Worldcom Essay

There has been several high-profile scandal in the past couple of years. One of this high-profile scandal is the WorldCom Scandal. The WorldCom scandal took place in year of 2002. MCI, Inc. also known as WorldCom was an American telecommunication corporation, currently a subsidiary of Verizon Communications, with its main office in Ashburn, Virginia. MCI filed the nation's largest bankruptcy in July 2002 amid an accounting scandal that has grown to $11 billion. WorldCom had hid a total of about 3.8 billion dollars in expenses. The some of the major key players of the WorldCom scandal included Bernard Ebbers, Scott Sullivan, David Myers,

This $490 million came from the netting manipulation when they offset their expenses with unrelated gains on the sale of assets. The geography manipulation allowed them to move millions of dollars to different sections of the income statement to “make the financials look the way we want to show them” said James Koenig, one of the primary forces behind the scandal. However, none of the fraudulent activities would have gone unknown for so long without the aid of the auditors, Arthur Anderson LLP, involved with Waste Management.

1. In what ways is the Holy Land an important site for all three monotheistic faiths? For Christians is the city were Jesus was crucified & where He also rose from the death. For Muslims is the place where Mohammad ascended to the heavens to meet God. For Jews, King David had named it and it was where Solomon had built the temple & also the Wailing Wall is in this city.

“Our men are being put into the hottest fighting and are being sacrificed in harebrained ventures like Bullecourt and Passchendaele …and there is no one in War Cabinet to lift a voice in protest…so Australian interests are suffering badly and Australia is not getting anything like the recognition it deserves.” So wrote General, later Sir, John Monash to his wife on October the 18th 1917.

Advancements in weapons in WWII The improvements on weapons had a huge impact on the outcome of WWII due to developments, decoding machine, and most important, rifles and machine guns. WWII had two sides to it. The allies, which was made up of Britain, france, canada, new zealand and many more, but the most important was the U.S(BBC News). The other side was the axis powers.including only Germany, Italy, and Japan.

This article written by Leslie Picker and Cecilia Kang primarily focuses on the issue regarding the merger of cellular phone giant AT&T with the entertainment conglomerate Time Warner. In late October the New York Times broke the news of these two joining and many industry annalists viewed the merger with skepticism as well as, outraged consumer groups. Individuals believed that AT&T and Time Warner would terminate any competition and create unfair pricing in order to encourage more mass media consolidation resulting in a market that would be strikingly similar to a pure monopoly.

The company became successful through the process of buying over 65 assets, and enormous about of money spent. After the internet downfall the company stocks had increased, but putting the company into a lot of debt. Worldcom was soon to be discovered by wall street bankers, investors, etc. Later to become one of the second largest long distance telephone company in the United States. The accounting collapse didn't happen right away. However from the early 2000s Bernard Ebbers, and other employees used fraud and invalid accounting procedures to deceive investors and others. Some people saw it as an honor, until it was involved in one of the largest accounting crimes in American History, Worldcom led to bankruptcy. "WorldCom then admitted to inflating its profits by $3.8 billion over the previous five quarters. A little over a month after the internal audit began, WorldCom filed for bankruptcy.When it emerged from bankruptcy in 2004, WorldCom was renamed MCI. Former CEO Bernie Ebbers and former CFO Scott Sullivan were charged with fraud and violating securities laws. Ebbers was found guilty on all counts in March 2005 and sentenced to 25 years in prison, but is free on appeal." (Case Study: Worldcom, Lee Ann

The United States had entered World War I against many wishes of the American public, which made the ratification for the peace agreement an even more difficult task. Woodrow Wilson justified American involvement by claiming that an Ally victory would ensure a new world order. The war would be used as an instrument to "make the world safe for democracy". However, many Americans, government officials, and even the Allies did not agree with the progressive ideals that would be enforced to attain the peace that Wilson had desired and promised. This was made evident when Wilson's negotiations for the peace treaty were criticized and rejected by the leaders of the other Allied nations and isolationists. Even when Wilson acknowledged

Another corporate accounting scandal that occurred in the United States before the Sarbanes-Oxley Act came into effect was the WorldCom scandal in 2002. Seventeen thousand employees were fired and $3.8 billion dollars in profit were removed from their accounting books after an internal audit discovered improper expense accounting in 2001 and 2002. This improper accounting inflated the cash flow so the company would not report a net loss, only a net gain (Hancock, 2002).

Another very crucial environmental issue, besides global warming, involves the finite nature of natural re, which are being depleted faster than their replenishment rates. The development model of the 20th century, which promoted the continuous consumption of products, has resulted in the reduction of agriculture land, food, water re as also fossil fuels. If humanity continues to consume fossil fuels at the same rate as today, oil re will run out by 2030, gas by 2040 and coal by 2200. By 2025, the number of people suffering due to water stress will rise to approximately 3.5 billion and almost half the world’s population is expected to experience high water stress by

Before 2002, WorldCom was one of the top telecommunication businesses in its industry because of many acquisitions obtained by the company. Due to the increased popularity of the internet and the acquirement of UUNet and MCI

 As a consequence of the governments intervention, the AT&T lawsuit settlement, as well as the shift in the telecommunication industry, it was clear that AT&Ts local telecommunication business was slowly moving away from a monopoly franchise environment. It was moving towards a more competitive environment characterized with more consumer choice and greater competition. Companies such as IBM saw the divestiture of AT&T as an opportunity to provide new telecommunication equipment and services, which would allow them to gain a higher market share. AT&T's stock had up till then been regarded as a stable utility-type stock because of its steady growth and consistent dividend yield. However, AT&T should have kept in mind that they would not have as much market control in the future as they did prior the divestiture, much due to the intensifying competition and regulatory environment changes.

WorldCom was the ultimate success story among telecommunications companies. Bernard Ebbers took the reigns as CEO in 1985 and turned the company into a highly profitable one, at least on the outside. In 2002, Ebbers resigned, WorldCom admitted fraud and the company declared bankruptcy (Noe, Hollenbeck, Gerhart, &Wright 2007). The company was at the heart of one of the biggest accounting frauds seen in the United States. The demise of this telecommunications monster can be accredited to many factors including their aggressive-defensive organizational culture based on power and the bullying tactics that they employed. However, this fiasco could have been prevented if WorldCom had designed a system of checks and balances that would have

From the time of WorldCom’s inception there always seemed to be a tradition in management as if the company was only 100 or so employees. There was a “good old boys” mentality among the limited few running the company and if you were outside that circle then were told only what they wanted you to hear. An unspoken rule among employees was to do what you were told without questions or risk the consequences. One example of this situation occurred when senior management member Gene Morse told an employee “If you show those damn numbers to the f****ing auditors, I’ll throw you out the window” (Kaplan, R.S., & Kiron, D., 2007, p. 3).WorldCom showed no concern regarding an employee’s need and obligation to voice concerns on matters related

This paper will discuss the corporation WorldCom, a telecommunications company that was based in Mississippi. In 2002 WorldCom was involved in one of the largest accounting scandals in the United States. WorldCom inflated its assets by nearly $11 billion dollars, which eventually lead to about 30,000 employees losing their jobs, as well as, 180-billion dollars in losses for its investors. The CEO at the time of this accounting fraud was Bernard Ebbers and led to him receiving a 25-year prison sentence. This paper will go into the details of how WorldCom was able to manipulate its accounting records to deceive its internal auditors, as well as, investors.