WorldCom Fraud Case Analysis
Case Analysis Prepared by: Amanda Harris 547-087-759 Prepared for: Vanessa Oltmann FORE 300 Submitted September 30th, 2012 Table of Contents Introduction Page 3/4 Facts of the WorldCom case Page 4-6 Theoretical Analysis Page 6-8 WorldCom Fraud Risk Analysis Page 8/9 Conclusion Page 9 References Page 10 Introduction The WorldCom Corporation, originally known as Long Distance Discount Service (LDDS), was founded in small town Mississippi by David Singleton and Murray Waldron in September of 1983. With only 200 customers the company was facing expense difficulties and was recording year end losses of around $300,000. It was then Singleton and Waldron found the financial backing and business skills of Bernie Ebbers who was quickly able to turn LDDS into a profitable business. Over the years LDDS would acquire a dozen other small companies and continued to build its customer base ultimately leading it to become a publicly traded company in August 1989 through
Capital budgeting: advantages and limitations
CAPITAL BUDGETING: ADVANTAGES AND LIMITATIONS. SEPTEMBER 2012 CHAPTER ONE INTRODUCTION .0 Background Study Capital budgeting is the process by which firms determine how to invest their capital. Included in this process are the decisions to invest in new projects, reassess the amount of capital already invested in existing projects, allocate and ration capital across divisions, and acquire other firms. In essence, the capital budgeting process defines the set and size of a firm’s real assets, which in turn generate the cash flows that ultimately determine its profitability, value and viability. In principle, a firm’s decision to invest in a new project should be made according to whether the project increases the wealth of the firm’s shareholders. For example, the Net Present Value (NPV) rule specifies an objective process by which firms can assess the value that new capital investments are expected to create. As Graham and Harvey (2001) document this rule has steadily gained in popularity since Dean (1951) formally introduced it, but its widespread use has not eliminated the human element in capital budgeting. Because the estimation of a project’s future cash flows and the rate at which they should be discounted is still a relatively subjective process, the behavioural traits of managers still affect this process. Capital budgeting is a process that is used to
Audit Planning. The first section will discuss the key issues relating to audit planning, business risk and audit procedures and the second section will discuss the aspects of GB Food Ltd that need to be understood by BBK & Co audit team
Nadia ASSALMI This coursework will be divided into two sections. The first section will discuss the key issues relating to audit planning, business risk and audit procedures and the second section will discuss the aspects of GB Food Ltd that need to be understood by BBK & Co audit team, additionally we will describe the audit procures in respect of the amount capitalised and the amount recognised as an expense. Section 1; An audit can be referred to a systematic process of objectivity obtaining and evaluating evidence regarding assertions about economic actions and events to determine the degree of correspondence between these assertions and established criteria, and communicating the results to interest of the users.[1] “The purpose of an audit is to enhance the degree of confidence of intended users in the financial statements this is achieved by the expression of an opinion by the auditors on whether the financial statements are prepared, in all material respects, in accordance with an applicable financial reporting framework. In the case of most general purpose frameworks, that opinion is on whether the financial statements are presented fairly, in all material respects, or give a true and fair value view in accordance with the frameworks[2]”. There are three main stages of an audit; the planning, performing and reporting stage.[3] However, this section will focus
The two companies compared in this report are J Sainsbury Plc and Wm Morrison Supermarkets Plc. This report will compare the two companies using ratios which will be derived from their financial statements.
Introduction Aim of Report The aim of this report is to review the performance and financial status of two companies. The two companies compared in this report are J Sainsbury Plc and Wm Morrison Supermarkets Plc. This report will compare the two companies using ratios which will be derived from their financial statements. What Ratios are Ratio analysis uses ratios derived from financial statements for calculation and comparison purposes. Ratios show how the company is running with comparison to its competitors or its previous years. It shows a firms weaknesses, strengths and helps to predict the future. Ratios are used to determine weather it is safe to invest in a company or not and which company is best to invest in. Limitations of Ratios Ratios are estimates of previous years not taking into account possible future economic changes such as interest rates and inflation. Companies may use different accounting practices which may give misleading information even within the same markets. Ratios have to be compared with something as it cannot show good or bad ratios on its own. Ratios show weaknesses and strengths of companies without showing the cause of problem. Ratio analysis can be expensive causing it unaffordable for small businesses. Profile of J Sainsbury Plc Sainsbury founded in 1869 comprises of 934 stores out of which 557 are supermarkets and 377 are
A briefing report on Cost Management Systems within the SEG Ltd group and how it might be used to improve the Group.
F108MAN - Managing Products and Finance– Assignment 1 0600532 Strathgammon Estates Group (SEG) Ltd Cost Management Systems (CMS) A briefing report on Cost Management Systems within the SEG Ltd group and how it might be used to improve the Group. For: SEG Ltd 8 January 2013 By: Stephen Redfearn Personal Assistant Chief Executive Secretaries Dept. SEG Ltd Contents .00 Introduction 2.00 Cost Management Systems 3.00 Management Advantages 4.00 Management Issues 5.00 Conclusions 6.00 Recommendations 7.00 Appendices .00 INTRODUCTION . The report is required to recognise key decisions and factors that contribute to any inefficiency of the current CMS within the SEG Ltd and investigate how cost management systems which are advantageous to improve the business efficiency by providing better clarity to the SEG Ltd Board. . I will provide a summary to the Board of the evaluation results. It will provide recommendations on improvements that can be made through new or improved Cost management systems in order to drive efficiencies throughout the business. . This report will look to address if there are problems of using traditional the CMS with the aim of generating greater competitiveness, business efficiency and result in growth on a continuing basis throughout SEG Ltd. . With looking into the
A major company elects your group as responsible for the implementation of a new budgetary system that entails consolidating Input from a set of subsidiaries based on a number of different countries. Using current academic and practitioner literature outline the potential operational concerns and how they might be managed.
