WorldCom CFO tried to hinder auditors

WorldCom CFO tried to hinder auditors

The sacked chief financial officer of scandal-hit WorldCom allegedly tried to hinder efforts by auditors to see expenses shortly before the company's near $4bn (£2.6bn) accounting shortfall came to light, according to reports in the US.

The New York Times reports that former CFO Scott Sullivan, who was sacked in the light of the $4bn blackhole, tried to persuade the internal auditor, Cynthia Cooper, to postpone her capital accounts review in May.

Cooper had already began looking at the accounts before Sullivan intervened. He then tried to get her to delay looking at the accounts until later in the year, by which time he was hoping to “write down” the expenses in the second quarter.

Meanwhile, the Securities and Exchange Commission investigating the WorldCom accounting scandal have appointed former SEC head Richard Breeden to review payments to leading company executives and ensure that WorldCom does not shred important documents relevant to the inquiry.

Related Articles

M&S business rate liabilities based on £570m rateable value

Company News M&S business rate liabilities based on £570m rateable value

9m Emma Smith, Managing Editor
BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

1y Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

1y Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

1y Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

2y Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

2y Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

2y Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

2y Emma Smith, Managing Editor