Worldcom auditors settle SEC charges
Former Arthur Andersen auditors agree not to practice as auditors
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,
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.