In May 2002, Cynthia Cooper, vice president of internal audit for WorldCom, the second- largest telecommunications...

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In May 2002, Cynthia Cooper, vice president of internal audit for WorldCom, the second- largest telecommunications company in the United States, faced an extremely difficult decision. After months of scrutiny at the Clinton, Mississippi, WorldCom headquarters had discovered almost $4 billion in questionable accounting entries. As a result of the scandal, former CEO Bernard Ebbers was sentenced to 25 years in prison, and former CFO Scott Sullivan was sentenced to five years. Professor Marianne Jennings on her book on The Seven Signs of Ethical Collapse' states that, when any organization drifts from its basic principles of right or wrong, then it leads to moral meltdown in the organization. Which is exactly what we can observe in the case of Worldcom accounting scandal. Discuss the Prof. Marianne Jennings' seven signs of ethical collapse that you as the accounting professional should investigate and the measures that should be taken to establish an ethical culture in your organization to avoid such moral meltdowns. In May 2002, Cynthia Cooper, vice president of internal audit for WorldCom, the second- largest telecommunications company in the United States, faced an extremely difficult decision. After months of scrutiny at the Clinton, Mississippi, WorldCom headquarters had discovered almost $4 billion in questionable accounting entries. As a result of the scandal, former CEO Bernard Ebbers was sentenced to 25 years in prison, and former CFO Scott Sullivan was sentenced to five years. Professor Marianne Jennings on her book on The Seven Signs of Ethical Collapse' states that, when any organization drifts from its basic principles of right or wrong, then it leads to moral meltdown in the organization. Which is exactly what we can observe in the case of Worldcom accounting scandal. Discuss the Prof. Marianne Jennings' seven signs of ethical collapse that you as the accounting professional should investigate and the measures that should be taken to establish an ethical culture in your organization to avoid such moral meltdowns.

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The seven sign of ethical collapse tha a accounting professional must investigate are as follows 1Pressure to maintain numbers for acheving goals Ever... View the full answer