AVOIDING INVESTMENTS IN FRAUDULENT COMPANIES: THE WORLDCOM FRAUD Introduction The purpose of this report is to investigate and discuss the accounting fraud that occurred at WorldCom in order to recommend improved strategies to Berkshire Hathaway’s management for avoiding investments in companies with fraudulent financials. Accounting fraud is a crime committed by high level employees at an organization to manipulate the organization’s financial statements and intentionally disguise company
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Financial Statement Analysis and Controls A1. Based on a cursory examination of the horizontal analysis in the financial data provided, Competition Bikes, Inc.’s financial position improved from years six to seven and declined between seven and eight. The sales forecast in the scenario indicates an economic downturn as the reason for 15% decline in Net Sales. The specific analysis follows. A1a. The Comparative Income Statements for Competition Bikes, Inc. shows a 33.3% increase in
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red as if they were bleeding. The woman stood, fearing for her life, and attempted to run out of the court room. While the woman was running, the defendant, Mr. Smith, seemed to reach into his suit pocket and grab what appeared to be a black remote control. It appeared to be covered in odd, glowing buttons, witnesses said. Mr. Smith pushed a series of buttons on the remote as he aimed it toward Samantha. The woman became petrified and fell to her knees grasping her head. She watched the room spin and
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affected for several reasons, but mostly the lack of user awareness. The second is the workstation domain. This domailn is made up of the devices that employees use to connect to the IT infrastructure. This domain requires a strong security and controls because this is where users first access the system. If you can have unauthorized user access situation; make sure you have a strong password and screen lockout policy in place. If you have any software vulnerabilities or software patch updates that
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Effects and Solution of over population Having babies is a hope of most of the parents. In the past, our parents though that their son or daughter should have as many children as possible. However, this advice is not good because it can lead to a social problem called over population. Over population is a condition in which too many people for the environment. This paper analyses the effects and solutions of over population. Over population can cause a variety of negative effects. Firstly,
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WorldCom Case Study The problems with WorldCom are the lack of internal control, disordered corporate culture, management failure and the fraud accounting practices. In this case, the EBITDA has been largely exaggerated. A $3.8 billion EBITDA overstatement became WorldCom’s accounting shame. For companies, EBITDA is a way to measure the results of operations excluding the effect of interest, corporate income taxes, depreciation and amortization of long-term assets. It provides a way to compare
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Project Outline Project Description A. Users at The Department of Social Services are constantly and consistently getting viruses on the organizations computers, also their boss has complained that the specific users are always unable to meet their deadlines. The employees logged onto their computers and downloaded music, works from unauthorized servers, save confidential files to the computer desktop instead of the shared drive, download music and unauthorized personal software on the organization
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So, let’s begin. First, let me explain to you what “Internal Use Only” data clarification standard means. A standard is a detailed written definition we here at Richman Investments have come up with. It is to help put in place certain security controls that are used throughout our information technology infrastructure and how you need to abide by this. The second part of this is the “Internal Use Only”. This is information we have here that is only to be shared internally between this organization
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Internal Controls XACC280 Internal Controls Internal controls are implemented for protection. There are two goals that are important aspects of internal controls to keep the company protected. Assuring that the company’s assets are protected is one goal of internal controls. Some examples would be: stealing, embezzlement, and misrepresentation. The next reason that internal controls are implemented would be to make sure all accounting documentation/records are being kept in the appropriate
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introduction of new, efficient systems and processes. ← Proven ability to improve operations, impact business growth & maximize profits through achievements in finance management, cost reductions, internal control & productivity improvements. ← Distinction of designing and implementing internal control systems to make business processes more robust in the current organisation. ← Adroit in preparing annual budgets, business plans, internal projections and strategizing pricing structure in volatile scenario
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