confessing to engage in price gouging, tax dodges, accounting shams, employee rip-offs, and other shady unacceptable acts are coming to light daily. Unethical and illegal practices are documented from the RJR Nabisco scandals in 1988 to today’s Enron, WorldCom, Merrill Lynch, Arthur Anderson, Xerox, and endless other corporations. The world realizes now that corporate greed is not about one-bad company, but large companies in general that have adopted unacceptable guidelines for corporate behavior and
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Addressing the Challenges of Groups and Teams University of Phoenix LDR/531 WHO8MBA07 Harold Van Alstyne December 16, 2008 Addressing the Challenges of Groups and Teams Turning a group into a team is one of the biggest challenges faced by most of the organization these days. Two or more people together form a group, but it does not form a team. A group becomes team when you treat them as high level. To turn group into a team there needs to be a set measurable goals, define desired
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WorldCom Characters: 1. Val- Scott Sullivan (CFO) 2. Mila- Cynthia Cooper (Internal auditor) 3. Leslie- Employee 1 4. Kylie- Employee 2 (a junior auditor working with Cynthia Cooper) 5. Donna- Arthur Andersen 6. Brynner- David Myers (Controller) 7. Patrick- Bernard Ebbers (ex-CEO) 8. Ivy- The Government (SEC) 9. Ruby- Employee 3 Scene 1: INTERROGATION Setting: Interrogation room Individual frames on each interviewee (Scott, Cynthia, The Employees, Andersen
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Worldcom was founded as a long distance provider in Mississippi region. Later on, the company started acquiring small telecommunications firms what caused a robust increase leading to over thirty seven billion revenues. The year 1999 was marked by a huge slowdown in the internet and telecommunications industries. Wall Street market reacted to this unusual decrease immediately, so the stock prices began to fall. In order to keep the investments and prevent the fall of earnings, Worldcom began
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to ensure that people are not tempted to cross boundaries. What are the four important control systems? After analyzing the WorldCom case I was able to gather what four major control systems that were not implemented correctly and led to their downfall. Risk management is one of the control systems that are very important. Risk management was very ineffective in WorldCom. With a risk assessment strategy in place which usually takes place once a quarter or semi-annually, employees or unit managers
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Rhonda Ellis-Thomas LDR/531 May 30, 2012 Dr. Felicia A. Bridgewater Examining a Business Failure Paper 2002 has witnessed its share of scandals. Enron, WorldCom, Tyco, and Global Crossing are just a few names to mention. WorldCom, the nation’s No. 2 long-distance phone company, filed for Chapter 11 bankruptcy protection in July 2002, approximately one month after it publicized that it had indecorously booked $3.8 billion in expenses (Beltran
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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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DAVID KIRON Accounting Fraud at WorldCom WorldCom could not have failed as a result of the actions of a limited number of individuals. Rather, there was a broad breakdown of the system of internal controls, corporate governance and individual responsibility, all of which worked together to create a culture in which few persons took responsibility until it was too late. — Richard Thornburgh, former U.S. attorney general1 On July 21, 2002, WorldCom Group, a telecommunications company
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confessing to engage in price gouging, tax dodges, accounting shams, employee rip-offs, and other shady unacceptable acts are coming to light daily. Unethical and illegal practices are documented from the RJR Nabisco scandals in 1988 to today’s Enron, WorldCom, Merrill Lynch, Arthur Anderson, Xerox, and endless other corporations. The world realizes now that corporate greed is not about one-bad company, but large companies in general that have adopted unacceptable guidelines for corporate behavior and
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such transactions would not occur. Case 3.3 Q4 Pressure, opportunity and rationalization are likely to be present when a fraud occurs. For WorldCom case, pressure played an important role for fraud to occur when WorldCom faced increasing competition by 2000, WorldCom’s merger with Sprint were called off, stock price dropped more than 20% when WorldCom reduced revenue expectations, and industry conditions worsen in 2001.
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