Accounting Fraud at WorldCom 1) What are the pressures that lead executives and managers to “cook the books?” After the rapid evolution of the telecommunication industry in the 1990s‚ WorldCom shifted its strategy to focus on building revenues and acquiring capacity sufficient to handle expected growth. Their biggest goal was to be the No. 1 stock on Wall Street rather than capturing the market share. As a result‚ their Expense-to-Revenue (E/R) Ratio was their measurement for their main objective
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The Impossibility of Auditor Independence Intentional collusion of auditors and their clients is is not the major cause of Audit integrity. Most of the times‚ auditors find it difficult to become objective. In 1992‚ Phar-Mor‚ Inc. drugstore in the United States seeking a court protection from corruption failed a court case. The previous auditors‚ Coopers & Lybrand‚ Phar-Mor’s failed to state inventory inflation and manipulation of finanicial that lead to overstating of $985 million earnings
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Accounting The nature of work of accountants and auditors is to prepare‚ analyze‚ and verify financial reports and taxes‚ and monitor information systems that furnish this information to managers in business‚ industry‚ and government. The major fields of accounting are Public accountants who have their own business or work for public accounting firms. They perform a large range of responsibilities such as doing taxes‚ numerous accounting and auditing‚ consulting activities for their clients‚
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Should auditors be held more accountable in uncovering financial fraud? Table of Contents Introduction Currently in the United States‚ the American Institute of Certified Public Accountants (AICPA) the International Auditing and Assurance Board (IAASB) are the most influential accounting standard boards able to influence fraud detection standard setting in financial reporting. In recent years‚ there has been a growing trend in financial scandals such as WorldCom‚ Enron and Madoff
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ADVANTAGES AND DISADVANTAGES OF ARBITRATION AS COMPARED TO LITIGATION By Arthur Mazirow‚ Esq.‚ CRE Real Estate Arbitrator‚ Mediator‚ Expert Witness and Consultant Los Angeles‚ California Website: Mazirow.com Presented to The Counselors of Real Estate April 13‚ 2008 Chicago‚ Ilinois 796608.1 © 2008 Arthur Mazirow 796608.1 © 2008 Arthur Mazirow The Advantages and Disadvantages of Arbitration As Compared to Litigation By Arthur Mazirow‚ Esq.‚ CRE Los Angeles‚ California
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issue‚ the parties often have to resort to a form of litigation. There are two major routes that can be taken in this instant. The traditional form of litigation (trial‚ jury etc.) or non-traditional litigation (mediation‚ arbitration etc.). There are reasons for the parties choosing the way that they go‚ and this paper will outline the two types of litigation and the reasons that a party would choose one over the other. Traditional litigation is the route of using the civil court system. In the
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And the Fraud Continues Tiketa Heard Strayer University Forensic Accounting & Fraud Examination ACC571 Professor Timothy Brown [pic] 1.) Discuss the Internal control weaknesses that existed at MCI that contributed to the commission of this fraud: MCI biggest internal control weaknesses at was Pavlo. Pavlo was able to manipulate MCI account receivable system which he helped to create and develop. When the same employee is able to receive and update payments
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The Auditor Paper 6-8: According to the book‚ it is incredibly important to successfully complete the CPA exam in the first year. Jack Butler informs us that new staff members can greatly distinguish themselves by passing the CPA exam the first attempt because so few people manage to do so. Other benefits of this would include spending less time studying and more time working‚ financial benefits of not having to pay for additional attempts‚ and it is mandatory in order to move up in the company
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Research Journal of Finance and Accounting ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online) Vol.4‚ No.13‚ 2013 www.iiste.org Effectiveness of Internal Auditor in Controlling Fraud and Other Financial Irregularities in Private Universities in South-West‚ Nigeria. ADETOSO‚ Jonathan Adegoke1 OLADEJO‚ Kayode Samson2 AKESINRO‚ Abayomi Sunday3 Department of Accounting‚ Joseph Ayo Babalola University‚ P.M.B 5006 Ikeji-Arakeji‚ Osun State‚ Nigeria. Email of the corresponding Author: gokeadetoso@yahoo
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Accounting for Pending Litigation and a Verdict Overturned on Appeal Our team is given the task to account for a pending litigation. We are to determine how pending litigation should be reported on the current and future financial statements. M Corporation was sued for patent infringement and we will present whether M Corporation should accrue a liability‚ disclose a liability‚ do both‚ or do nothing. The case accounting for the litigation and the subsequent overturned verdict was ongoing for
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