Case 6.3 Worldcom
Auditing Case 6.3
Question 1
Recent Developments in WorldCom Case * March 26, 2010: Third Distribution of Settlement Fund Made in Accordance with Court Order of September 18, 2009. * September 18, 2009: Judge Cote Grants Approval of the Final Distribution Plan * February 15, 2008: Second Distribution of Settlement Fund Made in Accordance with Court Order of January 23, 2008. * January 23, 2008: Judge Cote Grants Approval of Second Distribution of Net Settlement Fund.
Question 2
I do not believe that Sullivan asking Myers to enter bogus entries is a valid excuse for his improper conduct of financial reporting fraud. It is Myers’ professional obligation to perform his accounting services to the best of his ability bearing in mind what is in the best interest of the public. Intentionally misstating financial statements is by no means in the public’s interest and may lead to decisions that are misleading.
Question 3
I feel that David Myers should be fired from the company for misrepresenting the statements, and I also believe that he should at least have to pay fines. I would almost go as far to say that Myers should lose his license to practice accounting. The accounting field is a very prestigious community that requires members to perform their duties as ethically as humanly possible. I understand that to err is human, but when a person intentionally misrepresents financial statements, they should have considered the ramifications of all their decisions and understood that what they were doing was wrong. These decisions not only effect the specific accountant, but it also effects the entire accounting community, the corporation, and most importantly the public whose interest an accountant is supposed to consider first and foremost. Myers’ actions led to the uncovering of a huge fraud scandal within the WorldCom community that hugely impacted accountants for years to come.
Question 4
It is not necessarily fair/appropriate for federal law
Question 1
Recent Developments in WorldCom Case * March 26, 2010: Third Distribution of Settlement Fund Made in Accordance with Court Order of September 18, 2009. * September 18, 2009: Judge Cote Grants Approval of the Final Distribution Plan * February 15, 2008: Second Distribution of Settlement Fund Made in Accordance with Court Order of January 23, 2008. * January 23, 2008: Judge Cote Grants Approval of Second Distribution of Net Settlement Fund.
Question 2
I do not believe that Sullivan asking Myers to enter bogus entries is a valid excuse for his improper conduct of financial reporting fraud. It is Myers’ professional obligation to perform his accounting services to the best of his ability bearing in mind what is in the best interest of the public. Intentionally misstating financial statements is by no means in the public’s interest and may lead to decisions that are misleading.
Question 3
I feel that David Myers should be fired from the company for misrepresenting the statements, and I also believe that he should at least have to pay fines. I would almost go as far to say that Myers should lose his license to practice accounting. The accounting field is a very prestigious community that requires members to perform their duties as ethically as humanly possible. I understand that to err is human, but when a person intentionally misrepresents financial statements, they should have considered the ramifications of all their decisions and understood that what they were doing was wrong. These decisions not only effect the specific accountant, but it also effects the entire accounting community, the corporation, and most importantly the public whose interest an accountant is supposed to consider first and foremost. Myers’ actions led to the uncovering of a huge fraud scandal within the WorldCom community that hugely impacted accountants for years to come.
Question 4
It is not necessarily fair/appropriate for federal law