance the company growth with debt. The collapse of WorldCom did not just affect their employees, retailers, the government but also bankers. WorldCom was a multi-billion dollar telecommunications company that was founded in 1983. The company starts their business under the name 'Long Distance Discount Services' (LDDS), providing long distance telecommunication services. The venture was profitable right from the start. In 1985, Bernie Ebbers became the company's CEO. The company changes its name to WorldCom in...

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