Abstract During the 90s the world lived a decade with significant changes. They were multiple companies with a significant influence power to the customer, and the markets behave in general. During this decade the world experienced prosperity and perceived expansive growth with high expectation in the company performances. WorldCom was one of these golden groups during this decade. It was called to be one of the principal if not the largest telecommunication company in the world. However, the fraud and the corruption inside the organization changed this entire excellence panorama and brought one of the biggest fraud cases. WorldCom the empire destroyed by fraud and internal corruption. WorldCom was one of the prominent companies …show more content…
The most important for Bernie Ebber was the results and not the way to achieve the result. He did not have any respect or intention to reward ethical business practices. The non-presence of ethic inside of the organization generated a perfect space to create fraud, corruption, and general confusion (Beresford, Katzenbach, Rogers, 2003). This entire plan was not only done by Bernie Ebber. There was a selected group of senior executives with him. This secret information with the time caused uncontrollable suspicious inside the company and more detailed with internal audit department. However, Cynthia Cooper, the Vice President of Internal Audit was having some doubts that the Chief Financial Officer Scott Sullivan and other executives were not taking the correct financial …show more content…
It is a law that has some accounting requirements for U.S. public companies. This Act covers responsibility of a public corporation’s executive managers. The directors with some fraud conducts could be accused with criminal penalties and could be convicted and sentenced to several years in prison (Sarbanes Oxley 101). This Act brought some regulation to help the companies to avoid this fraud cases. Inside this regulation define the auditors’ figures more independent and with a rotation to different companies to avoid any attachment or link between the businesses and the auditors. The Codes of Conduct inside the companies need to be focused on avoiding any conflict of interest, and let to the employees know the consequences of being part of a fraud conspiracy. Due to the fault of this criminal cases could be caused by the executives of the companies, there have created the white collar crime penalty enhancement. This point defines the criminal penalties related to the corruption by manipulating financial reports. The Sarbanes–Oxley Act is a great tool to avoid any fraud conspiracy inside the companies. It was necessary to protect the economy from the ones who are only are finding the own benefit (Sarbanes Oxley