WorldCom

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

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

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

WorldCom was founded in 1983 under the name LDDS Communications, and was considered the second largest long distance company in the nation. According to the Reference for Business website, “formed in 1983 in Hattiesburg, Mississippi, when the breakup of AT&T enabled thousands of competitors to start reselling long distance telephone service to individual and business customers.” The website also goes on to say that WorldCom was also considered a “full-service telecommunications powerhouse in the

[1] What business was WorldCom in? WorldCom was in the business of telecommunications. Where was WorldCom located? WorldCom was located in Clinton, Mississippi. Who was the CEO? The CEO was Bernie Ebbers. Who was the CFO? The CFO was Scott Sullivan. What are the names of the two members of the internal audit staff who worked with Cynthia on their secret investigation? Gene Morse and Glyn Smith What made the internal auditors think that possibly there was a need to investigate WorldCom’s

The actions of former WorldCom Chief Executive Officer (CEO) Bernard Ebbers were extremely indicative of leadership. Unfortunately, Ebbers also displayed destructive deviant behavior that was equally as extreme. He was described by key staff members at WorldCom as a “charismatic leader who inspired extraordinary levels of personal loyalty and high employee performance” (Treviño & Brown, 2005). As a leader, Ebbers gave back to the Mississippi community by teaching at his local church, serving meals

WorldCom Case Study WorldCom Inc. began as a small Mississippi provider of long disntance telephone service called LDDS. It wasn’t till the late 1990s that it began to expand into MFS comminications and acquired MCI acquistions. This late economic prosperity was characterized by a perceived expansive growth that increased the expectations of a company‟s performance. The telecommunication company became a victim of these expectations, which led to the new evolution of a fraud designed to deceive

The Enron and WorldCom scandals Enron #1. The segment that put Enron in difficulties was the LJM1. That SPE was the worst of all four SPE’s. This one had no independant investor that could put up the 3% that they needed for the controlling investor, where CHEWCO would work as a counterparty accounting to the U>S> guidelines. Enron already owned 97% of CHEWCO, where if they had a controlling investor, the profits from CHEWCO would go directly to Enron’s assets. Later, they did not find

WorldCom Sunday, November 07, 2010 10:27 PM The following entries are hypothetical and intended to illustrate the initial recording, and subsequent ‘release’ and ‘capitalization’ of line costs. a. Prepare a journal entry to record $3,500 million of estimated line costs for quarter 1. DR - Accrued Line cost $3,500 CR - Cash and Cash Equivalents $3,500 b. Assume that you find out in quarter 2 that the prior quarter’s estimate was too large by $100 million. Prepare the necessary journal entry

I believe that the proposals will not be effective in preventing another WorldCom for several reasons. First, I believe that many companies operate within their own “corporate bubble” and that many officers and directors probably believe that the problems at WorldCom could never occur at their company. Because of this, they will largely ignore the corporate structural undertakings of companies around them. Next, very few boards will voluntarily shake things up at their company, especially if their