In 1998‚ Betty Vinson was promoted to a senior manager in the firm’s corporate accounting division. Two years later in her position she experienced a major ethical dilemma. The company WorldCom was a very successful company up until the middle of 2000 when the telecommunication industry entered a protracted slump. The company’s earnings were not Wall Street expectations‚ and it was saddled with unpaid bills. Vinson’s job was to repair the problem by doing some wrong accounting practices. The ethical
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Wan-Ting Shao * Ananya Chandra * Niteesh Chinta * Shraddha Rane * Swathi Punreddy The Rise and fall of WorldCom This case study WorldCom is a telecommunications company which was led by CEO‚ Bernard Ebbers‚ and CFO‚ Scott Sullivan. In 1999‚ WorldCom was not meeting Wall Street’s revenue and earnings expectations‚ and it appeared that the coming year would produce more bad news. The CFO argued for setting realistic targets.
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We Need Whistleblower Act Urgently Recently‚ many people are mentioning the buzz word “Whistleblower”. This word originated from United Kingdom where the police will blow their whistle whenever a crime occurs to get the attention of their colleagues and the public. The “Whistleblower” we are talking is to allow the public to be aware of abuses by the government or other institutions‚ so that action will be taken to correct the situation. Generally‚ abuses mean someone has violated the law‚ rules
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What is a whistleblower? The dictionary defines a whistleblower as one who reveals wrongdoing within an organization to the public or to those in positions of authority. Whistleblowers are often misjudged. People view them as traitors when all they really want is to fix the problem or the injustice. Seemingly‚ a whistleblower tends to be the kind of person who has to do the right thing‚ which is telling the truth. Many whistleblowers did not set out to risk their lives. They know the telling truth
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Auditing Case 6.3 Question 1 Recent Developments in WorldCom Case * March 26‚ 2010: Third Distribution of Settlement Fund Made in Accordance with Court Order of September 18‚ 2009. * September 18‚ 2009: Judge Cote Grants Approval of the Final Distribution Plan * February 15‚ 2008: Second Distribution of Settlement Fund Made in Accordance with Court Order of January 23‚ 2008. * January 23‚ 2008: Judge Cote Grants Approval of Second Distribution of Net Settlement Fund. Question
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What is employment-at-will and whistleblower policy? This paper will provide a better understand of what these policy is and how each could apply to the relationship of employer-employee in the work force. The employment-at-will doctrine avows that‚ when an employee does not have a written employment contract and the term of employment is of indefinite duration‚ the employer can terminate the employee for good cause‚ bad cause‚ or no cause at all.[1] Employment-at-will doctrine consisted of three
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Introduction WorldCom was America ’s second largest telecom company in 2000 (The WorldCom Accounting Scandal‚ 2002). Making a modest beginning in the hinterland of Mississippi in 1983 with a meager capital of less than 100‚000 USD it reached the pinnacle of corporate success reporting more than USD 39 billion in revenue and USD 150 million in MCAP (The WorldCom Accounting Scandal‚ 2002). In the process it became 42nd in the Fortune 500 list. Under the leadership of CEO Bernie Ebbers it grew rapidly
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KAPLAN 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 with
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E. Boos – Week 2 – Assignment February 17‚ 2013 The Enron and WoldCom Scandals ENRON 1. The segment of Enron’s operations that got them into difficulties had several parts. They published misleading financial reports. They could not meet their bridge financing commitment with Barclay Bank because outside investors were not found. Because of this‚ they restated activities of JEDI and Chewco SPEs so they could be retroactively consolidated into Enron’s accounts. The SPEs
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In recent years‚ there has been an increase in the number of whistleblowers pointing out questionable acts by the American government. The government has responded by prosecuting the whistleblowers under the Espionage Act. The question then arises‚ what exactly is whistle blowing? In academic literature‚ whistle blowing is defined as "the disclosure by organization members (former or current) of illegal‚ immoral and illegitimate practices under the control of their employers to persons and organizations
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