Auditing Theory and Practice Case 1 WorldCom: A Focus on Professional Responsibility Prepared by: EL Ahmadi Med Reda Worked With: Ibtihal Slassi Fall 2013 1- Auditor independence refers to the disinterest from the internal and external parties that could influence the professional judgment of an auditor. In other words‚ auditor independence is the lack of any interest that may create a threat or a risk of material bias regarding the reliability of the financial statement
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After a horrific crash in the Everglades which killed 105 passengers this low cost air carrier reinvented itself as the successful AirTran Airlines. The Mississippi Long Distance Discount Service (LDDS)‚ a regional low cost telephone service‚ became Worldcom. Fredericks of Hollywood‚ the bawdy women’s undergarment firm‚ is transforming into an innovative worldwide brand. The mechanism for each of these transformations was the reverse takeover (RTO). The reverse takeover‚ also referred to as “reverse
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Identifying information Cynthia is a divorced 47 year old mother of two sons‚ Stanley age 27 and George age19. Both of her sons live at home with her. Stanley‚ who is trainable mentally impaired‚ requires a lot of Cynthia’s attention. George attends Oakland Community College with plans on transferring to a four year university in his junior year. Cynthia has a great relationship with both of her children. Cynthia is in the middle class income range grossing $65‚000 a year. She is an African
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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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Levels of Planning Many times we think of planning as one function of management with no variety. Any time you are looking to the future you are just planning. Throughout this week ’s readings‚ the class has learned that there are actually four levels of planning. These levels include: strategic‚ tactical‚ operational‚ and contingency planning. Each level has a different purpose and impact on the planning process. In the following paragraphs‚ we are going to describe three of the four levels of
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Analysis of each company and provides recommendations for investors. Introduction This report will look at: • The unethical behaviour about WorldCom accounting scandal • The Monopolistic competition about china telecom • The overcharging behaviour of AT&T • Recommendations for telecommunication industry • Conclusion Findings WorldCom WorldCom‚ The America’s second-biggest long distance phone company. From 1999 to 2002‚ an internal audit had reported that $3.3 billion in profits were
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Chen. Z and Wei‚ K. C. J. (2004). Corporate Governance‚ Agency Costs‚ and Expected Stock Returns: Evidence from Analysts’ Earnings Forecasts Coarse‚ R. H. (1937). The Nature of the Firm. Economica IV‚ 13-16. Cooper‚ D. R. & Emory‚ C. W. (1995). Business Research Methods. Chicago. Irwin. Cooper‚ D. R. & Schindler‚ P. S. (2003). Business Research Methods. New York. McGrawHill- Irwin. Dimsdale‚ N. & Prevezer‚ M. (1994). Capital Markets and Corporate Governance. Oxford. Fama‚ E.‚ & Jensen‚ M.C.(1983)
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proprietary estoppel where she can claim for damages from Cynthia. Lydia may also have a contractual licence with Cynthia which Cynthia cannot revoke at will. Lydia Barnet’s (Client) Objectives Lydia does not want to vacate the cottage which she has lived in and maintained for ten years. Lydia is looking for a solution which will enable her to make this possible. She knows there has not been a formal agreement between herself and Cynthia that will enable her to live in the cottage however long
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US telecommunications giant‚ WorldCom during the 1990s that led to its eventual bankruptcy. The case provides a detailed description of the growth of WorldCom over the years through its policy of mergers and acquisitions. The case explains the nature of the US telecommunications market‚ highlighting the circumstances that put immense pressure on companies to project a healthy financial position at all times. The case provides an insight into the ways by which WorldCom manipulated its financial statements
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The Sarbanes-Oxley Act of 2002 Name Tutor Institution Course Date Introduction The numerous scandals that involved corporate and investors in the year 2002 such as Enron‚ WorldCom and Tyco came as shock to many investors in the United States. Many investors lost their money to fraudulent activities by accountability corporate making them loose confidence in financial statements provided. Such loses created concern within the government prompting them to overhaul all the
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