either, so this could simply be a sample size issue. That said, the fact that there are additional punishments for CEOs and CFOs in particular as the result of SOX might make some people think twice. A contrary argument is that the fact that Bernie Ebbers got a 25-year sentence and Kenneth Lay carked it in between conviction and sentencing might have had something to do with discouraging criminals from using the corporate method to acquire their ill-gotten wealth. The other part of the act was
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[pic] WorldCom Case Study FINC 621, Summer 2015 by Hailun Cao Mohammed Altuwaijri Papamagatte Diagne Qian Dou David Ballantine Yanchao Wu Strategic Analysis – Hailun Cao Bernie Ebbers, the chief executive officer, focused on acquisition business strategy. Major Acquisitions includes Advanced Telecommunications Corporation, IDB Communications group, Metromedia Communications Corporation and Resurgens, and Williams Telecommunications group (WilTel)
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University of New Hampshire University of New Hampshire Scholars' Repository Honors Theses Student Scholarship Fall 2012 An Analysis of Fraud: Causes, Prevention, and Notable Cases Kristin A. Kennedy University of New Hampshire - Main Campus, kaj79@wildcats.unh.edu Follow this and additional works at: http://scholars.unh.edu/honors Part of the Accounting Commons Recommended Citation Kennedy, Kristin A., "An Analysis of Fraud: Causes, Prevention, and Notable Cases" (2012). Honors Theses. Paper
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THE NATION’S NEWSPAPER BS2003-01a Collegiate Case Study Enron law firm called accounting practices 'creative' By Greg Farrell www.usatodaycollege.com Accounting fraud Part I: The problems “Creative accounting” is not a new technique, but it can certainly be a costly one. Businesses feel the pressure to appear profitable in order to attract investors and resources, but deceptive or fraudulent accounting practices often lead to drastic consequences. Are these so-called creative practices
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expanded, its direction of business started to drift away when its attempt to merge with Sprint was terminated by the U.S. Justice Department and the telecommunication industry started to deteriorate in 2000. The managers, particularly Bernard J. Ebbers and Scott Sullivan, struggled to maintain the company's main performance indicator, the Expense-to-Revenue (E/R) ratio in order to maintain its lucrative image. As the size of the organization increase through extensive mergers and acquisitions
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Company’s History WorldCom, a long distance discount telephone service, was founded by Bernard Ebbers in 1983. Bernard Ebbers became the CEO in 1985 and the company went public in 1989. Bernard Ebbers was also listed in Forbes as one of the richest men in the U.S. At its peak, WorldCom had about 20 million customers and 80,000 employees and was the second largest long distance carrier in the U.S. WorldCom grew largely by aggressively acquiring other telecommunication companies like MCI Communications
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Ethics are a big concern in making business decisions. Applied ethic in business occurs when ethical and moral issues arise in the business environment. As individuals, we live in increasingly conscience-focused marketplace. One such example, the Body Shop supports fair trade in manufacturing and sourcing its body and bath products. Starbucks, as part of its marketing approach is supporting social responsibility in buying resources and products that benefit disenfranchised individuals in poverty-stricken
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Capital Investments vs. Operational Expenses MBE 503: Accounting and Ethics Instructor James Wright Kimberly Stringer Regular expenses can be expensed as they are incurred or they can be capitalized. Day to Day functions of a business require operating expenses in order to run. Operational Expense (OPEX) include sales and general administrative expenses which do not include cost of goods sold or COGS, taxes, depreciation or interest. Operating expenses show on the profit and loss
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REPORT OF INVESTIGATION BY THE SPECIAL INVESTIGATIVE COMMITTEE OF THE BOARD OF DIRECTORS OF WORLDCOM, INC. Dennis R. Beresford Nicholas deB. Katzenbach C.B. Rogers, Jr. Counsel Wilmer, Cutler & Pickering Accounting Advisors PricewaterhouseCoopers LLP March 31, 2003 I. SUMMARY AND CONCLUSIONS ................................................................................. 1 A. The Nature of the Accounting Fraud..................................................................
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ETHICS IN ACCOUNTING: THE WORLDCOM INC. SCANDAL Conf.univ.dr. Lucian Cernuşca “Aurel Vlaicu” University, Arad, str. Piaţa Sporturilor, nr. 10, bl. 25, apt. 7, 310167 Arad, Phone: 0730468534, luciancernusca@gmail.com What is ethics? What does ethics have to do with accounting? How does a scandal affect the business environment and the society? This article will explain just those questions by analyzing a “famous” fraud scandal: WorldCom Inc. The article discusses the chronology of events
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