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Unformatted text preview: Should have stood up and said “No” • Expected turnaround never happened • Problem = WorldCom’s weakening business • Make adjustment twice because they thought they knew what the error was • 3 rd quarter – something not right, needed to be corrected. Myers knew it was wrong • Capitalization of operating expenses • Reserve – offset against income. Subjective, easy to mess with • WorldCom ran out of reserves • Internal auditor Cynthia Cooper – uncovered the fraud...
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This note was uploaded on 08/25/2010 for the course ACCT 208 taught by Professor Kingery during the Spring '08 term at University of Delaware.
- Spring '08