Analysis of WorldCom

Abstract

Fraud affects everyone. Sometimes without them even knowing. Accounting fraud in the corporate world may seem infrequent, but some of the largest accounting scandals happened within years of each other. WorldCom was a telecommunications company that existed until the early 2000s. After several WorldCom employees committed accounting fraud, the company filed for the largest bankruptcy ever recorded in the United States. This accounting scandal demonstrates the importance of ethical standards and internal controls in the work place. Even if one thinks they will never commit fraud on a large scale, they will never know until they are in a situation where they feel they have no other choice.