Order Code RS21253 Updated August 29, 2002 CRS Report for Congress Received through the CRS Web WorldCom: The Accounting Scandal Bob Lyke Specialist in Social Legislation Domestic Social Policy Division Mark Jickling Specialist in Public Finance Government and Finance Division Summary On June 25, 2002, WorldCom, the Nation’s second largest long distance telecommunications company, announced that it had overstated earnings in 2001 and the first quarter of 2002 by more than $3.8 billion
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Enron Company Ethical Issues Case Analysis Format I. Time Context After the scandal revealed on Enron Corporation on October 2001 up until in present time (2014) it is still discussed. II. Point of View Enron was founded in 1985, and as one of the world's leading electricity, natural gas, communications and pulp and paper companies before it bankrupted in late 2001. The Enron scandal, revealed in October 2001, eventually led to the bankruptcy of the Enron Corporation, an American energy company
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WorldCom, the telecommunications giant, once was the largest telecommunications company in the world, with more than $30 billion annual revenue, $104 billion in assets and more than 20 million customers. John Sidgmore (2002), Ebbers’ successor after the scandal, said “WorldCom is a key component of our nation’s economy and communications infrastructure.” However, the giant collapsed in 2002. 2. The Main Issue: Earnings Management 3.1 Definition of Earnings Management A commonly acknowledged definition
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only are Halliburton’s financial statements relied upon by investors, but also the SEC and a number of other interested parties. II. Scandal From 1946 to 2002, the auditing firm Arthur Andersen, LLP provided a variety of attestation and consultation services to Halliburton. A major duty of Arthur Andersen was to audit published financial statements. In a scandal lasting from 1998 to 2002, Halliburton was found to have improperly booked almost half a billion dollars in revenue. Subcontracted construction
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Republic Act No. 9298 The Philippine Accountancy Act of 2004 I. Objectives: a. The standardization and regulation of accounting education; b. The examination for registration of certified public accountants; and, c. The supervision, control, and regulation of the practice of accountancy in the Philippines. II. Scope of Practice a. Practice of Public Accountancy – b. Practice in Commerce and Industry – c. Practice in Education/Academe – d. Practice in Government
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Dawn Carter September 24, 2012 Journal Writing: Can Chapters 4&5 be applied to the Enron Scandal in 2001? What ethical dilemmas were at the forefront of that issue? The Enron Scandal was considered a White Collar Crime. The Enron executives applied for and were subsequently granted government deregulation. As a result of this declaration of deregulation, Enron executives were permitted to maintain agency over the earnings reports that were released to investors and employees alike
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WorldCom is one of the biggest scandals that happen in the world, especially in the United States of America. WorldCom merged with MCI in 1997 for US$37 billion to form MCI WorldCom. Later on WorldCom wanted to merge with Sprint Corporation in 1999 becoming a $129 billion merge, but before the two companies finalized the US department of Justice and the European Union stepped in and didn’t want this to happen, for this merge had the possibility of creating a monopoly. Bernard Ebbers was the CEO
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choices. * Both the Securities and Exchange Commission and the Financial Accounting Standards Board had a hand in lack of the public’s confidence in the accounting profession. Due to the lack of regulation for SPEs at the time of Enron scandal, companies found it easy to exploit the “3 percent” loophole, which allowed them to avoid having to consolidate the SPEs balance sheets with their everyday operations. This, in turn, allowed companies to move liabilities off balance sheet without
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Preamble When we think of corporations today we consider them to be responsible, thanks to CEO's and business advocates portraying it to be so. This concept of believing in corporate goodness is naïve. The cases involving Enron and WorldCom prove just that. This leads us to the taboos in corporate social responsibility discourse. These taboos are rarely discussed, yet it is a very important topic. According to Berger and Luckmann, "from the social constructionist's perspective, social reality
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Hattiesburg, Massachusetts . WorldCom make great growth strokes through mergers, acquisitions, long distance rates, and cutting edge technology in the communications industry. It achieved an unprecedented success that would soon unveil accounting fraud, scandal, and shameful demise. But in 2002 Enron and WorldCom were exposed as corrupt organizations, run by fraudsters that had lined their pockets with tens of millions of dollars and destroyed $240 billion dollars worth of investor's money (BBC News
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