Accounting Fraud at WorldCom LDDS began operations in 1984 offering services to local retail and commercial customers in the 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 company 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. WorldCom culture
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Monitoring and Evaluation – 1 PREPARING A CASE STUDY: A Guide for Designing and Conducting a Case Study for Evaluation Input By Palena Neale‚ PhD‚ Senior Evaluation Associate Shyam Thapa‚ PhD‚ Senior Monitoring and Evaluation Advisor Carolyn Boyce‚ MA‚ Evaluation Associate May 2006 P AT H F I N D E R I N T E R N AT I O N A L T O O L S E R I E S Monitoring and Evaluation – 1 PREPARING A CASE STUDY: A Guide for Designing and Conducting a Case Study for Evaluation Input By Palena Neale
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Introduction Cooper Industries‚ Inc. is a manufacturer of heavy machinery and equipment. It has acquired some companies in the past as part of their expansion plans. Cooper acquires companies that are leading in their area of business‚ have a large market share and is the leading company in their area of operation. Currently‚ Cooper is focusing on building a hand tool business with a full product line that would use a common sales and distribution system and joint advertising. In this effort‚ Cooper has already
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turned out to have involved an elaborate scam. Enron was attributed as the biggest audit failure. Enron lied about its profits and stands accused of a range of shady dealings‚ including concealing debts so they didn’t show up in the company’s accounts. Enron’s non-transparent financial statement did not clearly depict its operations and finances with shareholders and analysts. In addition‚ its complex business model and unethical practices required that the company use accounting limitations to misrepresent
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Linford Grant Professor Vernice Johnson-Warren HSM 546 July 21‚ 2013 Problem Identification: Cooper-Pearson is losing employees‚ to its competitor‚ Always on the Ball Sports Marketing Company because it cannot provide a sufficient affordable medical insurance for its employees. Cooper-Pearson must find a resolution to this problem if it intends to remain competitive in the sports marketing industry. In a highly competitive industry such as sports goods‚ owners are resourceful in maintain
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Assignment # 3 WorldCom Accounting Fraud By Mark A. Cowan Strayer University ACC 499- Accounting Capstone May 15‚ 2011 The purpose of this paper is to discuss the aspects of the WorldCom accounting scandal and the effects that this scandal had on the accounting world as we know it. We will discuss the corporate culture at WorldCom and how it contributed to the accounting fraud‚ how the CEO’s desire to be the #1 stock on Wall Street contributed to the fraud‚ pressures on accountants to book
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WorldCom was one of the leading telecommunication companies prior to its application for bankruptcy protection on July 21st‚ 2002. The firm’s decision to file for bankruptcy was a shocker move considering the amount of revenues and asset base the company had. It is believed that the firm was highly involved in fraudulent bookkeeping between the year 1999 and 2000 where they had managed to overstate its taxable income by at least $7 billion. It was also revealed that the company had committed itself
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Executive Summary Accounting Issues: Fraudulent Accounting Practices • $11 Billion Accounting Fraud over 3 years (1999 – 2002) by understatement of operating expenses of $7B through improper release of accruals and improper capitalization of operating expenses • management promoted culture fixed on the numbers • board of directors’ failure to scrutinize billion-dollar acquisitions • excessive loans to executives in order protect stock prices Financial Overview of WorldCom (in Billions)
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Accounting Fraud at WorldCom Vanessa Gail Woods Strayer University Connor-Green/ACC 576 March 21‚ 2010 Accounting Fraud at WorldCom The break up of AT&T opened the long distance service market to small companies during the mid- to late-1980s and 1990s. Long Distance Discount Service (LDDS) opened in 1983 with moderate growth until its stock went public in 1989. CEO Bernie Ebbers decided to grow the organization through acquisitions (70 companies over the course of its lifetime)
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THE SHIPPING INDUSTRY ACCOUNTING TEAM Summary: Sarah (the name given by us) has been working in McKay‚ Sanderson‚ and Smith Associates a mid-sized accounting team located in Boston that is specialized in commercial accounting and audits for past five years. Her specialty is accounting practices for shipping companies‚ ranging from small to certain big fleets along east coast. About two months ago her company merged with another two other accounting firms which has offices in Miami‚ Seattle‚ Baton
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