companies like Enron and WorldCom

Enron and WorldCom were major companies that engaged in widespread financial fraud to appear more profitable than they truly were. Enron used complex accounting methods to hide debt and inflate earnings, while WorldCom falsely inflated its income by manipulating accounting entries. Their executives prioritized short-term stock price gains over transparency, which eventually led to their collapse when the fraudulent activities were exposed. These scandals highlighted flaws in corporate oversight and accounting practices, prompting reforms aimed at increasing transparency and accountability in financial reporting.