Worldcom Solutions

715 Words3 Pages
First of all, line costs are the amounts that WorldCom paid other companies to be able to use their communication networks for their customers and it included access fees and transport charges for messages. The line costs are an expense and instead of reporting them as an expense at the time, they chose to hold off on paying them and adding them in as an expense so that it would look as though WorldCom was earning more than they really were. The first solution should have been to relook at the financial statements of WorldCom from an ethical standpoint. Instead of ignoring expenses or changing expenses into assets and assets into expenses, WorldCom should have followed the guidelines of the Generally Accepted Accounting Practices and…show more content…
Instead of ignoring the fact that WorldCom was not giving him all the information that he needed to create an unbiased ethically sound audit, he should have insisted on getting the information he needed to complete his audit ethically. Because Arthur Andersen did not, he should have made a note of that in his report for management and the board members and he could have reported the company for giving him false data, not allowing him to meet with necessary employees, and not having pertinent information available to him. Works Cited Accounting Fraud at WorldCom, 9-104-071 (September 14,
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