1 (10).docx - How could the fraud go undetected How a firm...

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How could the fraud go undetected? How a firm could go got away with these fraudulent accounting practices and not being caught. There are a few reasons as to how could the fraud go undetected. However, the accounting fraud was first discovered by WorldCom internal audit. A small team of internal auditors worked together secretly to investigate and uncovered $3.8 billion of the fraud in June 2002. The corporate culture The corporate culture of an organization is crucial for any business because it reflects the values and principles of the organization. It is the founder and the top management of a company that helps creates corporate culture of an organization. The employees at the bottom level will follow the beliefs and values that flow down from the top. Therefore, if the top management in an organization are unethical or believe it is ok to lie to the public and investors in order to make the company appear good, this attitude may work its way into the company. In addition, Worldcom top management advocates teamwork, but not in the good way. The teamwork alleged at Worldcom was like, the employees will follow what they are told to do and be a good team player. The group conspiring together was a main factor in why the fraud went undetected for
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