BusinessCompany NewsWorldCom 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.

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