Worldcom Essay

Historically, the major factors separating both standards were that IFRS is principles-based and US GAAP is rules-based. In a rules-based standard, there will be less ambiguity and the actions required are more defined whereas in a principle-based standard, there is a possibility of different interpretations being made for a similar type of transaction. (Forgas, 2008). Further, in a volatile economic environment, adopting a rules-based standard would be less risky for accountants and reduce potential

The purpose of this research is to provide a summary outline on internal auditing by uncovering motives behind corporate fraud, executives greed for power, money and influence. These issues will include a transitory story of the Archer Daniels Midland Company (ADM) scandal which results in fraudulent corporate practices using the fixed pricing scheme. If internal auditing practices were implemented at ADM may have saved investors and customers millions of dollars. This topic shifts to company responsibilities

To become a Certified Management Accountant (CMA), you must to satisfy these requirements: • Institute of Management Accountants (IMA) membership • Enter a CMA program • Bachelor's degree from an officially authorized college or university (or a qualifying professional certificate) • Two years of uninterrupted professional experience as a Management Accountant or Financial Manager • Pass both parts of the CMA Exam • Follow the IMA's Statement of Ethical Professional Practice There are two parts

introduction, describes the monumental task to regulate and manage investments for everyone. Costs associated with under regulation can be measured in billions of dollars lost over the past decade in businesses such as Enron, Tyco International, WorldCom, and many others. These corporations misused laws and regulations by inflating earnings and bad corporate accounting practices. The cost to investors was in the billions of dollars and led to onset of laws to include Sarbanes – Oxley Act of 2002

its cash. These are Operational, Investment and financing cash flow. Some times, when a very experimented analysts see a cash flow statement, he can detect problems that would not be obvious from others financial statements alone. For example, WorldCom committed an accounting fraud that was discovered in 2002; the fraud consisted primarily of treating ongoing expenses as capital investments, thereby fraudulently boosting net income. Use of one measure of cash flow (free cash flow) would potentially

------------------------------------------------- Written Case Decision Analysis ------------------------------------------------- GE‘s Imagination Breakthrougs: The Evo Project The case GE´s Imagination Breakthroughs: The Evo Project is a really interesting case, it talks about the dramatic change that the company General Electric had to face in order to grow, and the process that the CEO had to pass in his first years in charge of the company. It also takes us in the quest of understanding

organization, it has many government-like regulatory functions. The PCAOB was created in response to an increasing number of accounting restatements by public companies during the 1990s and a series of recent high-profile scandals like Enron and WorldCom. Prior to the PCAOB, the audit industry was self-regulated

liability. The same fraud is also performed with loans and other short term liabilities by listing them as non-current, improving the equity of the business and increasing the share price. (ACFE, 2014) This was the method of fraud implemented in the WorldCom scandal, which is still

encouraged (Kessel, 2011). SOX was signed by President George Bush on July 30, 2002. Important corporate catastrophes had activated intense publicity and media disapproval followed the end of major corporations comprising of Enron, Arthur Andersen, Worldcom, Tyco, and Adelphia. This bill passed with unanimous votes and intense backing from both House and Senate (Kessel, 2011). The Sarbanes Oxley Act allowed the federal government to have durable guidelines of corporate governance along with inspecting

ramifications the Sarbanes-Oxley Act has had on business in the United States. Sarbanes Oxley (also known as SOX) is legislation passed by the United States Congress in 2002, in the wake of a number of major corporate accounting scandals. Enron, WorldCom, Tyco, and others cost investors billions when their stock prices collapsed. As a result of SOX, top management must separately certify the accuracy of financial Furthermore, consequences for fraudulent financial activity are much more severe. Also