In the early 2000s, several big organisations such as One. Tel, WorldCom, HIH insurance and Enron collapsed because of bad business practices and accounting irregularities. Furthermore, other companies, such as Xerox and Harris Scarfe were forced to restate their earnings, in some cases over a number of years, because of inflation of sales and other accounting irregularities.
1.Investigate any three(WorldCom, HIH insurance and Enron) of the above companies and explain how the irregularities were carried out and the reasons behind them………..
(brief introduce the background of WorldCom, HIH insurance and Enron company and focus on the reason of irregularities.)
2.To the extent possible, determine why these irregularities were not found by the auditors during their audits of financial statements and other related areas of the audit……….