WORLDCOM, A failure of Professionalism and Integrity

90.2K

Verified Solution

Question

Accounting

WORLDCOM, A failure of Professionalism and Integrity

Answer & Explanation Solved by verified expert

3.8 Ratings (560 Votes)

WORLDCOM A failure of Professionalism and Integrity In corporate scandals World Com we can see the disregard for ethics not only in the leaders of those companies but also in the auditors who committed professional misconduct The downfall of these two companies not only shocked the corporate world but also affected many common peoples lives their dreams were shattered as many years of their savings disappeared Who should be blamed for these Auditors or the management of the company Both are equally responsible and if auditors had obeyed their code of ethics the result would have been different The stock markets got another kingsized jolt as WorldCom revealed what could turn out to be one of the biggest accounting scandals in US history The stock market and investor had to face another shock when WorldComs internal auditor Cynthia Cooper and her team uncovered 38 billion of fraud which was committed by inflating 11 billion worth assets capitalized recurring expenditures SEC launched an investigation and finally WorldCom declared bankrupt Around 30000 jobs were lost investors had to suffer 180 billion losses WorldCom lost many of its large customers Bush administration disqualified WorldCom in taking up further federal government contract and WorldComs bid to Federal aviation admission was rejected Chicagos Anderson who was earlier convicted fraud in Enrons scandal was also the external auditor of WorldCom during five financial quarters What went wrong with WorldCom And what are the audit failures World Com has misrepresented their profits by capitalizing the general expenditures There are two benefits on doing these things firstly yearly profit increased as See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

WORLDCOM, A failure of Professionalism and Integrity

90.2K

Verified Solution

Question

Accounting

WORLDCOM, A failure of Professionalism and Integrity

Answer & Explanation Solved by verified expert

Get Answers to Unlimited Questions

Membership Benefits:

Other questions asked by students