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Questions On Worldcom

WorldCom engaged in accounting fraud that misrepresented the company's financial performance. The document discusses questions about the pressures that lead to "cooking the books", the difference between earnings management and fraud, why the fraud wasn't detected earlier, the roles and blame of auditors and directors, and whether a specific employee was a victim or villain in the fraud.

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mad2k
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649 views

Questions On Worldcom

WorldCom engaged in accounting fraud that misrepresented the company's financial performance. The document discusses questions about the pressures that lead to "cooking the books", the difference between earnings management and fraud, why the fraud wasn't detected earlier, the roles and blame of auditors and directors, and whether a specific employee was a victim or villain in the fraud.

Uploaded by

mad2k
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Case 4: ACCOUNTING FRAUD AT WORLDCOM

CASE 4 SUGGESTED ASSIGNMENT QUESTIONS (Individual Assignment) Due: 21 November 2013

1. What are the pressures that lead executives and managers to cook the books? 2. What is the boundary between earnings smoothing or earnings management and fraudulent reporting? 3. Why were the actions taken by WorldCom managers not detected earlier? What processes or systems should be in place to prevent or detect quickly the types of actions that occurred in WorldCom? 4. Were the external auditors and board of directors blameworthy in this case? Why or why not? 5. Betty Vinson: victim or villain? Should criminal fraud charges have been brought to her? How should employees react when ordered by their employer to do something they do not believe in or feel uncomfortable doing?

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