ETHICS IN ACCOUNTING: THE WORLDCOM INC. SCANDAL
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Authors:
• Lucian Cernuşca, email: unknown, Afiliation: “Aurel Vlaicu” University, Arad -
Keywords: ethics, accounting, bankruptcy, WorldCom Inc., expenses
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Abstract:
What is ethics? What do ethics have to do with accounting? How does a scandal affect the business environment and the society? This article will explain just those questions by analyzing a “famous” fraud scandal: WorldCom Inc. The article discusses the chronology of events that lead to the WorldCom Inc. collapse and explains how the figures were manipulated for the owners’ interest and what the accounting scam was. The article ends with the consequences of the scandal and what the effects were on the society and business environment in general.