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bandit
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Good point, EC's are tough to verify if there not existing at all. Like I was part of the school computer science association in my under grad and the association does not exists anymore.

Can someone tell us how they go about verifying this aspect ?

Maybe we should ask one of the admission consultants.
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2012dreams
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if one of the companies i worked for went under (not sure if it has, i keep in contact with my old manager but she left shortly after me) how do they verify employment? who do they contact? my old manager?
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Different schools have different criterias that they ask the firm (hired to do background check, such as Kroll) to check up on. Some schools are more thorough than others, even if school A and school B both hires the same background checking agency (i.e. - Kroll).

For example, one school might ask the agency to check most recent employment history only while another school might ask the agency to check every single employment listed on one's resume.
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The background checks and verifications take place after you get accepted, and the company performing the check will gather any necessary proof (usually by contacting the company or EC organization) so it's not something to spend a lot of time worrying about now. Just be truthful on your application and you'll be fine.