How Does Fraud In World Com Company And Fraud Failure Fraud

937 Words4 Pages
Analysis of Fraud In World Com Company and fraud preventing techniques

Employees of a company are the drivers for its growth and success. In the report of World Com It shows that In less than a decade Ebber helped the company grew with small investment of 30$ billion revenue which indicates: Misappropriation of using monetary assets because Ebber got easy access of cash and cash equivalents as World com lacked poor internal controls which helped him to gain a lot money.
World com companies internal control system lacked
• Lack of competitive strategy
• Lack of proper personnel to detect and fox hole in accounting reports.
Establishing strong internal control which checks and balance can diminish the easiness of initiating the
…show more content…
This indicates that the company was involved in fraudulent statements by misstating the financial condition of the telecommunication Company by intentionally misstating the amounts or disclosure in order to deceive the investors and creditors.
Establishing company’s organization that can contribute to integrity of financial reporting process, Identifying and understanding factors that led to frauding, Accessing the risk and finally by designing and implementing strong internal controls to provide reasonable assurance to prevent fraudulent financial reporting. It also made several transfers that were not in accordance with US GAAP. Cash flows of $ 3.055 billion were accounted erasing all accounting of internal transfers within expense and capital expenditure accounts as well as largest personal loan was made to CEO Ebber.
This shows that World Com had been involved in frauding Asset Misappropriation of fraudulent disbursements.
Prevention: Fraud preventing techniques should include internal controls preventing frauds such as
• Extensive background

More about How Does Fraud In World Com Company And Fraud Failure Fraud

Get Access