ACTG 2010 Lecture Notes - Lecture 12: Bernard Ebbers, Accounting Scandals, Internal Audit
12 Jul 2016
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Document Summary
The extent of worldcom"s scandal totalled with b worth of accounting fraud/ mis- accounting. At the time, worldcom"s collapse was the biggest bankruptcy in us corporate history. The shock of worldcom"s collapse was greatly felt. 20,000 workers lost their jobs, while shareholders lost about bn, when the company filed for bankruptcy protection. By mid-1999 worldcom shares reached an all-time high . But in 2001, his attempts to buy larger rival sprint were thwarted by regulators and worries about worldcom"s mounting debt began to emerge. It emerged from bankruptcy in 2004, renaming itself mci. http://www. cbc. ca/news/background/worldcom/ Worldcom buys more than 60 companies, often using its own soaring share price to help fund the acquisitions. 2000 : us regulators decline worldcom"s proposition to purchase sprint corp worlcom wanted to incorporate wireless market (dur to competition conerns) Worldcom discloses that it inflated profits for more than a year by improperly accounting for more than . 9 billion us.
