The Case of WorldCom

Equality of work ethics is equivalent to the first group of humans who can understand the concept of right and wrong. More specifically, in accounting, the most ethical decisions do not always give the best results. For example, to forge documents and information to improve the company's overall image of the public. For this reason, you can understand why someone is tempted by this unethical behavior. If this type of behavior occurs within an enterprise, WorldCom can be a perfect example of possible problems.

This also applies to WorldCom. Due to accounting breach, the company increased revenue by acquiring competitors. The company records strong financial and credit ratings by recording acquisition losses and obligations as goodwill and not recording operating expenses. This led the investor to believe that the company is making huge profits while suffering losses. As a result of subsequent audits and investigations, billions of dollars of undisclosed debt was found. Like Enron, investors and employees lost their hard-earned savings.

WorldCom and Enron's litigation includes two good examples of realistic scenarios in financial history. As far as WorldCom is concerned, the Board could not fulfill the task of closely monitoring business management activities (Monks and Minom 2004, p. This prevents them from protecting the interests of their stakeholders. Regarding Enron, a total of 18 directors, including Chief Executive Officer, Former Chief Executive Officer, Chief Accountant Officer, and Chief Risk Officer, participate in the Chief Executive's decision to operate its financial statements I applied for it. - 53, Davis, 2005, CNN Money, 2004)

Just before filing bankruptcy, WorldCom was considered one of the largest long-distance companies in the United States. The asset is about 107 billion dollars, the second largest bankruptcy in history. WorldCom's financial downturn is centered on a large accounting scandal, and its total assets have increased by about $ 11 billion. The problematic East Coast airline applied for bankruptcy twice in two years. Although American Airlines had a history of economic difficulties, the first bankruptcy petition began with a terrorist attack on 11th September. Reagan National Airport in Washington, DC is the major airline hub in the USA and has a longer stay than other airports. Even if the airport resumes, security delays and general passive attitudes to flight have a negative impact on the beneficial shuttle service between Washington, New York and Boston.