Worldcom Essay

Following the pervasive financial losses which occurred as a result of the great depression, the U.S. Securities and Exchange Commission (SEC) was established with the guiding principle to instil confidence in current and potential holders of stocks and bonds that publicly traded companies are managing funds efficiently and appropriately, which is to be achieved through “full disclosure” of the organizations’ financial performance in the form of quarterly and annual financial statements…

In 2002, the Sarbanes-Oxley (SOX) Act was passed by congress and signed into law by President George W. Bush. SOX was written as a response to several major accounting scandals that occurred at large companies (including Enron, WorldCom, and Tyco) in the early 2000’s. These scandals forced capital providers and the general public to question the judgement of public accounting firms as well as at the overall reliability of the financial reporting and audit process. The requirements included in…

interest in authentic leadership due to the great deal of societal upheaval and instability that the United States experienced beginning in the late 1990s through 2000s. The attacks of 9/11, widespread corporate scandals at companies such as Enron and WorldCom, as well as massive failures in the banking industry all created a great deal of fear and uncertainty amongst the population. People were longing for leaders who were honest and good. These factors made the study of authentic leadership…

LP4.2 Assignment: Ford Case Study: REVCO BANKRUPTCY Willy Muhigirwa National American University – Online Introduction It’s not an easy fact to know the cost of a formal bankruptcy, depending on the company it can be very expensive and can take a long time before its finalized, it’s really a time-consuming. Revco was in bankruptcy for a long time we can said for almost 4 years and paid out a lot of money directly around $40.5 million after spending also four years.…

auditing.” Bor-Yi and Sean Chen started their article by talking about that the going concern assumption has been under review for the past decade due to many businesses going bankrupt these last ten years such as General Motors and with Enron and WorldCom. To begin, on the issue of going concern is that in…

Not all psychopaths are crazed killers like they are depicted in horror movies. According to research, one percent of the population is a psychopath. This figure constitutes ordinary folks like co-employees, neighbors, friends or online friends. However, the percentage increases to twice or four times for people in high-power positions, including attorneys, business executives, and surgeons, Psychology Today reported. In prison, the percentage of psychopaths is a high 25 percent, according to…

Selective Attention I. The video - 1 "Selective attention test" is a research that demonstrate a group of players with different color shirts passing a ball; it is asked to count how many times the people wearing white pass the ball. The video is an example of selective attention, which is (concentration closely on one particular thing and affect the way we perceive the surrounding world). First the in the video, it is asked the viewers to count how many times the players in white pass the…

standard of morals within accounting practice and businesses. We should be active in this pursuit rather than reactive. Other companies had made similar mistakes in the past. The results were astonishing, who knows when we will have our next Enron or WorldCom. To protect our economy now and future economy, we need to act now. In conclusion, we need to have universal accounting practices that are enforced by law. They need to benefit the innocent parties as well as the companies. This is a topic…

[7] Assume that a close family member came to you with information about a potential fraud at his or her employer. Prepare a summary of the advice you would offer as he or she considers taking the information forward. Before advising information about a potential fraud, it is important for the individual to have an understanding of the facts giving rise to concern. Because understanding of the facts, it helps to avoid prematurely filing a complaint that may be based of perception or emotion.…

The unethical practices of corporations like Enron and Worldcom called for a restructuring of the financial reporting system. It was signed into existence on July 30, 2002 by President George W. Bush, which was considered by many to be reactionary and perhaps rash. The Sarbanes-Oxley Act is named after Senator…