Worldcom Fraud

Summary On March 15, 2005, WorldCom's former CEO Bernard Ebers sat in a federal court awaiting verdict. As WorldCom's former CEO, Ebbers has been accused of personal responsibility for economic damage of major telecommunications. As a result of internal investigation, $ 11 billion of fraud accounting practices were found. In the second report of the second half of 2003, Ebber's 2001 CEO of the company reported that the company overestimated revenues and underestimated expenditure of $ 74.5 billion (Martin, 2005, Paragraph 3).

This report briefly introduces WorldCom and the telecommunications industry and then explains to Berkshire Hathaway, Inc about WorldCom accounting fraud in detail. We provide advice to reduce future loss caused by investment in fraudulent enterprises. We want the management to better understand the investment with high risk of fraud and make more wise investment decisions. Advice to Berkshire Hathaway includes improving current risk assessment procedures and strengthening investment policies

The purpose of this report is to investigate and discuss WorldCom accounting fraud in order to recommend improvement to the Berkshire Hathaway management to avoid investing in fraudulent companies. Accounting fraud is a crime committed by an organization's senior employee to manipulate the organization's financial statements and intentionally hide the company's performance. Fraud is executed without the owner (shareholders and investors) knowingly. This may benefit fraudsters and may adversely affect owners.

Financial statement fraud Enron, WorldCom, and Tyco fraud plans all contain financial statement fraud. This type of fraud is the most expensive of each plan (the median loss is one million dollars), but it is also not the most common. This usually involves forging the organization's financial statements by exaggerating incomes and underestimating debts and expenses. With 9 answers out of 10, the answer is obvious. The reason is obvious. Thieves who work for test tube wholesalers will face several challenges to challenge illegal benefits in the black market; dishonest employees working in coal mines have many to do whatever is good I need to steal things. But everyone spends money