com/article/business-fraud-culture-is-the-culprit Rezaee‚ Z. (2005). Causes‚ consequences‚ and detrence of financial statement fraud. Critical Perspectives on Accounting‚ 16(3)‚ 277-298 Sandberg‚ J.‚ Solomon‚ D.‚ & Blumenstein‚ R. (2002). Accounting Spot-Check Unearthed A Scandal in WorldCom ’s Books Zhou‚ W.‚ & Kapoor‚ G. (2010). Detecting evolutionary financial statement fraud. Decision Support Systems
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Bernie Ebbers should have gone to jail. I disagree with the 25 year length of his sentence but he is at least partially to blame for the WorldCom fiasco. I think the government used the length of the sentence to prove a point and the only prior sentence comparable to this was John J. Rigas from Adelphia Communications earlier in the year . I think the CFO Scott Sullivan got a light sentence and consciously knew what he was doing and could have put a stop to it. He should have been the good advisor
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White Collar Crime White collar crime is prevalent and brought to our attention more and more by the media since the mid to late 1990s. With the downfall of companies such as Enron‚ Tyco Toys and WorldCom MCI white collar criminals are facing lengthy prison sentences. Greed and personal vendettas are what have led our country to understand and gain more knowledge about these corporations and the corrupt CEOs that have brought them to their demise. “White collar crime is defined as various crimes
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environment that is not healthy for anyone who is employed there. There are examples of companies where management engaged in illegal behavior and the end result was they hurt the company as well as all those who worked for the company. Enron and Worldcom executives ran their business into the ground by lying to their employees as well as those around them who thought the companies were doing very well. Enron was considered a very strong company. At one point‚ they were named America’s most innovative
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high-performance targets and grant large rewards for achieving these must have strong control systems to ensure that people are not tempted to cross boundaries. What are the four important control systems? Please identify each control by name. Strategy WorldCom never really had a strategic plan‚ committee‚ or framework. Their plan was rapid growth and maintaining that 42% E/R ratio. From the beginning it committed itself to high growth strategies that relied on aggressive corporate and fraudulent accounting
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was related to it. I will start off with a prologue of what the Sarbanes Oxley Act is‚ and later going in detail about the Act. Prologue The corporate scandals in the year 2001 of Enron and WorldCom‚ where Enron was able to produce fake reports of high profits with false accounting methods and WorldCom‚ who artificially reduced their expenses to falsely increase in the appearance of their revenues‚ created a market failure. Major stakeholders such as investors‚ government‚
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grounded in natural law‚ religious tenets‚ parental and family influence‚ educational experiences‚ life experiences‚ and cultural and societal expectations. The days of when people were simply trusted to always do the right thing are over with ENRON and WorldCom and the devastation that followed in the business world you are now guilty until proven innocent. Ethics are now written clearly out in agreements that are signed when people are newly hired and the employee is expected to follow those guidelines
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stock within NYSE has specialists to manage that specific stock‚ this feature is not incorporated in to the NASDAQ. The NYSE is not publicly traded while the NASDAQ is‚ allowing the public to trade stocks on it (NYSE And NASDAQ‚ n.d ) WorldCom Inc. The WorldCom Inc was a telecommunication corporation. Bernard Ebbers was the former Chief Executive of the corporation. He was ultimately found guilty of accounting crimes which lead to a huge scandal. He constructed the unification with MCI‚ which
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not release the accruals that had been established‚ so that they can be used during bad times of the company’s performance. This certainly violates the matching principle and destroys the purpose of periodic income statement. 3. I don’t think WorldCom had established an effective system of internal control over financial reporting related to the revenue recorded in its financial statement. According to PCAOB Standard No.5‚ effective internal controls are supposed to be in place for gaining confidence
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References: Bohlman‚ H. M. (2005). The Legal Ethical and International Environment of Business. Thomson South Western . Scharff‚ M. (2005). WorldCom: A Failure of Moral and Ethical Values. Journal of Applied Management and Entrepreneurship .
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