WorldCom Accounting Fraud and the Law
of a company's stock which can in turn threaten its ability to thrive in the future. WorldCom was part of the highly competitive telecommunications industry and the desire to show that it was more profitable than its competitors as well as the fact that it needed to show that its recent mergers has been financially worthwhile (a difficult task that can take many years to do) fueled corruption at the company. What is the boundary between earnings smoothings and or earnings management and fraudulent reporting? Certain aspects of GAAP (generally accepted accounting principles) actually worked in favor of WorldCom's desire to make the company seem more… Continue Reading...