Rapid economic growth in the late 1990s led to excessive expectations about company profitability. One of the victims of these advances, which lead to cheating of incredible proportions, was WorldCom, one of the largest telecommunications providers. (Javiriyah Ashraf, 2011). in June 2002, the financial world was stunned by news of one of the largest corporate scandals in history, the financial machinations of WorldCom. Financial indicators were distorted to the tune of approximately $4 billion. (www.icmrindia.org)The announcement sent a shock through the business world. How can this happen? How can such a respectable person hide such high expenses from investors? Below I will try to answer these questions. To understand the nature of the fraud we must understand not only the accounting methods but also what was happening in the company's environment at the time of the fraud. (Javiriyah Ashraf, 2011). The company's history begins in 1983 when Murray Waldron and William Rector decided to create a long-distance service provider and called it LDDS (Long-Distance Discount Service). In 1985, Bernie Ebbers, an early investor, became the company's CEO. (Satish C Pandey and Pramod Verma, 2004, p 116). WorldCom was one of the leading companies in the telecommunications industry and operated its business in more than 65 countries. (Satish C Pandey and Pramod Verma, 2004, p 116). WorldCom's operating area was diverse and included long-distance voice and data services, with a customer base of approximately 20 million people and was also one of the largest providers of Internet traffic. (www.economist.com). Telecom companies have flooded the tech sector. Barriers to market...... middle of paper ......ty, Pub. Date: 2008, Publisher: SAGE Publications, Inc., Printed pages: 2276-2277).10. (http://www.economist.com/node/1245862).11. (Journal of emerging technologies in accounting Vol. 3 2006 pp. 61–80, Learning from WorldCom: Implications for Fraud Detection through Continuous Assurance J. Randel Kuhn, Jr. University of Central Florida, Steve G. Sutton University of Central Florida University of Melbourne).12. (Kaplan and Kiron 2004).13. (Rebekah A. Sheely is an assistant professor of accounting at Emporia State University in Emporia, Kansas., WorldCom: A Simple Recipe for Cooking the Books).14. (book Corporate Integrity and Accountability, Why Conflicts of Interest and Abuse of Information Asymmetry Are the Keys to Lack of Integrity and What You Should Do About It, Contributors: Norman E. Bowie, Publication Date: 2004, Publishing House : SAGE Publications, Inc.)