Please, write a 6 pages Research paper. Note that 6 pages mean 6 pages of double-spaced typed material with one-inch margins left, right, top and bottom, and Times New Roman, 12-point font. The cover...

Executive Summary
U.S financial market had gone through a number of scandals like Enron, WorldCom etc. WorldCom or MCI was small company known as LDDS established in 1983 by Bill Fields and Bernie E
ers. Later on after four years, company went public. A large number of merger and acquisitions made by company which helped in increasing its revenue and made it 42th among top fortune companies. Suddenly in 2002 the company filed for re organization under chapter 11 of bankruptcy code. It was revealed that the profits of company was overstated in 2001 and 2002 by showing capitalization of the expenses. The CEO, top management, internal as well external auditors was involved in this fraud. Later on the CEO and the CFO and other parties involved was punished for their wrongdoings and SOX Act 2002 was made to protect the interest of the investors in the future from such malpractices.
Table of Contents
    Sr. No.
    Topic
    Page No.
    1.
    Introduction
    1
    2.
    Background of Worldcom
    1
    3.
    Early Symptoms of Fraud
    1
    4.
    Accounting Sham
    1-2
    5.
    Auditing Malpractices
    2
    6.
    Key Players involved in Scandal
    3
    7.
    Consequences of the fraud
    3
    8.
    After Scandal
    3
    9.
    Measures taken after the scandal
    3-4
    10.
    Conclusion
     4
    11.
    References
    5
Introduction: From late 1990’s to early 2000’s financial market of U.S went through a number of Scandals like Enron, WorldCom etc. These scandals were such drastic that it resulted in lost of faith of the investors. Many people lost their jobs, investors lost their money, board of directors were punished. So it was felt to make such an act which will help in protection of investors. After the happening of these scandals, Sa
anes and Oxely Act 2002 implemented to help auditors in their work. The SOX Act, 2002 was made to address the issues of financial reporting of large companies. The CEO and other top management persons of the WorldCom involved in the scandal was the reason SOX Act was needed to increase the protection of the investors.
Background of WorldCom: WorldCom or MCI was a long distance phone service provider, which was started as a small company known by the name Long Distance Discount Services (LDDS) in 1983 by Bill Fields and his friend Bernie E
ers. In 1989, E
ers became CEO of the company, and the company went public. During 1990’s Company made a large number of other telecommunication companies’ acquisition which converted its revenue from $ 154 million in 1990 to $39.2 billion in 2001. This acquisition and revenue made it 42th among 500 fortune companies. It had work force of around 85,000 employees and presence over 65 countries of the world. In 2002, the company revealed that it had indulged in fraudulent reporting by stating its profit as $ 3 billion while there was loss of half a million dollar. This was the eye opening scandal in the history of U.S
Early Symptoms of Fraud
· From 1985 to 1999 the company made various mergers and acqusitions to cover the outstanding debt created by the company. The result of the same is merge
acquisition fraud.
· A 400 million dollar loan provided to the CEO, E
ers to prevent him from selling shares of WorldCom was also fraud lent wrongdoing.
· The sudden decrease in free cash flow was also an early warning that something wrong was going on. It was decreased from 351...