This is for Forensic Accounting class ( here is the outline ) Elements of the f

This is for Forensic Accounting class
( here is the outline )
Elements of the fraud tree presented in WorldCom
A. Financial Statement Fraud- Fraudulent balance sheet entries
B. Improper Asset Valuations- WorldCom overstated their assets to raise the
equity of their company
C. Asset Misappropriation
D. Mischaracterized expenses- They shifted labor expenses from one category
to another to show a profit rather than a loss
E. Write off schemes- 685 million dollar write-off
F. Sales-salespeople double-booking sales to generate multiple comissions
III. Red Flags presented in WorldCom
A. They were doing better than AT&T and the data was saying there was no way
they could achieve costs of that nature
B. An internal investigation discovered a dozen salespeople who had been
double-booking sales to generate multiple commissions
C. A 685 million dollar write-off WorldCom took in the third quarter of 2000
D. In 2000 WorldCom gave CEO Bernie Ebbers 400 million dollars in loans and
loan guarantees so he wouldn’t have to sell his stock in the company

The post This is for Forensic Accounting class
( here is the outline )
Elements of the f appeared first on Skilled Papers.