WorldCom Notes Essay
WorldCom was in the business of telecommunications.
Where was WorldCom located?
WorldCom was located in Clinton, Mississippi.
Who was the CEO?
The CEO was Bernie Ebbers.
Who was the CFO?
The CFO was Scott Sullivan.
What are the names of the two members of the internal audit staff who worked with Cynthia on their secret investigation? Gene Morse and Glyn Smith
What made the internal auditors think that possibly there was a need to investigate WorldCom’s accounting?
The internal auditors thought that there may be a need to investigate with WorldCom’s accounting stemmed from an unjustified $400M reserve reversal which bumped revenue. When the inquiry was made as to the justification for …show more content…
Professional standards of the IIA advocates a dual reporting relationship for the Chief Audit Executive to both the Audit Committee (or it’s Chair) and members of senior executive management.
 Often the life of a whistleblower involves tremendous ridicule and scrutiny from others, despite doing the “right thing.” Describe your views as to why whistleblowers face tremendous obstacles as a result of bringing the inappropriate actions of others to light.
Some reasons why whistleblowers face obstacles as a result of bringing the inappropriate actions of others to light may include: o Errors identified may increase the level of work others must perform to ensure no errors go undetected. This increase in work may not be appreciated. o Employees may feel that the whistleblower has shamed the Company and indirectly their own reputation. o Significant frauds such as WorldCom can result in significant layoffs. o The whistleblower may appear to be disloyal to the Company.
 Assume that a close family member came to you with information about a potential fraud at his or her employer. Prepare a summary of the advice you would offer as he or she