AUDIT FAILURE OF WORLDCOM Group 1 Background • WorldCom‚ first named LDDS (Long Distance Discount Services)‚ grew largely by aggressively acquiring other telecommunications companies in 1990s. • For a time‚ it was the United State’s second largest long distance phone company (after AT&T). Background However‚ the year 2002 comes… • In March‚ the SEC began to investigate WorldCom as it reported large profit while AT&T reported loss. • In May‚ Arthur Anderson was replaced by KPMG
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Phillip Canamar Accounting Case Analysis LP1 Assignment: Audit Failure 1. Analyze the actions of the auditors in both cases and identify any errors in judgment made by the auditors. The action of the Auditors‚ Audit Committee‚ and top management that worked for Molex Corporation were in error because FASB Concept Statement #2 (materiality defined) appears to apply to this case and should have know the appropriate way to handle the situation that conforms with GAAP and adjust the financials
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The Learning Styles for Becoming a Master Student The Learning Styles for Becoming a Master Student Marian L. Harris-Gooden Columbia College Abstract The learning style inventory (LSI)‚ has no restriction in balancing ones preferences to learn however‚ the individual will favor one over the others in the four stages. I used converges‚ diverges‚ assimilator‚ and accommodator method to deciding which approach works best for me. Kolb’s theory differs from Gardener’s theory for learning and
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The rise and fall of ABC Learning Q1: The aspects of the business strategy of ABC Learning resulted in increased business risk for the company including: the rapid expansion of market share‚ over-indebt‚ and blinding overseas investment. Rapid expansion of market share: ABC‚ which at its peak had almost 2200 centres in four countries‚ also had a flawed strategy to handle significant and rapid growth. When A.B.C. Learning Centers listed on the stock exchange in March 2001‚ it was a tiny operation
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Chapter 2 ABC Learning Centres There are few barriers to entry and expenses are low‚ so the childcare industry is a licence to make money. A Gold Coast real estate agent and ’child-care specialist’‚ Bryan Hayden‚ says: ’I’ve got a client and he’s got 20 bottle shops‚ 10 hotels and three child-care centres. I say to him‚ ’I’m 77 and the child-care business is the best business I’ve ever seen in my life.’ The Government pays subsidies‚ the parents pay you two weeks in advance and property prices
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Internal Audit Report for ABC Company Abstract The purpose of this report is to notify the accounting department about an accounting error that was discovered in a recent audit. Because of a weak internal control system‚ an adjusting entry for prepaid insurance was not recorded for the first three months in the amount of $500 per month. This report will identify three limitations of the internal control system‚ it will identify and explain two examples of internal control procedures‚ find symptoms
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Summary ABC Learning Centres Limited (ABC) has recently came into limelight in the childcare industry. It went into receivership on 6 Nov 2008 and Australian Government has announced to assist ABC to continue operation till end of 2008 by injecting $22 million. An analysis has been done on ABC on why the company has landed itself into receivership by analysing its annual Income Statement‚ Balance Sheet and Cash Flow Statement. Reading and analysing of news and articles in relation to ABC has been
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ABC Learning An essay By Liam Martin ABC Learning was established in Brisbane 1988‚ and operated 18 centres by 1997‚ by 2006 it owned 800 centres providing roughly 20 per cent of long day care places across Australia (Rush & Downie 2006).). After this strong growth domestically and internationally largely achieved by acquisitions often purchased at inflated prices ABC underwent a tumultuous period exemplified by a sharp fall in its share price. This was the result of an unsustainable level of secured
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AFM 201 – Part 1 Auditing Fall 2007 Group Assignment 2 Publicized Cases of Alleged Audit Failures Involving Large Public Companies 1) Ten Publicized Audit Failures i. Parmalat (2003) - Deloitte & Touche Tohmatsu /Grant Thornton Misleading investors with “Brazen Fraud” was what the United States (US) Securities and Exchange Commission (SEC) had sued Parmalat for in 2003. It all began when Parmalat defaulted on a bond payment worth $185 million. This raised a flag for auditors and banks
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