Wk2 Assignment: The Enron and WorldCom Scandals Student Name ACC/260 Date Instructors Name[Page Break] 1. Which segment of its operations got Enron into difficulties? The guaranteed loans that were intended to bridge the financing for investments from outside investors that could not be found would be the segment of operations that caused Enron difficulties. 2. Did Enron’s directors understand how profits were being made in this segment
Premium Corporate governance Enron Accounting scandals
Athletes should be required to sit out for longer periods of time. Injured athletes should sit out longer seeing as the effects of concussions are very serious‚ they could be at risk of getting another concussion once they go back out to play and they could get long term damage in the process of getting a second one. Even though they are sitting out for long periods of time‚ the brain injury might not go away completely. In article 3‚ it states that one concussion can linger for 30 years or longer
Premium Traumatic brain injury Concussion Brain
AVOIDING INVESTMENTS IN FRAUDULENT COMPANIES: THE WORLDCOM FRAUD Introduction The purpose of this report is to investigate and discuss the accounting fraud that occurred at WorldCom in order to recommend improved strategies to Berkshire Hathaway’s management for avoiding investments in companies with fraudulent financials. Accounting fraud is a crime committed by high level employees at an organization to manipulate the organization’s financial statements and intentionally disguise company
Free Internal audit Audit Internal control
M1. Case Study Assignment: Fraud at WorldCom 1. Who were the major characters in WorldCom? There are a couple of major characters that played their roles in the downfall of WorldCom. Mr. Bernard J. (Bernie) Ebbers‚ one of the founders of the original small long-distance carrier‚ was asked to take charge of the company during its early struggles. It was under his tenure that WorldCom began its expanding pursuits and aggressive acquisitions. Although Mr. Ebbers was he head of the company‚ their CFO
Premium Ethics Fraud Morality
[1] What business was WorldCom in? WorldCom was in the business of telecommunications. Where was WorldCom located? WorldCom was located in Clinton‚ Mississippi. Who was the CEO? The CEO was Bernie Ebbers. Who was the CFO? The CFO was Scott Sullivan. What are the names of the two members of the internal audit staff who worked with Cynthia on their secret investigation? Gene Morse and Glyn Smith What made the internal auditors think that possibly there was a need to investigate WorldCom’s
Premium Auditing Financial audit Internal audit
1. Describe a time when you experienced a significant period of suffering. How did you deal with that experience? How did you find comfort in the midst of suffering? The significant period of suffering that I had experienced‚ was a broken relationship that ended in January of this year. I had just found out that my boyfriend of three years of dating‚ had gotten another girl pregnant and was seeing her‚ while I was still with him. I loved and fell in love with him‚ but I did not know that he was still
Premium English-language films Family Psychology
DRAMA FROM THE ROMANTIC PERIOD TO MODERN TIMES Drama has revolutionized our era from the Romantic Period to the modern times with its vast developments over the years. Until the nineteenth century‚ most European playwrights "drew their tragic plots from ancient myths or legendary history" (Berggren 1). The choices of the dramatic subjects demonstrated that truly important things only happened to people with a high social status amongst society. In the Romantic Period (1785-1830)‚ interest in the
Premium Johann Wolfgang von Goethe Drama Romanticism
was that of WorldCom. In 1983 Bernie Ebbers and several other people invested in a newly formed company in Clinton‚ Mississippi called Long Distance Discount Services‚ Inc. (LDDS). LDDS was a provider of long distance telephone service to residential and commercial markets. Ebbers became CEO of LDDS in 1985. In 1989 the company merged with Advantage Companies‚ Inc. and became publicly traded. In 1995 the company name was changed to LDDS WorldCom‚ and later to just WorldCom. WorldCom grew to be
Premium Expense Accounting scandals Operating expense
The WorldCom Fraud © 2003‚ 2005 by the AICPA This presentation is intended for use in higher education for instructional purposes only‚ and is not for application in practice. Permission is granted to classroom instructors to photocopy this document for classroom teaching purposes only. All other rights are reserved. Copyright © 2003‚ 2005 by the American Institute of Certified Public Accountants‚ Inc.‚ New York‚ New York. WorldCom’s Background • Awoke the sleeping giant by leading the telecom
Premium Fraud Expense Financial audit
Current Asset Management Profitability and liquidity are the two ultimate twin goals of any firm. But these two often give rise to conflicts since liquid assets give the lowest returns. If firms don’t care about profit‚ they can’t endure for a longer period. Likewise‚ if they don’t care about liquidity‚ they may face insolvency or worse‚ bankruptcy. Thus‚ there must be a trade off between the two objectives. For these reasons‚ working capital management which involves the relationship between current
Premium Balance sheet Inventory Asset