WorldCom and The Mississippi Scheme Scandals

Both World Communications and Mississippi programs have a big fiscal scandal. WorldCom is a telecommunications company exaggerating cash flow by reporting operating expenses of $ 7.6 billion as capital expenditure. As of March 2002, WorldCom was the biggest accounting scandal in the history of the United States. The Mississippi Plan was a business plan that destroyed the French economy in the 1700s. In this plan, we anticipate that the purchasing power of bank notes will decline due to the expansion of assets.

WorldCom is the second largest telecommunications company in the United States in 2000 (The World Com Accounting Scandal, 2002). In 1983, in the hinterland of the state of Mississippi there was not much business, reaching the peak of corporate success, revenues exceeded $ 39 billion and MCAP was $ 150 million (The World Com Accounting Scandal, 2002). In that process, it ranked 42nd in the Fortune 500 list. Under the leadership of CEO Bernie Ebbers, the proliferation of acquisitions in the 1990s and the demand for telecommunications services further boosted the development of communications in the world. However, on June 25, 2002 WorldCom announced that it exaggerated revenues in excess of $ 3.8 billion in the first quarter of 2001 and 2002 (The World Com Accounting Scandal, 2002). scandal

WorldCom scandal is one of the biggest accounting scandals in the US corporate history. WorldCom is a US telecommunications company. World Communication Accounting scandal was released in 2002. The company adopted fraud accounting practices in the five quarters (the fourth quarter of 2001 and the first quarter of 2002) (The World Com Accounting Scandal, 2002). A famous telecommunications company WorldCom and accounting, auditing and consulting companies are involved in this large accounting fraud. WorldCom's corporate scandal eventually invited the company's stigma, the biggest bankruptcy in American history.

A scandal and big question about how US companies rule over are Enron and WorldCom scandals for a series of large corporate frauds. Therefore, in 2002 "Public Company Accounting Reform / Investor Protection Act" was enacted. This bill aims to increase transparency and set new standards for accounting firms, senior managers, senior managers, and directors of public companies. According to the company's secretary (2014), one condition of the bill is that companies need to build a strong internal control system that can incorporate them into the compliance process to enhance the integrity and accuracy of business operations about it. 2)