Case Study : Cynthia Cooper And Worldcom

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Julie Cihacek Case #1: Cynthia Cooper and WorldCom Internal Auditing September 3rd, 2015 Cynthia Cooper was contemplating over this whole debacle with what was the right decision to make with her discovering “almost four billion dollars in questionable accounting entries”. (Mead) While contemplating something crossed her mind on deciding if she should speak up and become known as a whistleblower, is that her findings could cost WorldCom’s credibility, about seventy thousand employees would lose their jobs, and also pension funds that were loaded with WorldCom stock. Her job as an internal auditor she had a responsibility to WorldCom’s Stockholders and also her own conscious to do something like as the fraud that was uncovered was so…show more content…
Scott Sullivan went to Cynthia and her internal audit team to ask if they could hold off on reporting their findings to the company’s audit committee and that he would take care of the findings in the next quarter. Sullivan also yanked four hundred million dollars from John Stupka, who headed WorldCom’s wireless division so that Sullivan could use that money as an income boost for the company. It led me to believe that he was going to take care of the problem in the next quarter. Only his way of think was to shift funds around that he started to do with John Stupka, or he was going to find a way to fire Cynthia and her internal auditing team. If Cynthia had taken his warning at the hair salon she and her team would also be facing federal charges with having some connection with the fraud. “Although it was not the internal audit department’s duty, Cooper decided that she and several others in her division would investigate the company’s financials on their own, performing what essentially would be a series of mini audits. She did not mention that task to any of the higher-ups at WorldCom; instead, she and her staff worked long hours, often through the night, as they pored over the books.” (Mead) On one side of things, people could see that Cynthia Cooper acted on two code of ethics principles that internal auditors are expected to apply and to uphold. One being her integrity, which states that “internal auditors establishes

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