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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ACCOUNTING STANDARDS AND REGULATIONS ACCOUNTING STANDARDS & REGULATIONS During the year 2002, the accounting profession was subjected to a series of highly publicized scandals. For example, it was discovered that the prestigious Arthur Andersen firm had played a role in the fraudulent reporting practices that led to the bankruptcy of the Enron Corporation. Andersen accountants had helped the company hide its losses, and had shredded important documents that were relevant to the case. In June
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FRAUD AT WORLDCOM LDDS began operations in 1984 offering services to local retail and commercial customers in he southern states. It was initially a loss making enterprise, and thus hired Bernie J. (Bernie) Ebbers to run things. It took him less than a year to make the comoany profitable. By the end of 1993, LDDS was the fourth largest long distance carrier in the United States. After a shareholder vote in May 1995, the company officially came to be known as Worldcom. Corporate Culture Worldcom
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LENGTH: 6613 words 1. Background On September 26, 2006, Bernard J. Ebbers ("Ebbers"), the former Chief Executive Officer of WorldCom, Inc. ("WorldCom"), reported to a federal prison in Oakdale, Louisiana, to begin serving his 25-year jail sentence from his conviction by a jury on nine counts of conspiracy, securities fraud and related crimes related to the bankruptcy of WorldCom in July 2002. Ebbers' appeals from his conviction and 25-year jail sentence were dismissed by the United States Court of Appeals
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Case #1 Accounting Fraud at WorldCom 1. The objective of financial reporting is to provide useful information to capital providers, which are also known as the shareholders and investors. At WorldCom, the managers not only failed to provide useful information to the investors, but the fraud they created in their financial statements lead to misjudgment for a lot of the capital providers. The actions of accrual releases that the managers performed completely ignored the objective of financial reporting
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FRAUD AT WORLDCOM LDDS began operations in 1984 offering services to local retail and commercial customers in he southern states. It was initially a loss making enterprise, and thus hired Bernie J. (Bernie) Ebbers to run things. It took him less than a year to make the comoany profitable. By the end of 1993, LDDS was the fourth largest long distance carrier in the United States. After a shareholder vote in May 1995, the company officially came to be known as Worldcom. Corporate Culture Worldcom
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WORLDCOM CASE ANALYSIS The WorldCom case is another example of large corporation failures where individuals in the firm failed to act in a morally correct way. Bernard Ebbers, the CEO and Scott Sullivan, the CFO, of the corporation should have been aware of the accounting processes being used in his firm (and undoubtedly he was aware) and should have taken steps to prevent others test for ethics. Authur Anderson also missed opportunities where he could have disclosed the fraud. Cynthia Cooper and
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king-sized jolt Tuesday as WorldCom revealed what could turn out to be one of the biggest accounting scandals in U.S. history. The telecommunications company said it had fired Chief Financial Officer Scott Sullivan, and accepted the resignation of senior vice president and controller David Myers, after an internal audit found improper accounting of more than $3.8 billion in expenses over five quarters. The misstated billions are also very bad news for ordinary WorldCom workers: 17,000 of them
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invest in. There were several merger and take overs in the telecommunication community by WorldCom. When mergers occur there many factors that affect the work of both employees and major management. This case analysis will point out problems and issues that were involved in the failure of WorldCom. It will describe how the mergers put stress on the company to show positive financial statements. (The WorldCom Accounting Scandal) How the company manipulated the statements to their advantage, and legal issues
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The Rise and Fall of WorldCom Shabnam Rakeen RES500-Fundamentals of Quantitative Analysis Colorado State University – Global Campus Dr. Barry Smith The Rise and Fall of WorldCom The aftershock of the fall of WorldCom was not only felt in the United States but all over the world. Once a company that was ranked number 4 amongst the Fortune 500 companies was losing everything and was involved in turmoil of accounting fraud and financial troubles unimagined to anyone (Pandey & Verma, 2004)
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