Worldcom

Accounting Fraud at WorldCom WorldCom Group, a telecommunications comp some(prenominal), caused one of the largest pasquinade and bankruptcy scandals in American and global corporate history. In total, more than $11 billion worth of prankulent report entries and misstatements were detected. On July 21, 2002, the federation filed for bankruptcy protection under Chapter 11 of the U.S. nonstarter Code. Bernie Ebbers, Former chief executive officer, was sentenced to 25 years in prison house on July 13, 2005. Major Factors Contri yeted to Fraud The pursuance were several major factors that contributed to the fraud at WorldCom: Company nuance According to the facts given in the case, Bernard Ebbers and Scott Sullivan, the CEO and CFO of the accompany at that clock, had created a company burnish, in which leaders and managers were non to be questioned. The employees simply just did what they were told. This culture discouraged take issue opinion and ensured followers wo uld conform. Moreover, an employee could be discount from a vocation if he or she attempted to argufy senior managers. Hence, about employees felt too insecure to drive forward jealous or fraudulent practices. In addition, the charge of the company did not even put forth any effort to confirm a corporate computer code of demand. As state in the case, Ebbers reportedly described creating a code of place as a colossal waste of time. Without a corporate code of conduct, management appeared to be insouciant with morality and focused solely on the companys goal, which was to be the number one stock on circumvent thoroughfare; therefore, employees tended to commit fraud because they felt that ethical conduct was not a focus or priority at effect the company. Company Structure WorldComs company structure significantly contributed to its failure. The company had acquired 11 companies in only six years, from 1991 to 1997, but had failed to right integrate them in the company. According to the facts given in th! e case, for each one department had its own rules...If you want to bring out a plenteous essay, order it on our website: OrderEssay.net

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