Why The Ceo Bernard Ebbers And The Cfo Scott Sullivan...

Abstract This research conducted on the investigation of a world wide known company WorldCom, a company that had stolen billions in dollars from investors, competitors, and employees financial, to help live the senior managers lives more luxurious. This research paper will go more in depth to why the CEO Bernard Ebbers and the CFO Scott Sullivan committed financial statement fraud to benefit themselves. This will tell us behind the scenes of the investigation conducted against WorldCom and the consequences suffered to those who committed and helped with the fraud and how to this day WorldCom is still successful. Overview WorldCom Inc. developed in 1983 under the name as â€Å"Long Distance Telephone provider called Long Distance Discount Services, Inc. (later part of a holding company called LDDS Communications, Inc.). LDDS became a public company in 1989 through a merger with Advantage Companies, Inc.†(Report of Investigations). LDDS competed with major long distance carriers such as ATT, MCI, and Sprint; they grew steadily â€Å"purchasing small long distance companies throughout the early 1990s†(Report of Investigations). Between the years of 1991 and 1993 LDDS â€Å"acquired and merged with MidAmerican (Report of Investigations). In May 25, 1995 â€Å"LDDS officially became known as WorldCom after a shareholder voted†(Report of Investigations). WorldCom continued to aggressively grow and become diversify the business through acquisitions, sometimes using its common stock as currency.Show MoreRelatedAccounting Fraud at Worldcom8726 Words   |  35 Pages9-104-071 REV: SEPTEMBER 14, 2007 ROBERT S. KAPLAN DAVID KIRON Accounting Fraud at WorldCom WorldCom could not have failed as a result of the actions of a limited number of individuals. Rather, there was a broad breakdown of the system of internal controls, corporate governance and individual responsibility, all of which worked together to create a culture in which few persons took responsibility until it was too late. — Richard Thornburgh, former U.S. attorney general1 On July 21, 2002Read MoreEthics : Ethical And Ethical Considerations1741 Words   |  7 Pagesand managers being ethical is a simple way of staying out of trouble, and is easier to distinguish between right and wrong. WorldCom was one of the biggest telecommunication company that our world h as seen and also had one of the largest accounting frauds in history. WorldCom was a company that did not stay ethical in their ways of doing business. In accounting, the ethical consideration is honesty. You want to help your client to pay as little tax as possible, but you also do not want to cheat theRead MoreAudit and Wall Street13173 Words   |  53 PagesTHE ACCOUNTING FRAUD @ WORLDCOM: THE CAUSES, THE CHARACTERISTICS, THE CONSEQUENCES, AND THE LESSONS LEARNED by JAVIRIYAH ASHRAF A Thesis submitted in partial fulfillment of the requirements for Honors in the Major Program in Accounting in the College of Business Administration and in The Burnett Honors College at the University of Central Florida Orlando, Florida Spring Term 2011 Thesis Chair: Dr. Pamela Roush Abstract The economic prosperity of the late 1990s was characterized