The Securities and Exchange Commission has settled charges with two former Arthur Andersen auditors over their work on bankrupt telecoms giant Worldcom.
The SEC had accused them of failing to exercise due professional care and skepticism in their 2001 audits of the group, WebCPA.com reported.
Kenneth M Avery and Melvin Dick have agrees to be barred from practicing as accountants. Avery can apply to be reinstated in three years and Dick, the lead audit partner, in four years.
Worldcom removed around $3bn in line cost expenses from it s balance sheet in 2001, characterizing the expenses as assets on its balance sheet.
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