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Both of these companies were involved in unethical accounting practices. While Enron was accused of a vast number of shady dealings that included concealing debts in order keep them from being reflected on the company’s accounts, WorldCom’s accounting practices were so fraudulent that the company was led into the largest bankruptcy in history.
Unethical accounting practices and scandals of the caliber of the Enron / Andersen and the WorldCom scandals is what led the U.S. government to get involved and at the same time contributed to the government’s creation of the Sarbanes – Oxley Act of 2002...
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