ACCOUNTING FRAUDS CONTENTS WHAT ARE FRAUDS? | WHAT ARE ACCOUNTING FRAUDS? | NOTABLE FRAUDS | NOTABLE OUTCOMES | MANIPULATION & FALSIFICATION OF RECORDS | MISAPPROPRIATION OF CASH BALANCES | MISAPPROPRIATION OF GOODS | TEEMING & LADING | WINDOW DRESSING | SECRET RESERVES | ENRON FRAUD | WORLDCOM FRAUD | WHAT ARE FRAUDS ??? FRAUDS AND THEIR CHARACTERISTICS Misstatements in the financial statements can arise from fraud. In criminal law, a fraud is an intentional
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WorldCom is one of the biggest scandals that happen in the world, especially in the United States of America. WorldCom merged with MCI in 1997 for US$37 billion to form MCI WorldCom. Later on WorldCom wanted to merge with Sprint Corporation in 1999 becoming a $129 billion merge, but before the two companies finalized the US department of Justice and the European Union stepped in and didn’t want this to happen, for this merge had the possibility of creating a monopoly. Bernard Ebbers was the CEO
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Shiqi Wang ACCT 4456 Professor Steve Jensen September 22, 2015 WorldCom Case Analysis According to the section 301.4 of Sarbanes-Oxley Act of 2002, each audit committee shall establish procedures for complaints regarding accounting, internal accounting control, and auditing matters, and the anonymous complaints regarding questionable accounting or auditing matters. However, in this case, the WorldCom Company did not have the procedures for anonymous complaints, so Cynthia Cooper decided to
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Case #1 Accounting Fraud at WorldCom 1. The objective of financial reporting is to provide useful information to capital providers, which are also known as the shareholders and investors. At WorldCom, the managers not only failed to provide useful information to the investors, but the fraud they created in their financial statements lead to misjudgment for a lot of the capital providers. The actions of accrual releases that the managers performed completely ignored the objective of financial reporting
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WorldCom The Mississippi-based telecommunications company was started in the early 1980’s as a small “mom and pop” company to become the 25th largest U.S. Company by 2002. The company grew primarily through an aggressive merger and acquisition growth strategy. In 1997 WorldCom had emerged within the telecom industry and caught the eye of many on Wall Street when it issued a bid to acquire the much larger and better-known company, MCI. While WorldCom’s growth skyrocketed throughout the 1990s, the
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Examining a Business Failure The following paper will examine WorldCom and how the business failed. It will also compare and contrast the contributions of leaderships, management and the organizations structures to how the organization failed the way they did. WorldCom began as a small long distance telecommunication company and progressed into one of the largest telecommunications in the world and the second largest long distance company. It began as a small company in Jackson, MS by Bernie
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This paper summarizes accounting fraud in the United States. I explain why each aspect of communication skills and report writing is vital to an accountant’s professional career. | Table of Contents I. Executive Summary 1 II. Introduction 1 III. Review of Literature 1 IV. Analysis 1 V. Recommendations 1 VI. Summary and Conclusions 1 VII. Appendix x 1 VIII. References 1 I. Executive Summary Accounting fraud is the deliberate manipulation of accounting records in order to make
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Based on my reading and research, I think the wrong business model of WorldCom is the key reason that caused this fraud. As a telecommunications company, providing service is supposing to be the main way for WorldCom to get their revenue. But they had a much better performance after they did the acquisition each time; because of they are not a very big company. They kept doing the acquisition because they found out that if they stop doing this, their performance will not be good enough for the
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Ethics in Accounting and the Fall of WorldCom Alison Painter Breeden Juanita S. Edwards, CPA ACC 557: Financial Accounting 23 January 2013 Ethics in Accounting and the Fall of WorldCom In 2002, WorldCom was the second largest telecommunications company in the United States, but because of management failures and an unethical accounting culture it went bankrupt. This paper contains a discussion describing corporate ethics currently used in business; WorldCom's background, and the ethical
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Eventhough he is lacked technology experience. In 1996, WorldCom entered the local service market by purchasing MFS Communications Company, Inc., for $12.4 billion. MFS’s subsidiary, UUNET, gave WorldCom a substantial international presence and a large ownership stake in the world’s Internet backbone. The figure below is the executive summary of WorldCom:- In this case, the pressure of the business condition drives the BOD of WorldCom to do unethical action. The person involve in this cases
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