Worldcom Essay

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    Worldcom Fraud Essay

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    Worldcom Fraud TABLE OF CONTENTS WORLDCOM MISSION STATEMENT..........................................PG. 3 THE ETHICAL PRINCIPLES AND TENETS OF WORLDCOM ............PG. 4 THE BEHAVIOR OF WORLDCOM ADMINISTRATORS ....................PG. 5 WAS CYNTHIA COOPER A HERO?.............................................PG. 6 WHAT WORLDCOM DID NOT RECOGNIZE .................................PG. 7 THE CONCLUSION..................................................................PG. 8 WORKS

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    Beginning of a Whistleblower Bernie Ebbers, Scott Sullivan, and other members of top management intentionally led Mississippi’s pride and joy, WorldCom, on a 5-quarter charade filled with smoke, mirrors, and much intimidation. They did it hotly pursuing success, monetary gain, and the praise of their fellow statesmen. They did it by abusing work relationships and intimidating employees with promises and threats. Ultimately, they ended up “losing their footing” which caused them and, in turn, others

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    the complicated fraud, WorldCom fraud was the simplest to commit. WorldCom, now known as MCI and acquired by Verizon Communication since 2006, was founded in 1983 to create a discount long-distance provider. The company grew very rapidly in the 1990s due to several large acquisitions. (Beresford, Katzenbach, & C.B. Rogers, 2003) WorldCom completed 3 mergers in 1998 and one of the merger is largest at that time which is purchasing MCI Communications Inc. for $40 billion. WorldCom also merged with Brooks

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    Worldcom Essay

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    Worldcom Question 1. A summary of Worldcom, historical data and background. Worldcom will soon be one of the largest telecommunication companies on the planet. Worldcom has built its global presence through a multitude of financial acquisitions and investments, highly successful product marketing programs, while making business alliances with many of the most successful companies in the technology and telecommunications sector. Worldcom (stock symbol: WCOM), formerly MCI, Worldcom

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    Worldcom Failure

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    WorldCom Failure in relation to its Organizational Behavior LDR/531 - Organizational Leadership October 7, 2010 WorldCom Failure in relation to its Organizational Behavior INTRODUCTION Year 2002 saw an unprecedented number of corporate scandals: Enron, Tyco, Global Crossing, etc. In many ways, WorldCom is just another case of failed corporate governance, accounting abuses, and outright greed. Many people may question if there is a secret to operating a successful business in modern times.

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    Worldcom Failure

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    Examining a Business Failure: WorldCom WorldCom was one of several large companies that failed because of inadequate organizational leadership, fraud, conspiracy, falsifying documents, and embezzlement. WorldCom has been classified as being “one of the biggest corporate scandals in Unites States history” (Zekany, 2004, p. 101). In 2001, the company’s financial condition began to decline due to the slowing telecommunications industry, which eventually put pressure on the company’s executive

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    Worldcom Case

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    3) Roots of the scandal The roots of the fraud and the role of internal auditors As explained above, the fraud was implemented by the former CEO Bernard Ebbers and commited by his financial director Scott D. Sullivan. The technique used by Worldcom was pretty simple; indeed, he cooked the books by saving pure operating expenses such as maintenance network in capital expenditure instead of expenses in order to hide its decreasing earnings and to maintain the price of Worldcom’s stock. In summary

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    Essay on Worldcom

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    Restoring Trust in WorldCom 1. What are the three or four central objectives that Breeden hopes to achieve with the proposals in “Restoring Trust”? Why is reform needed? What are the benefits? What are your concerns regarding the reform? The WorldCom Corporate Monitor, Richard Breeden, believed that in order to correct the ills that faced the company, WorldCom needed to adopt a strong Corporate Governance structure. The central objectives of his proposal “Restoring Trust” included improving

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    Worldcom Case

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    payable and accrued line costs |   | $ 14,739 | WorldCom paid outside service providers to carry some parts of its calls and to carry its customers’ calls on those lines. These costs were fixed monthly payments for the use of lines, regardless of whether the WorldCom or its customers used those lines or not. e- In the case, line costs are capitalized. Capitalized expenditures are booked as assets. In the balance sheet of WorldCom, capitalized line costs must be seen under the transmission

