My assignment is to do an analysis detailing the accounting frauds carried out by WorldCom (who improperly treated expenses as assets and resulted in bankruptcy. Criminal conviction of CEO and CFO. Over $100 billion in stock market losses. Directors fined $18 million.)
Below is the requirement:
1) Provide a brief background summary of the company leading up to the fraud.
2) Provide a detailed explanation of the facts of the case. Focus on the GAAP Concept that was violated. What was the company doing that was wrong and specifically how did it carry out fraud. Pay attention to the accounting aspects of the case.
3)Who was defrauded? Who gained from committing the fraud?
4) How should the accounting have been handled to comply with the regulations?
5) What is the current status of the company and the guilty parties?
6) Do you think that Sarbanes-Oxley Act would have prevented the fraud and perpetrated? Why or why not?
Please do not use Wikipedia or Investopedia or Yahoo.talk as sources for the Papers.
Please let me know if you have additional questions.
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