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
Premium Generally Accepted Accounting Principles Income statement
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 .
Premium Ethics Board of directors Corporate governance
properly trained or properly trained it is essential to look outside the box on the unexplained complaints for an underlying condition that is dormant within the mind. This could range from undetected anxiety‚ undetected depression‚ and post-traumatic stress disorder. Children may be the most vulnerable to undetected anxiety. Keywords: loss of life‚ psychological challenges‚ traumatic events The eight year war in Afghanistan and the persistent threat of terror within the borders of our own country
Premium Psychology Death Life
very important. If the whole society and the whole business world can have the good consciousness and ethical environment‚ the legislation may not so important. Q.4. In each case discussed at some length in this chapter – Enron‚ Arthur Andersen‚ WorldCom‚ and Bernie Madoff – the problems were known to whistle-blowers. Should those whistle-blowers each have made more effort to be heard? How? In each of the case‚ there are whistle-blowers. For example‚ Carl Bass was a whistle-blower to Arthur Andersen
Premium Bernard Madoff Ponzi scheme Board of directors
In the case of WorldCom‚ a national company that began in 1983 and would provide long-distance telephone services‚ it is hard to determine where the problem begins. The case‚ as explained in the book‚ has never really found the core of the problem. We are told that financial reports were falsely created and improper accounting practices were found‚ but who is to blame? The textbook tells us that several of the former top financial executives pleaded guilty to securities fraud‚ however they defended
Premium Fraud Bond Accounting scandals
and employees of such powerhouse companies like Enron and WorldCom that went bankrupt without ever publicizing financial hard times. How could this ever happen? According to Horngren‚ Harrison Jr.‚ and Oliver (2010)‚ both Enron and WorldCom overstated profits‚ but WorldCom took it a step further by reporting expenses as assets (p. 380). Almost overnight‚ lives were ruined and the business community shaken; “the Enron and WorldCom accounting scandals rocked the United States” (Horngren‚ Harrison
Premium Internal control
CASE 4: ACCOUNTING FRAUD AT WORLDCOM Betty Vinson: victim or villain? Should criminal fraud charges have been brought to her? How should employees react when ordered by their employer to do something they do not believe in or feel uncomfortable doing? In discussing whether Vinson should been charged with criminal fraud‚ it can be analyzed from ethical perspective which can truly judge whether she was morally responsible for the wrong or not. In order to determine whether Vinson was morally responsible
Premium Corporate governance Fraud Ethics
unethical) conduct of organization members. For example‚ Bernie Ebbers‚ the former chief executive officer of WorldCom‚ was hailed as a great leader for growing the company into a telecommunications superpower. 69 03-Kidwell.qxd 10/29/2004 10:23 AM Page 70 70——MANAGING ORGANIZATIONAL DEVIANCE Ebbers‚ however‚ was later discredited for his failure to provide moral leadership as WorldCom became engulfed in financial scandals that resulted in the largest bankruptcy in U.S. history (for more
Premium Leadership Ethics
assets. In addition‚ to these unethical behavior there are other unethical practices like insider trading‚ bribery‚ securities fraud‚ and manipulation of the financial markets. In the late 1990’s and early 2000’s both publicly traded companies‚ WorldCom and Enron added weighted truth to the credibility of accounting and business ethics. Both Companies were involved in scandals that engaged in misrepresentation in financial statements and fraud. Enron was one of the world’s leading American energy
Premium Enron Business ethics Audit
generation of employees. The new director was keen to explore more customers. They audit and certificate more accounts and made larger profits for their company. Andersen guaranteed the accounts for dishonest company from John DeLorean to Enron and WorldCom. The code of ethics which Andersen against are: 1. Standard I (A) Knowledge of the Law. Members and Candidates must understand and comply with all applicable laws‚ rules‚ and regulations (including the CFA Institute Code of Ethics and Standards
Premium Accounting scandals Enron Corporate scandals