Final Paper: Case Study of WorldCom Financial Statement Fraud Introduction This paper will discuss the financial statement fraud committed by WorldCom by examining what led up to the fraud, who committed it and why, and the impact it caused on various stakeholders and the economy. WorldCom applied aggressive and undisclosed accounting tactics to provide financial statements that reflected a $10 billion profit for the years 2000 and 2001, rather than the actual combined loss of $73.7 billion
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crime Cloud computing risks 2009 Wireless vulnerabilities 2007 M-commerce attacks 2006 Phishing 2002 Cyberstalking 1998 Cyberterrorism attacks 1997 Spam 1995 Identity crime 1995 Online piracy 1995 Botnets 1993 Child exploitation1990 ATM fraud 1985 Funds transfer fraud 1985 Extortion 1980 Denial of service 1980 Creeper virus 1971 Computer hacking 1970 Telemarketing scams 1965 Phreaking 1961 Organised
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with aggressive growth goals. The CEO, Pierre Everaert, launched the aggressive acquisition strategy that actually accelerated the corruptive situation. When in the 2003 the first announcement of accounting irregularities appeared, it disclosed the frauds of previous years. That made a hint to so many lawsuits and litigations that even after establishing “Road to Recovery” strategy, company remains to be not trust worthy. The most important ethical issue that can be seen during the whole processes
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Types of Fraud This paper will discuss fraud as well as differentiate between the different types of fraud. It will explore the reasons why people commit fraud, the types of people that are committing fraud, and the motives for people to commit fraud. Second, this paper will also discuss the fraud triangle along with the importance. Third, it will discuss some of the controls that prevent and detect fraudulent behavior. Finally, an exploration of whether rationalization contributes to fraud.
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and salary paid are correct * Posting & Summarization-compare payroll master with general ledger * Classification –establish identity for each employee and correct pay rate * Timing-verify whether payroll was issued efficiently Payroll frauds do not take place as much as it used to, that does not mean it will not occur. Fraudulent activities such as fabricated employees, overpaying employees, and continuing employees on payroll after they have left the company are a risk. That is why a
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percent of all United States Internet traffic and 50 percent of all e-mails worldwide. By 2001, WorldCom owned one-third of all data cables in the United States. In addition, they were the second-largest long distance carrier in 1998 and 2002. How the Fraud Happened So what happened? In 1999, revenue growth slowed and the stock price began falling. WorldCom's expenses as a percentage of its total revenue increased because the growth rate of its earnings dropped. This also meant WorldCom's earnings
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been exposed as a fast talking con artist who bilked his closest friends and Wall Street out of millions of dollars. Barry Minkow began serving a twenty-five-year prison sentence after being tried and convicted on fifty-seven counts of securities fraud. ZZZZ Best differed in part from a typical Ponzi scheme in that Minkow’s carpet-cleaning business was very real. "Indeed, the carpet-cleaning division won high marks for its quality." (Miller) However, its insurance restoration division, which eventually
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informant t hat ZZZZ Bests insurance restoration business was fictitious. The informant had contacted Ernst & Whinney in April 1987 and asked for $25,000 in exchange for information proving that one of the firms clients was engaging i n a massive fraud. Ernst & Whinney refused to pay the sum, and the i ndividual recanted shortly thereafter, but not until the firm determined that t he allegation involved ZZZZ Best. (Congressional testimony dis closed that t he individual recanted because of a bribe
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for economic crimes The history of economic/financial crimes is nearly as old as wealth itself. A white-collar crime is now synonymous with the full range of frauds committed by a business and/or government professionals in which the offender’s principal motive is economic gain. Fraud it’s not a victimless crime; a single scam or fraud can destroy a company, devastate families by wiping out their life savings, or cost investors billions of dollars. To combat white-collar crime, the U.S. Congress
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There are two Holden's in this play. One is the character and the other is the narrator. His honesty is entirely internalized. He admits his faults and lies in narration, but can't do the same with other people. I personally like reading stories where the main character is telling the story. In this way, I have noticed some contradictions in Holden's personality. He criticizes everyone in society because they are being phonies when he lies all the time leading him to be a phony himself. Right from
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