WorldCom: A Culture of Dishonesty Ethics is a term that refers to a code of moral system that provides criteria for evaluating right and wrong. An ethical dilemma is a situation in which an individual or group is faced with a decision that test this code. One of the elements that many believe distinguishes a profession from other occupations is acceptance by it members of a responsibility for the interest of those it serves. . Accounting ethics is a field of professional ethics which pertains specifically
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1990’s and early 2000’s‚ Enron and WorldCom seemed to be on the top of the ‘business’ world. Wall Street was singing their praises‚ stockholders and employees were giddy with excitement about how much money their companies were making‚ and top executives and other key players got ridiculously rich. But in a few short years‚ the façade would come tumbling down for each of these companies and the world would see how unethical behavior and greed destroyed Enron and WorldCom. Knowing what is morally
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fixed-rate leases for network capacity WorldCom initiated in order to meet the anticipated increase in customer demand. And as later the demand was not as expected‚ the Company has to pay for the leases that were substantially underutilized to avoid punitive termination provisions. The line costs that WorldCom capitalized were ongoing‚ operating expenses that accounting rules required WorldCom to recognize immediately. Instead of expense the cost currently‚ WorldCom capitalized it to exaggerate its pre-tax
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Business Ethics Doug Donofrio FIN/486 May 27‚ 2013 Mary Corcutt Eron and WorldCom are both companies that collapsed due to ethical violations. The major factors that lead to the dissolution of Enron Corporations and WorldCom will be indentified. The specific ethical violations in accounting practices at these two companies will be explained and the role of business ethics in strategic financial planning will be described. “Business Ethics are the standards of conduct or moral judgment that
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users. In 2002‚ WorldCom a telecommunication company‚ filed for bankruptcy. It was later revealed that the company was involved with improper accounting in two major forms. First WorldCom inflated revenues to increase profits‚ thereby increasing stock prices‚ and increasing the satisfaction of stakeholders. Second‚ the company understated line costs. Revenue is important to users of financial statements because it helps them evaluate a company’s performance and prospects. WorldCom violated the revenue
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Corporate Scandal I. Olympus Updated: April 20‚ 2012 Olympus Corporation‚ founded in 1919‚ is a manufacturer of digital cameras and electronic equipment. Based in Tokyo‚ the multibillion-dollar company has operations worldwide. In mid-October 2011‚ Olympus was rocked by scandal when its former chief executive and president‚ Michael C. Woodford‚ who is British‚ was suddenly fired. The company’s chairman‚ Tsuyoshi Kikukawa‚ blamed a culture clash‚ but Mr. Woodford‚ a 30-year Olympus employee‚
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Devon Daniel Verizon Verizon stars with WorldCom in 1983 when Murray Waldron and William Rector came together to sketch out a plan create a long-distance telephone service. Long Distance Discount service‚ became their new company that began operating as a long-distance reseller in 1984. The new company grew quickly in the next fifteen years‚ over time it change to WorldCom. The company became one of the largest telecommunications corporations in the world. They also became the largest bankruptcy
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Introduction By June 2002‚ it had become evident to the SEC that WorldCom had engaged in a significant corporate accounting fraud scheme which had overstated pretax income by about $7 billion since 1999. At the time‚ this was the largest deliberate misstatement in US corporate history. Although there are many interesting elements and players involved with this incident‚ for the purpose of this case study I will focus on the role played by Betty Vinson‚ the Director of Management Reporting and
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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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Entrepreneurship education is said to be a globally acknowledged programme of study which seeks to provide learners with the knowledge‚ skills and motivation to encourage entrepreneurial success in different levels of education (Koko & Ikpesu‚ 2009). It is the training of individuals to understand and develop key entrepreneurial attributes‚ skills and behaviours. Skills such as creativity‚ innovativeness‚ quick decision-making and risk-taking have being identified as relevant to those who have an
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