Worldcom Essay

Sarbanes-Oxley Act was then the key to address all these matters. Passing of Sarbanes-Oxley Act was important in setting the foundation for some accounting principles and filling the gaps shown by the Enron scandal and other accounting scandals, including WorldCom, in the accounting profession. 3.2 Sarbanes-Oxley Act of 2002 Background…

reporting. As your new financial advisor I will explain the important changes made by the SOX act and who is impacted by it. Section One The Sarbanes-Oxley (SOX) Act was the reaction to major corporate and accounting scandals, including Enron and WorldCom. The goal of the act is to thwart and dissuade future accounting fraud, safeguard shareholders and increase confidence in financial reporting in public companies and in the United States capital markets. The SOX Act “applies to all issuers -…

In elementary school, I struggled with the comprehension of the material in my classes. Although, this was a simpler time period in my school career I never excelled in any specific subject until middle school. I have always suffered through Writing and English courses, but began to transcend in math at age eleven. It was at this age where I began to rationally think about my career options in this field. At the time, and even today still, I was intrigued by fashion. Anything from the runways to…

When corporations were first constructed, they were constructed with the goal of serving the investors rather than the management. Their primary objective was to “conduct business activities with a view toward enhancing corporate profit and shareholder gain.” A system of good faith was meant to govern them in which the only interests that were to be focused on were the interests of the corporation as a whole and on the shareholders. The system of governance that existed in corporations began…

identified as a board of directors who, alongside a management team of executives, govern a corporation, compliant to the policies and procedures that are required for a corporation’s success. Because of failed boards and corporations such as, Enron and WorldCom, as some researchers point out, making a distinction of the roles in corporate governance is paramount. As mentioned previously in the introduction of this manuscript, most structures are made up of two-tier boards (Investopedia Staff). …

In the past 15 years, many directors have breached their fiduciary and legal duty that caused many people loses their money. For instance, the amount of money that lost by the shareholders and stakeholders in Enron Scandal, Lehman Brother Scandal, WorldCom Scandal, Tyco Scandal, Satyam Scandal, and Bernie Madoff Scandal are more than $200 billion. The company can sue the company's director if they breach fiduciary and legal duty. A company's director is the person to whom the law looks to deal…

boggling but having worked in many companied in the past that ethical behavior was in some cases a second thought is so alarming. Over the years we hear for people and firms have been fined or jailed for practicing unethical behavior such as Enron, Worldcom, AIG, Bernie Madoff, Tyco and many more. You would think that based on these and many more we would learn the lesson of keeping an eye on internal procedures to prevent ethical…

governance in future. This is because protecting shareholders goes in line with making high profits. Therefore, if the company is making losses, it may misrepresent financial figures in order to deceive shareholders that the company is making profits. WorldCom went bankrupt after its attempt to create illusory earnings that mounted to $3.8 billion in expenditure, in a bid to raise shareholder confidence (Romero 2002). This shows that some firms lack open and transparent…

Introduction: Forensic audit includes lots of activities and it is not part of regulatory guidance. Forensic auditing are the wide range of activities for investigation purpose, which are performed by accountant in practice. The work of the forensic auditor is to investigate the financial affairs of the organization and most importantly includes investigation of any fraudulent activity. Internal auditor can use a third party forensic auditor for this purpose and than report the findings to the…

As the youngest of five, and of those siblings, three are brothers, I can relate to Sally from the chapter 14, Busybodies and Other Fact Tattlers. I always enjoyed tattling on my older brothers, no matter what it was. From the Focus on the Family story, I believe stating that whether Sally had the right intentions of tattling or not was a fantastic point to bring up. Looking back to why I tattled was more for the reasons of making myself look superior to my parents, or in some cases, because…