Considering the WorldCom scandal, fully complete the 7 questions noted below. Required questions to answer as part of the discussion. Note: All questions must be answered (using complete sentences) in order to gain full points. List out each question number followed by your response. A minimum of 2 complete sentences is required. Some questions (3 and 4) will require more than 2. Points will be deducted for partial answers and incorrect sentence structure.

1. In your own words, describe the background of the company and the scandal. What happened?

2. Who were the key players noted in the scandal. Describe their relationship with the company.

3. Were there any political pressures? If so, explain.

4. Were there any financial pressures? If so, explain.

5. Refer to Chapter 2 of your textbook. What particular accounts (elements) were impacted? How much the total amount that was overstated and/or understated? As a result how did the erroneous transactions impact both the income statement and the balance sheet?

6. Refer to Chapter 2 of your textbook. As it relates to financial reporting, which of the qualitative and/or enhancing qualities are not considered? Which of the basic principles of accounting were violated? Provide explanations for both responses.

7. What was the consequence for the company and the key players?

Identify What measures could have been taken to prevent the scandal from occurring?