When WorldCom, a telecommunications giant, failed and was put into bankruptcy, the U.S. witnessed one of the largest accounting scandals in history and was one of the major reasons for the government creating a new oversight board with great power to regulate the accounting profession. (Sarbanes- Oxley Act).
Research the WorldCom scandal and the Sarbanes- Oxley Act and prepare a 5-7 page typed report focusing on the following:
What caused WorldCom’s failure?
Identify some of the unethical accounting practices that lead to their downfall?
What fundamental ethical principles were violated and how were they resolved?