fraudulent accounting practices that led to the collapse of Worldcom. Other objectives of this paper will be to demonstrate how these activities were able to go undetected. Also‚ what motives drove the individuals involved to commit these acts. And finally the ethical accounting issues involved. Worldcom got its start as a small discount long distance provider in Mississippi. Founded by Bernard Ebbers and a number of others the idea for Worldcom was simple‚ buy long distance services from larger companies
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Sarbanes-Oxley Whistleblower Monique King‚ Lutecia Butler‚ Pola Jaramillo‚ Vernice Cunningham University of Phoenix Sarbanes-Oxley Whistleblower Abstract: Catherine Zulfer‚ a former employee of playboy filed a suit against them alleging that Playboy Enterprises violated provisions of the Sarbanes-Oxley Act of 2002. The former employee reports that playboy retaliated against her for refusing to participate in fraudulent activity against Playboy’s shareholders (Katz‚ Marshall& Banks
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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) Financial Highlights 1994 1999 2001 2004 Revenues
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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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English Short Stories The Drover’s Wife Summary In “The Drover’s Wife‚” Lawson acknowledges the hardships of Australian women living in the bush. This story was unique in its time‚ as a female protagonist was uncommon. Stories from this period focused on the men living in the outback the drovers and their struggle‚ they dismissed the life of a woman waiting at home suffering in silence during their husbands long periods of absence. In the Drover’s Wife‚ Lawson sheds light on the life of such
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understand what their customers want. Pastry Couture understands that its customers want value for money but do not want to compromise on quality. Some of the potential competitors of the company are the following: 1. The French baker 2. Red ribbon 3. Country style 4. Goldilocks bakeshop 5. Cakes R Us 6. Cupcakes by Sonja 7. Megamelt Bakeshop 8. Salazar Bakery 9. Muhlach Ensaymada C. Market Segmentation Market segmentation refers to the process of dividing prospective buyers into groups that have common
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The WorldCom Fraud © 2003‚ 2005 by the AICPA This presentation is intended for use in higher education for instructional purposes only‚ and is not for application in practice. Permission is granted to classroom instructors to photocopy this document for classroom teaching purposes only. All other rights are reserved. Copyright © 2003‚ 2005 by the American Institute of Certified Public Accountants‚ Inc.‚ New York‚ New York. WorldCom’s Background • Awoke the sleeping giant by leading the telecom
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Important Observations of the Supreme Court and Murders of Whistleblowers. In Indirect Tax Practitioners’ Association v R.K.Jain the Supreme Court gave a precise meaning to the word whistleblower. “A whistleblower is a person who raises a concern about the wrongdoing occurring in an organisation or body of people. Usually this person would be from that same organisation. The revealed misconduct may be classified in many ways; for example‚ a violation of a law‚ rule‚ regulation and/or a direct
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M1. Case Study Assignment: Fraud at WorldCom 1. Who were the major characters in WorldCom? There are a couple of major characters that played their roles in the downfall of WorldCom. Mr. Bernard J. (Bernie) Ebbers‚ one of the founders of the original small long-distance carrier‚ was asked to take charge of the company during its early struggles. It was under his tenure that WorldCom began its expanding pursuits and aggressive acquisitions. Although Mr. Ebbers was he head of the company‚ their CFO
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have been cases where management knowingly deceived the auditors. Then there seem to be other instances where the accounting treatment envelope was pushed just a bit too far. In the case of Enron‚ David B. Duncan‚ the former Andersen partner in charge of the Enron audit who was the government’s chief witness in the trial against Arthur Andersen‚ stood behind the decisions that resulted in the widespread use of off-balance sheet financing in the reporting of certain partnership transactions. (3) Certainly
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