A major company elects your group as responsible for the implementation of a new budgetary system that entails consolidating Input from a set of subsidiaries based on a number of different countries. Using current academic and practitioner literature outline the potential operational concerns and how they might be managed. Mercedes was established in 1926 by its founder Karl Benz and owner Daimler AG. Mercedes went through a series of logo changes, ending up with the design and logo you see today, which is highly respected and holds strong brand image. Mercedes is a multinational car manufacture with a large customer base in the UK and overseas. In recent years, the mergers of brawn GP and Chrysler have allowed Mercedes to be competitive in the markets in USA and the UK. This is evident in Mercedes financial statement 2012 where it records 6.5 billion net profit[1], which is Mercedes highest in history. Profit after tax was 1.94 billion.[2] However Chrysler profit marjins are low and are viewed as a separate entity. Mercedes implementation of a new budgetary system was the incremental budget, along with Activity-Based budgeting. This was because an incremental budget starts with the estimated amounts for the current financial year, which is based on the provisional accounts of the actual expenditure in the previous financial year. The reason why Mercedes chose this is
Microsoft Audit Planning - 8 Steps
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Frozen - business plan for an ice-cream shop.
. Introduction This report is prepared to start new business called “Frozen”. It concerns the idea of opening a small ice-cream shop with simple product line. The main aims of this report are to analyze current situation of the targeted market as well as competition within. Basing on these findings, the suitably estimated budget and monthly profitable gaining are made. In the report, the findings answer 6 questions below . What is the strengths and weaknesses as well as opportunities and threats of the Frozen 2. How the competitors, suppliers, customers, substitutes and new comers affect the business 3. What is the strategy applied by Frozen Shop 4. How the estimated financial report of the shop is All information is collected from secondary sources on internet. Following these findings, the conclusions are drawn and a number of plans are made. . Business model overview . General company description Objectives The goal of Frozen is to become a healthy, successful chain-store in Hanoi market within 10 years. Its objectives can be divided into 3 phases, namely penetrating, competing and surviving, and expending. In penetrating phase, its objective is to build and raise brand awareness to attract the target customers surrounded University of Commercial. It will take this shop about 6 to 12 months to build its brand and become familiar with its customer. Next 4
Accounting Final Project - analysis of three companies in the UK telecommunication sector.
Content Introduction: The companies: Industry: Telecommunication: Rationale for Choice of Industry and companies: Rationale for choice of ratios: Liquidity ratio: Profitability ratio: Efficiency ratios: Solvency ratios: Preliminary competitive Analysis: Vodafone: Telefonica: BT group plc: Prior research (PESTEL Analysis): Ratios: Project Timeline: References: ________________ ACCOUNTING PROJECT The companies: * Vodafone * Telefonica * BT group Industry: Telecommunication Telecom industry is characterized with great competition, regulation and is having few major players sharing the majority of market. It is highly oligopolistic in nature, creating huge barrier for the new entrants. It is dominated by few key players like Vodafone, BT and Telfonica in UK. It is characterized with low growth, stable revenue, high capital requirements, great operating margins, stable cash flow and high dividends.(Research Report on Telecom, Indigo, 2012) The main objectives to select the telecom industry are as follows:- . It represents a very significant amount of GDP i.e. 3 to 5% of the whole UK economy. 2. It is one of the most important services which are essential for humans as well as business in their day to day needs. 3. It
Economics of Growth and Innovation.
Economics of Growth and Innovation ASSIGNMENT Based upon the following readings: Romer, P. (1986), "Increasing Returns and Long-Run Growth", Journal of Political Economy, 94, 1002-37. (Sections I-III) Romer, P. (1990), "Endogenous Technological Change", Journal of Political Economy, 98, 71-102. (Sections I-II) . Introduction: Theories of Economic Growth For centuries, economists have tried to explain economic growth and what it depends upon. Earlier models, provided by Adam Smith and Robert Solow, emphasized the role of capital accumulation. For instance, in Solow's model (exogenous), growth depends upon increasing the stock of capital goods to expand productive capacity. Thus, the combination of capital deepening1 and technological improvement by nations explains the important tendencies in economic growth. However, his view is based on the fact that adding more capital goods to a fixed amount of labour will diminish the returns to capital. Also, increased accumulation of capital will force downwards the rate of return and eventually, the returns will be so low that no more accumulation of capital takes place. That leaves the technological progress, which is entirely exogenous to the model. So in reality, economic growth is left unexplained! One can say that, in the long-run, Solow's model is stable, because it assumes a tendency towards equilibrium, a balanced