Essay on World Com Case
On June 9 2003, the U.S. Bankruptcy Court of New York issued a report on the WorldCom accounting fraud that expands on the court's earlier findings of mismanagement, lack of corporate governance, and concern regarding the integrity of the company's accounting and financial reporting functions.
Supervised by former U.S. Attorney General Richard Thornburgh, the study was commissioned by the court to investigate allegations including fraud, mismanagement, and irregularities within the company. One section of the more than 200-page report, "Accounting and Related Internal Controls," details WorldCom's weaknesses in internal and external audit processes. It also expands on the failings within …show more content…
Deficiencies were noted in the annual The risk assessment used during the internal audit planning internal audit planning process process did not involve quantitative factors to measure risk with respect to internal control weaknesses or prior audit findings. The level of risk was determined by assessing whether or not the audit would add value, i.e., enhance revenue or detect significant cost savings. If an audit area's level of risk did not meet these criteria, the audit would be considered low risk and would not be performed.
Deficiencies were noted in the Thornburgh was concerned by the influence of management internal audit process