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    Worldcom Capstone

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    WorldCom Inc. – Capitalized Costs and Earnings Quality September 12, 2012 Concepts a. (i.) According to FASB Statement of Concepts No. 6, paragraph 25, assets are probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events. They represent probable future economic benefits controlled by the enterprise. According to FASB Statement of Concepts No 6, paragraph 80, expenses are outflows or other using up of assets or incurrences

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    Worldcom Scandal Case

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    giant, WorldCom during the 1990s that led to its eventual bankruptcy. The report provides a detailed description of the growth of WorldCom over the years through its policy of mergers and acquisitions. The case explains the nature of the US telecommunications market, highlighting the circumstances that put immense pressure on companies to project a healthy financial position at all times. The case provides an insight into the ways by which WorldCom manipulated its financial statements. WorldCom was

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    On Wednesday of March 15, 2005,  Bernard Ebbers who was former CEO of WorldCom received a verdict of 25 years of prision. He was accused of one of the biggest financial frauds. “WorldCom, now known as MCI, filed the largest bankruptcy in U.S. history in 2002. The company's collapse led to billions of dollars in losses for shareholders and employees. Ebbers was convicted in March of nine felonies that carried a maximum prison term of 85 years.” (Crawford). An extensive investigation lead to the discovery

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    Essay on Worldcom Fraud

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    Abstract On March 15, 2005 former CEO of WorldCom, Bernard Ebbers sat in a federal courtroom waiting for the verdict. As the former CEO of WorldCom, Ebbers was accused of being personally responsible for the financial destruction of the communications giant. An internal investigation had uncovered $11 billion dollars in fraudulent accounting practices. Later a second report in 2003 found that during Ebber’s 2001 tenure as CEO, the company had over-reported earnings and understated expenses by

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    Worldcom Case Study

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    WorldCom Case Study: Lack of Leadership, Lack of Ethics Emily Fearnow ORG 500- Foundations of Effective Management Colorado State University – Global Campus Dr. Cheryl Lentz May 15, 2011 WorldCom Case Study: Lack of Leadership, Lack of Ethics A multitude of choices made by executives at WorldCom led to the ultimate demise of the company as it was previously known, the employees and their livelihoods’, and the trust of the American people. In a time when corporations

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    complete disregard of the consequences, which are much larger than simply fines. The Worldcom whistleblower case is incredibly important because it is often viewed as one case that a whistleblower changed corporate America. The Worldcom case led to legislature changes and the creation of Sarbanes-Oxley Act and even the creation of many internal controls within corporate America's organizations. I think the Worldcom whistleblower was not only a positive for that business, which closing of a business

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    Worldcom Bond Issuance

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    WORLDCOM, INC: CORPORATE BOND ISSUANCE 1. IS IT A GOOD TIME FOR WORLDCOM, INC. TO ISSUE? CONSIDER FACTORS IN FAVOR AND FACTORS THAT ARE NOT IN FAVOR. Personally I believe that the time is not in favor of WorldCom in undertaking one of the largest bond issues at the time. Even though there are many advantages with proceeding with the issue, I believe that the degree and the uncertainty raised by some of the disadvantages outweigh the advantages of going ahead with the $6Billion

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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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    Worldcom Ethical Dilemma

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    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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    David Myers, Worldcom

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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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    MANAGERIAL ACCOUNTING WORLDCOM How did it cook the books? Nguyen Bao Khanh Student ID: FB60162 Class: FB0662 May 19th, 2012 APENDIX 1. WorldCom’s accounting scandal 2. How did WORLDCOM cook its books? 3. Conclusion WORLDCOM headquarter in Virginia, USA. WORLDCOM’S ACCOUNTING SCANDAL WorldCom, established in 1983, whose CEO was Bernard Ebbers, was the second largest long distance phone company in the US after AT&T. It could be seen as a pride of America until it got into one

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