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We will discuss the WorldCom Corporation and its cataclysmic downfall in the first years of the 21st century. Perform independent research on WorldCom using the web and the Walden Library.
Write at least 200 words answering the following questions:
- What specific fraudulent acts transpired, and how did these acts violate generally accepted accounting principles? What evidence may auditors have found to point to these fraudulent acts?
- What lessons can be learned from WorldCom’s accounting practices when dealing with normal operating expenses that become excessive in any given accounting period?
- What are the ethical considerations of adding cost to an asset versus taking a periodic expense?
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