9-104-071 REV: SEPTEMBER 14‚ 2007 ROBERT S. KAPLAN DAVID KIRON Accounting Fraud at WorldCom WorldCom could not have failed as a result of the actions of a limited number of individuals. Rather‚ there was a broad breakdown of the system of internal controls‚ corporate governance and individual responsibility‚ all of which worked together to create a culture in which few persons took responsibility until it was too late. — Richard Thornburgh‚ former U.S. attorney general1 On July 21‚ 2002
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The WorldCom Accounting Scandal WorldCom was started in Mississippi as a long distance telephone service provider in 1983 (Lyke and Jickling‚ 2). Over the next decade and a half‚ the company expanded to offer a whole range of telecommunication services through a series of mergers and acquisitions (Lyke and Jickling‚ 2). At its height‚ WorldCom was the largest long distance phone company in the United States and was one of the leading companies in the telecommunication market in the world‚ providing
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Case 2-1 Cynthia Cooper and WorldCom Cynthia Cooper details her trials and tribulations about her experiences at WorldCom in the book Extraordinary Circumstances: The Journey of a Corporate Whistleblower. The following excerpts from the book describe the actions she took to uncover the fraud at WorldCom and reactions of key players in the accounting department‚ top management‚ the audit committee and the external auditors. Cooper was first alerted to the fact that there may have been a problem
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Officer Brently Vinson fatally shot Scott after police repeatedly told him to drop the weapon‚ which was found at the scene. “Protests” or riots began. Curfew was enforces‚ trucks were caught on fire‚ stores were looted‚ and sixteen police officers were injured and a hand full of civilians were injured in the two night riots. In Tulsa‚ Terrence Crutcher were shot by police. Crutcher disobeyed police order and reached into his car after police repeatedly told him not to. Officer Betty Shelby shot Crutcher
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References: Anderson‚ M. (2013). WorldCom ’s Betty Vinson and Cynthia Cooper: A Tale of Two Professionals. Strategic Finance‚ 95(7)‚ p. 48-51. Retrieved from www.ebscohost.com Beresford‚ D.‚ Katzenbach‚ N.‚ & Rogers‚ Jr.‚ C.B Carbone‚ C. (2006). Cutting the Cord: telecommunications employment shifts towards
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R E S P O N S I B I L I T I E S & L E A D E R S H I P ethics Ethical Lessons for Accountants By Thomas A. Buckhoff and LeVon E. Wilson A ccording to the Dictionary of Criminal Justice Data Terminology‚ white-collar crime is “nonviolent crime for financial gain committed by means of deception by persons whose occupational status is entrepreneurial‚ professional‚ or semi-professional and utilizing their special occupational skills and opportunities.” For decades‚ the legal
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Enron and WorldCom FIN/486 December 22‚ 2014 Enron and WorldCom In 1998‚ Waste Management executives acknowledged earnings misstatements of approximately $1.7 billion. With the help of the Arthur Anderson accounting firm‚ Waste Management shareholders lost more than $6 billion dollars (CNN‚ 2001). The Waste Management corruption ushered in a series of corporate scandals into the new millennium. Enron and WorldCom were only two of many ethical and accounting violations that prompted new legislation
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Actor and Civil Rights activist‚ Isaiah Washington once stated‚ “Imagine if every single African American in the United States that was really fed up with being angry‚ sad‚ and disgusted‚ would pick ONE DAY to simply ‘stay at home’ from every single job‚ work site‚ sports arena and government office in the United States of America. I’m pretty sure that within 72 hours from Wall Street to the NFL… Black Lives Would Matter” (Puglise). Since then‚ Washington has led movements against police brutality
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willingly take the money from the reserves and transfer it to their current revenues without manipulating the accounting entries. To make sure that the “growth” of the company looked authentic in the books‚ they influenced on of their accountants‚ Betty Vinson‚ to maneuver the accounting entries and moved the funds for them. 2. What ethical issues did they face? The disastrous collapse of WorldCom and how it was handled by the major key players of the company was also confronted with multiple ethical
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Meritor Savings Bank vs. Vinson APA format requires a separate cover page Case Brief Indent new paragraph 5 spacesAfter being dismissed from her job at a Meritor Savings Bank‚ Mechelle Vinson sued Sidney Taylor‚ a Vice President and branch manager of the bank and Meritor Savings Bank. Vinson charged that she had constantly been subjected to sexual harassment by Taylor over her four years at the bank. She argued such harassment created a "hostile working environment" and was covered by Title
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