This article is about how WorldCom’s failure happened. According to the article, “more than $9 billion in false or unsupported accounting entries were made in WorldCom’s financial systems in order to achieve desired reported financial results”. As an example of corporate malfeasance, the fraud was deliberately executed by CEO and Board of Directors due to their unrealistic business goals and personal interests. As the article mentioned, one of the measures could have saved WorldCom from bankruptcy was “formalized and well-documented policies and procedures, including a clear and effective channel through which employees can raise concerns or report acts of misconduct.” I totally agree because if every accounting entry had been required by law to made in the company’s financial systems with adequate, transparent and sufficient supporting documents, the fraud couldn’t have had horribly accelerated and could have been stopped. This case also made me wonder how the company’s auditors who were both internal and external did their jobs. Were they not skillful enough to suspect unreasonable accounting entries; or were the financial systems not designed in a systematic and secure way for them to fully inspect; or did they uncover the issue but for some reasons they could not raise the truth? Here comes the significant importance of well-designed & managed financial information systems and business ethics.