inappropriate accounting practices. Enron‚ WorldCom‚ Tyco‚ HealthSouth and Adelphia were selected for analysis because of the availability of information regarding specific events occured before‚ during and after the fraud period as well as the ethical issues involved . There is abundant literature presented on the Enron and WorldCom scandal. Tyco‚ Adelphia‚ and HealthSouth were selected to expand and support the information available in the WorldCom and Enron cases. Throughout the research process
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WorldCom was the second largest telecommunications corporation in the United States. After thriving in a multi-million dollar business they were forced to close their doors. The reason were practices unethical and fraudulent activities which lead to exposing the business. WorldCom was one of the largest accounting fraud scandals in corporate history. WorldCom had to file for bankruptcy after the organization admitted to accounting fraud. How this came up was a long and drawn out investigation
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distracted from my ability to sympathize with Bernard Ebbers conviction. His defense team argued that the trial judge wrongly instructed the jury that it could convict Mr. Ebbers on the basis that he engaged in “conscious avoidance” of the fraud at WorldCom. It is evident that Ebbers took a blind eye to any consideration to analyze the good stuff from the bad stuff in this situation. He failed to calculate the considerations of utility and as a result he is paying the consequences through a substantial
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employees. Training can help to educate‚ raise awareness‚ and increase short and long-term company profits. WorldCom was a classic example of failed corporate governance‚ accounting abuses‚ and plain greed that could have been prevented through appropriate management and employee training. This paper will provide an example of a training plan that could have helped prevent the demise of WorldCom. Developing a Training Plan To increase the effectiveness of employees toward the achievement
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WorldCom Critical Thinking Case Study Not only did WorldCom’s organizational culture contributed to the accounting breaches‚ in my opinion it was the catalyst to its ultimate demise in July 2002. Richard Thornburgh stated that “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
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would risk arbitragers take in this deal? How would their positions change if the board appears to favour Quest offer? 4. Consider the Worldcom-MCI merger and the Qwest-US West merger. Trying to avoid hindsight bias‚ should the board of MCI and US West have accepted these offers? What is the obligation to shareholders? Was that obligation fulfilled? What about WorldCom and Qwest? Did their shareholders benefit? 5. Which offer should MCI accept? Why? 6. What approach should Verizon take to win takeover
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accounting entries. Assets were inflated‚ sales numbers were inflated and huge debts were omitted from balance sheets. Another company that used accounting to put out fraudulent financial statements was Worldcom. Being the largest accounting scandal in American History at the time of its exposure‚ the Worldcom scandal cost 30‚000 workers their jobs and investors over $180 billion.
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BKAL 3063(E) INTEGRATED CASE STUDY 30 SEP 2014 NIMELAN A/L MANOHAR 207110 NADIA BINTI ABDULLAH 213803 NAJIHAH SAKINAH BINTI MOHD NORDIN 213950 SURAYAH BINTI MATIASIN 214114 Accounting Fraud at WorldCom Executive Summary WorldCom is a telecommunication company that has been found by Bernard Ebbers‚ a Canadian. Growing rapidly through mergers and acquisition strategy‚ Ebbers handled largest takeover in US history by acquiring MCI‚ the nation’s second largest long distance company. The aggressive
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used inappropriate accounting practices‚ the results of their deceptions and the government’s plan to avoid future incidents. WorldCom scandal brings subpoenas‚ condmnation By Andrew Backover and Thor Vladmanis Andersen’s partners chart firm’s future today By Greg Farrell Client-starved Arthur Andersen cuts 7‚000 jobs By Greg Farrell Dominoes hit WorldCom partners‚ clients By Michelle Kessler Adelphia plans to file Chapter 11 Cable firm expected to seek bankruptcy protection today
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Beginning of a Whistleblower Bernie Ebbers‚ Scott Sullivan‚ and other members of top management intentionally led Mississippi’s pride and joy‚ WorldCom‚ on a 5-quarter charade filled with smoke‚ mirrors‚ and much intimidation. They did it hotly pursuing success‚ monetary gain‚ and the praise of their fellow statesmen. They did it by abusing work relationships and intimidating employees with promises and threats. Ultimately‚ they ended up “losing their footing” which caused them and‚ in turn‚ others
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