Company would have to engage in accounting practices for which there was no legitimate justification‚ and Ebbers replied to Sullivan‚ in words or in substance‚ “We have to hit our numbers.” Scott Sullivan’s position of Chief Financial Officer at WorldCom‚ in conjunction with weak controls‚ presented opportunities for him to commit fraudulent activities. Sullivan’s high position allowed him to dictate his power over his subordinates and often directed them to make large entries to the general ledgers
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conspiracy. There could be employees that are in synergy (finance and or accounting departments) can alter the financial material that neither would be captured by an internal control. This is something that took place in companies like Enron and MCI WorldCom. With all the internal controls set in place‚ there can still be errors like human errors. Controls are set in place so the company is protected. This would include things like from theft‚ fraud and other things that could damage a company and
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Internal Audit and the Relationship with Senior Management Summary: The case study “Internal Audit Reporting Relationships: Serving Two Masters” was a part of a series of research projects being developed by the Institute of Internal Auditors to determine the various relationships‚ specifically reporting relationships between the internal auditor and those charged with governance. To obtain research about the various types of reporting relationships‚ independence‚ conflicts that arise from
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Article Review The Sarbanes-Oxley Act of 2002 ARTICLE SYNOPSIS In response to the Enron and WorldCom scandals‚ the Sarbanes-Oxley Act was enacted in July 30‚ 2002. This provides a comprehensive power that modifies the compliance of how companies would need to report their financials to the Securities and Exchange Commission (SEC). The law’s purpose is to solve precise mechanism failures in accounting approaches and requires greater levels of fiduciary responsibilities especially for those
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References: CNET (2002) Drawing lessons from WorldCom [WWW] CNET. Available from: http://news.cnet.com/Drawing-lessons-from-WorldCom/2009-1022_3-943517.html [Accessed 30/11/2010] BBC (2002) Enron scandal at-a-glance [WWW] CNET. Available from: http://news.bbc.co.uk/1/hi/business/1780075.stm [Accessed 02/12/2010] SOXLAW (2002) The Sarbanes-Oxley
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legitimate power‚ reward power‚ coercive power‚ expert power‚ referent power. Case Study Bernie Ebbers built WorldCom Inc into one of the largest telecommunication firms. Yet he and CFO Scott Sullivan have become better known for creating a massive corporate accouting fraud that led to the largest bankruptcy in US history. Two investigative reports and subsequent court cases concluded that WorldCom executoves were responsible for billions in fraudulent or unsupported accouting entries. How did this mammoth
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your own words‚ summarize the article. In summarizing the article‚ you should include the discussed background‚ problem statement‚ literature review‚ methodology‚ findings‚ and conclusion. 2. The authors argued that “the corporate scandal of the Transmile Group Berhad can be equated to the case of the Enron and WorldCom financial accounting scandals in the US many years ago”. Discuss the details of the aforementioned corporate scandal cases. 3. The article employs survey method to study the issue
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Week Five Reflection Summary ACC/290 Principles of Accounting Date Teacher Week Five Reflection Summary Team B In recent years there have been many highly publicized financial accounting scandals. Enron‚ WorldCom‚ and AIG are a few of the well- known corporate companies that have been involved in financial reporting scandals. United Sates regulators and lawmakers made known their concerns of mistrust in corporate accounting‚ because of unethical financial reporting. In 2002 Congress
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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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Running head: SERVANT LEADERSHIP EFFECTIVENESS TO ORGANIZATIONAL CHANGE Servant Leadership Effectiveness to Organizational Change May 13‚ 2006 Introduction Real change leaders are not found among the top executives within an organization. Although‚ top executives participation is important to change within an organization‚ the real change leaders are middle and frontline managers‚ and he or she influence how the majority of people perform within the company. "The most difficult aspect of
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