BKAL 3063(E) INTEGRATED CASE STUDY 30 SEP 2014 NIMELAN A/L MANOHAR 207110 NADIA BINTI ABDULLAH 213803 NAJIHAH SAKINAH BINTI MOHD NORDIN 213950 SURAYAH BINTI MATIASIN 214114 Accounting Fraud at WorldCom Executive Summary WorldCom is a telecommunication company that has been found by Bernard Ebbers‚ a Canadian. Growing rapidly through mergers and acquisition strategy‚ Ebbers handled largest takeover in US history by acquiring MCI‚ the nation’s second largest long distance company. The aggressive
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used inappropriate accounting practices‚ the results of their deceptions and the government’s plan to avoid future incidents. WorldCom scandal brings subpoenas‚ condmnation By Andrew Backover and Thor Vladmanis Andersen’s partners chart firm’s future today By Greg Farrell Client-starved Arthur Andersen cuts 7‚000 jobs By Greg Farrell Dominoes hit WorldCom partners‚ clients By Michelle Kessler Adelphia plans to file Chapter 11 Cable firm expected to seek bankruptcy protection today
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to take you inside the doors of what was once the one of largest telecommunication companies in the world‚ WorldCom and tell the story of how an 11$ billion dollar accounting fraud led to one of the largest bankruptcy filings in history. In the two years before WorldCom declared bankruptcy‚ one man at the helm of the company told lie after lie about the true financial condition of WorldCom‚ lies that artificially inflated his own stock holdings and lies that deprived the common investors of information
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2.1 -------------- 1. The business conduct that led to the WorldCom and Enron scandals was unethical‚ but not all of the behavior was illegal. Please discuss why Boatright explains in the Why the Law is Not Enough section of our text‚ “reliance on the law alone is a prescription for disaster.” (2012‚ p. 10) -------------- Reliance on the law‚ alone‚ is a prescription for disaster. This is true for several reasons. For starters‚ the law is not always appropriate when it comes to helping regulate
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companies and in some of those it results in the ruin of what started out to be a good thing. Some of these companies started out as small prosperous businesses that later grew into large dominate organizations for example; Enron‚ and of course WorldCom. These businesses began with good intentions and ended up internally combusting. All of it was due to the result of GREED. Greed is a disease‚ and has plagued several organizational leaders over time and caused them to go against their good ethics
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It makes the evidence gathering process difficult and as such the fraud offender remains undetected. Another drawback is that the organizations fear of a reduction in market share and fall in reputation that leads entities not to disclose frauds to the statuary regulators and therefore fraudster are not punished. The difficulties arise when the
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WorldCom‚ WorldCom‚ WorldCom… This name has been thrown around the accounting school since my freshman year. It is as if it haunts our school as a warning to all future accounting students. However‚ as I read this case I did not have anything in mind other than trying to solve this situation from a judge’s standpoint. I thought I had an idea of where I stood on this situation until I tried to put myself in Mr. Myers’s shoes. After combining both of my stances‚ I have finally come to the conclusion
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connection with business combination and wrongful us of off-balance-sheet arrangements. WorldCom was use creative accounting in order to make the financial accounting records to look good which is the profit increasing. They was used a liberal interpretation of accounting rules when preparing the financial statements. While the company acquiring MCI‚ it give the management opportunity to make the creative accounting. WorldCom had devalued hard assets while simultaneously increasing the amount of goodwill
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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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