30 September 2014 Group Members: 1. Rose Atikahanum Binti Abdul Rahman 216666 2. Nor Amira Zuriyanti Binti Khalid 216410 3. Nurulnabila Binti Mohd Sanusi 216516 4. Peggy Liaw Wan Gene 216388 5. Willson Wong 216381 1.0 EXECUTIVE SUMMARY WorldCom was a telecommunications company and formerly known as Long Distance Discount Services (LDDS). The company was handled by Bernard J. (Bernie) Ebbers, one of the original nine investors, and managed to gain profit within one year of management. In
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relating to the auditing of public companies, including but not limited to auditing standards, registration, inspection, and thus enforcement of any mandates that are part of the Sarbanes-Oxley Act. QUESTION 2) WHAT DOES CARMICHAEL SEE AS THE UNDERLYING MISSION OF THE PCAOB? Carmichael views the underlying mission of the PCAOB to be the restoration of the public’s confidence in the auditor’s reports and findings. Accounting scandals, involving companies like Enron and WorldCom, prompted Congress
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A college student decides she wants to become an accountant. General accounting and bookkeeping classes can be taken in high school. In college, the student needs to decide on a more specific field of accounting. An accountant has many choices as to what particular field of accounting to specialize in depending on the financial information she wants to analyze and how it is done. Financial accountants, tax accountants and internal auditors are all accountants in general, but require different training
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The Impact of the Sarbanes-Oxley Act on Auditing Prior to the 2002, there were numerous accounting and corporate scandals that rocked the business world. Foremost of which is the Enron debacle which was followed by WorldCom, Tyco International and Global Crossing (CIO Decisions). The collapse of these businesses was attributed to the lack of regulatory controls in the part of the government as well as transparency of operations of corporations which
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The Sabranes-Oxley Act In the wake of the Enron and WorldCom scandals in the late 1990’s and early 2000’s, the American public was concerned about the scandals in accounting practices of corporations and accounting firms. Corporations, such as Enron, WorldCom and Tyco International, and accounting firms, such as Authur Anderson, went out of business (Horngren, 2009). Congress enacted The Sabranes-Oxley Act of 2002 to resolve such concerns. This act was brought to the United States Senate as
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Auditing Standards Accounting 491 November 16, 2015 Dwayne Thompson Auditing Standards The art of auditing has evolved over several decades. The use of technology has changed the procedure significantly. Along with the evolution of standards and procedure are necessary to ensure economic growth and financial stability. Before 2002, it seems as though auditing took a reactive approach to questionable circumstances and dealings. Today the powers in control are producing a proactive approach
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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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Justin Gardner ACCT 4456 Auditing WorldCom Case WorldCom Case Cynthia Cooper was the former Vice President of Internal Audit at WorldCom. Cynthia is widely known as the whistleblower that discovered the fraud that was occurring in 2002. The CFO at the time was having the corporate accounting team capitalize billions of dollars of network leases instead of expensing them as they should have. This let the company report a profit of $2.4 billion instead of a loss of $662 million. This all occurred
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king-sized jolt Tuesday as WorldCom revealed what could turn out to be one of the biggest accounting scandals in U.S. history. The telecommunications company said it had fired Chief Financial Officer Scott Sullivan, and accepted the resignation of senior vice president and controller David Myers, after an internal audit found improper accounting of more than $3.8 billion in expenses over five quarters. The misstated billions are also very bad news for ordinary WorldCom workers: 17,000 of them
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The Sarbanes-Oxley Act of 2002 and the PCAOB Liberty University Abstract As a result of massive accounting scandals in the United States between 2001 and 2002 involving notorious companies, such as Enron, Worldcom, Tyco, and various other recognized entities, President George W. Bush signed into legislation during 2002 the Sarbanes-Oxley Act of 2002. This historic piece of legislation has had a profound effect on the accounting profession. As a result of the act, the PCAOB was created. Since
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